There's been some good public debate about the need for changes to the Investment Canada process in light of Caterpillar's incredible actions in London. They showed up uninvited in 2010, took over a long-standing productive profitable plant, demanded money (from workers and government alike), then left -- leaving behind a shuttered plant and a shattered community.
Clearly something needs to change in terms of how the federal government regulates this process: sorting out foreign investments that can add genuine value to our economy, from those which are beneficial to corporate interests and investors but ultimately undermine our capabilities to produce and innovate.
Business lobbyists used to express grave concern about the economic impact of strikes. Those concerns were always overstated; time lost in work stoppages has declined by 90 per cent from the 1970s. Nevertheless, companies traditionally complain that work stoppages damage sales, productivity and, of course, profits.
Recently, however, business leaders have warmed to work stoppages. In the current bargaining environment, companies (especially multinational firms) hold the best cards. And executives are increasingly willing to precipitate their own work stoppages -- through management lockouts -- to enforce demands for lower wages and benefits.
A wage cut of 50 per cent. An elimination of pensions. Cuts to benefits. These demands have inevitably led to a major showdown at a locomotive factory in London, Ontario between the 700 unionized workers of Electro-Motive Diesel (EMD) and Caterpillar, a massive U.S.-based corporation. The workers, members of Canadian Auto Workers Local 27, responded to the employer's demands with a positive strike vote of 97 per cent. The employer, Progress Rail, a subsidiary of Caterpillar, locked out the workers on New Year's Day.
LONDON, ONTARIO -- "Caterpillar equipment is used to destroy homes in Palestine. Kind of like what Caterpillar is trying to do to our homes here in London," a locked-out worker commented outside the Electro-Motive Diesel (EMD) plant last week on their picket line.
Home losses are a likely outcome of the aggressive concessions the locked-out workers' employer (owned by Caterpillar since 2010) is demanding. Wage cuts of more than 50 per cent plus loss of benefits would mean families not being able to make mortgage or rent payments. I spoke to one welder, a father of five, whose spouse also worked at EMD. With both breadwinners hit by drastic compensation cuts or job loss, what sort of future would a family like theirs face?