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Labour mobilizes support for locked-out Electro-Motive workers

Unionist
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Unionist
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Joined: Dec 11 2005

Bravo OFL!

Labour Prepares to Bar Scabs from London Plant: More Militant Defence of Good Jobs Could Mean Widespread Labour Unrest in 2012

Quote:

TORONTO, ONTARIO--(Marketwire - Jan. 2, 2012) - The Ontario Federation of Labour President Sid Ryan today declared that Ontario's labour movement will mobilize to help the Canadian Auto Workers (CAW) stop scabs from crossing picket lines at Electro-Motive Canada's London plant. Workers from across Ontario will prepare to flood the picket lines at the locomotive plant if called upon by the CAW.

"Workers across the province are angry and feel betrayed by their government and they are ready to fight together to defend good jobs," said OFL President Sid Ryan. "We are putting corporations and all levels of government on notice that 2012 will be marred by labour unrest if they continue to destroy the livelihoods of Ontario's middle class."

Electro-Motive, a subsidiary of U.S. industrial giant Caterpillar Inc., issued a final offer to its London workers that would cut hourly wages to $16.50 from $35 while slashing pensions and benefits, even though Caterpillar has enjoyed record profits and a 20 percent boost to production over the last year. The company locked out its workers on New Year's Day and is rumoured to be taking advantage of Ontario's lax labour laws by bringing in scab labour to keep the plant operational while bullying the union into devastating concessions. Many fear that the company's hidden agenda is to move production to a U.S. plant in Indiana.

"Caterpillar has a reputation for refusing to negotiate and escalating labour disputes through the use of scabs. This kind of confrontational negotiation tactic is unnecessary and underscores the need for provincial legislation to ban the use of replacement workers during strikes and lock-outs," said Ryan. "Scab labour destroys families, divides communities and protracts labour disputes. Ontario Premier Dalton McGuinty has the power to de-escalate this dispute but we won't sit by while good jobs are destroyed."

Ryan has offered CAW President Ken Lewenza the full support of the province's labour movement to stare down this greedy employer and pressure both levels of government to defend good Canadian jobs. The union is calling on federal Industry Minister Christian Paradis to use his powers to retroactively order a full review of Caterpillar's acquisition of Electro-Motive. At issue is Harper's failure to strengthen the Investment Canada Act and ensure a 'net Canadian benefit' by obliging foreign companies to protect Canadian jobs, quality of life and retirement security before purchasing Canadian companies.

"Harper's corporate tax cuts are continuing to fuel record profits that companies are keeping instead of investing in new technologies and equipment that lead to job creation. If Harper is refusing to protect the interests of Canadian workers, then we'll have to do it ourselves," said Ryan. "In 2012, workers are going to start fighting together against greedy employers to defend the good jobs that drive our economy. We are angry, we are organized and we are at this union's disposal. Essentially, we are just waiting for a call."

The Ontario Federation of Labour (OFL) represents 54 unions and one million workers in Ontario. OFL President Sid Ryan is the voice of Ontario's labour movement.

 


writer
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Joined: Apr 11 2002

This is good news!


NDPP
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They should get their asses over to the YRT strike as well!


Fidel
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Joined: Apr 29 2004

They should be glad in London North that they have an MP in federal government to fight for workers.


Gaian
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A Caterpillar worker told a CBC radio audience this morning that he had been offered $16 and change in the new contract, half of what he has been making in a skilled trade category. Does anyone have any idea what either the provincial or federal government could/is likely to enact to prevent the company from closing Canada's only remaining diesel train engine manufacturing facility? That move, clearly, is in the cards with the offer of such an offensive contract. It's not as simple as stopping the takeover of a critical resource industry such as potash. Yet the Caterpillar move is clearly being made under the umbrella of the U.S.'s new policy of promoting American industry under a "buy American" label. The universe is obviously unfolding as Steve expected. What can Ontario social democrats offer beyond pledges of solidarity allongside the unions?

KenS
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In principle, governments CAN do just about anything. Obviously we are not going to get that from either of the governments in question.

So the question is what can an NDP opposition propose that government would do, which brings us back to governments can do just about anything.... but there are practical limits on what even a government with political will can do.

Either government could flat out bar the closing of a plant. But that would be an empty gesture, since there is no power to make companies invest.

Which leaves the possibility of nationaling the plant. Always a popular call on this board and in a small sector of the NDP. You can scream invective at the rest of us all you want, there is no appetite in the NDP for turning back the clock like that. Not going to happen.

That still leaves a lot of territory where a government can 'legislate the parameters' to the point that,  for example in this case, it leaves Catepillar still with the nominal power to not make a serious offer and close the plant when/if the 'offer' is rejected.... but makes it so unattractive for Catepillar that they are hobbled from going that route.

How a government does that is an essentially technical question that depends entirely on the specifics of each case. But there is always a way to do it.

It gets a lot more sticky for an opposition party making proposals- because a lot of the legislative tools that would be used are complex enough to make them difficult to explain on the public stage- and even more difficult to defend against attack.

Even being more difficult for a political party it's still a question of political will.

But for starters, and maybe the biggest single weapon anyway, there is how the governments use labour law. Harper and Raitt are showing how federal powers are used to tilt heavily against unions. The NDP can do the opposite.

Even there, its no slam dunk. If a government even says that it thinks Catepillar is not bargaining in good faith, that has a very material effect on the balance of power. But the opposition party saying what effect the federal government could have even from expressing its opinion, meh. 

But I think you do that as a minimum anyway: call attention as loudly as possible to what Catepillar is doing, and that the federal government should discourage them and demand they bargian in good faith.

But I'm not hopeful of this babbysitter federal NDP leadership having the chops to do this- even with the interim leader being politicaly based in the trade union movement.


Unionist
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Joined: Dec 11 2005

Gaian wrote:
  What can Ontario social democrats offer beyond pledges of solidarity allongside the unions?

Good question. Has the ONDP weighed in yet? This reminds me of the Versatile situation 10 years ago in Manitoba:

From Hansard:

Quote:

Mr. Pat Martin (Winnipeg Centre, NDP): Mr. Speaker, I rise today in solidarity with the 250 Canadian auto workers at Versatile manufacturing in Winnipeg, who have been on strike for almost four months, in support of their efforts to keep open Canada's last agricultural tractor facility.

Since Versatile Tractors was taken over by John Buhler, 350 workers have been laid off and the remaining 250 employees have been on a bitter strike over basic job security issues. Worse than that, Buhler now threatens to relocate the plant to Fargo, North Dakota, taking with it a $32 million loan from the federal government.

Why would the government allow a company to assume such a loan without requiring repayment if the company leaves the country? Are we to stand idly by and allow $32 million of Canadian taxpayer money to create jobs for Americans in Fargo, North Dakota?

I call it economic treason to abandon Canadian workers in this way. I demand that the government recall the loan before John Buhler steps across the border to Fargo, North Dakota, and save those jobs at Versatile Tractors for Canadians.

Maybe someone closer to the story recalls the precise outcome. This tells part of the story. My understanding is that the plant stayed, but the union was crushed and remains non-union to this day. Again, not sure about this.

End of thread drift!


KenS
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Joined: Aug 6 2001

Its not thread drift at all, as far as the what governments and opposition parties do.

Its a big part of the problem.

Hard enough to get the NDP serious about playing hardball in this. And when [if] we get there- we do not generally discuss the gigantic elephant in the room:

When companies go this hardball route where the plant either closes or the workers take whatever the company wants to give them, part of that is the hard realities of economics in the particular industry. Standing tough does not solve that, it only gives you the opportunity to solve that.

Without the chance to try, you are finished. So fighting for that comes first. But for the unions and for governments/political parties its just a stay of execution.


KenS
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THIS is definitely thread drift:

Canadian manufacturing and its workers feasted for decades on the low dollar, and REALLY feasted during the years of the 'hyper-low dollar'.

Everybody knew this could not last, and that it was a foundation of sand.

Which is a good thing to keep in mind when people are hyping the lowering of the Canadian dollar: we probably have to do that for starters. But it is always billed as a panacea.

Even with globalization, nations prosper with a high currency, very high wage structures, and higher taxes.

This isnt the place for even beginning that discussion. But it is a good place for a reminder.


Gaian
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I hope that everyone in this thread understands that international capitalism has entered into a new phase, and that any means of retaining sovereignty when it comes to maniipulating monetary as well as fiscal policy, is going to become fundamental to survival. Just is case anyone was tempted to enter into a "circularity of history" explanation of what is being experienced now.

Gaian
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quote:" Good question. Has the ONDP weighed in yet? " The MSM do NOT go to Hew Democrats for quotes on labour questions. But of course, you know that ONDP are not on the side of Caterpillar. So I'll take that to be just the usual snotty putdown, in lieu of an answer to an honest question.

KenS
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I thought it was a good question.

The follow-ups to the possible answer could turn eventually into something snotty. Discussions are like that. But 'snotty' just isnt in the question.

Nor is the question just 'what did the MSM report about what the ONDP says?'

Not to mention that if this is a priority, the ONDP is able to make sure it goes beyond press releases no one reads.


Unionist
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Canada's Unions in 2012: CAW Head Ken Lewenza Bracing for Tough Year

Quote:

The CAW is asking the federal government to disclose the terms and commitments made during the 2010 purchase of Electro-Motive by Caterpillar, under the Investment Canada Act.

Progress Rail, which also produces diesel-electric locomotives, opened a plant in Muncie, Ind., in October, leading to speculation it intends to relocate the London operation there to benefit from Washington's Buy American policies.

I don't get this reference... "it intends to relocate" seems to refer to Progress Rail - but Electro-Motive is owned by Caterpillar. I'm missing something.

 


writer
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Joined: Apr 11 2002

"As a wholly owned subsidiary of Caterpillar, the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines, we are in a unique position to offer the widest range of products and services possible, including the most fuel efficient, environmentally friendly locomotive engines, to railroads in every area of the world."

http://www.progressrail.com/


Unionist
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Joined: Dec 11 2005

Aha! That's what I was missing! Capitalism is just too complicated. Thanks, writer.


Boom Boom
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Ken Lewenza was on P&P about this, made a really strong case for his workers. Evan Solomon kept hammering away at the Conservatives trying to get a commitment from them that Caterpillar will be held to account if they leave. Then an excellent panel on corporate salaries. Conservatives are arguing that Caterpillar's costs are half in the USA than what they are here, and that unions have to deal with that reality. The Con rep refused to discuss whether Caterpillar's profits and CEO salaries are fair when they want to cut worker's salaries in half and take away pensions. Let's all face reality - with the Conservatives in power, we're all fucking doomed.


KenS
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Joined: Aug 6 2001

That has to be BS that US costs are anywhere nere half. For one thing, employer contribution to health care- even non-union, dwarfs employer benefit costs in Canada.

Property taxes are way higher in most states. And so on.

Overall operating costs per labour hour input are lower, but nowhere near 50%.


Boom Boom
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I don't believe anything from the mouth of conservatives.


radiorahim
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Caterpillar is a really nasty union busting outfit.   I recall when they closed their Brampton plant back around 1989 or so,  the workers had to occupy the plant in order to get any kind of severance pay settlement.

Subsequent to that, there was a really long nasty protracted strike at one of Caterpillar's U.S. plants in the US Midwest.  The issues were similar to those going on in London right now as I recall.

Upthread, someone mentioned how the (now) high dollar is threatening the manufacturing sector.   Well the high dollar is in many ways due to the Canadian dollar becoming a "petro currency"... in other words...the Tar Sands.

So not only are we sacrificing the environment due to the tar sands, we're also hollowing out the manufacturing sector.   One more reason to stop further tarsands development.

 

 

 


M. Spector
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Joined: Feb 19 2005

From a CAW backgrounder:

There are 465 CAW Members at Electro-Motive Diesel

The employer has demanded the following concessions....

• $21 million annually reduction in wages and time off per year.

• $1.5 million dollars per year in benefit cost reductions.

• $6.9 million dollars cut out of Pension and Retiree benefit costs

• $10 million dollars out of the SUB fund.

The savings listed above would be gained by concessions the employer has tabled in the following areas:

• A wage reduction for all classifications. The deepest cut is $18.50 per hour for about 50% of the workforce.

• Elimination of the Defined Benefit Pension Plan

• Elimination of retiree benefits

• Substantial reduction in shift premiums

• Elimination of COLA

• Reduction in overtime compensation

• Elimination of 4 holidays annually

• Elimination of vacation of between 64 and 120 hours of vacation time

• Elimination of survivor income benefits, income maintenance plan, SUB plan, SWW protection, maternity top, retiree medical, retiree life insurance etc...

• 25% co-pay for the cost of premiums of medical, drug, dental, vision, hearing aid coverage

• 25% co-pay at time of purchase of the cost of drugs

• Major reduction in dental and other benefit coverage amounts

• Elimination of protection of skilled trades work


autoworker
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Navistar redux, and a prelude to this year's contract negotiations with the Big Three.


M. Spector
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OFL to mobilize massive rally in London against caterpillar Inc. London Day of Action declared for Saturday, January 21 at 11 am

(LONDON, ON) -- The Ontario Federation of Labour (OFL) today issued a call to workers across Ontario to mobilize for a massive rally in London, Ontario on Saturday, January 21 to oppose Electro-Motive Canada (a subsidiary of U.S. industrial giant Caterpillar Inc.) and its attack on decent paying Canadian jobs.

“We see this fight as being central to the entire labour movement and we are going to dig in our heels and fight Caterpillar with everything we’ve got,” said OFL President Sid Ryan. “Good jobs and retirement security are being threatened by greedy corporations and every level of government. If workers don’t start to fight back, decent jobs will become a thing of the past and the middle class will be decimated.”


autoworker
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Regardless of who wins the NDP leadership, the legacy of 2012 may well be a remnant of organized labour within Canada's manufacturing sector. Can social democracy endure on the strength of public sector unions alone?


Unionist
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McGuinty Sounds Off On Electro-Motive Labour Derailment

Essentially, McGuinty wants both sides to "moderate" their tone, and he'll provide a mediator.

Harper and his cronies are saying this can't be compared to Air Canada intervention, because Electro-Motive is provincial jurisdiction. They also say that they gave no specific grants, loans, etc. to EMD, so there's nothing to threaten to "take back".

The scariest comments come from Yvon Godin:

Quote:
"If they're going to legislate people to work, it should not be (one way). They should do it to help workers too...not just business. The government has to be there for all Canadians and not just the big corporations," he says.

Thanks a whole lot, Yvon. That's what we need - more back-to-work legislation. In any event, Harper can't legislate anyone, because (as the Cons correctly point out) it's provincial jurisdiction. Thank goodness Godin doesn't know which level of government to ask for intervention.

Quote:

Godin says he'd like to see Ottawa or the province make mediation available to the company and the CAW to try and move along the bargaining process.

Failing that, Godin says the Tories should play hard ball and ask for the millions in tax breaks they gave the company to be returned.

Well, McGuinty has apparently satisfied the first "demand". As for the "millions in tax breaks", they were changes in tax rules - not specific to EMD, so they can't be "returned".


KenS
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Maybe a reporter called him before he had his coffee?

Even if they did, Yvon should be well enough prepared to give an autopilot answer on this.

There isnt anything for the federal government to do that fits into the quick answer needed for the situation, but that doesnt excuse him from preparing a better answer than this.

Probably related to the Caucus being rudderless. And in turn, having no real Leader is not easy, but is no excuse for letting things go rudderless.


KenS
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Joined: Aug 6 2001

There is at least this:

"EMD is not bargaining in good faith, and both levels of government need to use the tools available to them to get the employer to play a resonsible role..."


Fidel
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The Fight for Canada Gets Underway Get your *ss to London: Mayor to Harper

NDP Interim leader at Mass Rally YouTube

Nicole Turmel: "..and where is Stephen Harper?" 

Does Steve plan on hiding from workers for the next four years?


Unionist
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Joined: Dec 11 2005

Great links, thanks Fidel!

 

Looks like a huge success - estimates of attendance at the rally (which just ended a while ago) ranged as high as 15,000. Though we have much bigger May Day and political demos in Québec, I'm hard pressed to recall a rally this big dealing with a specific labour struggle in recent history.

Congratulations to Ontario workers for their big show of solidarity!

 


Wilf Day
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CBC:

Quote:

CBC reporter Susan Pedler said from the rally that the average salary at Electro-Motive is $35 an hour, with the company demanding it be cut back to $16.50.

The company has hinted that if workers refuse the offer, they'll move the plant's work to Indiana, where similar pay cuts have already happened.

If Caterpillar wins the standoff, other Canadian employers will expect concessions as well, one labour expert says.

"It's discouraging, I'm sure, for many in the labour movement to see the CAW having losing battles over the last while," said Michael Lynk of the University of Western Ontario. "It's not to say that CAW doesn't remain a potent force. But if the CAW can't win these sorts of battles, then other unions may think, 'How can we win these battles?

http://www.cbc.ca/news/canada/ottawa/story/2012/01/21/toronto-caterpilla...

Wilf Day
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Joined: Oct 31 2002

Toronto Star:

Quote:

"If the government doesn't step in, Canada will become a low-paid workforce," Ken Lewenza, president of Canadian Auto Workers, told the Star before the rally. "We need to protect the middle class if we want a more equal society."

Equality has been the klaxon call for the occupy movement, which mixed easily with the workers in the crowd. Occupiers have set up tents on the picket line in support.

http://www.thestar.com/news/article/1119295--thousands-turn-out-for-lond...


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