Protecting Jobs Is of No Concern in This Imbroglio


Strike in July 2012 by 800 nuclear scientists, engineers and technologists at Candu Energy,
a wholly-owned subsidiary of SNC-Lavalin Inc. created in 2011 after the acquisition of the commercial reactor division of Atomic Energy of Canada Ltd. from the government of Canada.

SNC-Lavalin's position has been that it should be considered for a remediation agreement instead of being prosecuted because it claims that the bribery charges it faces are without merit and stem from "alleged reprehensible deeds by former employees who left the company long ago." However, the main argument given to defend SNC-Lavalin is that a conviction on charges would bar the corporation from bidding on government contracts for ten years. Those defending the position of the Trudeau government claim that this would jeopardize thousands of good jobs.

Looking at the matter solely to examine whether or not SNC-Lavalin and its lobbyists and government insiders have engaged in criminal activities completely covers up the relationship between governments, both Liberal and Conservative, and the private interests which they have acted to protect at the expense of public control of important sectors of the economy. Their pretense of protecting SNC-Lavalin for the sake of "good jobs" is a total lie because giving preference to SNC-Lavalin for decades has destroyed thousands of jobs to build and operate public infrastructure that has been systematically handed over to private interests.

A most vivid example is the destruction of Atomic Energy of Canada Limited (AECL), a Crown corporation founded in 1952 with a mandate to develop nuclear energy technology. AECL developed the CANDU reactor technology in the 1950s and, until its sale to SNC-Lavalin in 2011, was also the vendor of CANDU technology which it had exported worldwide. Throughout the 1960s to 2000s, AECL built CANDU facilities in India, the Republic of Korea, Argentina, Romania and the People's Republic of China.

In June 2011, AECL was sold to SNC-Lavalin for $15 million. Not only did SNC-Lavalin pay a fraction of the value of AECL, which many experts described as a fire sale price, the government also gave SNC-Lavalin $75 million to complete development of a new reactor called Enhanced CANDU 6. At the time of the sale the yearly earnings of AECL were approximately $500 million. Even if the considerable assets built up by AECL are not taken into account, it is the height of hypocrisy to deny that this was a gift by the Harper government to SNC-Lavalin.

The positions of the unions representing AECL workers were strongly against this action precisely because it meant the loss of thousands of jobs, not just in the Crown corporation but many other thousands of jobs among the corporation's suppliers. Michael Ivanco, Vice-President of the Society of Professional Engineers and Associates, stated at the time that the sale would result in a "hollowed out company," and could cost thousands more jobs among the corporation's suppliers. "It may contribute to brain drain not seen since the Avro Arrow, as engineers, scientists and others evaluate their long term careers with the company," Mr. Ivanco declared. "We are shocked and angry that the Harper government conducted this sale behind closed doors without any input from the Canadian public or Parliament. They jammed legislation through the budget that gave cabinet the right to make decisions instead of Parliament and now we see the results," he added. The union also pointed out that close to 800 jobs were jeopardized by the SNC-Lavalin takeover.

It was well known that many reactors built by AECL were in need of refurbishing at that time. The Harper government used the opportunity to destroy AECL and take the nuclear industry out of public control, following which SNC Lavalin signed billions of dollars worth of contracts to refurbish reactors in Canada and internationally. A scam is a scam, legal or not.


Nuclear scientists hold information picket to defend Canada's nuclear expertise against privatization, Chalk River Laboratories, September 9, 2014.

TML Daily wrote on January 24, 2014:

"The privatization of AECL is damaging for the national economy now and in the future. It has resulted in the loss of close to one thousand jobs and the potential loss of thousands of jobs in the future. It has taken a very important technology, the secure development of nuclear energy, out of the public domain and handed it to a monopoly corporation which will take advantage of the needs of the whole society for electrical energy. Nuclear energy clearly impacts on the health, safety and well-being of all Canadians and must never be allowed to be the private domain of a monopoly corporation whose only interest is maximum profit. The Harper government has even chosen to ignore the fact that SNC-Lavalin has been embroiled in allegations and findings of irregular payments to public officials, misconduct, corruption and bribery in projects in Canada and other parts of the world."

AECL's dismantling was all achieved through legal measures, including legislative changes so that Canada can say it abides by the rule of law. The Trudeau government has continued the same policy of destroying public control over the building and operation of public infrastructure, which is the overwhelming consideration in all these decisions and has nothing to do with "protecting jobs."


This article was published in

Volume 49 Number 7 - March 2, 2019

Article Link:
Protecting Jobs Is of No Concern in This Imbroglio - Louis Lang


    

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