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May 28, 2013 - No. 65

The Crown in Parliament Generates
More Disequilibrium in Canada

The Crown in Parliament Generates More Disequilibrium in Canada
- K.C. Adams

Matane Fish Plant Workers in Gaspésie Forced to Refund EI Benefits
Harper Government Eliminating Discretion of EI Staff to Consider Concrete Employment Situation in Regions - Pierre Chénier
Communications between Unions, Defence Organizations and Lawyers and EI Officials No Longer Possible
Number of Workers Receiving EI Keeps Falling


The Crown in Parliament Generates
More Disequilibrium in Canada


Parliamentary Discussion on Implementation of Omnibus Budget Bill C-60 with TML Comments in Double Parentheses

Bill C-60 includes amendments to the Financial Administration Act. Specifically discussed are "The Omnibus Budget Implementation Bill Measures for Crown Corporations Negotiations."

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((Excerpts from Hansard, May 7, 2013.))

Mr. Pierre Poilievre (Parliamentary Secretary to the Minister of Transport, Infrastructure and Communities and for the Federal Economic Development Agency for Southern Ontario, CPC):

Mr. Speaker, let us speak of kings and queens and crowns. At the culmination of the Glorious Revolution in 1689, the British Parliament allowed William III and Mary II to ascend to the throne, but there was a catch: they would need to accept the convention of the right and the Bill of Rights, which established Parliament as the ruling power of Britain. It would become the mother of all parliaments, including our own.

While an imperfect document, some of the principles of the Bill of Rights live on to this day. One of them would later be described as no taxation without representation or, in the words of the Bill of Rights itself, that "levying money for or to the use of the Crown...without grant of Parliament...is illegal". Simply put, the Crown can only spend the people's money with their consent, and only Parliament can grant that consent.

Three hundred and twenty-four years later, the principle is the same. Government cannot spend what Parliament has not approved, which brings us to the Crown, or crown corporations.

Under present rules, they may enter into a room with a union leader, negotiate an agreement and send the bill to taxpayers, who do not have a say but must pay. The people's servants in Parliament do not vote on it, nor does the elected government sign off, so in this respect it is as though we have returned to the mid-17th century, when the Crown levied money without grant of Parliament.

((Poilievre begins by describing past battles for rights to defeat current battles for rights. The economic base, social class character and politics of 1689 England have been completely transformed there and in Canada. Worldwide, petty production of the previous era has been overwhelmed with industrial mass production out of which has emerged the modern proletariat, the most advanced and numerous social class with rights that reflect its modern character and indispensable role within the socialized economy. The working class is in battle with owners of capital and their government representatives to defend its rights including its right to negotiate its claim on the value it produces and the services it provides.

The Harper government representing the private interests of owners of monopoly capital want to deprive workers of their right to negotiate their claim on the value they produce and services they deliver, and their working conditions. Poilievre begins his attack on the rights of the working class with a gross falsification of the origin of value within the Crown Corporations on which the public sector working class makes its claim. The origin of this value is mostly found in the work itself undertaken by the workers of the Crown Corporations. The origin of value claimed by the public sector workers is mostly found in their work and not from "levying money for or to the use of the Crown."

In contrast, Poilievre's claim for a salary and that of Harper and other colleagues in the House and Senate come from "levying money for or to the use of the Crown." That is not the case for the vast majority of public sector workers including those of Canada Post, whom Poilievre singles out for abuse in a gross distortion of the reality. He suggests the Post Office and its workers do not produce value and do not contribute to the economy and the public treasury. He says Canada Post and its workers and other public sector workers are a drain on the public treasury and therefore should not have the right to negotiate their claim on the value they produce or on their working conditions. Poilievre is backward and wrong both on the issue of the origin of value and on the right of workers to bargain their claims regardless of what owners of capital may believe is the origin of value.

Piolievre is using the words of the English seventeenth century Bill of Rights to justify granting himself and his fellow Parliamentarians the right to decide their claim on the public treasury for the work they do. As members of Parliament, they levy money and grant its use for themselves as salaries and expenses. Poilievre and his colleagues consider this right to decide their claim a privilege of those in Parliament, not a right of all who work. But rights are determined within the historical material conditions and any social force that denies those rights does so at its peril.

The tumultuous period of seventeenth century England found an insurgent people demanding their rights and determined to solve the political and social problems of that time in history. The Crown asserted its right of absolute power to deprive the people of their rights. The insurgent people subsequently deprived the Crown of the power to deprive the people of their rights.

The Crown in Parliament today is perpetrating conditions of disequilibrium by depriving the working class of its rights. Under the hoax that workers' rights are in contradiction with the seventeenth century English Bill of Rights, the Harper dictatorship has justified bringing forth legislation to deprive the working class in Crown Corporations of the right to bargain and negotiate its claim on the value it produces and services it provides. This legislation is contrary to twenty-first century conditions and modern definitions of rights and is unacceptable. Harper and his flunkies are preparing for a clash with the working class on the question of modern rights.

The Harperites are using their hold on the state authority to deprive workers of their rights. This brings workers into a direct clash with the Crown in Parliament.

Similarly, but not the same as the insurgent people of seventeenth century England, the Canadian working class of the twenty-first century is determined to defend its rights and have those rights enshrined and guaranteed by the state authority. Responding to the retrogressive actions of the Harper dictatorship, this requires depriving the federal and other governments across Canada of the power to deprive the working class of its rights.

Canadians are asking Harper and others of his ilk in government to reflect seriously on whether they want to face similar disequilibrium that the Crown faced from an insurgent people in seventeenth century England or whether they should back off from such a fight. Harper's actions with legislation such as Omnibus Bill C-60 indicate that he is willing to take the risk of disequilibrium. TML is convinced the Canadian working class and its allies are up to the challenge.))

((To be continued -- Contrary to the ravings of Poilievre, workers at Canada Post produce the value from which they make their claims. They have the modern right to an organized and effective say regarding their claims on the value they produce and for working conditions suitable to themselves, as do all public and private sector workers.))

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Matane Fish Plant Workers in Gaspésie Forced to Refund EI Benefits

Harper Government Eliminating Discretion of
EI Staff to Consider Concrete Employment
Situation in Regions

In April, 120 workers at the seafood processing plant Fruits de mer de l'Est du Québec in Matane, Gaspésie, were dealt a severe blow by the Harper government with its anti-social changes to the Employment Insurance (EI) regime. Workers must pay attention to what this attack reveals in terms of the direction of the anti-social offensive.

For 17 years these Matane workers have had an arrangement with the EI regional office and the company according to which they worked seven days in a row and were off on EI the week after. Instead of having half of these workers laid off and the rest working more hours, the hours were split between more workers and the loss of income was partly compensated for by EI benefits. This was a work sharing arrangement common in regions of higher unemployment and there are still a lot of places where that kind of arrangement still exists. These arrangements were authorized by the employers and the regional EI offices and reduced to some extent the number of workers who did not have a job. The EI staff exercised their discretion in addressing definite concrete conditions in the regions where they operated. Such has been the arrangement in Matane for the last 17 years.

The EI investigators in the region recently ruled that this arrangement was illegal under the Employment Insurance Act. They have abolished it, the immediate result being the lay off of 50 of these workers and 80 of these workers have been ordered to refund their last two years of EI benefits, an amount that could reach $14,000.

The EI investigators deny that the workers who worked seven days in a row and were off the next week were part of an arrangement that was a form of work sharing in an area of high unemployment. They argue the second week was merely "time off to recuperate after working seven days in a row. Anti-Human Resources Minister Diane Finley said in Parliament that if the workers disagree with the ruling they can file an appeal with the EI appeal system, showing total disregard for the workers who have lost their jobs in a region plagued by high unemployment and with very little economic activity besides seasonal work.

Clearly it never entered her mind that her government has any responsibility to provide jobs to the workers of these regions. She also neglected to mention the changes her government made to EI include a new appeal process that has been unanimously denounced by workers and the defence organizations of the unemployed as a means to rubber stamp EI cutbacks. She went so far as to say that there is an investigation going on which shows that fraudulent claims were made in Matane which amount to hundreds of thousands of dollars being stolen from the EI regime. This from a government which with the previous Liberal government "legally" took $57 billion of "surplus" from the EI fund (the "surplus" itself resulted from drastic cutbacks in EI benefits) to service Canada's debt to the financial oligarchs.

Workers cannot agree that the Matane workers did anything illegal or were involved in something illegal when they entered into this arrangement that was based on an understanding among the employer, the EI regional office and the workers themselves that the EI regime was about mitigating the problem of unemployment and its devastating impact on the lives of workers and communities. They based themselves on an interpretation of the Employment Insurance Act that was not challenged at the time, meaning that these arrangements were considered acceptable work sharing agreements.

Now the Harper government is using anything it can think of to cut off benefits to EI recipients. When it finds something in the Act that serves this purpose, it does so, as in the case of the Matane workers where the EI investigators argue that the workers received benefits to recuperate when everybody knows that these arrangements had nothing to do with taking time off to rest and everything to do with unemployment.

When the Act does not fully serve the aim of stepping up the cutbacks to EI benefits, then the government changes the law. That is what it just did in a most sneaky way when it removed categories of what constitutes unsuitable employment for EI beneficiaries from the law and moved them to the regulations and made them much more draconian for the workers. Now these regulations, besides being anti-worker to the core, can be changed at will by the Minister without the assent of Parliament.

The Harper government’s scandalous decision against the Matane workers, will probably be followed by similar decisions in other areas. Such decisions will eliminate the discretion of the EI staff to deal with the concrete reality of the workers in their regions and transform them into mere instruments for purposes of cutting unemployed workers off EI benefits no matter what the cost. This is part of the government’s arsenal to cut EI benefits, force unemployed workers to fend for themselves and lower the living and working conditions of the workers. At the same time it has eliminated a pilot project that gave five additional weeks of EI benefits to workers in regions of particularly high unemployment, is increasing surveillance of workers and draconian regulations that can be changed willy-nilly by the Minister and taking other measures.

Workers are not fraudsters or criminals. They are faced with an economic system and authorities that are not able nor interested in providing employment for all, but instead create havoc in peoples' lives. Workers are being penalized and criminalized for problems they did not create.

This must not pass! The Matane workers did nothing wrong! The Harper government must stop at once its harassment of workers on EI and of regions that are already affected by the wrecking of manufacturing and are going through most difficult times.

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Communications between Unions, Defence Organizations and Lawyers and EI Officials
No Longer Possible

A number of defence organizations of unemployed workers were informed recently that from now on Service Canada is no longer able to receive verbal communications between unions, defence organizations or lawyers and EI officials when dealing with cases of EI beneficiaries. From now on, only communications in writing or by fax will be accepted. This is one more blow from an anti-social government hell bent on forcing unemployed workers to fend for themselves and face that big EI steamroller alone. The unions and defence organizations of unemployed workers are committed to forcing Service Canada, acting on behalf of the Harper government, to back off from this new measure.

Direct verbal communications, mostly over the phone, between representatives of EI beneficiaries and EI officials assigned to deal with them is a necessary component of the day-to-day work of the organizations that represent the workers. An unemployed worker goes to the office of a defence organization and authorizes it to represent him in dealing with the EI office. According to activists who defend the unemployed, a large number of cases can be sorted out through a phone conversation with an EI official if the problem is one of a technicality, an administrative mistake, a form that was not filled out properly etc. These phone calls are also used by activists to learn from officials why the EI recipient was cut off or their claim rejected and that assists in the preparation of the worker’s defence. After a worker's claim is rejected or their EI cut off, there is a period of only 30 days to demand a review of the ruling or to file an appeal if the review is unfavourable to the worker. Writing a request causes a huge delay in the process, not to mention the fact that the defence organizations have very few staff and are dealing with an increasing number of cases and that EI staff also are being drastically cut in the context of the Harper government’s slashing of the federal public service.

There used to be EI staff specifically assigned to deal with the representatives of unemployed workers. They were called liaison officers and they had decision-making power to some extent. In 2010, this position was eliminated and a new one -- "specialists" -- was introduced to provide services to citizens. These were EI staff who have no decision-making power but who nonetheless could directly answer questions put to them by unemployed workers’ representatives and be a link with decision-making bodies. They have now been replaced by fax machines and nobody knows who will handle these!

According to the unemployed workers’ defence organizations, this new measure of the Harper government is going to make their work of representing and defending the workers much more difficult. They recall that such a measure was attempted by the government in 2010 and had to be withdrawn because it was not manageable. They say the measure is going to push more workers to use the new appeal system that was introduced by the Harper government on April 1 as part of its anti-social changes to the EI program, while the government makes it much more difficult for the organizations to prepare an appeal and the appeal system itself is smashed.

The previous appeal regime was made up of boards of referees operating in all the regions on a tripartite basis -- a chairperson, a representative of the workers and a representative of the employers. There used to be more than 800 people across the country working for the appeal system (they worked for both the EI and the Canada Pension Plan/Old Age Pension regimes). If the decision of the board of referees was unfavourable to the worker, an appeal could be made to an umpire who could overturn or maintain the decision of the board. In the new system, the whole appeal system (of the EI and CPP/Old Age regimes) is centralized in a Tribunal of Social Security which sits in Ottawa and is run by a single individual, assisted by 74 people across the country, all appointed by the government. The workings of the new system are not all known but what is known is that all decisions are going to be taken by a single individual, that prior to having the right to launch an appeal the EI recipient or his representative will have to go through a review of the decision of the EI office, then through the general division of the Tribunal and then only, if the review and the ruling of the general division are unfavourable to the worker, an appeal can be made to the division of appeal of the Tribunal. The stated aim of this change according to the Harper government is to make sure that there are fewer appeals of the EI rulings.

Workers and the organizations that represent them are getting squeezed out of the regime. This must not pass!

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Number of Workers Receiving EI Keeps Falling

According to Statistics Canada's survey, the number of workers receiving EI benefits has declined for the fifth consecutive month in March 2013. It declined by 1.0% in March compared to February (-5,200) to 523,700. Compared with a year earlier, the number of beneficiaries 8.1% lower. The trend downward is in all provinces and territories. In Newfoundland and Labrador, the number of EI beneficiaries in March compared to February fell 2.1%, from 31,420 to 30,770, and 11.3% since March 2012; in Prince Edward Island, the number was down 0.5% (from 8,080 to 8,040) from February to March and 9.4% from March 2012 to March 2013; in Nova Scotia, the number was down 0.8% from February to March and 9.6% since March 2012 and in New Brunswick, it was down 0.4% from February to March and 5.8% since March 2012. In Quebec, the number of EI beneficiaries was down 0.9% from February to March and 8.8% since March 2012. Ontario, Manitoba, Saskatchewan, Alberta, British Columbia, Yukon, Northwest Territories and Nunavut also posted a lower number of EI beneficiaries in March compared to February and since March 2012, with the exception of Nunavut where the number of EI beneficiaries increased by 4.2% since March 2012.

Statistics Canada does not provide data on the nature of the downward trend, how they correspond for example with the number of workers whose EI benefits are being cut or whose claims are being rejected, something that is a stated aim of the changes that the Harper government made to the EI rules. One figure however is very telling. It is the figure about the number of EI claims that are being made by workers. To receive EI benefits, workers must first submit a claim. According to Statistics Canada, the number of initial and renewal claims rose by 6,800 (+3.0%) to 230,700 in March. Alberta (+12.6%) posted the largest percentage increase in claims in March, followed by New Brunswick (+ 4.1%), Nova Scotia (+3.5%), Quebec (+3.5%) and Ontario (+2.7%). The number of initial and renewal claims fell by 15,200 (-6.3%) to 223,900 in February of this year, while it rose by 8,700 (+3.8%) to 238,500 in January. The steady decrease in the number of workers who receive benefits is occurring as the number of claims is overall steady in the last five months with months of sharp increase. This is an indication that a large number of claims are being rejected.

Representatives of defence organizations of the unemployed told the media that they see nothing positive in the fact that the number of people getting EI benefits is falling. They see these figures as the consequence of the renewed assault against the unemployed workers.

"What we see on the ground is how workers are being affected by the new criteria that are being imposed, besides the quotas that are imposed on the EI investigators to force them to find people who may have made a mistake in their file so as to get them out of the program. In the study they made of the impact of the changes to the EI system, they were openly saying that their aim is to cut off 8,000 people immediately and save $30 million a year. It is easy to see that these data have nothing to do with an improvement in the economy," said Sylvain Bergerons the coordinator of Actions and Services Working in Unity with the Unemployed (LASTUSE), in Saguenay, Quebec.

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