Plant closure
#16
What was not stated is that the Canadian government gave large subsidies and tax incentives to Caterpillar to ensure that the plant remained in operation. Caterpillar had no compunction about accepting such largesse, then scurrying back to their U.S. operation. Also not stated was the fact that Caterpillar's only offer was a 50% reduction in wages and the removal of many benefits, followed by a lock-out of employees, despite the fact the the company made record profits last year, much of which was generated at this plant.

alpha_1 Wrote:London will survive. Good to see the union busted!

I don't know where you work or what the nature of your employment is, but many of your benefits, both financial and those related to your working conditions, are directly thanks to pressures exerted by unions, whether or not you are a unionised employee. While many non-union workers decry union demands (which I agree may, at times, be unreasonable) few realise that hours of work, vacation standards, medical benefits, and safety standards are directly tied to sacrifices made by union members in one industry or another. Would you be willing to accept, without chance of negotiation, a 50% wage cut? Or would you, if given the opportunity, not attempt to better your working conditions or improve your standard of living?
Yes, unions have their share of non-productive and/or troublesome members, and they are, in my experience, as disliked and unwanted as they would be anywhere else.
Many of the first unions, not surprisingly, were in industries where conditions were so appalling that you cannot imagine them. I worked in the steel industry for almost 40 years, and had no choice but to join a union if I wished to work there, as was the situation in most of the heavy industry at that time. I didn't see a lot of use for the union in my day-to-day work, but saw plenty of use for it when contract time rolled around, as the company, as "greedy" as the union, wanted to give nothing and take back as much as they could. Whatever was won (or not) was achieved because the two sides negotiated an agreement. Caterpillar had no intention of anything but sloughing off their responsibilities.
I can give you examples of why I made good money during those years, too, working three shifts, often with split days-off and usually with those days-off being mid-week. You would not believe the noise, the dirt, extremes of temperature and the danger embodied in heavy industry, and I have seen several new hires simply take a look around and never return. If no one came in for the next shift who could do my job, I was required to stay - yeah, I got overtime, but I also missed out on a lot of important things at home, too. I worked on holidays, including Christmas, and got my vacation when it was convenient for the company, not when my kids were on vacation from school. I saw several people killed, too, but I also saw the changes which were made, often only after insistence by the union, that prevented further similar incidents.

Within the current economic situation, yes, unions need to temper their demands. However, you, or any other person who expects the government or business to come to your rescue, either with regards to employment, safety standards, or benefits, will have a very rude awakening. The government doesn't care (nor, in my opinion, should they) and neither does big business, and the bigger both become, the less accountable they will be.
Current Government discussion in Canada involving pensions is centred on Government's role, but the Government, as in most countries, is essentially bankrupt. The only ones with the money to address this concern is big business, and they're not especially interested in doing so. Governments are seemingly powerless (or too disinterested) to apply any regulations which would impede economic growth (keep your eye on who's enjoying the benefits of that one) and we are, in effect, governed by multinational corporations. I have no problem with them making a profit, even huge profits, but I would like to see a return of some sense of responsibility on their part for the situations which they are creating. Obviously, you're not going to be one of the ones standing up for such changes.

And as wages continue to drop across the board, unions or not, who will have the money to buy these products?


Wayne
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#17
Worship Worship Worship Worship Worship Worship Well stated Dr. Wayne.
Mike Kieran
Port Able Lines

" If the world were perfect, it wouldn't be " - Yogi Berra.
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#18
Thanks, Mike. I thought that your points were well-stated, too.

I don't know what the situation may be elsewhere, but in Canada, striking workers cannot collect unemployment insurance, and, if you return to work and are layed-off, you may not be eligible for such benefits either, as you would have no contributions within an appropriate time frame.

Wayne
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#19
We got a bit off topic with all of the discussion pro & con of unions, but it seems to me that this is the second time at least that Canada has fronted money to a big Corporation to keep production in Canada, and then seen that corporation take the money and run. Didn't GM do the same thing with the factory that they used to build Camaros & Firebirds in up in Quebec? They need to add some strings to the money that they give out. If a large corporation, or anybody else for that matter, takes money form the government to keep a plant in an area, and then decides to move out in a short amount of time they should be required to pay back all funds plus interest and penalties immediately unless they go out of business and bk. Does the government in Canada just give away money to any large corporation that gives them a song and dance with no strings attached?
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#20
Russ Bellinis Wrote:.....They need to add some strings to the money that they give out. If a large corporation, or anybody else for that matter, takes money form the government to keep a plant in an area, and then decides to move out in a short amount of time they should be required to pay back all funds plus interest and penalties immediately unless they go out of business and bk. Does the government in Canada just give away money to any large corporation that gives them a song and dance with no strings attached?

This seems to be pretty much standard practice nowadays, and it's been like that for a while. Firestone Canada got a large handout, many years ago, to re-equip their Hamilton, Ontario plant. Not very many years later, Firestone, and the equipment, moved south. Likewise for Westinghouse, which ran at least three plants, also in Hamilton. STELCO, the steel plant where I worked, was bought by U.S.Steel, with a promise, under the Canada Investment Act, to produce a certain amount of tonnage and employ a set minimum number of people for a specified number of years. With a downturn in the steel markets, followed by the recession, we all know how far that one went. To some extent, I understand U.S.S.'s position given the extenuating circumstances, but with improvements in the market, the situation is still grim. They locked-out employees at the Lake Erie Works for 8 months in a successful effort to change the pension plan, then repeated the same tactics at Hamilton, with a year-long lockout, just recently settled. However, operations remain very limited, with only the coke ovens, cold mill, and Z-line coating mill in operation. They have no plans to re-start the blast furnace, BOF, or slab/billet casters. Meanwhile, U.S.Steel's American operations are running at 90% capacity.
The "strings" attached to the handouts are there, they're simply not enforced, and that despite a Supreme Court ruling that U.S.Steel was guilty of contravening the Act.
Canada's current policy under the Canada Investment Act has been to rubber-stamp over 13,000 recent foreign takeovers of Canadian businesses, and there appears to be no end in sight. Big business, it seems, is running this country, and it is, in my opinion, a foretaste of what other developed countries will, or are, experiencing.

Wayne
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#21
doctorwayne Wrote:Canada's current policy under the Canada Investment Act has been to rubber-stamp over 13,000 recent foreign takeovers of Canadian businesses, and there appears to be no end in sight. Big business, it seems, is running this country, and it is, in my opinion, a foretaste of what other developed countries will, or are, experiencing.

Wayne

Your statement makes me wonder if Canada has weathered the recession relatively well not because we are so far ahead (as the politicians like to claim), but because we are so far behind... 35


Andrew
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