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ISSUE NO. 36, MONDAY, JULY 8, 2013, 15 PGS. ‘Painful’: Cabinet Pays Manufacturers First, we do everything in To Move Overseas our power to Cabinet paid millions of “Most countries in the build bridges, dollars in grants to Canadian world subsidize companies manufacturers to move which want to come there and production and jobs overseas create jobs,” said Jim Stanford, and if that in the name of foreign aid, economist of the Canadian documents show. Auto Workers union. “It is International Cooperation painfully ironic that Canada doesn’t work... Minister Julian Fantino, the actually subsidizes companies cabinet member responsible to shift jobs overseas.” we burn them for the program, refused A department official said Blacklock’s interview requests. the program was intended to Fantino’s office said it “promote poverty reduction” down! had not heard of the grant abroad. Yet payment accounts scheme called the Industrial show manufacturers received Personal Injury Cooperation Program. grants on projects with no Environmental Litigation “This is so profoundly foreign aid component, Commercial Litigation wrong,” said MP Don Davies, including: Wrongful Dismissal New Democrat trade critic. • $450,000 to Prodomax Newly-released accounts Automation Inc., a Bar- show the program paid cash rie, Ont.-based parts maker grants totalling $3,852,927 that reported “several of our to manufacturers to move North American clients have production out of Canada, recommended that we estab- www.beament.com including $450,000 paid lish ourselves in Mexico so to one applicant that told that we can offer lower costs Fantino’s department it had to and be closer to their facili- complete with “job creation” the Chinese mainland was: “establish ourselves in Mexico ties,” according to documents; targets for local hiring. • $135,803 to Panneaux so we can offer lower costs.” Prodomax subsequently en- “Canadian taxpayers should Maski Inc. of Louiseville, The Canadian Taxpayers tered a joint venture in a sub- not be using their money to Que. to study the feasibility of Federation called the aid urb of Monterrey, Mexico; fund Canadian corporations manufacturing wood panels program “corporate welfare.” • $258,231 to Ancrabec Inc., to create jobs overseas,” said in Shanghai; “This is essentially a Sainte-Julie, Que. bolt mak- Davies, MP for Vancouver • $399,701 to Wescast Indus- subsidizing companies to er that proposed to “manufac- Kingsway. “Conservatives just tries Inc. of Brantford, Ont. “to ship Canadian jobs overseas,” ture regular bolts in Mexico announced they’d take China set up a wholly-owned foreign said Gregory Thomas, federal so that Ancrabec can remain off the General Preferential enterprise in the Wuhan re- director; “I don’t see why the competitive”; Tariff list on the argument gion in China” to manufacture Government of Canada needs • $99,535 to Focus Auto De- their economy does not auto parts: “The facility would to tip the scale in this way.” sign Inc. of Calgary “to set up a deserve to be subsidized. If employ up to 600 people,” the The grants were paid over wholly-owned, integrated pro- that’s the case, why do they department noted; a two-year period in 2006-7 duction facility in South Africa turn around then and take • $419,924 grant to Toromont but only recently detailed in to manufacture after-market taxpayers’’ dollars to move Industries Ltd. of Toronto to a routine tabling of hundreds automotive components.” jobs from Canada to China?” “transfer specialized refriger- of pages of documents in the A majority of grants were Among grants paid for ation technology and exper- House of Commons. paid to open factories in China, economic development on Continues on Pg.5 BLACKLOCK’S REPORTER NO. 36 JULY 8, 2013 2 A Bill To Kill Unions? Boulerice, New Democrat labour critic. aren’t enough people now to do the work “Is it usual to change the Canada Labour that we have slated in Alberta.” Code by private bills?” said Boulerice, MP More than 800,000 Canadians are for Rosemont-La Petite-Patrie, Que. “We subject to the Canada Labour Code – about see freelancers attempting to change six percent of the national workforce, working relations in this country and I according to the Department of Labour. think it’s dangerous; if the government “This government is clearly anti- wants to change the code, the minister of union,” said Boulerice. “They don’t labour should say so.” want workers to organize. They don’t The bill’s sponsor, Alberta MP Blaine want workers to have a role in public Calkins, did not reply to Blacklock’s discussions. The union movement is repeated interview requests. the biggest democratic movement in Companies in transport, banking, However, Calkins – a former Parks our country, and they are attacking it on broadcasting, and other federally- Canada employee – told the Commons every angle they can.” regulated industries can more easily that “workers have the right to have Some 92 percent of Canadian decertify unions under a private a secret ballot vote to decide who workplaces are governed by provincial Conservative bill. represents them at the bargaining table.” law. C-525 An Act To Amend The Canada In earlier testimony at the Commons Federally-regulated sectors include Labour Code mandates secret balloting resources committee, Calkins also banks, marine shipping and port services, to decertify or introduce a new union in lamented labour shortages in his home airports and air transportation, railways, a federally-regulated workplace. And it province. canals, pipelines, tunnels, bridges, permits decertification with the votes of “I’m an Alberta MP and the biggest telephone and cable systems, radio and as few as 45 percent of employees. problem I’ve met with by employers is TV, grain elevators, feed and seed mills, Under the existing Labour Code a labour,” said Calkins, a three-term MP uranium mining and processing, select majority is required to decertify a union for Wetaskiwin; “At the end of the day fisheries and First Nations businesses as a bargaining agent. is there really anybody able to come and most Crown corporations. “It makes the creation of new union and work? In Alberta, one of the biggest locals under federal jurisdiction much imports we have is labour from outside BY STAFF more difficult,” said MP Alexandre Alberta to come and do this work. There industry said the bill may even force the Your Name Here release of personal data from Canadians Millions of insurance policyholders The bill also requires disclosure of who are not members of any union. and mutual fund clients face intrusive payments through benefit plans with a “There is no limiting language,” said questions and publication of their labour component – a definition so broad Ralf Hensel, general counsel and policy personal data on the internet under a it “could significantly increase the cost to director for the Investment Funds federal bill, say industry executives. consumers of various investment plans,” Institute of Canada. Representatives of insurance and Sanderson said in an interview. Hensel said under the bill’s wording a investment firms warn Bill C-377 will “It is not clear there is a public policy single fund client who belongs to a union trigger “unintended consequences” for rationale requiring that degree of may classify an entire fund as one with a people with benefit plans, funds and disclosure,” he added. labour component: “I don’t know that it’s policies. The bill stipulates personal data must true to its objective.” “Would you want your next-door be published on a government website Hensel earlier testified at Senate neighbour to know you are receiving – a requirement that appears “at odds hearings that managers must also reimbursement for cancer medication?” with reasonable consumer expectations question all 12,000,000 mutual fund said Ron Sanderson, director of of privacy,” Sanderson earlier told the investors in Canada on whether they policyholder taxation and pensions at Senate trade and commerce committee belong to any union. the Canadian Life and Health Insurance examining C-377. “This is a Herculean effort,” said Association. “Would you want your “The bill would make public Hensel; “Every current investor – employer to know you have taken a the benefit payments we make to remember, 12 million; and every new substantial amount of money out of your individual Canadians,” said Sanderson, investor in every series of every fund RRSP, or put a large amount in?” noting association members have 26 managed by every firm.” The Act To Amend The Income Tax million clients and policyholders: “We No industry executive estimated the Act requires that all unions publish do not believe this bill was intended cost of compliance, though Hensel senior officers’ salaries and benefits; lists to make public information relating to warned of hidden expenses. of assets and liabilities; loans receivable; reimbursement of costs for prescription “It may cause investors to leave the time and money spent on organizing drugs or a child’s orthodontics or funds,” he said in an interview. activities; members’ pension payments similar benefits that arise because of an over $5,000 and other data, under threat employment and insurance relationship.” BY TOM KORSKI of $1,000-a day fines. An attorney for Canada’s mutual fund CLHIABlacklockRepAd-June24-13:Layout 1 13-06-03 3:55 PM Page 1 BLACKLOCK’S REPORTER NO. 36 JULY 8, 2013 3 and beyond Operating in Canada The Canadian life and health insurance industry is one of Canada’s most successful home-grown export industries. Companies operate in more than 20 countries around the globe with almost 43 per cent of worldwide premiums generated abroad. To learn more, visit clhia.ca Guest Commentary Rodger Cuzner, MP My Greatest Regret It is the only regret of my life.

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