The last poll on the last day of the certification vote had barely closed when we were informed that the employers' council had undertaken it's most desperate measure yet to block part-time and sessional faculty from unionizing. Lawyers acting on behalf of the College Council (a government created and appointed body) asked the Ontario Labour Relations Board (OLRB) to seal the ballot boxes and not to open them or count the vote! Who are they kidding?! 3,544 part-time and sessional college faculty turned out to vote -- after years of struggle just to have this opportunity to decide for themselves if they want to unionize. We demand our votes be counted! We demand an end to state organized interference to recognition of our rights and our ability to exercise them! What kind of democracy is it where outcomes are recognized and enforced only when those with power and in power find them acceptable? What kind of democracy is it where those with power and in power violate our rights -- anyone's rights -- with impunity? Last spring more than enough union cards were signed to warrant a vote for certification for both the part-time faculty and support workers in the 24 Ontario colleges. The Ontario government intervened telling the Labour Relations Board it would be usurping the authority of the Legislature because the government had not yet amended the Community Colleges Bargaining Act (CCBA) to allow part-time and sessional employees to unionize. That "democratic authority" was invoked to enforce an illegal law -- CCBA had already been ruled illegal and a violation of Canada's commitments to the International Labour Organization of the United Nations (ILO). This was of no matter to those in power. In its brief to the Provincial Legislature on Bill 90 this past September the Workers' Centre of CPC(M-L) stated that the "Ontario Labour Relations Board had its opportunity to uphold the rule of law with respect to OPSEU's application for a certification vote -- and it refused to do so. This Committee of the Legislature has its opportunity now to put a stop to government and state interference with impunity, against part-time and sessional college employees exercising their rights." The Workers' Centre brief said that because of government interference to prevent "the true wishes" of part-time and sessional college employees to join a union the Legislative Committee could recommend automatic certification -- in accordance with the Ontario Labour Relations Act -- and adequate social investment to redress the discrimination against part-time and sessional employees in terms of wages and working conditions. (TML Daily, September 8, 2008 - No. 114) The interference is well documented -- from the outright ban in the original CCBA, to the Ontario Government's intervention before the ILO, its quashing of OPSEU's application for a certification vote last spring, etc. With each success of the part-time and sessional college workers in clearing the obstacles to affirming their rights, the government and state have put new ones in their path. The hooliganism continued throughout the certification vote, through to the Council's appeal to the OLRB to seal the ballot boxes and disregard the vote. Why it sealed the ballot boxes is not even known. The anti-union email campaign by Mr. Sinclair on behalf of the College's Council is but one other example, which violates the spirit, if not the letter, of the Ontario Labour Relations Act and is itself grounds warranting that the Labour Board grant automatic certification. The OLRB itself is fully implicated. Kevin Whitaker, Chair of the OLRB, served as advisor to the McGuinty Liberal government in drafting Bill 90, advising among other things how to accomplish what the government could not accomplish with its arguments before the ILO. The interference in this certification vote was felt from Collingwood where the vote access was cancelled at the College Council's request, to Hearst Ontario where voting took place 100 kilometres away, to Markham where management stationed security guards at the poll door and finally this week in Toronto where scrutineers were chased out of the hallways, union bulletin boards defaced, voting rooms hidden in maze-like locations and even the OLRB representative at one location arrived one and half hours late, denying many an opportunity to vote. This is not acceptable in a modern society. Nor is voting TTC workers back to work. Nor is using the excuse of "failed negotiations" in the York University strike to settle the strike. Nor is using the excuse of "failed negotiations" to deny the Ottawa transit workers their rights. Nor are the shenanigans going on with the corrections officers this past week who faced e-mail threats of being declared an essential service even while negotiations are taking place. The question of "Who decides?" reveals a lot. Ancient Greece is said to be the birthplace of democracy -- for the slaveholders of the day. Our present parliamentary democracy is showing similar limitations in that it does not want to accept and enforce decisions of the people which don't favour those in power. Rule of law cannot mean one thing for those who enforce it and another for those on the receiving end of the enforcement. Recognize our rights and the rights of all Mr. McGuinty! * Christine Nugent is a part-time college worker. She has been an organizer for the part-time college workers in Ontario first with their association OPSECAAT followed by the union organizing campaign of OPSEU. She is the Marxist-Leninist Party of Canada candidate in Barrie. Ontario Autoworkers Are Not a Labour Cost,
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"What has [Charest] done to our Quebec?" |
Writing in TML Daily, January 28, 2009, Gabriel Girard-Bernier pointed out:
"In mid-December, aluminum monopoly Rio Tinto Alcan announced that in the first few weeks of 2009 it would proceed with an anti-worker restructuring, thereby depriving 14,000 workers in various countries of their means to a livelihood. In Quebec on January 20, Rio Tinto Alcan clarified its threat by announcing the shut down of the Beauharnois smelter and the layoff of 300 workers in other plants. The monopoly is also feeding the rumour of the shut down of the Vaudreuil plant in Arvida as well as the Shawinigan smelter."
The announcement of the Beauharnois closure
followed a 2006 "continuity agreement" signed
between Alcan (prior to its sale to Rio Tinto) and the Charest
government which provided for "investments
of $2 billion in Saguenay/Lac-St-Jean in exchange for substantial
government aid in the form of a $400 million loan, an extension of the
Péribonka lease until 2058 and a new block of 225
megawatts of electrical power at preferential rates."
Under such favourable conditions, a company's
shareholders, i.e., its private owners, would of course be "open" to
selling the company for a higher price. Such a scenario took place with
Alcan in 2007. In 2006, Alcan's own "Sustainability Report" put its
sales and operating revenues at $20.3 billion
(based on 2005 data, prior to establishing the "continuity
agreements"). Shortly thereafter, the Charest government took Alcan's
present and future accumulated value out of Quebec's socialized economy
by permitting its sale within the framework of these agreements. In the
spring of 2007, U.S. aluminum monopoly
Alcoa attempted a hostile takeover of Alcan for $33 billion (considered
a "low-ball" offer), followed by its eventual acquisition in July by
Anglo-Australian giant Rio Tinto, who purchased it for $38.1 billion.
However, there is more going on behind the scenes. A secret deal
between Rio Tinto
Alcan and the Quebec government as part of the "continuity agreement"
has also recently came to light: "The
secret
arrangement allows the aluminum monopoly to close, without penalty, the
Vaudreuil smelter as of 2009, the Beauharnois smelter in 2011, the
Shawinigan smelter in 2013 and the Arvida
smelter in 2014. It also enables it to close all its Quebec
installations without delay and without prior notice if the price of
aluminum falls below a certain threshold for 30 consecutive days.
Certain sources are reporting that price to be U.S.$1,800 per ton of
aluminum, while the present negotiating price
for aluminum on global markets is $1,400 per ton," Girard-Bernier
writes.
While the public agreement contained a continuity protocol for
all agreements regarding investments
and the preservation of certain plants in the case of Alcan's sale,
this is presumably negated by the secret deal for penalty-free
plant closures. Not only does the secret deal ensure
monopoly right trumps public right through an arrangement where Rio
Tinto Alcan is unfettered by any social responsibility, it is not hard
to image that following a closure,
insult will be added to injury and Rio Tinto Alcan will retain its
hydro-electric power to sell at a profit.
It is a well known fact that such agreements
are conceived of, planned and brought into being well in advance of any
public announcement, as are the accompanying secret deals for the
benefit of private shareholders. Such infamous continuity agreements
and secret clauses are
in part the result of Alcan's millionaire and billionaire
shareholders' demand that the Quebec Liberal Party government accord
them privileges that render the company's financial worth greater
than the market value of the arrangements, benefits and privileges
conceded by the government.
The Quebec Liberal Party, Premier Jean Charest,
Minister of Economic Development (sic) Raymond
Bachand and company may claim the "continuity agreement" with Rio Tinto
Alcan ties the company to making an investment of $2 billion in
Quebec's aluminum industry. However, the
government gave them concessions of more than $3 billion, knowing full
well it had handed the monopoly the right to shut down four plants and
deprive workers, their families and their communities of the means to a
livelihood. No government working or claiming to defend the
national interests or the interests
of Quebeckers would accept or agree to such plant closures, which
represent the destruction of one of Quebec's social economy's key
sectors, the destruction of the means of production produced by the
working class and the destruction of the livelihood of the workers of
those plants. At the very least, a government
defending Quebec's national interests as well as the interests of
Quebeckers would prevent the closure of such plants by turning them
into public property under government control and investing in their
modernization. Instead, the premier and the Minister of Economic
Development became partners in the destructive
economic activities of the private monopolies in Quebec.
This is business as usual for governments of any political stripe in the service of the rich: to be a business partner of the monopolies facilitating the destruction of Quebec's industrial potential and the plunder of its human and natural resources. In financial terms, based on the calculations of economists and university professors of economics, government concessions to Alcan represent over $3 billion. (See below: "Aluminum: Yearly Subsidies of $336,000$ Per Job for 20 Years")
Is this what Charest has in mind when he keeps repeating that he and his party are going to "create wealth"? What social wealth is being created by enriching a handful of monopoly capitalists by funnelling billions of dollars to them through secret underhanded schemes?
As for Bachand, he claims this wrecking activity was his best career move yet and that "Worldwide, governments are doing their utmost to attract strategic investments, the creators of jobs and wealth."
* Serge Patenaude is the Marxist-Leninist Party of Canada candidate for Longueuil–Pierre-Boucher.
Last December 14 (2006), the Quebec government and Alcan unveiled an agreement for building a new aluminum smelter in the Saguenay--Lac-Saint Jean region, with an annual production capacity of 450,000 tonnes using the new AP50 technology intended to significantly cut electricity use per tonne of aluminum produced. Fulfilling this project should result in Alcan investing $2 billion over the next ten years and creating 740 highly specialized jobs plus 1,200 to 1,500 construction-related jobs.
The Quebec government's contribution to the partnership is particularly difficult to measure given its complexity. It is comprised of a number of financial, tax and energy obligations that are to take effect at various times over the next 50 years. Our objective is to measure the cost, for Quebec society, of the government's contribution to the project.
The main aspects of government support are:
(i) a $400-million interest-free loan over 30
years;
(ii) tax benefits worth $112 million;
(iii) a new block of 225 MW of electricity
supplied by Hydro-Québec at the high-power L rate from 2010 to 2045;
(iv) extension of the sales contract for 342 MW
delivered by Hydro-Québec at the high-power L rate from 2034 to 2045;
(v) an extension of Alcan's rights over the waters
of the Péribonka River from 2034 to 2058 for continuous power
production of 900 MW. The Quebec government is to receive royalties on
the use of the AP50 technology by smelters elsewhere in the world.
In order to evaluate the economic cost of such a multi-faceted agreement, with implications stretching over 50 years, an evaluation framework and certain hypotheses had to be drawn.
The yearly cost over a 30 year period was calculated beginning in 2008. The 30 year period corresponds to the $400-million interest-free loan period. In our analysis, the cost of electricity attributed either by contract or through concession of the rights over the waters of the Péribonka River is based on the economic opportunity lost by Quebec society. It represents the best alternative lost, which is the export price on open electricity markets with our American neighbours. Based on the National Energy Board, that price was 8.9 cents/kWh during the first eleven months of 2006. If we had considered the development costs of new hydro-electric development in Quebec such as the La Romaine project (1,500 MW) and Petit Mécatina (1,500 MW), the estimated cost would have exceeded 10.0 cents/kWh. The price of high-power electricity sold at the L rate is set at 4.3 cents/kWh. The interest rate used for the calculations is 7.5 percent which corresponds with the rate on new 30 year bonds sold by Hydro-Québec. Not being soothsayers, we have used the most recent estimates available on future prices and costs which we consider to be generally conservative.
The table presents our evaluation of the yearly costs to Quebec society of the various elements of the agreement between Alcan and the Quebec government. The greatest contribution comes from extending Alcan's rights over the waters of the Péribonka River from 2034 to 2058, followed by the sale of 225 MW at the L rate from 2010 to 2045.
In total, we estimate the Quebec government's contribution over 30 years to be $249.2 million. The 740 jobs announced for the new aluminum smelter represent a yearly subsidy of $336,700 per job over the course of the same period. In current value, if a sole global subsidy was given at the start of the project, it would amount to $3.19 billion, while the expected investment from Alcan is $2 billion.
The gap between the government subsidy and the expected investment by Alan leads us to question the advantages of this partnership with respect to the wealth of Quebec society.
i) $400-million interest-free loan over 30 years:
30.0
ii) Tax benefits worth $112 million: 8.8
iii) Sale of 225 MW at L rate from 2010 to 2045:
81.6
iv) Extension of sales contract for 342 MW at L
rate from 2024 to 2045: 37.7
v) Extension of Alcan's rights over the waters of
the Péribonka River from 2034 to 2058 for production of 900 MW: 93.1
vi) Royalties collected by Quebec government on
new aluminum production technology: -2.0
Total: 249.2
Information on calculations available at www.green.ecn.ulaval.ca . Translated from French original by TML Daily.
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