Meanwhile, As The World Fades Away

I have never seen the magnificent cheetah, and new research suggests I never will.

Read, watch, and weep at our collective folly.

A Special Understanding

Under successive neoliberal administrations in both Canada and the U.S., it has long been demonstrated that those occupying the upper echelons of our fractured societies are granted a myriad of benefits, not the least of which seems to be a virtual moratorium on prosecutions when wrongdoing is uncovered and proven. The fact that no one went to jail over the 2008 financial meltdown is but the most egregious example. Indeed, such is their power and arrogance that corporate executives were given bonuses from the very bail-out money that taxpayers funded for those institutions and enterprises deemed "too big to fail." When there is punishment of any kind for malfeasance, it is usually just fines which the errant entity can then use as tax write-offs.

Although the strongest examples of special treatment can be found stateside, Canada has its own way of dealing with financial malfeasance that should anger all of us, reflective as it is of the neoliberalism that pervades our land.

Thanks to a joint investigation by The Toronto Star and The National Obsserver {a fine online newspaper that offers subscriptions and solicits donations to support its journalism), we have yet another example in the deeply offensive special treatment by Fintrac, Canada’s money laundering and terrorist financing enforcement agency, of a major Canadian bank.

Canada’s money-laundering agency is refusing to name the bank hit with an unprecedented penalty for failing to report a suspicious transaction and committing hundreds of other violations in its dealings with a controversial client. Details of the failures — including one the agency described as “very serious”...

For nearly two years, the bank failed to report a series of unusual transactions in its client’s account, despite news reports at the time revealing he was under criminal investigation in the U.S. The transactions included dozens of large cash deposits and hundreds of international transfers worth more than $12 million, reveal the newly-released documents.

Despite the fact that the law requires reporting of transaction amounting to 10,000 or more, from

early 2012 to the end of 2013, the unnamed bank processed 1,179 international electronic transfers of $10,000 or more from the mystery client, who used a “potential shell company” and operated out of an unnamed country associated with money laundering. It also accepted 45 cash deposits of $10,000 or more, all without ever reporting the transactions to Fintrac, Canada’s money laundering and terrorist financing enforcement agency, as required by law.

With some deductive sleuthing, the newspapers were able to determine that the individual involved in these transactions was

Manitoba online pharmacy entrepreneur Andrew Strempler, 42, who pleaded guilty to mail fraud charges in the U.S. after his shipments were found to contain counterfeit medication.

While Strembler served his time and was released in October of 2015, Fintrac has treated the bank, which, under existing law, it could name, to anonymity after levying a $1.15 million fine, certainly a modest penalty given what the law allows:

Anyone who knowingly fails to report a suspicious transaction to FINTRAC can face a $2 million fine and up to five years in prison, under Canadian legislation on money laundering and terrorism financing. The maximum administrative monetary penalty for the bank's hundreds of violations would have been $1.8 million, the documents said.

The original penalty was $1.5 million, but Fintrac reduced it after 'negotiating' with the bank, which argued that the harm done was minimal.

I beg to differ with its decision to protect a major bank's reputation. Flagrantly violating the law 1,225 times in this case is damaging both to confidence in our banking system annd deeply demoralizing to the average person's sense of fair play. As Christine Duhaime, a lawyer who specializes in anti-moneylaundering law says,

“Joe Average who is fined for any administrative infraction is not afforded secrecy in this way and the rules should apply to all Canadians, legal and natural personals, equally, from banks to Joe Average.”

Yet Fintrac somehow seems to feel that they have really brought down the hammer in this case:

Fintrac said Tuesday’s announcement is meant to deter others from failing to report.

But the bank’s name was not added to a list of violators published on the agency’s website. The home page shows the name of many smaller companies, such as jewelry stores, independent securities dealers and real estate brokerages.

Quite unapologetic, Fintrac, according to The Observer report, feels it has done exemplary work in this case:

FINTRAC said it was trying to be discreet.

“The process has concluded and FINTRAC exercised its discretion not to name the entity so that we could send a timely message of deterrence to the 31,000 businesses that are subject to the Proceeds of Crime, Money Laundering and Terrorism Financing Act”.

I'm afraid that the only message Fintrac has managed to convey is confirmation that there is indeed one law for the 'giants' who walk among us, and quite another for the rest of us. It is far past time that this special understanding (wink, wink, nudge, nudge) between certain societal segments and the massive insult to the rest of us ended.

Merry Christmas - A Gift For You

During most of the year, the topics and issues I deal with on this blog are often dark and depressing. Such is the way of the world. However, I'd like to share with readers a series of good news stories that show human kindness, compassion and resilience are far from dead. Taken from NBC News, these are best viewed, not at once, but when you feel the need. As counterpoint to the usual news fare, they almost always leave me feeling touched, and serve as potent reminders that not everything in this world is bleak.

Enjoy, and Merry Christmas!

Lethal Legacy - Part 2

In Part 1, I wrote about the lethal consequences for many who have worked at GE Peterborough. A toxic workplace that has resulted in crippling disease or death for many is not the kind of legacy these men and women anticipated.

To compound the tragedy of the situation, Ontario's Workplace Insurance and Safety Board has been strangely reluctant to find a relationship between that workplace and the diseases that are killing far too many former employees, accepting only 280 compensation claims from over 660 applications.

Today, I try to understand that reluctance, as well as look at a bill working its way through the Ontario legislature that will potentially make the workplace even more hazardous.

In exploring this issue, the role of the Ontario government must also be considered, given its apparent indifference to workplace health and safety:

A report produced for the WSIB in 2010 determined that the province had “no effective reporting or surveillance of occupational disease or exposures” and no central repository of data on the subject.

Six years later, that status quo remains.

The WSIB itself seems to share that indifference:

The WSIB has a registry for “unplanned exposure incidents,” but it is voluntary, does not record information about the severity of the exposure, does not collect medical information from workers or health-care providers and looks only at individual cases rather than populations at risk. There is no dedicated funding for the program. ... [and] the Ministry of Labour does not receive data from the registry.

Why this strange shared inertia between a government-appointed board and the government itself? Is it possible that the miasma of neoliberalism has infiltrated both? And if so, how can that be, given that the WISB directors themselves, as I pointed out in the previous post, come from diverse backgrounds?

Is there, in fact, an institutional bias at work here?

“There’s a systemic barrier to actually looking at what’s happening to these blue-collar workers behind factory walls,” says Dr. Jim Brophy, an expert in occupational disease whose research into breast cancer in the workplace won him an award from the American Public Health Association in 2013.

“If compensation boards recognize these cases then the onus is on the government to go do something about them. We’re caught in this vicious cycle.”

Are those appointed to the Board, and by extension, those who work for the Board, trying in some measure, even unconsciously, to protect the government from that onus? The fact is that Board approves just over 40% of all claims for compensation, having set standards of proof almost impossibly high for many.

As well, approving too many claims could prove costly for employers.

The Canadian workers’ compensation model is based on an important compromise: employers agree to fund the system through insurance premiums, sharing the liability for workplace injuries.

We all know what happens if we ever make a claim, for example, on our house insurance. Rates rise, sometimes steeply. The same would hold true of employer premiums to the WSIB.

And where is the Ontario government in all of this? While it is demonstrably infected by the virus of neoliberalism (consider, as one example, the sale of 60% of Hydro One in order "to broaden ownership," in the words of Premier Kathleen Wynne), there is further evidence that the disease is progressing:

... new legislation — Bill 70 — is moving ahead and will quietly scale back routine health and safety inspections in favour of employer self-compliance.

UNIFOR is not impressed by the bill:

Health and safety advocates reviewing Bill 70 have serious concerns. The perverse irony this Bill bears the same number as the Bill which birthed Ontario’s original OHSA [Occupational Health & Safety Act] almost 40 years ago is not lost on worker health and safety advocates. Chief among their concerns is the Bill’s intent to allow the government to privatize the processes for setting and approving standards for health and safety training courses...

Equally troubling, in announcing these amendments to OHSA, Ministry of Labour senior staff indicated employers accredited through this possibly self-regulated scheme would be exempt from proactive enforcement by health and safety inspectors and other “routine burdens.”

We have all seen where these efforts at government deregulation to make industry more competitive and self-regulated have led. Walkerton and Maple Leaf Foods are but two examples of what can happen when standards are relaxed.

John Cartwright, president of the Toronto and York Region Labour Council and himself a survivor of occupational cancer, calls the proposal “a horrific mistake.”

“This is a failed policy practice that has been an absolute ideological cover for deregulation resulting in increased harm to workers,” says Bob DeMatteo, an occupational disease expert and former director of health and safety for the Ontario Public Service Employees Union.

The tragedies experienced by GE workers are, for the most part, irremediable. We honour their losses by reading about them. But our larger responsibility involves making sure that the horrors they have experienced are not repeated, ad nauseam, in the future.

Special Note: In my two posts on this subject, I have only focused on a small part of the Star report. For much more insight into this sad collusion between industry and government, I strongly recommend that you read the entire report here.

Guest Post: An Incompatible Marriage

In response to my post the other day featuring some stellar letters from Star readers on inequality, regular commentator Pamela MacNeil offered an insightful analysis of the fundamental incompatibility between democracy and neoliberalism. Here is that analysis:

Governments who value Democracy, Lorne, will govern in the interests of people according to democratic principles. They will also add legally or otherwise to their country's democracy. They will do this to make their democracy stronger and more accessible to their citizens. This is what Nation Building is all about. Creating The Charter of Rights and Freedoms is a good example of strengthening democracy while further entrenching Nation Building.

The stronger the legislative roots upon which Democracy rests, the freer the country.

The more a government seeks to create policy without a democratic process, the greater the chance of that government becoming authoritarian.

Our present government and our previous governments have embraced neoliberal policy domestically and globally. "Neoliberals require a strong state that uses its power to create and enforce markets and prop them up when they fail." Their vision is a state governed by market transactions and not democratic practices. This is what Canadians are now witnessing.

Neoliberalism came later to Canada than to the U.S. and Britain because of the re-election of Pierre Trudeau in 1980. How ironic that it should be his son who is continually promoting neoliberalism and has made it the fundamental driver of his domestic and global policies.

Neoliberalism breeds inequality. Most progressives would defend democracy as a basic right. In neoliberalism "financial markets survive existenial crises only through state bailouts."

The economic inequality can best be seen in the decline of union memberships, the decline in the share of middle class income and the rise in the share of income taken by the top 10%. The goal of neoliberalism is to chip away at union power until it no longer threatens the realization of the market state.

How unequal and insignificant does your government consider you to be, when they, without public consultation, take billions of your dollars to bail out the corporate and financial elite who were the cause of one of the most major financial crisis in history?

There is nothing more important then freedom, freedom ingrained in law. Without democracy there is no freedom. Our government, which has already severed ties with Canadians, is busy trying to find ways to circumvent our constitution or dismantle our democracy in order to implement their neoliberal policies.

Neoliberalism and Democracy cannot survive together. It will be one or the other and right now neoliberalism, at least in Canada, appears to be winning.

How relevant is our democracy to Canadians? The battle ahead is a battle of ideas. Freedom and democracy or Neoliberalism and Tyranny. Will Canadians fight to take their country back or will they do nothing?

The choice is ours, and our time is running out.

Lethal Legacy: A Province' s Version Of Neoliberalism

The Toronto Star has run a heartbreaking series, very well-worth reading, on the fate of many of the employees of Peterborough's GE plant, whose lives were either cut short by, or are riddled with, disease thanks to exposure to a toxic brew of chemicals during their working lives.

Entitled Lethal Legacy, it is a story not only about the workers' tragedies but also Ontario’s Workplace Safety and Insurance Board, which has been quite reluctant to award compensation to the victims and their survivors. It all occurs within the context of an Ontario Liberal government that, through a pending bill, will make workplaces even more precarious venues than they already are.

First, a short profile from the series:

Despite working at the plant since he was 16, Ed Condon carried himself with a gentleness factory life didn’t afford him — never swearing, smoking or drinking. Retirement, his family hoped, would finally heal the bone-deep cracks in his hands, stop the nosebleeds he stubbornly brushed off. There would be more twilight drives down River Rd. with his wife, more rambles in the woods with his three grandchildren.

But Ed Condon always believed the chemicals would kill him first.
In the end, his family says, he was right.

“He had such amazing integrity and honour. And he was such an honest man,” says his daughter Cindy Crossley, who lost her father to an inoperable brain tumour in 2012.

Condon was certain his glioblastoma was caused by exposure to a toxic mix of chemicals:

In his final months, he took to carefully documenting the chemicals he worked with. The final list was 42 items long and included some of the world’s most deadly substances: arsenic; cyanide; vinyl chloride; asbestos; lead; benzene; DDT; epoxy resins; silica and cadmium.

Despite a workplace well-documented for its poisons, Condon and hundreds of other claimants to the Workplace Safety and Insurance Board were denied compensation. Indeed, of the

660 compensation claims made to [the Board, only]... 280 have been accepted; more than half have been withdrawn, abandoned or rejected because of apparently insufficient evidence that the conditions were work related.

Survivors and those currently fighting disease have not given up their fight, but it appears to be much more of an uphill battle than it should be. While it is not easy matter to prove a causal relationship between exposure and illness,
a 2016 Supreme Court decision ruled that workers’ compensation

boards cannot demand definitive proof that an illness is work-related, especially since existing scientific research on occupational disease is sometimes inconclusive.

Instead, the Supreme Court said compensation boards must consider all available evidence and decide on the balance of probabilities whether a workplace contributed to a claimant’s illness. If so, workers are entitled to compensation. In borderline cases, the court said workers must be given the benefit of the doubt.

But the WISB, despite its poor record on approving claims, says

its “existing adjudication principles are consistent” with the Supreme Court decision and have not changed in response to it.

So how is their recalcitrance to be explained? The Ontario government appoints the board's directors, and it is led by former Conservative cabinet minister Elizabeth Witmer. The research I have done on the directors suggests members come from diverse backgrounds that do not suggest a preponderant corporate bias. As well, if one checks out this job posting on the WISB website, the requirements for, and the duties of, Advanced Practice Nurse suggests a real thoroughness in the discharge of duties there.

My next post will attempt to look more closely at board decisions as well as a pending Ontario bill that will make it harder to enforce health standards within the workplace.

"The Cancer Of Inequality"

In a recent post well-worth reading, The Mound reflected on the decline of support for liberal democracy. Today, Star readers respond to an article carried by the paper entitled, How Stable Are Democracies? ‘Warning Signs Are Flashing Red’. Their message is clear: inequality is at the root of the problem, fostered and promoted by the neoliberal agenda:

Re: For democracy, ‘warning signs flashing red', Dec. 11

The graphs for the seven countries in this article show the first real dip in democratic trust by people born in the 1960s and with each generation '70s and '80s trust declines. The pattern of distrust is universal across the democracies; therefore it seems logical that the cause is universal and progressive.

The universal event during the survey's time period of 2005-14 was the Great Recession of 2008 and with the slow recovery it is a progressive event affecting all people, but especially the millennial generation. They and their parents feel cheated; they did what was expected but now face unemployment.

However, is feeling cheated by society the total reason for the decline in democratic trust? I say something else going on: First, the three countries with the largest decline in trust — U.S., U.K. and Australia — consistently show the highest rate of inequality. Second, the country with the lowest decline in trust, Sweden, consistently has the lowest rate of inequality. The remaining three countries — Canada, Germany and the Netherlands — are all middle of the road for decline in trust and for inequality. There seems to be a link between decline in democratic trust and inequality, but the work of Mounk and Foa did not link democratic decline to inequality, as Mounk says more research is required.

Whilst waiting for the research we should consider the work of Wilkinson and Pickett who covered 10 components that make up the social fabric of 23 countries and clearly showed how inequality was bad for everyone, from the wealthy to the pauper.

In the U.K. and U.S. since 1980s, when Thatcher and Reagan condoned Greedism as an economic model, inequality has grown to the point where these two countries are near the top on the list. Both recently experienced quasi-social revolutions that shocked the world: Brexit in the U.K. and the Trump election in the U.S. Both events were rightly tied to trade deals and globalization because both exacerbate Greedism and inequality.

Inequality has been insidiously creeping up on us for the last three decades. In the U.S., the poster child for inequality, it gets little attention; in Canada we do not understand the damage it is doing to our democracy.

Democracy is best explained by five words: “The will of the people.” Looking at Canada I do not believe this is the will of the people. No good jobs, precarious work rising, children living in poverty, loss of self respect and dignity, half a billion dollars in tax forgiveness for 70 CEOs, 80 per cent of the economy fruits goes to one per cent, foodbanks grow.

The cancer of inequality is destroying the fabric of our society and governments must act before rips apart.

Keith Parkinson, Cambridge

This article was important yet frustrating. It missed the obvious connection between economic inequality and dwindling support for democracy. The people of Venezuela, Cuba and other nations give up on democracy when they are economically marginalized. The freedom of the few to accumulate disproportionate wealth and power makes democracy seem useless to many.

Laws that increasingly favour the wealthy at the expense of the poor and middle class deprive most citizens of genuine political power. The citizens become irrelevant, so democracy becomes irrelevant to them.

The histories of Athens, Rome and countless other political systems show that democracy dies this way. It has been written about many times, yet we appear incapable of learning how to stop it.

Paul Bigioni, Pickering