Tim Harper on Caterpillar's Betrayal of Canadian Workers

As it hauls its billions in profits south of the border, Caterpillar executives should make a detour and stop in Ottawa to drop off the money they owe Canadian taxpayers.

Failing that, the Conservative government should be waiting for them at the border demanding the tax break and handout cash looted from the federal treasury.

But since both scenarios are highly fanciful, it is time for an end to the scattershot, no-strings-attached tax breaks being tossed from Stephen Harper’s government to large multinationals that are using it to drive down the standard of living in this country.

And those are just the first three sentences in Tim Harper's excellent and trenchant analysis of the Electro-Motive debacle, which I highly recommend.

Martin Regg Cohn On The Wider Implications of the Electro-Motive Debacle

So the first lesson of the London massacre: Ottawa must be vigilant about vetting foreign investment and retaining jobs, but also mindful of valuing — and anchoring — our homegrown intellectual property. Why underwrite our companies if we willingly sell off our embedded brainpower to foreign bidders who leave Canada cash-rich, patent poor and jobless?

That, and the following, essentially sum up an excellent article by Cohn found in today's Star:

Another lesson: When it comes to the economy, empathy isn’t enough. Premier Dalton McGuinty adopted a reflexively tepid tone from the start, expressing the vain hope that both sides would come to their senses. Belatedly last week, he ratcheted up the rhetoric by exhorting the plant’s owners to play fair.

But he never picked up the phone to the employer. Nor did he reach out to Prime Minister Stephen Harper to forge a non-partisan common front. When a company treats its workers like dirt, a premier should leave no stone unturned.

But of course, the one error Cohn makes in his piece is the underlying assumption that either Harper or McGuinty really give a damn about ordinary people in this country. Proof that this is a misguided assumption: our 'leaders'' virtual silence on yet another instance of unfettered capitalism wreaking havoc in this country, and the aiding and abetting role they played.

Educate, Educate, Resist

I have to admit that nowadays I am feeling the pessimism of old strongly reemerging, not to the point of giving up my blog and whatever value it might serve in the fight against the extremists who now control the Canadian government, but to the point where I realize that the battle is lost without the willingness of Canadians, no matter how hard their daily struggles might be, to educate themselves about the issues and keep current with as many facets as possible of the neoliberal agenda being relentlessly advanced by those who pretend to represent us.

To that end, I list the following for your consideration in today's Star:

Caterpillar shutdown: U.S. company bails from London, Ont.’s Electro-Motive Diesel plant

Walkom: Caterpillar closing part of a coordinated attack on unions

Chantal Hébert: Conservative reform plans aimed beyond 2015 election

To be passive, to excuse our lack of activism with a facile dismissal of politics as 'not being interesting,' to continue to narcotize our minds and infantalize ourselves with the latest electronic gadget or reality show diversion is to reject both the rights and the responsibilities of citizenship, and to condemn future generations to a hardscrabble existence.

Thus endeth the sermon.

I'm Back - Nothing's Changed, Just Getting Worse

After a week out of the country with limited access to the Internet and Canadian news, I see things keep getting worse. First thing I read this morning was how the Harper regime faked a Citizenship ceremony staged on Sun TV, the ever-faithful tool (and I mean that in the full sense of the word) of government propaganda. Now that the truth has gotten out, I'm sure the government will find some way to burnish Sun's up-to-now- unblemished reputation for journalistic integrity.

Next comes word that Caterpillar Inc. is closing down its Electro-Motive plant in London because the workers wouldn't accept a 50% reduction in their wages and the gutting of pensions and benefits. Expect the usual suspects to lay the blame on an intransigent union, while those of us who can think will see yet another sad result of Harper and McGuinty's corporate appeasement policies.

And finally for now, despite the fact that Old Age Security is on pretty solid financial footing, Harper and Flaherty, that dynamic duo of despair, show no signs of backing down, despite widespread anger, in their plan to raise the age of entitlement to the pension, regardless of how that will affect countless Canadians.

I keep asking myself when my fellow citizens will finally rouse themselves sufficiently from their apparent inertial indifference and have a strong and unequivocal reaction against this tide of neo-liberalism, a reaction that can't be ignored even by the fascists now in control of our collective fate.

Regg Cohn's Thoughts on Catterpillar Inc.

I don't have too much time this morning, but I highly recommend Martin Regg Cohn's piece, which offers, amongst other things, a contrast between how long-serving Conservative Ontario Premier Bill Davis treated labour, and the current do-nothing philosophies of Dalton McGuinty and Steven Harper:

The former Tory premier of Ontario wasn’t perfect, but he was always plugged in. He took labour seriously, listened closely to business and wooed foreign investors (remember Renault?). He knew how to leverage the power of the premier’s office to stand up for Ontario’s greater interests.

A phone call to Caterpillar’s corporate braintrust would show that Ontario’s premier is no pushover. If that didn’t work, a phone call to Harper — who is still trying to live down the tax breaks he gave the locomotive factory’s former owners a few years ago — might find a receptive ear.

While his suggestions are unlikely to move either McGuinty or Harper, who much prefer to offer platitudes such as "We urge negotiations to continue," and "This is a matter between private interests," or, as of January 1st, grant a further federal corporate tax reduction of 1.5%, no strings attached, we must, as a province and nation, keep current with such situations and urge action by communicating with our elected representatives.

The Voice of Labour Roars

Although those in the embrace of neo-liberalism would have us believe that unions and worker solidarity are but a quaint historical artifact, the size of yesterday's rally in London, Ontario protesting the predatory practices of Catterpillar Inc. suggests otherwise.

In response to the company's attempt to halve the wages of its workers at Electro-Motive Canada and severely reduce pensions and other benefits,

A crowd of more than 10,000 descended upon this city’s Victoria Park to support local workers who have been locked out of their jobs since the new year. They came from all over, from Timmins, Sudbury, and Pennsylvania in scores of buses. They came to protest corporate greed and Stephen Harper.

Ken Lewenza, president of Canadian Auto Workers, offered a sobering warning to the Harper government, which permitted the sale of the company to U.S.-based Caterpillar, and now seems egregiously unconcerned about the disastrous consequences that decision has wrought:

“If the government doesn’t step in, Canada will become a low-paid workforce .... We need to protect the middle class if we want a more equal society.”

Apparently any concern for the fate of the middle class is trumped by Mr. Harper's ideology, an ideology which seems to believe that unfettered capitalism can do no wrong.

Linda McQuaig on Harper's Anti-Labour Policies

Drawing comparisons between Republican animus toward labour and Harper government policies that permit the kind of outrageous corporate behaviour unfolding at Electro-Motive Canada, Linda McQuaig's column in today's Star warns us of what is ahead for workers in Canada.

Two key excerpts provide the tone of her piece:

Harper played a key role in bringing about this disaster for the London workers by approving the sale of the company, Electro-Motive Diesel, to foreign-owned Caterpillar in 2010, after supposedly investigating whether the deal was in Canada’s interests.

Harper is of course staunchly pro-capitalist, and has aggressively lowered corporate tax rates, while refusing to link lower taxes to investment or job creation.

But his anti-union stance, evident in disputes at Air Canada and the post office last summer, has been particularly provocative. He seems determined to turn Canada into an anti-union paradise.

As usual, McQuaig's analysis is well-worth perusing in full.

A Star Reader's Perspective On Caterpillar Inc.

I have been offline for the past several days, the reason for which I may write about later. For now, I am taking the liberty of reproducing the excellent lead letter appearing in the print edition of today's Star in which the writer, Dr. Robert Bahlieda, offers some penetrating insights into the significance of what is happening at the Electo-Motive plant in London, Ontario.

The lockout of the Caterpillar workers in London, Ont. reflects the brave new world of neoliberalism, an extreme right-wing ideology that has taken over Western and global society in the last 25 years.

It is a white, elitist, winner-take-all philosophy that emphasizes tax cuts, competition, de-regulated free markets, toothless labour protections, sharply reduced wages and limited social program funding. This has become the new normal under the mantra of globalization.

In this theory, according to its propaganda, North American working people are always to blame for the economy’s problems through their unwillingness to work for paltry wages without benefits, pensions or full-time jobs. They are also viewed as ingrates who scoff at low-paid work and foolishly demand civil and human rights as employees.

They hold the deluded belief that the world should be a place where society works for the well-being of all rather than the few. They are socialists.

Huge multinational corporations like Caterpillar on the other hand are the true aggrieved party in society, always struggling to increase market share and margins for demanding shareholders in order to create more jobs and grow the economy.

Emboldened by a litany of economic crises in the past two decades, the conservative right smells blood in the water and have ramped up their rhetoric, extremism and attacks on working people, minorities and the poor all over the world.

In the Darwinian universe they envision and believe in governments should drop the charade of democracy and allow business to take over the running of the world. Effectively this is already happening through globalization and free trade agreements, while governments have been left to play the roles of castrated eunuchs ministering to the demands of free-enterprise and wringing their conveniently tied hands.

It is a world where any job is a good job and those who fight for living wages are branded obstructionists or left-wing radicals. It is a world where anyone who resists authority is demonized. It is a world where the private-sector media takes on the social conscience and investigative roles that are the responsibility of democratic governments to protect citizens from the rapacious greed of free marketeers and others who would exploit society for their own gain. It is a world where the many toil for the few and are thankful for doing so.

Instead of being outraged by this situation and giving broad public support to movements like the Occupy flash protests, we sit passively by while we celebrate these corporate titans as though they were mythical gods benevolently dispensing wise, paternal advice to us all.

It is a Milton Friedman world of democracy through capitalism. In the 1960s this situation would have induced millions of people of all ages, colours and backgrounds to occupy every public space around the world — and politicians and governments would have been compelled to listen.

Instead, today we change the channel and move on. Democracy is going away with a whimper. It is the world of the Tea Party, the federal Conservatives and Mayor Rob Ford. Welcome to the brave new world of the London, Ont. Caterpillar workers.

Dr. Robert Bahlieda, Newmarket

The Star's Gloomy Assessment of Corporate Depradations

Today's Star editorial offers a gloomy but apparently realistic assessment of the direction Canada's manufacturing is headed in. Abetted by the federal and Ontario McGuinty provincial governments' seeming indifference to the corporate depredations underway, the most recent occurring at Electro-Motive Canada, and unions that are hamstrung by the refusal of companies to negotiate reasonable contracts, the outlook seems very bleak.

Caterpillar, Inc. - A Reprehensible Corporate 'Citizen'

When I think of caterpillars (which, until recently, I have to admit, has been rarely), I think of a slow-moving yet determined creature on its way to metamorphosis, often into something quite beautiful. Unfortunately, that gentle imagery must be cast aside when considering Caterpillar Inc., an ugly corporate entity intent on wreaking havoc to those in its employ.

As previously noted, Electro-Motive Canada, a subsidiary of the company, has made untenable demands of its workers, resulting in a lockout at its London plant. In The Star today, David Olive writes on how the gutting of contracts is a practice well-documented in Caterpillar''s American operations, employing a tactic best described as a war of attrition against its employees:

The firm has a practiced skill at “taking a strike” for as long as required until workers straggle back to work across their own picket lines.

Indeed, the usual excuse of seeking increased productivity during difficult times doesn't even apply to its ruthless tactics:

Well ahead of the Great Recession, during a banner year for the world’s largest maker of construction and mining equipment, Cat insisted that its managers gird for a worst-case scenario of an 80 per cent plunge in sales over two years.

And on a single day in 2009, Caterpillar blithely laid off 11,000 employees, or 9 per cent of its global workforce. Like most U.S. employers, Cat has a hair-trigger for layoffs at the first sign of tough times.

Despite this well-documented practice, it was given permission by Industry Canada in 2010 to purchase Electro-Motive Canada in London, for generations the North American locomotive arm of General Motors Corp.

And yet silence over this outrageous corporate behaviour, which would assumes violates the terms of the foreign takeover, ensues from both the Harper government in general, and Industry Canada is particular.

Where is the outrage?

What were the terms, if any, that Industry Canada stipulated for Electro-Motive's purchase?

Where are the leaders of the opposition parties, who have thus far observed the same stony silence as the government?

Who will speak up in defense of good-paying Canadian jobs?

One shudders to consider the answers.

Caterpillar Locks Out Employees at London Plant

After unilaterally imposing the terms of its last contract offer on its workers, terms of which entail the halving of wages and a substantial reduction in benefits, Electro-Motive Canada, a subsidiary of U.S. industrial giant Caterpillar Inc., has locked out its Lomdon-based workers.

The Harper government, which permitted the company's sale to an American corporate entity through Industry Canada, remains silent on the performance guarantees given by Caterpillar as a condition of the sale.

A great beginning to 2012, one that follows a pattern well-established in 2011.

One final note: Caterpillar's earnings for the third quarter ending Sept. 30 totaled US$1.14 billion, up 44% from a year earlier.