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July 30, 2013 - No. 94

Opposition to Harper Government's Nation-Wrecking

Health Care Rally at Premier's Meeting
Demands Accountability

Opposition to Harper Government's Nation-Wrecking
Health Care Rally at Premier's Meeting Demands Accountability

Workers Fight for an Economy that Meets the People's Needs
Forest Industry at an Impasse - Interview, Patrick Bouchard, Truck Driver, Forestry Industry, Lac-St-Jean
Forestry Workers in Eastern Quebec Fight for Their Rights - Interview, Georges Verreault, National Representative, Communications, Energy and Paperworkers Union, Bas-Saint-Laurent-Gaspésie
The Fight for Regional Employment in Eastern Quebec - Interview, Yannick Proulx, President, Regional Council, Quebec Workers' Federation, Bas-Saint-Laurent-Gaspésie-Iles-de-la-Madeleine


Opposition to Harper Government's Nation-Wrecking

Health Care Rally at Premier's Meeting
Demands Accountability

On July 24 and July 25 public health care supporters carried out actions to challenge the Harper government's abandonment of its responsibilities for health care. The actions took place in the Ontario town of Niagara-on-the-Lake during the annual meeting of the premiers of the provinces and Quebec and the territorial leaders under the aegis of the Council of the Federation.

The actions to confront Harper were organized by the Ontario Health Coalition and the Canadian Health Coalition. On July 24, forums were organized to discuss the degradation of health care that is taking place in every jurisdiction in the country. Delegations of health care advocacy organizations, health care workers, and others from every region of the country took part in the forums. On July 25, more than 2,000 people participated in a large rally at a park near the site of the premiers' conference and a demonstration at the site itself.

Health care workers were the largest sector represented at the rally and demonstration. Most were health care workers from Ontario where the Wynne Liberal government has been imposing severe cuts and opening the doors to private for-profit health care. These included workers represented by the Service Employees International Union (SEIU), the Canadian Union of Public Employees (CUPE), the Ontario Public Service Employees Union (OPSEU), the Ontario Nurses' Association (ONA) and the Canadian Federation of Nurses Unions (CFNU).

A large number of members of the Canadian Auto Workers (CAW), especially retired workers, attended. CAW has several health care locals. Members of Hamilton Steelworkers Local 1005 held a large banner that read "Health Care is a Right!" Members of other United Steelworkers (USW) locals, the Public Service Alliance of Canada (PSAC), the United Food and Commercial Workers (UFCW) and other workers' organizations also attended. The Toronto Health Coalition and the Niagara Health Coalition had large delegations there and other organizations affiliated with the Ontario Health Coalition and the Canadian Health Coalition were also represented.


The focus of the forums, rally and demonstration was to call the Harper government to account for refusing to take responsibility for funding health care and for allowing the penetration of American-style private-for-profit health care into Canada. The formal part of the rally and demonstration included speakers on this theme. Other themes were the need to not only defend the current Medicare system but to extend it to include universal drug coverage and long-term care.

Natalie Mehra, Director of the Ontario Health Coalition welcomed everyone and introduced the opening speaker Michael McBane, Director of the Canadian Health Coalition.

"We are here today because Medicare is under threat like never before," McBane said. "The Harper government has set in motion a strategy which will unravel Medicare if we don't stop him. Health care is the most important policy issue on the minds of Canadians. Eighty per cent of Canadians according to a poll released a couple of days ago want Prime Minister Harper to convene a first ministers' meeting to secure the future of health care. Yet the Harper government has announced there will be no meetings. There will be no new health accord when the current one expires."

He concluded his speech saying, "The Harper government has at every opportunity denied the federal government has any responsibility for health care and claimed that it is all a provincial and territorial responsibility. This is shameful and false... Canadians don't want a federal government that cuts and runs from health care. They don't want a federal government that shifts responsibilities onto provinces and individuals. Without federal leadership, there will be no future for a national Medicare system. Stand up for Medicare!"

Other speakers included Cathy Carroll, Secretary Treasurer, SEIU Healthcare; Wendell Potter, a former U.S. insurance company executive who became a whistleblower; Ken Lewenza, National President, CAW; Sue Hotte, Co-chair, Niagara Health Coalition; Maude Barlow, Council of Canadians; Sid Ryan, President, Ontario Federation of Labour; a spokesperson from the Canadian Health Professionals Secretariat; Paul Moist, National President, CUPE; and Linda Silas, President, CFNU.








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Workers Fight for an Economy that Meets the People's Needs

Forest Industry at an Impasse

TML: Could you tell us about the working conditions in forestry in your region and what impact the new forestry regime is having?

Pierre Bouchard: In the small villages here, approximately 75 per cent of the population lives off forestry. Right around here, there are forestry companies that have sawmills, like Resolute Forest Products, which [uses a mill] associated with a forestry cooperative; and Arbec, which runs a sawmill in l'Ascension. In the region, downsizing has taken its toll and the number of forestry workers has dropped considerably. Where I work, we used to have 16 trucks; but now, thanks to the new forest regime put in place last spring, there are only 10 trucks left. Workers are getting older and the younger generation no longer wants to work in the bush. In a few years the problems in forestry will be even worse. With downsizing, layoffs and all the insecurity, we don't know where we're going. In the Peribonka municipality where I'm from, there used to be 125 forestry workers. That number has fallen to 28. The forestry schools are empty. When you talk about forestry workers today, you might as well be talking about some alien creature, something out of this world.

Under the new forestry regime, jobs will disappear at an even faster rate, especially with the new system that allows 25 per cent of the wood to be auctioned off. Under the former regime, that wood was supplied to the sawmill industry.[1] For us, this means that the big plants will probably offer contracts to businesses that bid at the auction and they in turn will hire a non-unionized workforce and we will be dragged back to a time when workers worked for a pittance, had no pension plan, no medical insurance and no seniority. Workers over 50 will be affected the most.

Anyone can bid at the auction, any contractor with money can bid, they don't even need a labour force. Then they can sell to whomever they please. They act much like brokers. If Resolute is the buyer, the sale is done according to its conditions. The different players in the industry who buy the auctioned wood will compete with one another by lowering what they offer. The workers will be the ones to pay for that; their working conditions will deteriorate. We used to be able to depend on moving so many thousand cubic metres of wood, cutting it according to the supplies guaranteed to each plant. Now that 25 per cent of the wood is auctioned off, there are layoffs. Resolute has laid off owners of forestry equipment who worked for them as well as other employees. What will happen is that unionized workers with pension plans and benefits will become contractual workers for these brokerages, losing whatever they had; other workers will simply leave the sector. That's how the overall conditions for forestry workers will deteriorate. Rumour has it that if this continues, Resolute will soon become a purchaser of wood rather than making wood products. That's what we're afraid of, that Resolute will declare that it is contracting everything out and nothing can stop it from doing whatever it wants.

Not much thought was given to the new forestry regime. It is said that its aim is to diversify the wood supply; to allow greater access to the wood. But the big corporations are well prepared. They have the power to control the market and that's what they will do at the expense of our working conditions and our union certification. The workers don't have any say in the process, everything is already decided.

Under these conditions, we are fighting to protect what we have, to preserve our unionized jobs and the conditions that we have, at least with regards to the plants that have the wood supply to continue operating under the new forestry regime. Also, should Resolute Forest Products award contracts to businesses that buy auctioned wood, we want to make sure that we remain unionized and that we get the jobs.

Note

1. The timber supply and forest management agreements (CAAF) that were introduced in the Forest Act in 1986, are now replaced in the new regime by timber supply guarantees, a right to purchase timber. The CAAFs were contracts that included the payment of stumpage fees between the Quebec government and companies that own wood processing plants. A CAAF included the companies' obligations with regard to forest regeneration of the territory on which the CAAF was established. These obligations gave rise to various forms of credits from the government to compensate the companies for the cost they incurred under the category of regenerating the forest. The notion of a link between the harvesting and processing of wood and a definite community was central to the CAAF system.

(Translated from original French by TML.)

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Forestry Workers in Eastern Quebec
Fight for Their Rights

TML: What are the main aspects of your union's work in the region to defend forestry workers?

Georges Verreault: We are trying to get certain pieces of legislation changed -- whether federal or provincial -- in order to help these workers. At the federal level, our greatest concern is to change the Companies' Creditors Arrangements Act (CCAA) so that the workers' pension plans receive secured creditor status. Right now, workers have no recourse because they are not secured creditors. I am convinced that if pensions were given secured creditor status big companies would not seek CCAA protection as often as is the case today, which has a ripple effect. For example, when AbitibiBowater went under bankruptcy protection, all sorts of measures went into effect to "save the situation." Now other big companies, such as Kruger who is not even under bankruptcy protection, are demanding similar arrangements that include, among others, a reduction of their contributions to workers' pension funds.

At the provincial level, one of the changes we are demanding is the elimination of non-competition clauses related to plant closures. Take the example of the Smurfit Stone cardboard manufacturing plant in New Richmond in the Gaspésie in 2005. Following some equipment repairs, the plant laid off workers for what was supposed to be two weeks. Two or three days later, the company announced over the radio that it was closing the plant for good. We're talking about a brand new plant with 300 workers thrown out on the street. Smurfit Smith had signed a non-competition clause with the government to the effect that should the plant be sold, it would not remain in the same line of production. All the U.S. businesses which operate in this region have made such arrangements to cover themselves when they get rid of their plants. We have always denounced this situation but the government doesn't want to get involved. Yet, these are our resources, our people, and our expertise. Such non-competition arrangements should be banished.

Another very important question is fighting for better working conditions. The working conditions of forestry workers have greatly deteriorated over the years. Bad conditions for the workers is also bad news for the industry itself. The younger generation is not taking up the trade. There is a school that teaches forestry in Causapscal and it is almost empty. How can we attract the younger generation to this line of work when the conditions are going from bad to worse?

Soon the Canada Pension Plan will be accessible at 67 years of age. The workers I know in the sawmills now can't even work up to 65 years of age because of health problems. In the sawmills and forestry operations in the Lower-St-Lawrence-Gaspésie, pension plans are non-existent. There are pension plans in the pulp and paper mills and in the bigger plants like that of Uniboard but in the sawmills we were never able to obtain pension plans for the workers. Most of them don't have a group insurance plan, except in certain places where we succeeded in getting them. The normal work week in other trades is 40 hours, but in forestry it is 47. This is a serious problem. How can you ensure a new generation of forestry workers with such conditions?


2011 strike at Tembec plant in Matane.

As far as the paper manufacturers are concerned, there may very well be a lesser demand for paper, but the industry is using this as an excuse to attack rights, wages, and working conditions. We held a 104-day strike at the Tembec plant in Matane [in 2011]. The company tried to invoke the poor market conditions to impose concessions, in particular on the question of pension plans. We succeeded in keeping our pension plans as they were and obtained a salary increase that was above the industry average.

One thing we try to do is have a clause within agreements that states that any concessions are temporary and must be removed once the market conditions improve, but the industry is not that keen on such an arrangement.

Also on the question of working conditions, we are deeply preoccupied by Quebec's new forestry regime which came into force this year. In our region for example, under the new regime, we have lost 40 per cent of our wood supplies, which are now auctioned off. Anyone can purchase this 40 per cent that is not reserved for wood processors. Workers who cut the wood have their own equipment -- multifunctional machinery -- and trucks to transport the timber. This involves a huge investment of close to $1 million, not counting expenses for maintenance. A worker owning such equipment and offering his services to a company could be planning ahead for years to come, because he depends on a specific volume of wood -- so many thousand cubic metres per year -- to make a living and pay off his machinery. He has just lost 40 per cent of his wood supply to the auction, which is 40 per cent of his livelihood. He will no longer cut that wood because it no longer belongs to the company. He will not be able to pay for his equipment, so he will go elsewhere.

What will happen is that the big companies will go to see the contractor who bid at the auction for the wood. They will tell him, "OK, we'll give you this much." The contractor will have no choice but to sell. Many of these contractors are small entrepreneurs who own their own equipment. The big companies will set the price. How will the contractor keep his workers with prices that will be too low to offer them decent living conditions? The conditions will deteriorate and workers will go elsewhere.

On top of this, with the EI reform, the workers will be harassed and forced to accept a lower paying job in the off season. They will definitely choose to leave the sector.

So that's why we're putting so much effort into changing these provincial and federal laws and to improve working conditions in these sectors. The work week should be 40 hours, the same as everywhere else. Pension funds and benefits must be provided to entice a new generation of forestry workers to work and stay in the sector. Employers should be forced to contribute to the pension fund and group benefits for their workers. These could be negotiated with the employer and there could even be a section in collective agreements that requires employers to provide these pensions and benefits. People work an average of 50 hours a week cutting wood. When a worker reaches 61 or 62, he is no longer able to keep doing this work. The natural resources are there for the taking, the workers provide the expertise and lose their health in the process, while some higher-up pockets all the money. Wealth must be more evenly distributed. It is not only a matter of money, it is a matter of health and human dignity. There are many projects we could take up. For example, 90 per cent of workers over 60 years of age could work for six months a year and transfer their knowledge to the younger generation; arrangements could be made with EI for these workers.

We intervene by means of collective bargaining and at the government level. The negotiating process is an uphill climb but we do succeed in winning certain things. When we negotiate, we constantly face demands for concessions from the company at hand, whether it is in financial difficulty or not.

(Translated from original French by TML.)

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The Fight for Regional Employment
in Eastern Quebec

TML: Tell us about the work of the Regional Council at this time.

Yannick Proulx: In our region, the question of employment is a crucial one and our situation is complex. The situation with regards to Employment Insurance (EI) for example, is a source of great insecurity. The Harper government's reform is aimed at seasonal industries and these are of utmost importance to our region in the forestry industry, tourism and fisheries. One must not forget that in the public sector, at the municipal level as well as in education, a number of jobs are seasonal. There are also jobs in the cultural and community spheres that are basically non-unionized but where workers have to apply for EI every year. The insecurity comes from the fact that workers wonder how they are going to reintegrate into the workforce, what will they have to do in order to work? There is also the problem of being qualified, as the available workers in the labour market must fit the requirements of the available jobs. One could say that there is a gap between the available jobs and people's qualifications. The job openings often require a college or university degree while the available seasonal workers are generally people with a high school education who gained a lot of experience in their workplace. The dilemma of regional employment is already huge but the EI reform will just make things worse.

The new EI rules are being applied but, from what we can tell, they are being applied unequally. In the Maritimes and New Brunswick, for example, there are places where things are worse than here. The rules are applied unequally, but the process has begun nevertheless. Services have already been reduced. The Service Canada staff has been reduced. Workers already had to wait a long time before being able to submit their EI application, but with the new rules, the process will be even more difficult. I think the government expects people to lose patience and abandon their applications entirely. More people than ever are being turned away, delays are longer than ever and it's only a small minority who dispute the process and defend themselves.


Residents of Percé on the Gaspésie protest the EI reform. Their banner condemns the "black hole" seasonal workers suffer,
the period when these workers are without an income from EI or their jobs.

What's more, in our region, the forest industry is not taking off. In the meantime, people are being placed in jobs elsewhere so that when the industry restarts, jobs in forestry will once again be available. But there is the risk of another kind of problem: that the forest industry will restart with no one enrolling in forestry technology and other forestry-related programs in the schools. I wouldn't encourage my own children to take these programs. It will be hard to find qualified workers for the forest industry jobs. So the dilemma I spoke about will deepen. There are jobs and more may be available but they won't have the right people for the right jobs. The people we have who are looking for work can't find the kind of jobs they are looking for.

Another problem is that economic activity in certain regions is not diversified. There are some exceptions, like Rivière-du-Loup. It has a strong industrial base, a public sector, a private sector, its geographic position is good, and it is fully developed. In the main Regional County Municipalities of the Lower-St-Lawrence-Gaspésie, the urban areas are not too bad economically speaking. The main problem in the rural areas is where the economy is much less diversified. The biggest problems are with agriculture and forestry. Things are not improving and in our regions these sectors have been the weakest in the recent years.

The dramatic change we're seeing in the public sector is the withdrawal of the state as an employer in the regions, whether it's Hydro-Quebec, various government departments, or at the federal level with Service Canada and other agencies. If you take Hydro-Quebec in Gaspésie and the Iles de la Madeleine, from 2010 to 2012, 10 per cent of the staff was cut. There was a branch in each region but now everything has been centralized to Quebec City. There has been a tremendous push for centralization of state management and, in cities like Rimouski, this has had a negative impact. When an employer like the government leaves, quality jobs leave and with them so do the spin-off jobs; less cars are sold, there are less people in the restaurants, business goes down as a result of this loss of stable revenue. Another impact on the economy comes from no longer having access to the same quality of services. Before, when you spoke to a local Service Canada representative, this person knew her region, all the employers and the overall working conditions. But now, you speak to a public servant in Ottawa. They are not aware of any of the employers here, they know nothing of the regional realities.

On top of that, there are all the cutbacks in the school boards, the hospitals, and we are expecting more downsizing in the public sector. The needs are still there but we wonder how these services will be provided.

We are fighting to keep our jobs in the region, trying to make adjustments so as to stimulate projects that will give rise to construction activity. We are trying to have as many jobs as we can get but we are limited by a context whereby many sectors are looking at downsizing. On the issue of Employment Insurance, we are mobilized. In Quebec, especially Eastern Quebec, the Maritimes and Côte-Nord, we have the biggest mobilization. The business community, small- and medium-sized employers, are all on our side. Only big businesses are satisfied because they see the overall economic result, which is to exert downward pressure that will lower wages in the long run.

In the face of all these problems, people are taking all sorts of initiatives. They are determined to find ways to stay in their region and raise their families here. We are fighting hard to deal with the real challenges in order to provide a future for the region.

Take the question of oil for example. Whether we should exploit this resource in the region or not is a big issue at this time. In our opinion, we shouldn't shy away from such projects because there is money and there are jobs involved. But as things are developing now, with the lack of transparency and the way in which the project is evolving, it is not socially acceptable. Even the promise of a stronger economy and job creation has yet to be seen. Companies have to prove that things will proceed safely, and this has also yet to be proven. As a matter of fact, the attitude taken towards our region is that, considering all our economic problems, we would be fools not to accept the exploitation of our oil resources. But we don't feel the issue poses itself in that way. We think we would be fools to endanger the environment. Is that a risk we can take, seeing as the oil-extraction companies have offered us no guarantees on these matters? If one considers that our main economic engine at this time is tourism, think of how one ecological disaster could adversely affect the industry.

So you can see that the challenges and problems are numerous and that we are dealing with issues that are vital for the population of the region.

(Translated from original French by TML.)

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