Behind Bars No More

 

As we have become increasingly aware these past several years, institutional investments matter. And as public awareness has grown, so has pressure for the big funds to divest from ethically and environmentally suspect parts of their portfolio, be they holdings in fossil fuels, tobacco, firearms or gambling, to name but a few.

For teachers, the pressure to divest is not new. Well over two decades ago, there was a group of us who tried to convince the Ontario Teachers' Pension Plan to take its money out of Maple Leaf Foods. At the time, the food-processing giant was in the midst of crippling wage cuts (about 40%) at its Burlington Ontario plant. 

The response we got was disappointing. We were told that the Plan had a "fiduciary responsibility' to its members to make as much profit as possible. Matters of principle could not be taken into consideration.

Fortunately, that amoral strategy is changing in Canada, thanks to grassroot pressure by union members.

A Canadian Crown corporation has sold off its entire stake in the American private prison industry following a public campaign by the union that represents the majority of federal employees.

The Public Sector Pension Investment Fund (PSP) bought more than 600,000 shares of CoreCivic and the Geo Group, two of the largest providers of private prisons, jails and immigration detention centres in the United States, in the last half of 2020.

In late February, days after a Toronto Star story exposed those acquisitions, PSP moved to sell off its shares in the two companies, according to a letter signed by PSP president and CEO Neil Cunningham.

“We believe it’s a victory,” said James Infantino, the pensions and disability insurance officer at the Public Service Alliance of Canada (PSAC). “We got out of an investment that our members abhor, so that’s in itself something to note and hopefully, it’s something that we can build on.”

A victory it is. If you know anything about the private prison industry in the United States, you know that its profits come from cutting corners (understaffing, denial or delay of needed medical care for prisoners, inferior food, etc.) If you are interested in the topic, an excellent book is American Prison: A Reporter’s Undercover Journey Into The Business of Punishment, by Shane Bauer. Given that a disproportionate number of people in prison are Black and Latino, it is difficult to see private prisons as anything other than a system of modern slavery.

Indeed, there is a thought-provoking documentary on Netflix called 13th, which looks at the sad history of incarceration that followed the abolition of slavery and continues to this very day. 

There is no way of avoiding the fact that inmates in both public and private prisons have become mere fodder for a cold, cruel and very calculating capitalism that should make everyone feel ashamed. An awakening public conscience is one reason to feel at least a modicum of hope that things may be changing. 

It is to be hoped that other institutional investors soon will no longer be behind bars.

Two Messages For Tim Hudak

I have a bit of a busy morning ahead, so just a brief post for now. I have written many times about young Tim Hudak, the lad who aspires to become Premier of Ontario through rhetoric that demonizes the public sector, public sector pensions, and unions. Apparently, constructive policy and breadth of vision are beyond his ken.

Here are two letters from today's Star that nicely capture the severe moral and intellectual limitations the leader of the Ontario Progressive Conservative Party labours under:

Re: Hudak takes aim at public sector pensions, March 18

I assume Hudak’s ambition is to ensure that no one has any money when they retire, except the rich, and of course the political whores who do their bidding. Hudak is on the same race to the bottom that the Republican Tea-Baggers advocate in the States.

Gerry Brown, Toronto

Ontario PC leader Tim Hudak shows so little interest in facts that I doubt he can be swayed by rational argument when it comes to public sector pensions. But the truth does matter, so here it is.

The pensions my members collect after a lifetime of work are far from lavish. In health care, the average retiree receives less than $19,100 a year. In the public service, it’s less than $21,800. In the colleges, it’s under $22,800. All three of these plans are in surplus. They have no unfunded liability.

Despite what Mr. Hudak says, talks between the government and pension plans cannot “fail” in our case, for the simple reason that they have already succeeded. The government asked us to keep premiums where they are over the medium term, and we were able to do that.

Public sector pension plans are a good deal for the citizens of Ontario. Through prudent investment, our plans provide more retirement security at less cost than private plans ever could.

Tim Hudak’s mistake is that he sees decent pensions as a problem when in fact they are a solution to the very real problem of seniors’ poverty. His attack on public plans masks the fact that he has no plan at all for retirement security for Ontarians — not even the private sector workers he claims to care about. Any fool can destroy a pension plan; it takes grown-up, long-term commitment to build one. Hudak should drop the right-wing blather and voice his support for expanding the best defined-benefit pension plan in the world, the Canada Pension Plan.

Warren (Smokey) Thomas, President, Ontario Public Service Employees Union

Nothing New Here

In a valiant effort to not be forgotten by a fickle public, Tim Hudak is at it again, advocating a policy that is guaranteed to find favour with the public: going after the pension plans of civil servants.

Unfortunately for young Tim, this repetition of his rather tiresome refrain is also an implicit indictment of the paucity of thought, imagination, and policy infecting the Conservative Party at both the provincial and federal level.

Perhaps public floggings for those who are paid from the public purse might capture greater attention?

Such An Eloquent Letter

I have several times made reference to the enjoyment we derive in subscribing to The Toronto Star, a progressive paper with an official agenda that includes issues of social justice. Like the journalists in their employ, The Star's letter-writers tend to express thoughtful and well-reasoned views, a refreshing contrast and antidote to the mindless screeds that use stereotyped labeling and vile ad hominems to try to bully their point across.

I was especially impressed by a letter that appeared in yesterday's edition on the issue of pensions, a polarizing topic if there ever was one. Because of the ephemeral nature of readers' letters on newspaper websites, I am taking the liberty of reproducing in its entirety one by Tom Legrady of Toronto :

Re: Meagre earnings can’t fund retirement, Letter July 15

Sandra Snyder, unable to salt away a retirement on her meagre earnings, objects to teachers salaries and pensions. I find it unacceptable that people have to struggle to live on subsistence government pensions, but blaming workers who have done well is not the solution.

The rich and powerful have always deflected anger on to scapegoats. Poor southerners hated blacks for not being worse off than they, especially after the end of slavery put an end to the inferiority inherent in property. European and Russian anger was redirected on to Jews.

Do not hate unionized workers for having a decent living. Instead wonder why non-unionized workers are kept in abject poverty. All of us, union and not, can thank unions and the CCF and NDP for Medicare, the Canada Pension Plan, Unemployment Insurance.

Labour campaigned from early in the 19th century for 16-hour days to be reduced to 10, and later eight, for weekends and for vacations. Do you think the owners extended those benefits out of generosity, because they felt they were too rich?

Their grandchildren certainly have no such compulsion to share their wealth, when they want to terminate union position and replace them with generous contracts to their industrialist buddies employing minimum wage labour.

Tom Legrady, Toronto