Published By AMERICAN INCOME LIFE & NATIONAL INCOME LIFE LETTER canada LABOUR ADVISORY BOARD JULY 2014 Vol. 15 No. 4

NEWS FROM THE in short term, part-time, and poorly paid CLC, FEDERATIONS jobs. Governments have let them down by & NATIONAL failing to act. We owe them better than this,” he said. Statistics Canada’s Labour UNIONS Force Survey for May revealed that 13.3 per cent of workers in the 15-24 age group Canada’s unions called for a were unemployed and 30.4 per cent un- national jobs strategy with an emphasis on deremployed. Overall, the official unem- young workers. Canadian Labour Con- ployment rate was 7.0 per cent in May and gress head declared that the rate of underemployment was 14.7 per far too many young Canadian workers are cent. “Our governments talk about invest- either unemployed or underemployed and ing in jobs, but the fact is that Canada has governments must come up with a strat- fallen far behind. It’s time to walk the talk egy to solve the problem. “Young people and for governments to provide deliber- want to work and contribute. They want ate labour market strategies that will al- to build lives for themselves but too of- low people to find full-time, meaningful ten they can’t find work, or they are stuck work,” said Yussuff.

Brock University in St. Catha- rines June 5 awarded an honourary Doc- tor of Laws degree to USW President Leo Gerard in recognition of his “un- wavering commitment to social justice.” Gerard previously received honourary degrees from the University of Guelph and from Laurentian University in his hometown of Sudbury. Brock University cited Gerard’s “significant contributions to the advancement of workers’ interests in both the social and economic spheres.” “Transforming ideas into action has been central to the work and activism of Mr. Leo Gerard, whose career in the labour movement, spanning several decades, has undeniably improved the working lives of CLC head Hassan Yussuff. Flickr.com photo used under Creative Commons from . women and men in Canada, the United

TERRY O'SULLIVAN, President - Laborers International Union of North America, Chairman - AIL Labour Advisory Board VICTOR KAMBER, Vice President - American Income Life Insurance Company, Executive Director - AIL Labour Advisory Board ROGER SMITH, President & Chief Executive Officer - American Income Life Insurance Company, President - AIL Labour Advisory Board DENISE BOWYER, Vice President - American Income Life Insurance Company, Secretary - AIL Labour Advisory Board DAVE BARRETT, Former Premier of Province of , Honorary Member - AIL Labour Advisory Board Pg 2 LABOUR LETTER

London anti-Uber taxi protest. Flickr.com photo used under Creative Commons from David Holt. INTERNATIONAL States and internationally,” the university Taxi drivers in cities across said. In his convocation address, Gerard LABOUR NEWS Europe on June 11 joined in a massive encouraged graduates to strive to build a protest against the transportation app, better world by staying true to their values Hundreds of workers formerly Uber, because of unfair competition. and remaining idealistic. employed by Adidas in Jakarta staged a The company connects passengers with demonstration June 11 demanding Adidas drivers for hire and ride-sharing services Hassan Yussuff, the new pres- and its local contractor pay them sever- through the internet. Traffic in major cit- ident of the , ance owed since 2012. The demonstrators ies such as Berlin, Paris and London was is the first immigrant and first person of carried signs denouncing Adidas and lo- stalled as cabbies took their complaints colour to lead the Congress. In his victory cal footwear producer PT Panarub Dwi- about the service to the streets. Uber speech to the CLC following his narrow karya (PDK). The protestors were among has caused concern among cab drivers win over incumbent Ken Georgetti, he is- the more than 300 PDK workers who throughout the countries where it oper- sued a call to all Canadian working families were fired after joining a five-day strike in ates, including the U.S. and Canada. Cab to “fight back’ for change and “to protect 2012. The strike in October 2012 at the drivers said the drivers connected through ourselves.” He was elected at the largest Tangerang, Banten factory involved 1,300 Uber are unlicensed, unregulated and CLC convention in its history, with nearly PDK workers who opposed a new com- may pose a threat to passengers. In the 5,000 delegates attending. In what the news pany policy forcing them to make more United Kingdom, cab drivers have filed media called a “hotly contested” election, shoes during the same working hours. The legal action against Uber in London’s Yussuff won by 40 votes, 2,318 compared workers demanded improved working con- High Court. Although a decision may with 2,278 for Georgetti. According to ditions and higher pay in accordance with be months away, some 12,000 black cabs news reports, shortly after the results were the regional minimum wage. Adidas is a drove to the London’s Trafalgar Square made public, Georgetti passed a motion to major international sponsor of the World in solidarity. “Transport for London, our have the vote counted as a unanimous one Cup and the workers used the opening of licensing body, refuses to enforce the law. in favour of Yussuff, greeting the president- the games as momentum to stage a protest. Specifically, the 1998 London Private elect and raising their hands in solidarity at The Indonesian Labour Association Move- Hire Vehicles act, which Uber circum- the podium. Delegates also elected Barbara ment’s Textile Union of Garment, Textile vents and is in direct contravention of,” Byers as its new Secretary-Treasurer and and Shoes Workers (SGBGTS-GSBI) said said Lewis Norton, the branch secretary Marie Clarke Walker and Donald Lafleur it had contacted both PDK and Adidas for the National Union of Rail, Maritime as Executive Vice-Presidents. multiple times with no successful outcome. and Transport Workers. LABOUR LETTER Pg 3

Finnish stevedores staged a strike June 11 in protest of “slave labour” used on a Russian vessel that suspended operations at ports across Finland, reported Juha Anttila, a union secretary at the Trans- port Workers’ Union (AKT). The union said nearly 3,000 AKT members took part in the action, shutting virtually every port in Finland. The industry-wide action was approved by the union after stevedores at the Port of Tornio refused to unload a Rus- sian vessel and subsequent threats made to a local shop steward. “We don’t approve of any threats, so the AKT executive board de- cided to enforce the one-day strike,” Ant- tila said. The workers returned to work the next morning. The union asserted the strike was legal. “This is a so-called political strike, which is not in violation of Finnish laws.” OECD Secretary-General Angel Gurria. Flickr.com photo used under Creative Commons from WEF.

NATIONAL & Many unions supported Wynne and the A massive report on the Cana- POLITICAL EVENTS Liberals. Wynne ran a leftist campaign with dian economy released in June by the inter- a far-reaching agenda of transit-building national Organization for Economic Co- In what the news media called and a provincial pension plan, the largest operation and Development warned that a “stunning majority victory,” Ontario vot- new social program in a generation. She Canada is becoming a country of growing ers in June elected the first woman and vowed to reconvene the legislature within inequality in housing, wealth, and between openly gay premier, Kathleen Wynne, and 20 days to reintroduce her budget, which the oil-rich West and the rest of the nation. gave incumbent Liberals an even larger was rejected by the other parties last month, The conclusions raise red flags for the nation majority. Political observers also said the bringing about the snap vote. The Liber- where home prices and rents are increas- election was a referendum over the auster- als won a fourth-straight mandate with ingly out of reach for too many Canadians, ity budget promised by Progressive Con- 59 seats, the PC at 27 seats and the NDP particularly in Vancouver and Toronto. “The servative Leader Tim Hudak who pledged at 21. At dissolution in the legislature, the point of the whole commentary is that it is to cut 100,000 public-sector positions. He Liberals held 48 seats, the Tories 37 and the not just about income [inequality],” OECD resigned as party leader after the trouncing. NDP 21, with one seat vacant. Secretary-General Angel Gurria said in an interview. “It is about income, yes, but it is about health, education, job opportunities. It’s really about inequalities, plural.” Gur- ria told reporters that the OECD’s assess- ment of the Canadians economy is about “as good as it gets” in the postfinancial crisis era. Nearly 40 per cent of Canadians now live in cities where house prices are “seriously or severely unaffordable,” based on interna- tional comparisons of home prices and me- dian incomes, the OECD said. The OECD also warned that the Bank of Canada faces a precarious balancing act between raising interest rates to curb the growth in consum- er debt levels and keeping affordability in check. The OECD is an international orga- nization of governments, of which Canada is a member, and private institutions which Kathleen Wynne, Premier of Ontario. Flickr.com photo used under Creative Commons from studies and makes recommendations on Premier of Ontario Photography. economic issues. Pg 4 LABOUR LETTER

NEWS FROM this opportunity to bring our ideas and need to send an even stronger message to concerns to the table as the ITA goes our employer that we will not be bullied CANADA’S UNIONS through this important restructuring into accepting an inferior contract,” the process,” said Sigurdson. “We know union said on its website. The union had BC Building Trades Execu- what it takes to train apprentices. We earlier declared, “Your bargaining team tive Director Tom Sigurdson was recent- understand the issues and are the most went in with a mandate from all of you to ly appointed to the board of the Industry successful trainers in the province.” bargain NO concessions.” Training Authority. The appointment is significant because it signals a new rela- Many of the 1,600 public sec- BC public schools teachers tionship with labour in the trades train- tor workers in Durham Region east of called for mediation to end a negotiation ing system, the trades’ council said in Toronto went on strike June 16. They deadlock that led to a walkout on June a statement. “Craft unions have been a are members of CUPE Local 1764. Ac- 15 that spread to 40,000 teachers across partner in trades training since the dawn cording to the union, negotiations “have the province. BC Federation of Teachers of the guild system,” said Sigurdson. broken down once again” which led to President Jim Iker said a deal was close “For over 12 years, the voice of labour the walkout. Workers represented by the between the union and the province has been marginalized on the ITA and union include paramedics, court staff, and predicted the differences could be Industry Training Organization Boards income support, child caregivers, health bridged with an experienced mediator. with disastrous consequences for the inspectors and others. According to the “We are within one per cent on wages, training system.” The appointment fol- union, one of the key sticking points is so wages I think is a side issue that we lowed the release of the ITA Final increases in benefits. The union has said can agree on fairly easily, with class size Review Report by Jessica McDonald, the increases offered are nowhere near and composition I think that there is a which called for greater involvement by those that management received after the way forward. Where they say they are organized labour. In the report, Mc- last contract was ratified. “The Region has millions of dollars apart is on class size Donald also directly recommended the presented us with a revised ‘final’ offer but and composition, which this same gov- ITA Board be re-constituted and include it still contains concessions and our mem- ernment stripped out of our collective individuals with knowledge and experi- bership has been very clear: we will not agreement,” he said. Iker said teachers ence in labour organizations. “I welcome accept a contract with concessions. We “are looking for improvements to class size, class composition, and staffing lev- els for specialist teachers to increase one- on-one time for students.” In addition to improvements to student learning condi- tions, “a fair deal” must also include a decent wage increase for teachers. “After 12 years of deep cuts, 3,500 teaching po- sitions lost, and 200 schools closed, we are urging this government to reinvest in public education,” he said.

LABOUR LETTER provided through

Protecting Working Families CUPE Members Protesting. Flickr.com photo used under Creative Commons from Grant Neufeld. www.ailife.com AGENDAcanada JULY 2014

II era, Western economies experienced rap- the best example of this. Anti-tax crusaders id economic growth, relying on a uniquely hijacked the Republican Party at both the Keynesian formula that was dominated by state and federal levels, effectively paralyzing Patrick J. political consensus between economic play- any semblance of moderation or willingness Dillon ers: workers and employers; government to compromise. House Republicans have re- Business Manager and the private sector. Some governments peatedly sabotaged the introduction of pro- and Secretary, (like Germany’s) even had their own indus- gressive legislation and have severely limited Ontario Provincial trial strategy, exercising intimate coordination Democratic President Barack Obama’s room Building and with business and labour to produce quality- to manoeuvre on the domestic policy front to Construction Trades manufactured goods in a perpetually innova- salvage what little there is left of the Ameri- Council of Ontario tive environment, while seeking and securing can ‘Welfare State.’ reliable export markets for those goods, heav- In Canada, we have seen the election of A RECIPE FOR ily mobilizing their diplomatic clout along the Conservative Party, which dropped the the way. word ‘Progressive’ from its name, to more PROGRESSIVES In the context of the Cold War, the accurately reflect its right-wing political be- IN AN ERA OF domestic pacification of the workforce in liefs. Prime Minister Harper has dismantled AUSTERITY AND the West was achieved in light of a real or many progressive initiatives started by his RIGHT-WING perceived prospect that communism would predecessor: a national childcare program, one day displace the private enterprise sys- the Kyoto Protocol, a national gun registry, POPULISM tem. Hence, over time, ‘the Welfare State’ the Fair Wages and Hours of Labour Act, the was born, mixing innovative capitalism that Kelowna Accord, and many other reforms. There is a worrying degree of conflict and generated wealth with progressive taxation The Conservatives also brought forward re- toxicity in the political life of many Western policies that ensured wealth was distributed gressive legislation through Bills C-377 and countries across Europe and North America. more equitably to prevent social turmoil. C-525 which are direct attacks on the voices We have seen the slow evaporation of middle- A Hard-Right Turn to Dismantle the for Canada’s middle class. Furthermore, it is of-the-road approaches to politics and eco- ‘Welfare State’ — By the late 1970s, a slew very worrisome that the most nominally pro- nomics, with ideology slowly creeping in to re- of anti-taxation, anti-worker sentiments and gressive party in Canada (the NDP) has act- place pragmatism. Why is this case? The 2008 policies were incubated by many right-wing ed as an enabler of the Conservative agenda; recession certainly accelerated this phenome- think tanks, which touted policies designed something that both the NDP and Liberal non, with the rise of the Tea Party movement to dismantle the post-war growth consensus, Party will have to grapple with. in the United States, far-right groups thriving and therefore, the modern ‘Welfare State’ it- Three pillars of growth — So, the ques- in Europe, and Stephen Harper’s majority self. ‘Free market’ capitalism became the new tion remains: what is the best formula to re- Conservative government in Canada. mantra, empowering businesses to do as they capture strong economic growth? If the ben- The challenge confronting the econo- pleased in the pursuit of profits, with minimal efits of that growth are widely shared as they mies of the United States and Canada since constraints on their actions. What followed once were during the height of the ‘Welfare the recession has been to find a way of re- was government deregulation, privatization of State,’ can we hope to rebuild a thriving polit- capturing strong economic growth in order public goods, and legislative reform that led to ical system that takes into account the needs to ensure a sustainable recovery that will put de-unionization. Figures like Ronald Reagan, of the people and environment? people back to work and (presumably) end Margaret Thatcher and Brian Mulroney went There are three basic pillars which can be obstructive politicking based on right-wing after ‘union bosses,’ and ‘big government,’ used to secure equitable growth: fair labour populism. With higher unemployment, de- promising to retrench the ‘Welfare State’ in relations, strong social programs, and sensible, mands for social services increase, while gov- order to protect not citizens, but ‘taxpayers.’ progressive taxation. In the absence of these ernment’s capacity to meet those demands By the 1990s, the broad consensus be- qualifiers, capitalism unchecked has the po- diminishes. Such a scenario generates public tween business and labour, guaranteed by the tential to bring about unforeseen social, eco- service deficits which continue to expand. steady hand of government, was gone, as was nomic and environmental catastrophes. It is In pursuit of a workable agenda for the communist threat, with the dissolution of up to labour leaders and progressive-minded strong growth that can rein in those deficits, the Soviet Union and its allies. All of a sudden, people to communicate to the public at-large it is necessary to closely examine the histori- the welfare state no longer had an external that staying on the path of more tax-cuts and cal success of the ‘Welfare State,’ or ‘welfare threat to justify its own progressivism. having a minimal state that keeps unchecked capitalism,’ which, if revived, may provide The politics of obstructionism — corporate power afloat is unsustainable in the some promising answers. Right-wing movements continued to grow long-term. The Origins of the ‘Welfare State’ — and make their presence felt. The Tea Party Patrick J. Dillon has held his position since For the better part of the post-World War movement in the United States is perhaps January, 1997. Pg 2 AGENDA

YTD CONTRIBUTIONS Listed below is a partial list of contributions made on behalf of AIL/NILICO, its State General Agents, and directed by the Labour Advisory Board. All contributions were made between January and June, 2014 and total over $1.4 Million.

• ALBERTA BUILDING TRADES - Golf • MAINLAND NOVA SCOTIA BUILDING Tournament & CONSTRUCTION TRADES COUNCIL - Golf Tournament • ALLIANCE FOR JUSTICE • MANITOBA BUILDING TRADES • ALLIANCE FOR RETIRED MAGAZINE AMERICANS • MANITOBA BUILDING & • BC AND YUKON TERRITORY CONSTRUCTION TRADES COUNCIL BUILDING CONSTRUCTION TRADES - Charity for Kids Golf Tournament - Charity Golf Tournament • MANITOBA FEDERATION OF • BC BUILDING TRADES - Trade Talk LABOUR - Safe Workers of Tomorrow

• BCTGM BISCUIT, CANDY, SNACK • NATIONAL CONSUMERS LEAGUE IBEW Scholarship AND PASTA COUNCIL - Constitutional Contribution Convention • NATIONAL DOMESTIC WORKERS ALLIANCE AIL’s Alan Wall (left) presents a contribution • BROADBENT INSTITUTE from AIL to Bill Daniels, IBEW International Vice • NATIONAL LABOR COLLEGE President First District Canada, for the union’s • CANADIAN BUILDING & scholarship fund. CONSTRUCTION TRADES • NEW BRUNSWICK FEDERATION OF DEPARTMENT LABOUR - Labour Solidarity Award Bursary • CANADIAN HUMAN RIGHTS MUSEUM • NEW YORK BRANCH NAACP

• CANADIAN UNION OF PUBLIC • NOVA SCOTIA FEDERATION OF EMPLOYEES - Convention LABOUR - Leo McKay Bursary

• COALITION OF BLACK TRADE • ONE WORLD EDUCATION UNIONISTS • ONTARIO FEDERATION OF LABOUR • CENTER FOR MILITARY - South Asian Community Activism RECRUITMENT, ASSESSMENT & Event VETERAN EMPLOYMENT (CMRAVE) - Helmets to Hardhats • ONTARIO TEAMSTERS JOINT COUNCIL 52 - Golf Tournament • DC FRIENDS OF IRELAND • OPCMIA - Scholarship • ECONOMIC POLICY INSTITUTE • SACRAMENTO SIERRA BUILDING • IBEW - Membership Development TRADES COUNCIL - Dad's Day Golf Conference Tournament

• JAMES R. HOFFA MEMORIAL • SASKATCHEWAN BUILDING SCHOLARSHIP FUND TRADES MAGAZINE

AIL Stands with • JEWISH LABOR COMMITTEE • SOUTHWEST VOTER BC Teachers REGISTRATION EDUCATION • JOBS WITH JUSTICE PROJECT AIL PR Marketing Specialist Deborah Boles (left) joins striking BC Teachers Federation members • LABOR OF LOVE • UNION SPORTMEN'S ALLIANCE on the picket line at the Richard McBride Elementary School in New Westminster. • LCLAA • WINNIPEG LABOUR COUNCIL - Solidarity Kids Camp Scholarship