February 12, 2010
Volume 40, No. 6
Buy America Deal to Have Dire Consequences for Canada
While federal Parliament remains suspended, the Harper government has snuck through a "Buy America" exemption deal with the United States that will do more harm than good for Canadian workers and businesses over the long term, says CAW President Ken Lewenza.
"This is a ridiculous deal negotiated under the radar by the Harper government," said Lewenza after announcement of the deal on February 5. "It fails to protect Canadian interests, it gives up more than it gets and trades off long term opportunities for possible short term gains."
The special exemption deal, widely cited as an emergency measure to protect the interests of Canadian companies reportedly shut out of U.S. economic stimulus funds, could effectively remove the rights and powers of government to manage public spending on big ticket construction projects. These projects, Lewenza said, should be used to develop Canada's economy and keep Canadians working.
Under the deal, Canadian businesses will be given a chance to bid on whatever remains of U.S. federal and state economic stimulus projects up until February 17 (when the project awards will be complete).
In the meantime, the deal leaves governments vulnerable to the terms and conditions of the World Trade Organization Government Procurement Agreement (GPA), which restricts public purchasing rules.
Part-time Jobs Don't Make for Recovery, CAW President says
"The growth in part-time work is absolutely no cause for celebration," says CAW President Ken Lewenza, in response to unemployment numbers released by Statistics Canada February 5.
"Instead it means that more Canadians are ending up in precarious employment - characterized by irregular hours, little job security, low wages and few benefits - this is really nothing to cheer about."
The most recent statistics showed a surge in part-time employment of 43,000 new jobs, but no real growth in full-time work. Lewenza called the exclusive growth in part-time employment alarming and warned that it gives Canadians and more importantly, the government, a false sense of security that the economy is improving.
"Workers need full-time, sustainable jobs that they can survive on, instead of having to string together part-time jobs to make ends meet," said Lewenza. "I believe that's what these new statistics show. We cannot jump start the economy with only part-time or temporary employment opportunities."
The latest growth in part-time work coincides with the long-term labour market trend which has seen the number of people in part-time work, but actively looking for full-time employment, skyrocket by a whopping 184 per cent since 1997, according to Statistics Canada's own data.
"Today, approximately 900,000 Canadians fall into this category of people who are forced to work part-time," said Lewenza.
CAW Members Ratify Nova Scotia Health Care Agreements
CAW Local 4600, 4603 and 4606 members working at three health authorities in Nova Scotia have overwhelmingly ratified new collective agreements with wage and benefit improvements.
The 31-month agreements covering 2,300 hospital workers were ratified as follows:
- Cape Breton District Health Authority (health care unit), 79 per cent;
- Cape Breton District Health Authority (service unit), 95 per cent;
- Guysborough Antigonish Strait Richmond District Health Authority, 95 per cent;
- Isaak Walton Killiam Childrens Hospital, 98 per cent;
Wage increases total 4.9 per cent over the life of the agreement with an additional 2.1 per cent increase for workers such as technologists, dieticians, therapists and others in the health care unit.
Licensed Practical Nurses receive an additional six per cent increase effective September 1.
In addition there are improvements in long term disability, pregnancy and parental leave provisions. The employer has agreed Biomedical Technologists will be voluntarily included into the CAW bargaining unit.
"The bargaining committees' hard work and commitment to the membership was instrumental in achieving the gains we made," said CAW national representative Susan Burrows. "There were no concessions."
CAW Local 4600 President Shauna Wilcox said it was an extremely tough round of bargaining made all the more difficult because of the economic hard times.
"But the solidarity of the membership and the committee's hard work resulted in some strong gains for our membership.
CAW Local 4603 President Jim Callaghan said "we resisted concession demands and instead achieved many gains for the membership. By working together we've moved the agenda forward, despite tough economic times."
CAW Calls for Probe into Mining Giant Xstrata
The CAW is calling on the federal and provincial governments to thoroughly investigate international mining giant Xstrata, including the reason for closing its Timmins Kidd metallurgical site.
Should this investigation conclude that Xstrata has little reason to close the Timmins site, both levels of government must force Xstrata to divest their Timmins, Ontario assets, says the CAW.
The closure is slated for May 1, a move the CAW is calling unnecessary.
According to the Investment Canada Act, the federal industry minister retains the power to review the implementation of an investment by a foreign company and determine whether it varies from the original application and still results in a "net benefit" to Canada. If this is not the case, federal Industry Minister Tony Clement can force a company to remedy the situation or even sell some of its assets.
In Ontario, the Mining Act requires that ore and minerals be treated and refined in Canada. Failing to do so allows the minister of natural resources to withdraw the company's mining rights.
The closure of Xstrata's Kidd Mine metallurgical site in Timmins, Ontario could cause the loss of up to 4,428 jobs and $152 million in annual taxes, according to a new study commissioned by the Timmins Economic Development Corporation, conducted by Econometric Research Limited.
"Northeastern Ontario cannot afford to lose these good, highly productive jobs," said CAW President Ken Lewenza. "Xstrata must not be permitted to exploit the region's resources and then leave it in dire straits when it's convenient to do so."
On February 8, Xstrata announced a $2.8 billion profit for 2009, defying even analysts' expectations.
The report Our Resources Stay Here: Seven Reasons Why the Xstrata Metallurgical Site Must Stay is available at: http://www.caw.ca/en/8442.htm
Settlement Agreement with Nortel
The CAW has signed a $57 million interim settlement agreement with Nortel that will provide continued protection of benefits, pension payments and an advance on severance pay for retirees, active employees, those on long-term disability and terminated employees.
It's anticipated the settlement agreement will be approved in court on March 3. Here is a summary of the agreement:
Medical and Dental Benefits
- if you are currently receiving a pension, if you are a beneficiary or survivor of a Nortel pensioner or if you are currently in receipt of LTD income, you will continue to receive medical and dental benefits until December 31, 2010;
- life insurance coverage continues until December 31, 2010.
Long-Term Disability Recipients
- Nortel will continue to pay long-term disability income benefits until December 31, 2010;
Pension Benefits
- Nortel will continue to make regular monthly contributions to the pension plan until September 30, 2010;
- the company will also continue to make payments to reduce the pension plan deficit until March 31, 2010;
- Nortel will stop administering the pension plan as of October 1, 2010;
- as of October 1, 2010 the Financial Services commission of Ontario will appoint a new administrator of the pension plan.
Termination Pay
- more than $4 million has been set aside for an initial payment of approximately $3,000 to each former employee who had their employment terminated by Nortel and who have not been re-employed by a successor or received severance pay or bonuses. This payment is on account and will reduce final severance pay claims.
In the company's heyday in the mid 1980s, the CAW represented approximately 5,000 Nortel workers at five locations. More details are available at www.caw.ca/en/5511.htm
CAW Members Ratify Two Collective Agreements at Windsor Regional Hospital
CAW Local 2458 members have ratified one-year collective agreements covering two bargaining units at Windsor Regional Hospital. Both the Service Unit and the Skilled Trades Unit agreements include a 2% wage increase, post 65 benefits for active employees, and skilled trades language gains.
But most importantly the deals contain job security language that will help to alleviate some of the pain that will accompany the major restructuring when Windsor Regional Hospital closes the doors at its Malden Park long-term care facility in December. This could affect up to 130 bargaining unit jobs.
Service members voted 88 per cent in support and skilled trades 82 per cent.
CAW Local 2458 President Bruce Dickie noted because of the Malden Park closure, the bargaining committee agreed it was in the best interest of their membership and a top priority, to secure an agreement that would assist them through this transition, even if that meant a shorter term.
"The alternative would have been the arbitration process that can often take so long that we quite possibly would not have had an agreement in place before the closure, and that was just not something we were prepared to risk."
Tullio DiPonti, Financial Secretary of CAW Local 2458 said "Our membership would have certainly preferred the security of a three-year agreement, but completely understood why we could not jeopardize language that will assist those affected by this restructuring."
CAW represents 700 members at Windsor Regional Hospital. An agreement for the technical unit, representing 125 technologists and technicians remains outstanding.
GDP: Measuring the Human Side of the Canadian Economic Crisis
Rough Road: Auto-workers at a crossroads
Once a bustling motor-town, Oshawa has been devastated by a crisis that's thrown Canada's auto sector into its worst downturn since the Great Depression. As their employment benefits run out, jobless workers confront unprecedented hardship and seek support from a local action centre.
Once employed by General Motors, Brian reflects on all that he's lost and the rough road ahead. http://gdp.nfb.ca/episode/1439/rough-road
GDP is an interactive online project of the National Film Board.
Comment, check out more stories or find out how to tell yours at: http://gdp.nfb.ca/
Canadian Content Rules help Create Jobs in Quebec
In a move rarely seen in North America, a major Chinese railcar manufacturer announced plans to produce subway cars in Canada, creating 1,000 new jobs. The move is part of the company's effort to meet Canadian-content requirements set by the government of Quebec to win a new multi-billion dollar transit project.
Zhuzhou Electric Locomotive of China, who is currently locked in a bidding war with a Bombardier-Alstom consortium to win a subway car contract from the City of Montreal, announced on February 8 it is prepared to manufacture all 1,050 required cars in Canada, if its bid is successful.
The Chinese railcar giant is conforming to the 60 per cent Canadian-content policy established by the provincial government in 2008. The policy governs all subway car purchases in the province.
"This announcement highlights the effectiveness of Buy Canadian policies as a means to create jobs and encourage new investment in our country," said CAW President Ken Lewenza. "It proves that companies are prepared to follow local content rules in Canada, if they are put in place."
The CAW has called on all levels of government to adopt similar policies to ensure a major portion of public spending is used to spur regional and economic development in Canada.
"This is smart economic policy that supports fair trade and good jobs in many industries, from transit to shipbuilding, and it's time our government got on board with the rest of the world," Lewenza said.
The CAW has mounted a number of successful Buy Canadian campaigns across the country, at both provincial and municipal levels, resulting in billions of public dollars spent in Canadian communities.
In 2009, the CAW worked with City of Toronto Mayor David Miller and the Toronto Transit Commission (TTC) to include Canadian-content provisions in a record-breaking $1.2 billion light rail transit project. Because of this provision, over 200 rail vehicles will be built in Thunder Bay, Ontario creating and preserving thousands of jobs.
CAW Health Care Conference
The CAW Health Care Conference will be held May 7 to 9, 2010 at the Delta Halifax in Halifax, Nova Scotia.
The conference theme is Defending our Rights - Preparing for the Future. The conference will include guest speakers, plenary sessions and workshops. Further details regarding workshop selections for pre-registration will be forwarded to CAW health care local union presidents and recording secretaries in the near future.
The registration fee is $60. Cheques should be sent to CAW Canada, 205 Placer Court, Toronto, On, M2H 3H9, attention Peter Kennedy. Cheques should be made payable to CAW Canada with Health Care Conference in the memo field.
Notes from HAITI.
CAW Members Help Out at Clinic
Three CAW Local 636 members spent a week in Port-Au-Prince, Haiti helping out at an impromptu medical clinic assessing and providing wound and trauma care to hundreds of victims of the devastating January 12 earthquake.
Tanya Bultje, Teresa Cisek and Marlene Magashazi are Personal Support Workers at Woodingford Lodge, which has long-term care facilities in Oxford County, Tillsonburg, Ingersoll and Woodstock, Ontario.
Tanya's sister runs a home for disadvantaged and special needs children in Port-Au-Prince. Tanya, Teresa and Marlene help at the facility from time to time and immediately headed to Port-Au-Prince after the earthquake hit.
What they found was gut-wrenching with more than 160 people camped in the yard of the house with many people suffering from severe wounds, fractures and other trauma.
Tanya said the three are planning to go back in mid-February to continue helping at the medical clinic and will be joined by a fourth Woodingford Lodge worker, Liz Pais.
"The problems in Haiti are very difficult and complicated and will continue to get worse as more time goes by," said Tanya. "We must go on providing as much support as possible as the people of Haiti struggle to overcome the immediate crisis and work to rebuild the country over the long term."
"The local union and the community are tremendously proud of these members who took their time to assist in the relief effort in January and are returning to assist again soon," said CAW Local 636 President Ross Gerrie.
| CAW Local 636 members Teresa Cisek, Marlene Magashazi and Tanya Bultje provided help recently to Haitian earthquake victims. |
For more information on the CAW's fundraising efforts for Haiti, please visit: www.caw.ca/en/8279.htm
