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The Bastogi Affair Rigging in the ETU

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The Bastogi Affair Rigging in the ETU 7 Days 27 October 1971 in d u stry capitalism No Sparks without a Fire Trans-Europe Dealing The ETU-Ten Years After by our Industrial Correspondent Just ten years ago anti-communism in and manipulation manifest in the union talks before. But it may also be because the industrial arena received its greatest leadership is most clear. It is also this the union intends to register under the boost with the disclosure of ballot that has precipitated a split in the new Industrial Relations Act. The Act, The Bastogi Affair rigging in the ETU. Les Cannon, subse­ executive itself. of course stipulates no arbitary restric­ quent president of the union, became an At present there are three rule books tions on members standing for office. idol of industrial correspondents, and a covering the amalgamated union of. Chappie is on record as recommending symbol of political ‘realism’. electricians and plumbers. The old ETU “over-cooperation” as a method of To the surprise — and delight — of rule book written in 1890, the old fighting the Act. At the TUC annual by our Business Correspondent many, death dislodged him from his Plumbers rule book and the General conference he kept very quiet. post last year. Since then a war of Rules drafted by Chappie and Lovell, During the past few weeks of and defeated the takeover bid; the manoeuvre over the future course of the (the Plumbers’ leader), to cover the Struggle public, rumination about Britain’s ‘international group’ now intends to union has been going on. transitional period of the amalgamation The militants know they will not take legal action against the Italian Now a vital phase in this struggle of the two unions. In the resultant have an easy time of it. The left has image in Europe, British financiers consortium. over the future of the Electrical and confusion all Chappie’s main rivals for been torn apart by 10 years of anti­ have been improving their own Italian sources, and even a discreet Plumbers Union (EPTU) is being fought the post of General Secretary were communist campaigns, bans, proscrip­ chosen image as the investment ‘wide belief’ quoted in the Times at Blackpool. The battle will take place declared ineligible. Chappie was tions, and rule revisions aimed at their business news, suggest that Hambros next week over the Executive’s proposal entrepreneurs of Sweden, Sicily, re-elected virtually unopposed. strength. But a large movement against and all intervening points. Because Bank is the uspecified international for a new rule book at the Rules the leadership has developed however Red baiting of its involvement in the current group. Hambros have said that they do Revision Conference. Behind it is the and the split in the executive has given not want to buy Bastogi; in any case, In January this year the executive real issue of the reactionary course the it its first real chance to make a come­ BASTOGI affair, the London the cost of the Bastogi shares requested union has followed since 1961. called for nominations for the post of back. The unofficial paper “Flashlight” Merchant bank Hambros is now by the international group was £36 The famous ballot rigging case of General President and for legal advice has a circulation of around 15,000. one of the most conspicuous million, while Hambros Bank, although 1961 shook and demoralised militants on who was eligible to stand. In Militant leaders in the EPTU used to financial groups in Italy: readers the largest British merchant bank, made in the union who felt betrayed. It also February the legal ruling was that full be drawn from the contracting industry of the local popular press enjoy (on their most recent public figures) a handed the union over to Les Cannon, time officials were ineligible to stand but they have been hit by the intro­ total annual profit of £21/2 million. But the ‘intellectual’ anti-communist. After unless they first resigned. By a previous duction of the Joint Industrial Board, such features as a large photo­ Hambros is certainly connected with the 1961 the anti-communist triumvirate of ruling of the executive in 1966 the posts (JIB). The JIB systems fixes wage rates graph of Jocelyn Hambro signing a Bastogi takeover through its close Cannon, Chappie and Young dominated of General Secretary, General President nationally in those companies covered deal with an Arabian sheik, and an association with the main public agents the union. They pursued policies in the and Assistant General Secretary were by it. It has a system of penalties for interview with the 26-year-old of the international group: the relation­ union and industry which decimated the considered ‘full time officials’. Chappie anyone who goes outside its agreed ships revealed in the course of the affair already weakened left. Rule book revi­ at the time of his election to General procedures, such as calling a strike Richard Hambro on the subject of provide a preview of the Common sions were used to strengthen their Secretary was Assistant General before the proper procedure has been the shortcomings of Italian Market activities of the British financial Secretary. positions and weaken the left’s organis­ exausted, or wage payments above capitalism. In England, news of vanguard. The German bank involved in ing ability. In industry they were consis­ Despite opposition from Ashfield, agreed national rates. The role of the Bastogi and Hambros has been the Bastogi takeover, the Westdeutsche tently right wing; by pioneering Young and Lovell, the executive have JIB in keeping wages at a low rate and confined to the back pages of the Landesbank Girozentrale, is already a productivity and national bargaining used the rule book to eliminate all restricting the industrial strength of friend of Hambros: in a recent advertise­ agreements they damaged the industrial major candidates for the post of General workers was revealed in the recent financial press; in Italy, the affair ment Hambros boasts that it has strength of the workers. President. Under rule 9(G) the election unofficial strike against Alcan’s. Before has been the stormiest drama of acquired a one third share in a German Union militants realise that reforms of General President has been the JIB there were few unofficial strikes recent financial history. bank, in partnership with WLG, and is to the union structure are necessary to postponed until after the conference — as almost all disputes were made ‘Bastogi’ is the short name for a ‘delighted to have them as partners’. this week. enable them to organise any effective official immediately. This provided company worth about £100 million (WLG also recently set up another rank and file movement. The struggle The old leadership of the EPTU was. good training for workers coming into which owns shares in many of the most investment bank with various inter­ forged on the basis of virulent anti­ will not be centred on a straight leader­ the industry. As one worker said, the important industrial enterprises in Italy. national groups including the Royal communism. Cannon was the major ship fight but on opposing the executive contracting industry was a ‘university’ According to the Italian system of Bank of Canada, the Rockefeller- force that held it together for so long rule book proposals and on reversing of industrial struggle. corporate incest, Bastogi holds an controlled Chase Manhattan Bank, and without' a serious split. His death and many of the ‘reforms’ the executive The abolition of area committees and ‘interest’ in such firms as Pirelli, the National Westminster Bank: this introduced after 1961. the conflicting ambitions of Chappie, the recent amalgamation and reorganisa­ Montedison the chemical group, the investment bank has also been linked in The main issues will be; reinstate­ Young and Lovell have provoked the tion of London branches has further cement conglomerate Italcementi, and rumour with the Bastogi takeover) ment of area committees, reintro­ present crisis. Mark Young was secretary weakened the militants. Productivity many smaller companies in the engineer­ Michele Sindona duction of the Rank and File Appeals of the ‘ETU Reform Movement’ which agreements in the supply industry have ing, property, and building industries. Michele Sindona, the financier in the campaigned against the Communist Committee, election of all National reduced manpower and morale. Meanwhile Montedison, Italcementi and Bastogi case is an intimate associate of Officers and election of the General leadership of the union. Simple anti­ The left has no clearly acknowledged other businesses including the Fiat Hambros; he has assisted many foreign President. communism is obviously too fragile a leader and no strong organisational base, group hold ‘interests’ in Bastogi. In firms, including Hambros, to buy basis for an alliance in the absence of It is aware of its own weaknesses as well September, a West German bank and an ‘interests’ in Italian business, and his Power at the Top the master. as the opportunity it now has. ex-Sicilian financier with Vatican con­ recent successes include selling much of In 1965 the existing area committees All this legalistic manouevering can One danger is that their justified nections, acting on behalf of what was a large property company owned by the hide the real policy issues at stake. of the union were abolished. They were anger and bitterness will obscure any described mysteriously as a major Vatican to the American cinema con­ There is a well based fear that the organised on a cross-industry regional clear plan of reforming the union. Mark international group, announced a take­ glomerate Gulf and Western. According basis and were the organising base for disputes inside the executive are a Young is now parading as a democrat.
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