Unsustainable
Direction
of the Economy
and Other Matters of Serious
Concern
CONTENTS
Denounce Inhuman Measures
Which
Deprive Humanity of Treatment for COVID-19
• Trudeau
Government
Endorses Obscene Profiteering
from a Cruel Illness
• Suspension
of Intellectual Property Rights on COVID-19
Vaccines
Is a Humanitarian Necessity
• COVID-19
Vaccines
Global Access Missed Targets
- Nhan Dan -
• Urgent
Need
to Lift Sanctions Which Deprive Entire Countries
of Protections Against COVID-19
• Alternatives
Exist
Surge in Corporate Profits During Pandemic
• Imperialist
Vaccine Pharmacare Reaps New Billionaires
• Mergers and Acquisitions
Occurring at Record Clip
• Federal
Government Wage Subsidies Expand Profits of
Big Companies During Pandemic
- Workers' Centre of
CPC(M-L) -
Working People Must Wield Decision-Making Power
Over Our Natural Resources
• Aluminum
Industry Plans to Pay the Rich for Modernization
• Aluminum
Industry's "Project ELYSIS" Characterized
as "Progressive Modernization"
- K.C. Adams -
• Working
People of Alberta and Their Allies Confront
Australian Coal Billionaires
- Dr. Dougal
MacDonald -
• BC
Wild Berries Are Unfit for Human and Animal
Consumption
- Peter Ewart -
• Quebec's
Forests
Are More than Trees to Harvest
- Pierre Soublière -
• Mexico,
Glyphosate and Bayer-Monsanto
Denounce Inhuman Measures Which
Deprive Humanity
of Treatment for COVID-19
Picket outside Moderna shareholders' meeting,
Boston, April 28, 2021
Medicine, as we are practising it, is a luxury
trade. We are selling bread at the price of
jewels... Let us take the profit, the private
economic profit, out of medicine, and
purify our profession of rapacious
individualism. -- Norman Bethune[1]
The COVID-19 pandemic has fully revealed that
blocking human centred solutions on every front
has become the feature which best characterizes
the government of Prime Minister Trudeau. His
pandering to the demands of Big Pharma is one
example, and a despicable one at that.
In this regard, his
government has done everything to make sure
Canadian research and development, and production
facilities are stymied and the country is kept
dependent on foreign ownership and control. His
subservience to the Big Pharma oligopolies and
cartels is every day more regrettable for the
damage it causes humankind itself.
Prime Minister Trudeau not only refused to
support the waiver of Intellectual Property (IP)
vaccine rights, but in the same interview he
announced $375 million in new funding for the
"Access to COVID-19 Tools (ACT) Accelerator,"
which is in addition to $940 million the
government already committed. The ACT and COVAX
Facility are aspects of the global vaccine
pharmacare program to purchase vaccines from the
Big Pharma cartels and distribute them globally.
Trudeau left it to his Minister of International
Trade Mary Ng to defend Big Pharma and its
monopoly right to expropriate obscene profits from
the health crisis. She said Canada "firmly
believes in the importance of protecting IP, and
recognizes the integral role that industry has
played in innovating to develop and deliver
life-saving COVID-19 vaccines."
Innovative Medicines Canada, an industry group
that represents some of the cartels of Big Pharma,
sought to bolster the Trudeau government's refusal
to waive vaccine IP rights, saying in a statement,
"[Any waiver] will not address the real issues of
trade barriers, global supply chain bottlenecks,
and scarcity of raw materials that are impacting
the supply of COVID-19 vaccines."
All these "real issues" are due to the usurpation
of state power by the global financial oligarchy
which it uses in its striving to take over and/or
control competing interests and the global economy
itself. The global economy is crying out for the
removal of the narrow private interests which
control it so that human brings can take it in a
direction consistent with the demands of the
times.
People familiar with the world trade in drugs
point out that the issues of IP rights, trade
barriers, global supply chain bottlenecks and
scarcity of raw materials are deliberate policies
to control the production and supply of
pharmaceuticals, force up their market prices and
ensure the existing Big Pharma cartels retain
their iron grip on the sector.
A May article in the Toronto Star says,
"Canada's refusal to waive intellectual property
rights on COVID-19 vaccines should be a crime
against humanity." Shree Paradkar writes, "We've
seen this circus before with the same criminal
consequences. In 1996, antiviral therapy for
HIV/AIDS was developed but was inaccessible to
about 95 per cent of the world's people living
with HIV, according to The Lancet. That's
because one year prior, the creation of the World
Trade Organization allowed companies to turn what
were domestic patents into global ones. Nongeneric
drugs cost about $10,000 a year at the turn of the
century, and were well out of the reach of many
people. Calls for affordable generic
antiretroviral drugs [were] met by threats and
lawsuits from pharmaceutical corporations. It took
years to battle monopoly rights and finally make
therapy affordable."
Doctors and others
demonstrating at the Group of Seven (G7) health
ministers meeting in Prince Charles' Duchy of
Cornwall on June 2, demanded that the G7 provide
vaccines to poorer countries instead of hoarding
them for themselves. Health care workers
calculated that people living in G7 countries are
77 times more likely to be offered a vaccine than
those living in the world's poorest countries. At
the current rate, it would take these countries
some 57 years to fully vaccinate everyone.
Protesters called on the G7 to "stop making empty
promises and protecting the interests of
pharmaceutical companies."
Anna Marriott, Health Policy Manager with Oxfam
Great Britain, which is a member organization of
People's Vaccine Alliance (PVA), denounced the
obscene profiteering: "What a testament to our
collective failure to control this cruel disease
that we quickly create new vaccine billionaires
but totally fail to vaccinate the billions who
desperately need to feel safe. These billionaires
are the human face of the huge profits many
pharmaceutical corporations are making from the
monopoly they hold on these vaccines. These
vaccines were funded by public money and should be
first and foremost a global public good, not a
private profit opportunity. We need to urgently
end these monopolies so that we can scale up
vaccine production, drive down prices and
vaccinate the world."
Winnie Byanyima, Executive Director of the Joint
United Nations Programme on HIV/AIDS, which is a
PVA member organization, said, "(It is) obscene
that profits continue to come before saving
lives," as patent holders refuse to share their
technology and production facilities. Byanyima
said the scientific research that went into the
creation of effective vaccines against COVID-19
was funded and centred in public institutions and
should in fact be considered a joint treasure of
peoples' thought material from all over the world.
However, the private oligopolies that control the
resulting intellectual property and the means of
production manipulate that knowledge and their
control of production to expropriate private
profit from the health emergency and drain social
value and resources from where they are most
needed.
Prime Minister Trudeau and his ministers act as
pitiful cardboard cutouts and programmed voices
created by the promotions departments of Big
Pharma. The fact that there exists a media which
repeats the refrain that they are serving the
public interest with their pay-the-rich schemes
shows the control Big Pharma has over the state
power in the countries which call themselves
advanced and indispensable democracies. The rapid
rise in ownership and control of social wealth by
the Big Pharma oligopolies and cartels underscores
the necessity for a human-centred, owned and
controlled pharmacare and pharmaceutical research
and production system. The current system
expropriates as private profit much of the new
value pharmaceutical workers produce. The drain of
social wealth into the hands of the global
oligarchy and its control of vital products is not
sustainable or in the interests of human
societies.
The privately owned and controlled drugs are
circulated as user pay commodities or through
private or government insurance pharmacare
systems. The enormous wealth concentrated in
private hands dictates control over what research
is conducted, what pharmaceuticals are produced
and where they are distributed and their market
price. The dual pandemic and opioid crises have
exposed the dangers of imperialist control and aim
of maximum profit over such important sectors as
health care, seniors' care and education.
Beyond the issue of the Trudeau government's
support of the further concentration of wealth in
fewer hands, is the issue of how the control of
the oligarchs and their backward aim of government
decision-making blocks the people from having a
say over the health care system. This usurpation
of decision-making power has become the central
problem which not only blocks human progress but
is overseeing heinous crimes such as the ones
which deprive entire countries of the coronavirus
vaccines. The concentration of control in the
hands of those whose aim is maximum private profit
distorts the direction not only of the
pharmaceutical sector but the entire health care
industry, including seniors' care.
A human-centred
system of decision-making over research,
development and production of pharmaceuticals is
necessary to keep the new value within the public
domain where it is needed, and for the people to
be able to have a say and exercise control over
the sector's direction and operations. The
produced value when realized is necessary for
reinvestment to ensure the continued research and
development of pharmaceuticals and their relation
to people's health generally, and to affirm the
right of all to health care without restrictions
based on ability to pay.
Another key aspect is to be able to realize the
value of health care in the other sectors and
enterprises of the economy which profit from the
purchase of the capacity to work of healthy
workers who produce new value. All active
enterprises benefit from having a supply of
healthy workers without whom their operations
would cease to function. All enterprises of a
certain size must pay a portion of the
exchange-value of healthy workers, with payment
going to the human-centred pharmaceutical
enterprises and all other enterprises within the
health care sector.
The claim to health care is a human right.
Hospitals, medical clinics, dentistry, eye and ear
care, pharmaceuticals and medical supplies, and
equipment in general are all necessary aspects of
affirming a human-centred society. For this to
happen, health care and all its parts must be
under a human-centred system of control so as to
be freely available to all without exception.
The value health care workers create must be made
available to the health care sector to re-invest
in health care and in other social programs. For
this to happen, human-centred health care
enterprises must be established based on workers
who are able to deprive the financial oligarchy of
its ability to deprive the people of the right to
health care, and to restrict the oligarchs from
interfering politically and profiting from the
work of health care workers.
How to bring this into being is a project the
working class must discuss and accomplish. The
starting point is to demand and affirm the right
to health care for all and to denounce and reject
the current direction and control of health care
by the oligarchy and governments at its disposal
that have turned the people's health into a cash
cow to exploit and pay the rich.
The alternative and new direction belong to the
working people to build and bring into being. Let
us together raise our voices and work together for
a new direction that affirms the right of all
human beings to health care.
Note
1. The Sword, The
Scalpel: The Story of Doctor Norman Bethune,
by Ted Allan and Sydney Gordon, 1952.
Capetown, South Africa, March 11, 2021
The governments of South Africa, India and
others have asked the leading imperialist
countries to suspend temporarily Intellectual
Property (IP) rights on COVID-19 vaccines as a
humanitarian necessity. They say their countries
have the productive capacity to significantly
increase supply. Their scientists and producers
have the knowhow and capacity to produce the mRNA
vaccine but to do so they need an IP waiver of the
patent rights held by private cartels
headquartered in the U.S. and Europe.
As it stands, the
Big Pharma cartels oppose any relaxation of their
IP patent rights. They are already reaping
billions in profits and stand to expropriate much
more as their own production continues and sales
expand around the world. For those sales to reach
the developing world, rather than have immediate
production outside their control the Big Pharma
cartels want global governments to provide funds
through vaccine pharmacare for the purchase of the
vaccines they produce. This would allow them to
reap profits beyond the wildest dreams they had
before the pandemic.
Governments' purchase of vaccines from the
private cartels for free distribution has led to
what many call "obscene profits" and charges from
others that the leading imperialist states are
guilty of mass murder for blocking expansion of
production and delivery of vaccines worldwide.
The leading imperialist countries have already
ordered more vaccines than they need, which has
effectively cornered the current supply, denying
vaccines for the rest of the world. The Trudeau
government in practice supports the obstruction of
production so that the Big Pharma cartels can reap
even more billions from the sale of their own
vaccines through an expanded global vaccine
pharmacare program.
Regarding the current situation of COVID-19
variants ravaging the poorer countries, IP rights
expert Achal Prabhala, in The Dig podcast,
said
that waiting for the private cartels to produce
and sell the vaccines under the Access to COVID-19
Tools Accelerator (ACT) and COVAX Facility would
delay any substantial vaccine distribution in
poorer countries until 2023. Such a delay will
result in millions of deaths and other horrific
losses and damage, in part because other measures
to curb the spread of the infection and treat
those suffering from the virus are not possible
because of the dreadful existing social
conditions.
Prabhala reports that the U.S. government and
others in Europe gave the private cartels
including Pfizer, Moderna and AstraZeneca
"billions of dollars -- billions -- in
no-strings-attached grants to do the [vaccine]
research, meaning no risk to the companies if they
failed. Then they paid the companies billions of
dollars -- billions -- in pre-orders so the
companies were guaranteed buyers even before
coming into the market. Now, they enjoy global
monopoly -- largely funded by taxpayer labour."
In effect, IP rights are rights to make obscene
private wealth using pay-the-rich schemes,
government regulations and laws, instituted
throughout the imperialist system of states to
serve the global oligarchy. In opposition, the
people through their own efforts and organizing
must bring the entire health care sector under
their control and ensure it serves the people and
society and not the narrow private interests of
the oligarchs.
- Nhan Dan -
In 2020, the COVID-19 Vaccines Global Access
(COVAX) Facility was launched with the aim to
grant all countries the opportunity for quick,
fair and equitable access to coronavirus
vaccines. However, the targets of the
aforementioned initiative are being "missed" due
to a lack of capital and the selfishness of some
developed countries.
The initial aim of COVAX is to have two billion
doses available by the end of 2021 to support
the anti-pandemic efforts in countries. Yet,
this ambitious plan is at risk of bankruptcy as
statistics show that only 68 million vaccine
doses from the COVAX scheme have been delivered
thus far, meeting just 3.4 per cent of the plan.
Meanwhile, by the end of May 2021, the world has
recorded the distribution of 1.5 billion doses,
but only about 0.3 per cent of them reached
low-income countries.
World health
experts point out that the aforementioned
disappointing results are not attributed to the
insufficient efforts of the people in charge of
the COVAX program at the World Health
Organization (WHO), but mainly due to a lack of
funding and vaccine supplies, and the
unwillingness of rich countries in sharing
vaccines with poor ones.
COVAX was initially intended to be a non-profit
financial attraction structure. Accordingly,
rich countries make financial contributions to
simultaneously research many different vaccines
to find some effective vaccines and then provide
them for free to 92 low-income countries who
cannot afford to buy COVID-19 vaccines. To
ensure its efficiency, this mechanism requires
that a sufficient number of rich countries make
investment and commit to receiving vaccines via
COVAX. However, in fact, this initiative has not
obtained the necessary funding to serve research
and vaccine procurement in the initial stage.
Many rich countries have even signed individual
contracts to buy vaccines with manufacturers
such as Pfizer and Moderna, thus delaying the
implementation of large-scale vaccine production
contracts in 2021 under the COVAX scheme.
A major problem hindering COVAX's vaccine
supply efforts is the scarce supply of vaccines,
which is partly attributed to the serious
pandemic situation in India. The main vaccine
supplier for COVAX is the Serum Institute of
India, which is producing the AstraZeneca
vaccine. However, with the strong outbreak of
the disease in the South Asian country, the
planned vaccine supply for COVAX had to be
diverted to serve India's domestic demand.
The WHO and the global vaccine alliance Gavi --
representatives of organizations initiating the
COVAX mechanism -- recently issued a statement
that an additional U.S.$2 billion is needed to
lift coverage of immunization programs to nearly
30 per cent. To secure doses for delivery
through 2021, and into early 2022, COVAX needs
the aforementioned sum by June 2 to lock in
supplies. [By
June 2 pledges for U.S.$2.4 billion had been
received -- TML Ed. Note.] According to
its original objectives, COVAX is expected to
deliver two billion doses of vaccine worldwide
in 2021, and 1.8 billion doses by early 2022.
The "financial bottlenecks" are hindering
COVAX's goals and efforts in vaccine delivery.
Managers of the COVAX initiative also warned
that if the current vaccine shortage is not
urgently addressed, the "consequences could be
catastrophic."
The facts mentioned above show that COVAX's
plans to ensure "vaccine for everyone" and
"leave no country behind" are missing their
targets. This is not only a problem of COVAX
founders and managers, but also a big problem
globally, because variants of the coronavirus
and new waves of the pandemic can penetrate and
resurge in developed countries at any time. The
only way for humanity to beat the current
pandemic is for the governments and people of
countries, especially developed ones, to share
the difficulties, distribute vaccines
appropriately, and join hands in the fight
against COVID-19.
The sanctions
which the U.S. has imposed on various
countries with the help of Canada and others,
are causing grave harm to the peoples of these
countries by depriving them of the ability to
furnish themselves with food and medicines
they require to sustain life itself. The aim
of these sanctions is a particularly heinous
one as the sanctions, an act of war, seek to
control these countries and, if that is not
achieved, to literally wipe them out.
The urgency of lifting these sanctions came
to light at the 74th session of the World
Health Assembly (WHA) held virtually from May
24 to 31, 2021.[1]
Several member countries drew attention to the
urgent necessity to lift the unilateral
coercive measures imposed on countries such as
Venezuela, Cuba, Iran, the Democratic Republic
of Korea (DPRK) and Zimbabwe amid the COVID-19
pandemic. These measures place barriers on
access to medical supplies, personal
protective equipment and vaccines, besides
foods and necessities of life, thus
constraining the ability of these countries to
save the lives of those affected by the
pandemic.
According to the Sanctions Kill Coalition,
"Targeted countries face shortages of
medication and medical equipment, including
oxygen supplies and ventilators, protective
kits, spare parts, software, fuel,
electricity, drinking water and water for
sanitation; [they] cannot use foreign assets
for humanitarian imports, their citizens and
medical personnel cannot get access to
information about COVID-19, telemedicine or
use communication and educational platforms."
The coalition points out that "In the
long-term perspective, unilateral sanctions
hinder targeted countries' ability to respond
to COVID-19, to implement national response
plans; result in breaches of existing regional
and bilateral cooperation/integration
mechanisms; make populations dependent on
humanitarian aid and prevent the economic
recovery of the targeted countries through the
development and maintenance of necessary
infrastructure. This violates labour rights,
right to education, access to information,
right to food and right to health of their
populations."
At least 39 countries are currently subjected
to unilateral sanctions imposed by the United
States and enforced by, among other countries,
Canada and the institutions they control. It
is urgent that these sanctions are brought to
an end. The high-sounding pretexts which claim
to uphold human rights, modern standards and
values, must be exposed as fraudulent and
denounced as coverups for the crimes which are
taking place against humanity.
Zoe Alexandra
provides the following report:
"Venezuela's Health Minister Carlos Alvarado
told the WHA on Tuesday, May 25, 'To put an
end to the COVID pandemic, we need peace and
need to work in harmony among our people.
Which is why we demand an end to the financial
blockade and all coercive measures promoted
unilaterally. We express solidarity with the
people of Palestine and Colombia who are
suffering from violent repression. Unilateral
measures implemented by the U.S. and its
allies make it difficult for us to access
essential products to produce vaccines and
this violates the right to health of our
people.'
"Venezuela has recorded over 230,000 cases of
COVID-19 and over 2,500 deaths. The
U.S.-imposed financial and economic blockade
has had a catastrophic impact on Venezuela's
economy. According to a report by the
Washington Office on Latin America (WOLA),
U.S. sanctions on Venezuela's oil sector and
financial transactions since 2017 have caused
the country to lose between $17 billion and
$31 billion in revenue. The loss in GDP has a
direct impact on the state's ability to import
essential items and fund key programs. During
the pandemic, this has directly affected the
state's ability to take care of its people.
The country has received vaccines from China
and Russia. However, its payment to the COVAX
initiative got delayed due to the country's
financial challenges, affecting its effort to
advance the mass inoculation process.
"In the meeting of the Ministers of Health of
the Non-Aligned Movement (NAM) countries
organized in the context of the WHA, Health
Minister Alvarado also commented that 'the
dominant, capitalist healthcare model where
health is seen as a good which you only have
the right to if you pay, is clearly reflected
in the inequality of access to vaccines and
other necessary supplies to combat the
pandemic as it has been raised by [WHO
Director General] Dr. Tedros Adhanom
Ghebreyesus.'
"In this meeting, Cuban health minister José
Angel Portal Miranda echoed the demand to lift
the sanctions and explained the complicated
situation faced by his country, 'The
intensification of the unjust economic,
commercial, and financial blockade imposed by
the U.S. government, alongside the deliberate
application of inhuman unilateral coercive
measures, impedes access to essential
resources for the development of medicine and
supplies that support the fight against the
virus.'
"However, Portal Miranda pointed out that
'Amid this suffocating economic war and other
challenges that demand huge effort from the
government and the health care sector, nothing
has stopped us from implementing actions with
the objective of protecting the life of all of
our people.'
"Cuba is the only country in Latin America
and the Caribbean region to develop vaccines
to combat the COVID-19 virus. It is also the
country in the region that has best combated
and contained the spread of the pandemic,
despite the suffocating blockade. Portal
Miranda credits the success of Cuba to efforts
over the 60 years of the revolution wherein
the country has 'sustained a health care
system that is public, universal, free and
accessible to 100 per cent of the population.'
"The
representative from Iran also took a strong
stand against blockade measures. 'We call upon
all member states, the WHO, and regional and
global organizations to stand against such
unlawful measures to ensure rapid
comprehensive coordinated global fight against
COVID-19,' he said.
"Iran too suffered due to the coercive
measures imposed by the U.S. administration
last year. Attempts by the WHO to get testing
kits delivered to Iran from the United Arab
Emirates ran into trouble due to 'flight
restrictions.' The UAE had to send the kits on
a military transport plane. Similarly, an app
to help the Iranian population during the
pandemic was removed by Google from its App
Store due to U.S. sanctions.
"Inhibiting a country's capacity to take care
of its own population affected by the COVID-19
pandemic has global implications. As it has
been reiterated throughout the Assembly, there
is no way to end the pandemic if all countries
are not able to contain it. The onus is
clearly on the U.S. and its allies to respond
to the collective demand and lift the
sanctions."
Note
1. The WHA is
the decision-making body of World Health
Organization (WHO). It is attended by
delegations from all WHO Member States and
focuses on a specific health agenda prepared
by the Executive Board. The main functions
of the WHA are to determine the policies of
the WHO, appoint the Director-General,
supervise financial policies, and review and
approve the proposed program budget. The WHA
is held annually in Geneva, Switzerland.
The COVID-19 pharmacare pay-the-rich programs,
worth billions of dollars and resulting in
fortunes for certain individuals in control and
ownership of Big Pharma, prove that any form of
pharmacare must be all-sided or it will
inevitably become yet another corrupt
pay-the-rich scheme for privileged global
oligarchs cynically using a necessary social
program as cover. To endure and be effective and
not be used to strengthen the oligarchs of Big
Pharma, pharmacare must encompass the
development, research, production and delivery
of pharmaceuticals with the aim to serve the
people, economy and society and not the global
rich. This requires human-centred public
enterprises to organize the necessary research,
and develop, produce and deliver pharmaceuticals
to the people without any aspect being infected
with the imperialist aim of maximum private
profit.
A true pharmacare
program and health care system generally are
required not only for individuals but for the
economy and society to function and develop. The
pandemic shows how crucial it has become to have
social conditions that produce and defend a
healthy population. If not, as has been
revealed, parts of the economy and even the
whole can grind to a halt. For workers to be
readily available to work, the health of the
people amidst a universal free health care
system must be built and maintained.
The pandemic proves that to sustain the
investments necessary for a proper health care
system, including pharmacare and seniors' care,
the value produced in the form of healthy
workers has to be realized in a proper exchange
within the economy. All big corporations in the
economy of a certain size must pay for this
value, which in fact they require for their
existence. These large corporations must be held
responsible to realize (pay for) the value
evident in healthy workers and the capacity to
work they bring to the health care system and
the overall economy. Healthy and educated
workers are the essential human factor to
produce new value, without which the economy and
society would collapse. The imperialist
oligarchs in control refuse to admit this
self-evident truth, and will continue to do so
unless deprived of their ability to deprive the
working people of what belongs to the people by
right.
The pandemic is further exposing how untenable
this situation has become and that it can only
be resolved by establishing human-centred public
enterprises capable of research and development
and delivery of pharmaceuticals needed by the
people. This modern approach would eliminate the
making of maximum private profit for remedies
and vaccines, which is now blocking the mass
distribution of vaccines to deal with COVID-19.
As long as this is in the hands of the
imperialist cartels the world cannot be made
safe.
Globalization has taken place at lightning
speed to serve the cartels and their mania for
maximum profit. In doing so they are incapable
of dealing with the consequences of their
actions. The fight for lives is the fight for
rights and this is the alternative to what the
governments in the service of the rich are doing
with their pay-the-rich schemes and anti-social
offensive.
Surge in Corporate Profits
During Pandemic
Washington, DC, March 11, 2021
Big Pharma billionaires are cashing in as
profits soar from sales of COVID-19 vaccines at
exorbitant prices to governments around the
world. A form of imperialist vaccine pharmacare
in countries without independent human-centred
pharmaceutical production has spread the
COVID-19 vaccine of the global cartels to all
but the poorest countries, pushing the cartels'
profits and stock market prices to heights not
seen before.
A handful of
global pharma cartels have gained control over
the thought material behind the vaccines and the
vast productive capacity needed to produce the
billions of doses. An international advocacy
group called the People's Vaccine Alliance (PVA)
warns that the various cartels of Big Pharma are
using their control and connections with
governments to dominate the supply and market
price of vaccines. The cartels have pushed up
their profits while making it harder for poor
countries in particular to secure the stocks
they need, while imperialist control blocks
their ability to produce vaccines themselves.
The CEOs of Moderna and BioNTech top the list
of nine Big Pharma oligarchs who have become
billionaires with the rollout of vaccines
against COVID-19. Many governments are using
various forms of imperialist pharmacare to buy
the vaccines from private producers and
administer them free to the people. The free
distribution of privately-purchased vaccines has
vastly increased the sales and profits of the
global Big Pharma enterprises, which in this
case do not have to engage in their usual
expensive advertising to push their drugs.
Forbes' Rich List has identified nine new Big
Pharma billionaire oligarchs. They join a group
of eight other pharma oligarchs who each already
control social wealth in excess of a billion
dollars. The nine new billionaires have a
combined net wealth of $19.3 billion. PVA says
the personal social wealth of those nine
oligarchs alone would pay to vaccinate all
people in low-income countries 1.3 times.
Instead, countries identified as "poor"
according to the United Nations have received
only 0.2 per cent of the available global
vaccine supply despite being home to 10 per cent
of the world's population.
Big Pharma Billionaire Oligarchs
The newest Big Pharma billionaires are Moderna
CEO Stéphane Bancel and Ugur Sahin from
BioNTech, with each now holding over $4 billion
in social wealth. Others on Forbes' Big Pharma
list of newest billionaires include three
Moderna investors, the chair of a firm
contracted to manufacture and package Moderna's
product, and the three co-founders of the
Chinese vaccine producer CanSino Biologics.
Eight other Big Pharma oligarchs, whose wealth
had already topped the billion-dollar benchmark
before the global pandemic hit, have seen their
wealth grow significantly. The eight include
oligarchs linked to China's Chongqing Zhifei
Biological and Sinopharm, India's Cadila
Healthcare and the Serum Institute of India, and
holders of BioNTech stock.[1] The individuals
named are joined in profiting from the pandemic
by the global investor cartels, politely called
"institutional investors," which own the lion's
share of stock in the Pharma oligopolies.
Data from Forbes' The Richest People In The
World list identifies the following Big
Pharma oligarchs and the social wealth they
control:
Stéphane Bancel, Moderna's CEO ($4.3 billion);
Ugur Sahin, CEO of BioNTech ($4 billion);
Timothy Springer, investor in Moderna ($2.2
billion);
Noubar Afeyan, Moderna's Chairman ($1.9
billion);
Juan López-Belmonte Encina, Chairman of ROVI, a
company with a deal to manufacture and package
the Moderna vaccine ($1.8 billion);
Robert Langer, investor in Moderna ($1.6
billion);
Zhu Tao, co-founder of CanSino Biologics ($1.3
billion);
Qiu Dongxu, co-founder of CanSino Biologics
($1.2 billion); and
Mao Huinhoa, co-founder of CanSino Biologics ($1
billion).
In addition, the eight existing billionaires
with extensive investments in the COVID-19
vaccine pharma corporations have seen their
combined wealth increase by $32.2 billion. PVA
remarks that this amount is more than enough to
fully vaccinate everyone in India. The eight
include Cyrus Poonawalla, founder of the Serum
Institute of India, whose wealth grew to $12.7
billion in 2021 from $8.2 billion last year, and
Pankaj Patel who controls Cadila Healthcare. He
saw his wealth expand to $5 billion this year
from $2.9 billion in 2020.
Note
1. Forbes'
35th
Annual World's Billionaires List: Facts And
Figures 2021
Mergers and acquisitions (M&As) are a
factor in the imperialist economy further
concentrating social wealth and power in fewer
hands. The media report global takeovers are
proceeding at a record pace. Seventeen of these
deals since 2020 comprise transactions of more
than $20 billion with two of the largest
involving Canadian-based companies.[1] The
largest is Canadian National Railway's
acquisition of Kansas City Southern estimated at
$29 billion. This acquisition concentrates the
productive power of the two railways to become
the largest in North America with operations
throughout the continent. It appears to be
part of the strategic aim of U.S. imperialism of
integrating both Canada and Mexico into U.S.
homeland security and its war economy with a
secure rail transportation corridor. The railway
merger dovetails with President Biden's decision
to cancel the Keystone XL pipeline as more
Alberta oil will now be shipped to the U.S. via
rail cars. Some commentators said this fact
alone pushed up the value of the merger,
resulting in greater potential profits for
owners such as Vanguard from higher stock
valuations for both monopolies involved. It
should be pointed out that global investment
cartels such as Vanguard have ownership stakes
in both these railway monopolies and manipulate
and profit from M&As both as buyer and
seller.
Another significant planned acquisition is
between two Canadian telecommunication
monopolies, Rogers Communications Inc. and Shaw
Communications Inc. The takeover of Shaw is
valued at $26 billion. These two monopolies
already have overlapping ownership and
operations and will become the largest
telecommunications monopoly in Canada, slightly
larger in enterprise value than BCE (Bell) and
Telus, consolidating the control of Big Tech
over the lives of Canadians.
Another merger involving the Canadian economy is
a three-way $12.4 billion deal including
Toronto-based insurer Intact Financial Corp., a
European Danish partner called Tryg A/S, and
British monopoly RSA Insurance Group PLC.
Globally, monopolies launched $1.3 trillion in
M&As in the first three months of 2021.
"This [is] the strongest opening period for deal
making since records began," said Matt Toole,
director of data service Refinitiv in a Globe
and Mail article.[2]
Not only are deals being announced, but global
investment cartels such as hedge funds are
increasing their stock ownership in certain
companies in anticipation of seeing share prices
of those companies soar when the "inevitable"
M&A occurs, which they themselves can
manipulate and push along.
The Necessity for a New Direction for the
Economy
and Democratic Renewal
The article in the Globe and Mail
speculates, "The takeover frenzy is fuelled by
low interest rates, banks' willingness to lend
and soaring stock market valuations." It quotes
investment banker Ian Macdonell saying, "Boards
[of companies] realize the competitive landscape
is changing and it's harder to be a regional
player, in North America or globally, so if they
can't be consolidators, they are sellers.
Takeover activity will continue until the credit
market tightens, the economic outlook weakens or
we get a significant stock market correction."
The Communist
Party of Canada (Marxist-Leninist) believes the
Globe's speculation is disinformation to
confuse the root cause of imperialist
globalization where the rich become richer not
only with M&As but through the war economy
and domination of other countries and the global
plunder of the value working people produce. The
constant wars and increasing autocratic control
of the global economy in the hands of an
oligarchy underscore the necessity for a new
direction for the economy and democratic renewal
to form an anti-war government.
The M&A frenzy within the concrete
conditions of the economy does not arise from
"low interest rates, banks' willingness to lend
and soaring stock market valuations." Such an
analysis fails to explore the aim of the
oligarchs in control and what is driving them to
engage in such practices, and the consistent
trend under imperialism towards concentration of
social wealth and power in fewer hands as the
rich fatten themselves on the wealth created by
others.
The Globe's disinformation suggests that
banks and their "willingness to lend" to finance
M&As are somehow independent from the "low
interest rates and soaring stock market
valuations" and the M&As themselves. That is
not the case. The banks and other financial
institutions profit enormously through fat fees
from organizing and arranging the deals and in
other aspects of M&As.
The Globe's
analysis describes various features of the
imperialist economy but fails to analyze why
these things occur. M&As arise out of the
imperialist economy, as part of its parasitism
and decay, to find maximum profit through the
exchange and seizure of already produced value
without going through any new production process
and circulation of social product. Larger
companies take over smaller or willing ones or
force them into bankruptcy while the oligarchy
roams the world for targets and wealth to
pillage through bullying and war.
The ongoing imperialist tendency is to
concentrate social wealth and economic and
political power in fewer hands and to wage war
for control and profit. These features are
constant regardless of whether the "banks are
willing to lend" or not. In fact, the banks and
other financial institutions such as hedge funds
are fully involved and integrated into the
entire imperialist process as lenders, buyers,
sellers, owners, organizers and war profiteers.
The entire process reflects the reality that
nation-building is a feature of the past and
that imperialist globalization, the politics of
neo-liberalism, a war economy and
nation-wrecking have seized control. If you
delve deeply into the largest M&As, you will
find that most of the private interests involved
are one and the same or at least have the same
aim and interest in seeing the M&A
completed, or, if forced upon them, to emerge
with the best possible terms. As said, the same
private interests are often represented as
lenders, buyers, sellers, owners, organizers and
profiteers.
M&As form part of what the oligarchs call
"unlocking shareholder value and shareholder
value creation" and as such serve their
fundamental aim to make maximum private profit
in the fastest possible time. They have nothing
to do with building a peaceful stable economy
that serves the people, meets their needs and
claims, and can be mobilized to humanize the
social and natural environment. They are part of
the global competition and constant wars for
hegemony to become dominant in wealth and
political power.
The drive to
seize social wealth and power leads the
competing oligarchs to enrol both public and
private military might to achieve their aims to
seize productive forces, markets, regions, and
workers to exploit and to block or destroy any
and all competitors or those who resist. The
entire aim and practice of the oligarchs is
contrary to the demand of humanity to live in
peace and have economies that serve the people
within a spirit of mutual benefit and
development under their control.
A feature of the concentration of wealth and
power in fewer hands is the continuous expansion
of the proletariat as the largest social class.
A consciousness develops that the economy is
already socialized and in antagonistic
contradiction with the private and autocratic
control of the ruling oligarchy. The necessity
for the actual producers to gain control over
the already socialized economy, productive
forces and social product becomes a rallying cry
for change to bring the aim, control and
direction of the economy into conformity with
its already socialized character for the
betterment of all humanity and Mother Earth.
Notes
1. List
of
largest mergers and acquisitions. The
graph shows the largest M&As from 1879 to
today. It highlights the expansion of U.S.
imperialism, as most of the largest M&As
during the twentieth century involve U.S.
monopolies. The graph also shows the
acceleration of the concentration of social
wealth in the twenty-first century.
2. Globe
and
Mail article by Andrew Willis: "Mergers
and acquisitions activity has exploded. Here's
why -- and the reasons it will continue for
the foreseeable future."
- Workers' Centre of CPC(M-L)
-
The Canada Emergency Wage Subsidy (CEWS)
gives employers up to 75 per cent of what they
pay to workers for their capacity to work.
This government payroll rebate goes to
companies while they presumably still receive
whatever realized new value the workers
produce. Profit derives from the portion of
new value workers produce that employers
expropriate. A payroll rebate in many
circumstances would expand profit.
The CEWS scheme
means that companies not only expropriate
added-value from the new value workers produce
but receive an additional amount of the
reproduced-value that workers claim from the
value they produce. The Trudeau government and
its Finance Minister Freeland excuse this
sleight of hand on the supposition that the
workers may not be needed during the pandemic.
The government says payment of most of
workers' wages encourages companies to keep
them at work whether they are needed or not.
The government dismisses the fact out of hand
that workers who are not needed and not
working could, or rather should, be directly
given social assistance during the period they
are not working without handing public funds
to companies, in particular the large ones
with huge resources. It says the CEWS is
designed to encourage companies to bring
workers back to work under the presumption
that workers will generate realized revenue of
at least 25 per cent of their wages. It has
done far more than that for many big
companies. The program has become yet another
source of corruption, with big companies using
it to fatten their profits and, in some cases,
to attack workers during lockouts and strikes
by having CEWS payments go towards the hiring
of scabs.
The excerpts below in quotation marks are
from a Globe and Mail report on big
companies abusing the CEWS program. The May 8
article available online is headlined: "Wage
subsidies were meant to preserve jobs. In
many cases, the $110.6 billion response
padded bottom lines." The item includes
examples of big companies using the CEWS wage
subsidies to boost profits and otherwise serve
their private interests.
The pandemic
has further exposed the current direction of
the economy as a failure in all respects. The
health emergency presents the working class
with the necessity to discuss, organize and
forge a new direction that puts the well-being
and security of working people, society and
the social and natural environment at the
centre of all considerations. The challenge
for the working class is to overcome the
obstruction of the global oligarchs and their
ferocious defence of the present direction of
the failed economy despite its anarchy,
recurring crises, insecurity and wars.
The Globe writes, "With an estimated
two-year price tag of $110.6 billion, Ottawa
will spend more on CEWS than it does on child
benefits, health care transfers, equalization
payments or pandemic benefits for
individuals."
The CEWS program has greatly increased the
federal deficit, prompting the government to
borrow vast sums from global private
moneylenders. According to existing
arrangements these sums will have to be repaid
with interest to these moneylenders. The
servicing of this debt will become another
excuse to attack the people with reductions in
spending on social programs. The vast majority
of public funds to service government debt
come from individual taxation and user fees
that working people are forced to pay.
The Globe research into financial
statements of big companies traded on the
stock markets of the oligarchs reveal that
many workers in the CEWS program continued to
produce considerable new value for those
companies while the government paid 75 per
cent of their wages. Many companies
expropriated added-value from the realized
value workers produced while at the same time
pocketing the CEWS payments thereby fattening
their profits.
If CEWS were an unemployment benefit for
workers then it would have been paid directly
to laid-off workers who were and are not
working and therefore not producing revenue
for a company. As a pay-the-rich scheme, CEWS
became yet another factor padding the profits
of big companies, as the investigation
reveals. As far as saving the existence of
small and medium-sized companies in crisis, an
alternative could be found to turn them into
human-centred public enterprises with the
current owners and managers justly compensated
and given positions in the newly-formed public
companies if they wish. The practice of
governments doling out public funds to save
privately-owned companies in distress must
cease and a new direction be found that serves
the common good.
The Example of TFI International Inc.
The Globe writes, "TFI International
Inc. has had a great pandemic. Revenue at the
Montreal-based trucking conglomerate,
excluding fuel surcharges, rose in 2020. Net
income jumped by double digits....
"The company made a string of 13 acquisitions
during the year. And after COVID-19 first
gripped Canada last March, the company paid a
higher (stock ownership) dividend in every
quarter compared with the same period a year
earlier.
"Along the way, TFI and its subsidiaries also
collected nearly $75 million in payments under
the Canada Emergency Wage Subsidy program,
making it one of the biggest recipients in
what is by far the single largest spending
initiative in the federal government's
history....
"If the intersection of a growing bottom line
and a government bailout seems disconcerting,
it shouldn't. There's no indication that TFI
did not legitimately qualify for payments. The
fact that a company posted solid results, paid
out higher dividends, had money to spare for
acquisitions, and laid off workers to contain
costs, is no barrier at all to receiving CEWS
payments -- despite sporadic rhetorical feints
to the contrary by the Liberal government.
"And if TFI's experience seems unusual, it
isn't. TFI has lots of company, according to a
Globe and Mail analysis that married
Ottawa's list of thousands of CEWS recipients
to the Statistics Canada database on Canadian
corporate parents and subsidiaries, and then
cross-referenced that to the companies listed
on either the Toronto Stock Exchange or the
TSX Venture Exchange, according to S&P
Global Market Intelligence.
"The result: a database showing that 389
publicly traded companies (or their wholly
owned subsidiaries) received more than $3.6
billion in CEWS payments as of late January
2021 (when the Canada Revenue Agency took down
the federal government's online listing of
companies). Some of the biggest names in
corporate Canada are on that list, including
Air Canada, BCE Inc., Canadian National
Railway Co., Onex Corp., Power Corp.,
SNC-Lavalin Group Inc. and Suncor Energy Inc.
Taken together, those 389 companies account
for 14 per cent of the combined listings on
the TSX and TSX-V. Citing privacy restrictions
protecting tax filers, Ottawa has refused to
release a full accounting of CEWS subsidies
paid....
"Several companies did not disclose the
subsidy amounts they received. And companies
such as Bombardier Inc., which reported in
securities filings it had received payments,
had no direct name matches for itself or any
of its wholly owned subsidiaries in Ottawa's
online listing, and were excluded by our
methodology."
The Globe investigation found that
many of the 389 big companies it investigated
"weathered the pandemic with relative ease,
despite qualifying for assistance under CEWS."
In fact despite qualifying for CEWS and
receiving government payments, half of the big
companies suffered no loss of revenue (gross
realized income) during the second quarter of
2020 compared to the same period in 2019 with
one quarter of the companies having higher
revenue. The investigation showed that the
third quarter was even better for many of
these big companies with only a third
suffering any kind of decline in gross income.
The Globe writes, "The picture was
similar for profits. Income from continuing
operations in the second and third quarters
grew for a large minority of public companies
receiving CEWS payments. Only a bare majority
of companies saw profits slip compared to the
same periods in 2019, even as the country
suffered its sharpest downturn since the Great
Depression.
"The industrial products and services sector
topped the list of publicly traded CEWS
recipients, accounting for 22 per cent of
them; that category includes TFI. Technology
companies made up 16 per cent, even though
some benefited greatly from a surge in
e-commerce during the pandemic. Oil and gas
companies, already suffering before the
coronavirus struck, accounted for another 15
per cent of recipients. The remainder --
including mining, life sciences, consumer
products and services, and many more -- were
under 10 per cent.
"Ottawa's public-facing data fail to give a
full picture of how companies with
subsidiaries have accessed the program. The
389 public companies in the Globe
database accounted for 1,542 separate
subsidies, reflecting payments to their wholly
owned subsidiaries. But those subsidiaries
were not linked to their parent in the
searchable list that the government has since
taken offline. Now, there is only a limited
search function that allows users to input a
specific company name to see if it has
received CEWS funds.
"Clearly, wage subsidies flowed not just to
companies that were struggling but to many
that were strong enough to withstand the
pandemic downturn on their own. Without a full
public accounting from Ottawa, it's impossible
to determine how many billions of dollars were
needlessly spent. But it is certain that the
cost of CEWS has climbed far higher than first
anticipated."
This raises a
question that working people should discuss.
Should governments "save" struggling private
companies and their owners? Has that become
the role of governments in the imperialist
economy using excuses such as saving jobs and
rescuing the economy from recurring crises?
Should public resources be marshalled to save
the private interests of the rich instead of
finding an alternative that solves
longstanding problems and serves the common
good and not the narrow private interests of a
tiny minority who in fact exploit the
majority?
The Globe suggests a design flaw in
CEWS meant that it could be exploited by big
companies that used it to pad their bottom
line. It writes, "Ottawa chose not to limit
CEWS to small businesses. Nor did the
government only pay subsidies for workers
whose jobs were at risk of being eliminated.
If a company qualified, salaries for all its
work force -- even in the executive suite --
were at least partly subsidized. And CEWS
allowed subsidiaries to qualify, without
taking into account the resources or financial
performance of their broader corporate
entity."
The Globe writes, "The wage subsidy
program -- which, to be more accurate, is
really a payroll rebate program -- was
Ottawa's second attempt at a bailout of
businesses threatened by the combined economic
blows of the pandemic and the resulting
lockdowns."
CEWS expanded who could apply for subsidies.
"Not only small businesses with limited cash
flows would be supported, but companies of any
size could get in line....
"There was no corporate equivalent of a needs
test. The ability of companies to absorb a
temporary downturn was not incorporated into
the determination of subsidies.... [Nor was]
the ability of large companies to tap capital
markets, or to simply redeploy cash from
profitable subsidiaries to struggling ones....
"CEWS did not place any limits on how
companies used the funds.... Ottawa declined
to impose such rules and restrictions, even as
it revised, expanded and extended CEWS several
times past its original 12-week lifespan. But
that didn't keep Chrystia Freeland ... from
implying that the Liberals had done so.... She
doubled down in March, saying, 'It is
important for companies to understand that,
legally, the wage subsidy can only be used to
pay employees. It can't be used for any other
purposes.'"
"In fact, there are no such rules in the
legislation implementing CEWS. Indeed, the
structure of the program doesn't even make
such a scenario possible."...
"[CEWS] reimbursement claims don't have to be
made immediately. Under the rules of the
program, companies could have waited until
early February 2021, to submit applications
for the initial reimbursement period in May
2020. Whether they hired or laid off workers
in the intervening eight months was
irrelevant. [...]
"Beyond the issue of including large
companies, the program did not distinguish
between stand-alone operations and wholly
owned subsidiaries of conglomerates. In the
case of TFI, the trucking conglomerate, the
company's package and courier business was
allowed to collect subsidies in the third
quarter even though its logistics business
revenue rose, in part, from the explosive
growth in e-commerce during the pandemic. All
told, 20 different corporate entities wholly
owned by TFI received CEWS payments. TFI
declined a request for comment.
"But TFI barely cracked the list of the top
20 companies with the most subsidiaries
accessing CEWS. Corus Entertainment Inc.
headed that list, with the parent company and
79 of its wholly owned corporate entities
receiving a total of $40.2 million in
subsidies in 2020. BCE was second, with 63
wholly owned subsidiaries; together, the
parent and its subsidiaries received
$122.9-million. (The company only disclosed
that figure in a lobbying registry filing,
saying that the subsidy amount was not large
enough to merit a mention in its financial
filings.)
"Another flaw that has become evident in
hindsight is the ability of companies to make
subsidy claims for what turned out to be
extremely limited downturns in their business.
A case in point: Montreal payment processing
company Lightspeed POS Inc., whose stock
market value grew by more than $9 billion
during the pandemic, as independent retailers
and restaurants signed up in droves for its
payment software that allows clients to
process sales online.
"Lightspeed collected U.S.$7.26 million in
CEWS payments, largely because of a fleeting
decline in revenue from March to June, 2020.
It was the only quarterly revenue drop the
company suffered during the pandemic -- a
meagre decrease of U.S.$100,000. The wage
subsidy it claimed was, in effect, 70 times
greater than the shortfall.
"Overall, Lightspeed's revenue surged by 79
per cent in 2020. And it became one of the
best performing Canadian tech companies in
2020 because of the pandemic. The company also
listed on the New York Stock Exchange last
September, a blockbuster debut that garnered
it U.S.$332 million in gross proceeds."
Surge in Corporate Profits During Pandemic
The Globe writes, "Beyond those
anecdotes, [University of Toronto economist
Michael Smart] points to the surge in
corporate profits in the third quarter of 2020
as proof that CEWS overcompensated businesses.
Corporate profits normally take a severe hit
in a recession, declining by as much as half,
he says.
"Not so during the pandemic. In the third
quarter, aggregate corporate profits on a
seasonally adjusted basis as counted by
Statistics Canada's quarterly national
accounts were $12.1 billion higher than in the
fourth quarter of 2019, the last full
pre-pandemic quarter. By the end of the third
quarter, the economy was rebounding sharply
from its freefall in the spring, with GDP just
five per cent below the pre-pandemic levels of
February -- although that recovery was uneven
between sectors.
"Government subsidies to business, including
CEWS payments, were $22.6 billion. A separate
tally of CEWS by the government pegged the
third-quarter costs of the program at $21.3
billion.
"Prof. Smart says that means that about half
the subsidies paid to businesses amounted to
overcompensation, since they increased
corporate profits beyond pre-pandemic levels.
"The same pattern emerged in the fourth
quarter when, according to Statscan, total
corporate profits were $10.9 billion higher,
with subsidies slightly lower at $10 billion.
That meant profits had recovered almost
entirely to pre-pandemic levels, and subsidies
simply bulked up the bottom line. 'There's
exactly one explanation for it: CEWS,' Prof.
Smart says."
CEWS Paying For Scabs
Co-op Refinery workers rally, January 7, 2020.
The refinery used CEWS money to pay for scabs
to replace the locked out workers.
Another egregious example does not appear in
the Globe report but in PressProgress.
CEWS money was used to finance scab
mercenaries to replace workers who had been
locked out at the Co-op Refinery in Regina,
Saskatchewan. CEWS money went to pay for
scabs, many of whom were being brought into
the refinery by helicopter and housed there to
operate it in place of the 750 locked-out
workers. This struggle went on for seven
months during the pandemic. The company
lockout of workers reduced production and
therefore its revenue, which made it eligible
for public money from CEWS to pay the
professional strikebreaking and
labour-trafficking companies that supplied the
scabs.
PressProgress quotes Amir Mawani, a
York University business professor currently
researching CEWS who said Canadian unions are
right to be concerned about these forms of
company subsidies. "You would not have to
explain why your revenues went down," Mawani
said. "It could be COVID, it could be a picket
line, it could be oil prices going down. That
should be the labour union's concern: that the
very act of a lockout is making [the employer]
eligible, which perhaps without the lockout,
they would not be eligible."
Mawani explained that companies traded on the
stock market do not have to include CEWS
income in quarterly reports if the amount of
money is deemed "immaterial," or insignificant
in relation to the overall budget. Non-traded
companies do not have to release public
reports at all. "CEWS is not really a wage
subsidy, it's a business expense subsidy,"
Mawani said.
PressProgress reports that the
refinery in Regina was not the only one that
used CEWS money to attack its workforce during
a strike or lockout. It writes, "Federated
Co-operatives Limited and several of the
contracting companies it employed during the
lockout appear in the CEWS database" -- along
with many other employers who had labour
disputes in 2020. The Canada Revenue Agency
has received 1,200 complaints about companies
misusing CEWS.
Workers were locked out at CESSCO
Ltd., an Edmonton metal fabrication shop, in
June 2020 in an effort to force them to accept
deep cuts to their wages and pensions. The
company used replacement workers during the
lockout at the same time as it received
assistance from the CEWS program.
"University of Saskatchewan political science
professor Charles Smith says this 'scab
loophole' is one of many methods the wage
subsidy allows employers to prioritize profits
over their own workers."
The Trudeau government's CEWS program has for
its aim to preserve the power, social wealth
and class privilege of the ruling oligarchs
and block any discussion or momentum towards a
new direction for the economy. It proves yet
again that nation-building in the twenty-first
century is the social responsibility of the
working class in opposition to the control and
rule of the global oligarchy and its
governments. A first step in this new
direction is to organize the forces of the
working people in a broad movement to stop
paying the rich, increase investments in
social programs and make Canada a zone for
peace with an anti-war government.
Working People Must Wield
Decision-Making Power
Over Our Natural Resources
The Aluminium Association of Canada (AAC)
submitted its "pre-budget recommendations" in a
letter to the Quebec government on February 12.
The letter is in fact a warning shot that
aluminum workers are being targeted for attack
through what is called 4.0 digitized automation.[1] To rub salt
in the wound, the AAC demands governments
finance this assault through pay-the-rich
schemes and changes in certain regulations.
Aluminum workers
and their unions have not been consulted on the
AAC proposals that seek government financing to
modernize the production process and reduce
their ranks. Nor have they been consulted as to
how workers, if made redundant through
automation, are to be supported and trained for
other work and guaranteed livelihoods at their
existing standard of living. Automation
conducted in the fashion proposed in the AAC
letter with the support of public funds is
unacceptable. It would result in the global
cartels strengthening their domination and
control over the sector and the working class in
Quebec and Canada and draining the country of
value. It must not pass!
A different direction must and can be found! A
good first step is for workers to speak out
against making the workers pay for modernization
in order to pay the rich. When the workers speak
out, they find out the extent of the fraud and
corruption which is in the works. When they
speak out the falsity of the arguments provided
by the rich gets exposed. How untrue they are
gets exposed. The rich think they can command
the economy which is not the case. Their demand
for more is never-ending. Furthermore,
governments can only get away with schemes to
pay the rich if they are not held to account.
Now that the entire economy needs to be
modernized is a time to hold them to account.
Note
1. Wikipedia
describes Industry 4.0 or the Fourth
Industrial Revolution as "the ongoing
automation of traditional manufacturing and
industrial practices, using modern smart
technology."
- K.C. Adams -
The letter written by the Aluminum Association
of Canada to the Quebec government in February
with its recommendation for the modernization of
the aluminum sector, exposes its self-serving
arguments. The letter of the AAC suggests that the
aluminum industry is well placed to profit from
the current trend towards decarbonization and
automation. It wants the Quebec government to
assist the sector in strengthening its global
competitive position by consolidating its control
of the North American supply chain through its
"Project ELYSIS" characterized as "progressive
modernization." It proposes to produce traceable
low carbon material putting emphasis on reducing
the price of production through digital 4.0
automation to eliminate workers and accomplish
what it calls best environmental practices. To
reach its goal to dominate "North America," defeat
global competitors and reduce the workforce, the
AAC says it must receive government funds from
subsidies, tax breaks and changes in regulations.
(All quotations are from the letter.)[1]
Working Class Gets No Say on Pay-the-Rich
Schemes
Rio Tinto Alma aluminum workers denounce
Quebec governments subsidization of
company's hydro during lockout in 2012.
|
The AAC bemoans the fact that the cartel's
factories are old and require renewal to become
digitized to respond to the needs of a revamped
low carbon market and global competition. All this
is expensive and the industry thinks it is
entitled to receive public funds to finance the
transformation even though the benefits will be
private. The private owners do not want to be
burdened with the cost and risks of a direction
they themselves have contrived. Nor do they accept
any social responsibility for the workers made
redundant through automation and tossed to the
wind along with their families.
The aluminum cartel wants all the existing or
what it calls "traditional" forms of paying the
rich to remain in place, such as subsidies and
cheap electricity. In addition, it wants
governments to "look beyond" with augmented forms
including favourable regulations and tax benefits.
The cartel asks for government funds to assist
directly in automating through robotization and
new technologies resulting in energy efficiency,
fewer workers and lower carbon output. It says
that if the cartel is forced to use its own social
wealth or borrow it on the private market, the
return on investment from the resulting price of
production would not be high enough to satisfy its
investors and majority owners. To raise the return
on investment and rate of profit various factors
are required, which the AAC outlines as follows.
The AAC wants its cartel members to be able to
rapidly write off as tax deductions any
investments in 4.0 modernization. It refers to
this demand in imperialist jargon as an
acceleration of the amortization of capital
expenditure. It demands this from both the Quebec
and federal governments. The AAC insists aluminum
smelters become eligible immediately for
investment tax credits that are currently only
available to manufacturing companies. These forms
of tax credits include the amount invested for the
purchase of production equipment and its
installation.
Modernization Must Not Be on the Backs of
Workers and Society
The AAC wants the government to furnish
unspecified pay-the-rich schemes for its member
companies, the three primary producers of
aluminium in Quebec and Canada: Alcoa, Aluminerie
Alouette and Rio Tinto. These schemes would pay
for any technological improvements and components
the companies may require in their 4.0
modernization programs "in the fields of
automation, robotization and AI, and (to)
accelerate 'ready to go' projects."
The AAC wants the government to assume any risks
that may be involved with the use of artificial
intelligence in aluminum smelters. It demands
governments establish tax credits for any payments
for consulting and training services required to
adapt these technologies to smelting and to extend
these credits to the use of "secondary scrap" so
as to "stimulate the valuation" of smelting of
scrap aluminum. Larger tax credits should also be
made available, it says, to promote the
electrification of the equipment and processes
used in smelting as this is obviously "good for
the environment." Note that cheap and abundant
hydro-electricity for smelters provided at
so-called industrial rates is a major attraction
for the global aluminum monopolies to produce in
Quebec and BC.
The AAC wants tax credits for the amount paid to
construction workers on all smelter modernization
projects. It also wants subsidies or tax credits
for work-time required to train workers on new
equipment and any technological improvements.
Within all these demands, it makes no mention of
the fate of workers made redundant through
automation. This silence implies the industry
owners do not want to bear any social
responsibility for workers and their families'
well-being and futures as that would reduce the
return on investment.
The Green Marketing Fraud
The AAC shamelessly
plays the green card suggesting all the
pay-the-rich corrupt schemes it demands
surrounding 4.0 modernization are good for the
environment, not to speak of good for the global
private interests who own and control the sector.
It is fraud to keep repeating that there are
common interests between the narrow private
interests which benefit from the resources which
belong to the nation of Quebec and the workers as
if the workers cannot do without the private
owners. The fraud is that governments pretend to
be representing the national interest when in fact
they represent the narrow private interests which
are not even Quebeckers!
As if the aluminum production sector in Quebec
and BC is owned and controlled by Canadians and
Quebeckers, the AAC says it is constantly on the
defensive against global competitors and
consequently the Quebec and Canadian governments
must pay to strengthen these private companies by
paying for their modernization. In fact most of
the new value workers have produced during decades
of aluminum production has flowed out of the
country, expropriated as profit by global
oligarchs. This outflow of added-value includes
expropriation of profit from new value
Hydro-Quebec and BC Hydro workers have produced,
which the aluminum cartel seizes in the form of
electricity prices below the price of production.
The AAC exhibits considerable excitement over the
possibilities to profit from Quebec and Canadian
governments' post pandemic public spending on
infrastructure. It writes, "Public procurement
practices should leverage every dollar towards a
more sustainable economy, enabling the use and
implementation of innovative solutions using low
carbon materials such as aluminum like never
before. This will help achieve national targets
for reducing CO2 emissions." It may be so, but who
should pay? Who should decide the direction of the
economy?
To promote the common corruption of theft of
public resources by powerful and privileged
private interests as somehow acceptable and
serving the common good by playing the green card
is unacceptable! The AAC says government
pay-the-rich schemes to innovate the sector "is
essential to the industry's leadership in the
future and to its contribution to reducing
'Greenhouse Gas Emissions.'" It suggests these
corrupt payments to global private interests
create "national wealth" from the "R&D and
potential technology exports" and for this reason
"must be supported." That paying the rich creates
national wealth for all, serves the common good
and leads to nation-building is simply stated and
pushed relentlessly without question by the
imperialist think tanks and mass media. When they
respond, workers and their organizations must
reject this fraud as a starting point.
Workers Are Not Dispensable!
The AAC states
openly that this "shift to Industry 4.0" will
result in loss of employment in the sector. It
expresses concern not for the working class but
rather for a change in regulations that would make
the absence of concern for redundant workers and
the rich becoming richer and more powerful
acceptable and legal. It says that the inevitable
redundancies "mean that financial support policies
(the traditional pay-the-rich schemes) can no
longer be anchored on a jobs per dollar basis, and
must instead be based on wealth creation. They
(governments) must understand the wealth generated
upstream from automation, robots and AI is the new
paradigm." In other words, pay-the-rich schemes
based on the deception of job creation are no
longer feasible and now must be based on the
deception of "wealth creation." The AAC
deliberately leaves hazy who will seize this
created wealth yet the global oligarchs control
and own the means of production and according to
the imperialist rules of ownership are legally
entitled to any new profit and a return on
investment that is competitive internationally to
attract investment.
The AAC says, "Investissement Québec's financial
support for the ELYSIS project is fundamental and
helps anchor the development and future
commercialization of technology that makes a
rupture with what exists in Quebec. This financial
intervention capacity must be maintained and used
to accelerate industrial innovation in Quebec."
Of no concern to the AAC is the fact that private
global cartels such as Apple stand to gain from
the public funding of 4.0 modernization through
the sale of its products and private expertise
captured as "intellectual property." The AAC
repeats over and over that public funds going to
private interests serve the common good such as
government money for "Project ELYSIS." And besides
AAC says, the project will result in aluminum
production from inert anodes without any release
of Greenhouse Gases (GHGs). It speaks more quietly
of the fact that the new production technique will
certainly result in loss of jobs. Furthermore the
new type of anodes, which last far longer than the
current ones will not be produced in Quebec as the
current anode is, at least that is the widespread
belief. The fact that GHGs will be reduced and
recycling of aluminum will increase becomes a
cover to hide all the problems, including the
attacks on workers' rights and livelihoods, and
the corruption of paying the rich to consolidate
their social wealth, power and class privilege.
Further Integration into the U.S. War Economy
The AAC hails the recently concluded Canada,
U.S., Mexico (Free Trade) Agreement and the
Canadian government's financing of the aluminum
industry's "stronger" integration into the U.S.
(war) economy. Aluminum is crucial to the U.S.
military, its war materiel and preparations, and
the U.S.-dominated auto industry and other
manufacturing.
To ensure this
integration into the U.S. war economy and Homeland
Security, the AAC wants the "implementation of
traceability technology in aluminum smelters in
Canada, with the financial support of the Canadian
government." Traceability "will help to ensure
(that) this link" with the U.S. economy remains
secure, as U.S. leaders will be confident the
aluminum does not come from global competitors, in
particular China and Russia against whom they are
generating hatred in preparation for war. In this
regard the AAC commends "funding through Canada
Economic Development required point-of-entry
tracing technology to allow full traceability of
metals in the downstream value chain. The
government of Quebec should ensure access by
processing SMEs [small and medium-sized
enterprises] to the appropriate point-of-entry
technology by providing financial support through
existing programs such as 'industry 4.0.'"
This means all mining, refining and processing in
Quebec and Canada will be subject to "security
clearance" from U.S. imperialism to prove loyalty
and willingness to engage in war preparations
against China, Russia and all others the U.S.
declares an enemy. In this way the aluminum sector
and all its parts are ensured integration and
entry into the U.S. market.
The working class throughout Quebec and Canada
has to deal with how attacks on its rights and
claims, such as those proposed by the AAC, are
permitted by governments to proceed without
resistance and defiance. Workers and their
organizations will need to tackle the demands of
global oligarchs in light of the need for
modernization. The 4.0 automation in the way the
AAC describes with pay-the-rich schemes,
nation-wrecking, no attention to the well-being,
rights and claims of the working people and
clamouring for competition and war must be
confronted before it is too late and the entire
country is dragged to war. A new direction is
required that defends the rights of workers and
nation-building with the objective of bringing
into being an independent self-reliant
human-centred economy that stops paying the rich,
increases investments in social programs, trades
with all peoples in a spirit of mutual benefit and
development and peace. A starting point in this
direction is the rejection of the proposals put
forward by the AAC letter and demand that the
government listen to the workers.
Note
1. For the AAC letter click
here. English translation by TML.
- Dr. Dougal MacDonald -
Calgary, March 28, 2021
A powerful mass movement has built in Alberta
against the recently revealed plans of the ruling
United Conservative Party (UCP) government to sell
out Alberta's coal reserves on the eastern slopes
of the Rocky Mountains to Australian coal
monopolies for a song. The mined coal was to be
ripped and then shipped to Asia. The protesters
rightly view open-pit coal mining in the
province's critical watersheds as a big threat to
their communities, the environment, and their
livelihoods.
Hundreds of
thousands of Albertans from all walks of life have
been protesting the attempted coal sellout through
organized groups, alliances, public forums, lawn
signs, and a number of petitions that have
gathered in total over 100,000 signatures. Early
results from a May 2021 provincial survey of over
25,000 people show Albertans have major concerns
about expanding the industry. "More than 90 per
cent of respondents felt there are areas of the
province that are not appropriate for coal
exploration and development," say the survey
results released May 21.
The UCP revealed their plan to sell out to the
Australian monopolies in May 2020 when the
government rescinded Alberta's Coal Policy, which
for 44 years has kept 1.5 million hectares of
lands on the eastern slopes of the Rockies off
limits from open-pit mining. The UCP axed the 1976
Coal Policy with no public consultation, although
they did consult the Alberta-based Coal
Association of Canada which represents the coal
mine owners. The UCP denies that its aim was to
open up the eastern slopes to the mining
monopolies but Australia-based Capital Investment
Partners, which owns four coal companies with
leases in the central Rockies, reported to
investors in 2019 that "the Alberta government is
in the process of changing the coal policy to
allow more open pit mining."
The intensity of the ongoing protests to date has
forced the UCP to backtrack or at least to pretend
to backtrack. Alberta's Minister of Energy Sonya
Savage, a former pipeline executive, announced in
a news release on January 18 that due to public
opposition the prior sale of eleven coal leases to
the Australian monopolies would be cancelled and
that no more would be sold on land where open-pit
mines were forbidden under the old policy.
Protestors pointed out that the cancelled leases
were only a tiny fraction of the leases sold since
the Coal Policy was quashed.
On February 8,
Savage reversed the decision to rescind the 1976
Coal Policy, claiming that the UCP now plans
wide-ranging consultations on a new coal policy.
She announced that a five-person committee has
been appointed headed by a private consultant who
has worked for the World Bank and is a member of
the neo-liberal, corporate-funded Canadian Global
Affairs Institute. Of course, Albertans are well
aware that all such UCP-initiated consultations
are phony and will only lead to conclusions
predetermined by the monopolies and their sellout
government.
Between 2003 and 2013, the Australian monopolies
mined at home, supplying growing Asian markets
with iron ore, steel-making coal, and coal for
generating electricity and making huge profits.
But declining resource quality as well as people's
increased opposition to open-pit mining in
Australia has forced the Australian monopolies to
look elsewhere for coal to ship to Asia.
Australian coal monopolies are now hoping that
Alberta's sellout UCP government will offer the
same formula underlying their past success in
Australia: low royalties, low corporate taxes,
minimal regulations, and cooperative politicians.
In other words, the same formula the UCP uses with
the fossil fuel monopolies operating in Alberta.
The UCP's shady moves in the interests of the
Australian coal billionaires illustrate once again
how the global monopolies privately own and
control the contemporary economy and dominate
official politics. Their private ownership exists
in contradiction with the modern economy's
socialized nature, its interlocking reality and
the billions of actual producers who create the
social product necessary for the existence of the
people and society but have no say over the
economy's direction.
The aim of private ownership is to make maximum
profit from the parts of the economy the owners
control -- such as coal mining -- and force the
state to do their bidding and pay the rich. This
leads to dysfunction in the economy and recurring
crises as the competing parts conflict with each
other and with the interests of the actual
producers who have no say. The narrow aim of the
coal oligarchs for their private gain, for
example, clashes with the need of the various
sectors and enterprises of the economy to function
in harmony for the common good.
The objective conditions pose the issue of how to
deal with environmental problems and the
despoiling of nature, such as is the case with
open pit coal mining, where the tops of mountains
are literally cut off and the "waste" thrown into
nearby river valleys to block flow and pollute the
waterways with dangerous chemicals such as
selenium. The key problem is that people lack
control over their economies and official
politics. Without taking into account the
domination of the global monopolies over
everything, most efforts to deal with
environmental problems get manipulated by the very
forces causing the problems and turned into
programs to pay the rich.
Of course, issues such as industrial and other
pollution, land degradation, soil dispersal, dust,
incessant noise, poisonous gases, and water
contamination, all effects of open-pit mining, can
each be raised on their own. Suggestions,
campaigns and remedies can be fought out to a
temporary resolution such as the UCP's
cancellation of some coal leases, reversal of the
rescinded coal legislation, and the "promise" to
hold consultations to develop a new coal
policy.
However, to turn any success into lasting
victory, the problem of the oligarchs' overall
domination of all aspects of life must be raised
and confronted in a serious way and major efforts
put into overcoming this domination and building
the New.
- Peter Ewart -
Rally in Prince George, November 12, 2020
calling for an end to Glyphosate spraying
Is it a good idea to pick and eat wild
raspberries and blueberries in forest cutblocks
in the Central and Northern Interior of British
Columbia? Not if these lands have been sprayed
with the weed-killer glyphosate sometime in the
last few years. And the same caution holds true
for wildlife such as moose and bears who,
besides berries, consume large quantities of
fireweed, willow and dogwood shoots, all of
which can contain low levels of glyphosate
residue for relatively long periods of time.
These are the
conclusions that can be drawn from a recently
published research study carried out by a team
of University of Northern BC scientists, N.
Botten, L.J. Wood, and J.R. Werner. Their
findings go directly against the message
repeated by the manufacturer of glyphosate,
Bayer-Monsanto, that the weed-killer quickly
disappears from the plants and general
environment after it is sprayed and is not
harmful to humans or wildlife.[1]
Currently, certain big forest companies
helicopter spray upwards of 17,000 hectares of
BC forests (especially in the Interior) with
glyphosate every year and this has been going on
since the early 1980s. The total area sprayed
amounts to 1.3 million hectares either sprayed
or manually brushed. The aim is to kill off
broad-leafed trees like birch and aspen and
facilitate the growth of the so-called "money
trees" spruce and pine. The forest companies are
obligated to do this under provincial government
regulation.
The results of this research study are
disturbing. For example, one year after
glyphosate treatment, 26 per cent of raspberry
and blueberry fruit samples taken from cut
blocks in the research study would be "deemed
unfit for human consumption" if assessed by
Canadian Food Inspection Agency standards.
Glyphosate and AMPA (the metabolite derived
from it) residues were detected in the fruits
for at least one full year after spraying. In
addition, low levels of weed killer residue
persisted in raspberry shoots, fireweed shoots,
and willow shoots for at least six years and in
fireweed roots for twelve years.
Indigenous people have said for years that
eating glyphosate-sprayed berries and medicinal
plants has sickened them, and there are
anecdotal reports of others being affected also.
The long-term effect on wildlife is unknown.
In the U.S., Canada, and elsewhere, literally
thousands of lawsuits have been launched by
individuals who claim that they have contracted
cancer and other illnesses because of prolonged
exposure to glyphosate, with one terminally ill
groundskeeper being awarded $289 million in
damages in a California court. As a result, the
Bayer-Monsanto corporation has agreed to pay
$10.9 billion into a fund to settle the
thousands of other court cases.
What has been revealed in these legal
proceedings is that Bayer-Monsanto has been
systematically recruiting scientists to publish
studies that defend the use of glyphosate, going
so far as to "ghost write" a number of research
studies under their names. Unfortunately,
Canadian and American government authorities are
basing their decisions to allow widespread
glyphosate spraying on such deeply flawed
studies.
In BC, there is broad opposition by farmers,
trappers, foresters and others to
glyphosate spraying. An organization, Stop the
Spray BC has been founded specifically to
oppose the widespread spraying of the
weed-killer. The chemical has been banned for
use on crown lands in Quebec, and banned
completely in Germany, Saudi Arabia, Vietnam and
other countries.
Yet the BC provincial government continues to
authorize the helicopter spraying of glyphosate
across our Interior forests, which are already
suffering from pine and spruce beetle epidemics,
overcutting, erosion, flooding, fires and a host
of other problems.
Now berry picking -- a pastime that many people
in the Central Interior and North have enjoyed
since time immemorial -- is threatened.
Note
1. N.
Botten,
L.J. Wood, & J.R. Werner,
"Glyphosate remains in forest plant tissues
for a decade or more, Forest Ecology
and Management, 2021.
- Pierre Soublière -
Today, the ruling elites continue their
reckless and socially irresponsible pursuit of
maximum profit and push their pay-the-rich
schemes, all the while claiming to be concerned
for the future of Mother Earth. It is a sordid
and profane show of buffoonery to make light of
such grave matters. A case in point is the
forest industry in Quebec, which considers
Quebec's forests to be "trees to harvest," the
workers costs, and Indigenous peoples obstacles
to their plunder.
Today, the forest industry is very much alive
to one extent or another in 157 Quebec
municipalities. In the Outaouais, for example, a
region built on the wood industry, it still
accounts for 50 per cent of manufacturing
production. The problem is not wood-cutting per
se, but rather the historical access that
companies have had to our forests and their
indifference to and covering up of the actual
harm that this is causing to the natural and
social ecosystems.
It's not that the alarm has not already been
sounded. In 1999, the documentary L'erreur
boréale, by Quebec artist and spokesperson
for Action boréale Richard Desjardins was aired,
expressing concern over the dangers of
clear-cutting and the blind destruction of our
forests. The film had a momentary impact in
that, among other things, the Quebec government
at the time set up the Coulombe Commission which
was to look into the matter. More than 20 years
later, Action boréale still affirms that the
situation is critical and that the Quebec
government still considers our forests to be the
"lumber yard" of forestry companies. Recently,
67 Quebec scientists, in an open letter,
denounced the "industrial" vision of the
Ministry of Forests, Wildlife and Parks and
called for the creation of a "national
observatory," independent of government so as to
have a better assessment of the condition of our
public forests.
The situation is such that forestry companies
speak eloquently about measures taken to fight
carbon emissions and to "reduce their
environmental footprint" and in the next breath
demand governments "increase the allowable cut,"
meaning provide even greater latitude to cut
more trees at further reduced costs. Now, with
the high price of lumber, the only "green" they
are concerned about is the colour of money. In
this respect, the Quebec government -- always at
the disposal of the wood industry -- presented
its Strategic Plan 2019-2023 in which it
announced increased harvesting of Quebec forests
in the upcoming decades which, it claims, will
contribute to "the fight against climate change"
and to "economic development." It also announced
with its recent budget that important cuts were
to be made to the Ministry of Forests, Wildlife
and Parks.
As for the forest industry, it goes from one
crisis to another, from one plant closure to
another. In the Outaouais, the Fortress plant in
Thurso has been closed for more than a
year-and-a-half, one of a number of plants that
have been shut down in Quebec. Much of the wood
industry has always been dominated by foreign --
especially U.S. -- private interests, and today
it is even more concentrated in the hands of
"asset management" companies for whom the wood
sector is solely a means to make shareholders
rich without assuming the least responsibility
towards communities, the environment or workers.
Ask the White Birch workers of Stadacona. A few
years ago when the company went under the Companies'
Creditors Arrangement Act, the plant was
purchased by Black Diamond, one such asset
management company. Black Diamond proceeded with
"restructuring" that, along with a number of
layoffs and setbacks in working conditions, cut
dramatically into the pensions to which workers
had contributed all their lives. In spite of
numerous obstacles and total government
indifference, these retirees are still
struggling in defence of their dignity and to
reclaim what is theirs by right.
In the case of Fortress, its closure has had an
impact on many other plants and sawmills in the
region. There is a need to take a step back and
consider the problem in its entirety, as an
organic entity in which human beings and nature
are interconnected, and where the main
preoccupation for workers and communities is to
act responsibly towards society and nature. For
example, certain municipalities and
organizations are recommending that the
medicinal and food value of forests be
considered. The pressure against this is to
impose the vision that the problem is simply of
timber supply. This pressure can be seen in the
report of an "intervention cell" set up to study
the crisis in the forest industry in the
Outaouais and the Laurentides. The proposals put
forward are basically aimed at "improving
activities related to supply in these regions"
and "taking advantage of the value-creating
potential offered by the forestry sector in
these regions." It also asks that the Quebec
government "do what is necessary to bring about
a breakthrough in the negotiations with the
Algonquin community of Lac-Barrière."
A clear line of demarcation is being drawn. On
the one hand, there are the private interests
and governments who want to keep the
decision-making power firmly in their hands so
as to continue to act unilaterally at the
expense of the natural and social environment.
On the other, there are the workers, the
Indigenous peoples and the Quebec people,
especially the youth, who have expressed in
numerous ways their opposition to the
destruction of their natural and social
ecosystems. They are taking into account the
real harm being caused to Mother Earth,
including the very social fabric, and want to be
an integral part of decision-making on matters
that have such life-changing impacts on their
immediate environment and the future of humanity
itself.
Mexico is the ancient home of corn. Over
thousands of years, the Mayans and other
Meso-Americans developed corn (also known as
maize) into a crop, using its many varieties as
a staple food to fuel their civilizations.[1] It is this
sacred food which is under threat today from
multinational chemical companies and the U.S.
government who are demanding that Mexico keep
its doors open to the weed killer glyphosate and
genetically modified corn.
In December 2020, responding to farmers,
Indigenous peoples and others, Mexican President
Andres Manuel López Obrador issued a decree
phasing out glyphosate by 2024. The decree
states that "in recent years, different
scientific investigations have warned that said
chemical has harmful effects on health, both in
humans and in some animal species, and has been
identified as a probable carcinogen in humans by
the International Agency for Research on
Cancer."
In that regard,
Mexico is not alone in its concerns. People in
the U.S and Canada have launched thousands of
lawsuits and protests against Bayer-Monsanto
(the giant multinational which manufactures
glyphosate) on the grounds that the chemical
caused cancer and other illnesses. For example,
a California school groundskeeper who used
glyphosate in his duties was recently awarded
$289 million in damages by a jury after he
contracted a terminal case of non-Hodgkins
lymphoma. Bayer-Monsanto has even been forced to
announce that it will pay $10.9 billion into a
fund to settle tens of thousands of court cases.
Glyphosate is a chemical that "inhibits
photosynthesis (the process of making new
tissue) in plants, making it a very effective
weed killer."[2]
Plants not resistant to its effects shrivel up
and die. Around the world, about 820 million
kilograms are used every year with a large
portion in North America. The weed killer was
first developed by Monsanto back in 1974 and
marketed as "Roundup." But production really
took off after the corporation introduced
"Roundup Ready" crops in 1996.
These crops, including corn, soy and canola,
were genetically modified to tolerate
glyphosate. Thus, fields could be drenched with
the chemical, killing weeds but allowing the
cash crops to survive. In addition, it is also
used to spray golf courses, school playgrounds,
and other venues, as well as forest lands in the
Interior of BC so as to kill off broad leaf
species of trees and promote the "money trees"
of spruce and pine.[3]
Today, much of the grain and pulse crops in
Canada and the U.S. are dependent in one way or
another on the spraying of glyphosate. The U.S.
exports about $3 billion of genetically
modified, glyphosate-tolerant corn every year to
Mexico which makes Mexico dependent on a foreign
country for much of its basic food. This corn,
which is mainly used for livestock feed, is
heavily subsidized by the U.S. government making
it hard for Mexican farmers to compete.
As a result of
its widespread usage, the chemical seeps into
just about every corner of North American
life, whether food, soil, water or air. For
example, in 2015-2016, glyphosate residue was
detected in 36.6 per cent of grain products,
47.4 per cent of bean, pea and lentil, and 11
per cent of soy products. Over 31 per cent of
cereals for infants contain the chemical. It has
also been found in beer and other products. The
problem is compounded in Mexico because human
and livestock consumption of corn is high. An
added problem for Mexico is that this imported
genetically modified corn from the U.S.
threatens the diverse native species of corn
developed over the centuries by Mexican farmers.
For this and other reasons, the Mexican
presidential decree will also block the
importation of genetically modified corn by
2024.
According to President López Obrador, the
purpose of the decree is to place "political
power first and foremost at the service of the
public interest" and the "general welfare of the
population," and "not private interests." It is
to be "congruent with the agricultural
traditions of Mexico"[4]
and to achieve self-sufficiency and food
sovereignty.
In response, successive U.S. administrations
have put pressure on the Mexican government to
revoke the decree. Various leaked documents have
exposed how top U.S. government officials have
worked closely with Bayer-Monsanto to force
Mexico to back down.[5]
This happened to the government of Thailand
which some observers believe reversed a ban on
glyphosate after pressure from U.S. officials
and Bayer-Monsanto.[6]
However, so far, Mexico has not changed its
position despite threats that provisions in
the U.S.-Mexico-Canada trade deal (USMCA) could
be used against it, as well as other means.
Seventeen legal challenges have been filed
against the planned ban, but none yet have been
successful.
It is indeed one of the great ironies of the
current model of corporate-dominated
globalization that the very country that created
cultivated corn for the people of the world is
now having an adulterated, toxic version shoved
down its throat.
Notes
1.
Betty Fussell, The Story of Corn,
University of New Mexico Press, 1992.
2. Environmental
Defence, "What's in your lunch. How glyphosate
finds its way into your children's food."
3. Stop the Spray
BC.
4. Pesticide
Action Network, "Mexico ousts glyphosate and
GM corn."
5. Kenny Stancil,
"Emails reveal U.S. officials joined with
agrochemical giant Bayer to stop Mexico's
glyphosate ban," Common Dreams, February 16,
2021.
6. Patpicha
Tanakasempipat, "Bayer campaign against
glyphosate ban revealed," Bangkok Post,
September 18, 2020.
(To access articles
individually click on the black headline.)
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