| =. +s. a i 7 i + 4 } at 3 ibd B.C.’‘s General Bullmoose sheds false tears Ae 1 i? 1, we 7 An answer to J.V. Clyne THE TEARFUL TYCOON. Last week J. V. Clyne, top B.C. tycoon, chairman of MacMillan Bloedel and father of Bill 33, shed tears over the plight” of big business in B.C. and Canada. He attacked the IWA wage demands and threatened dire consequences. He also called for the federal government to scrap medicare and other social programs, and urged tax policies more favorable to big business. His motto is the same as General Bullmoose of Al Capp fame: “What's good for MacMillan Bloedel is good for the nation.” MACMILLAN BLOEDEL: ‘Dollar patriots’ J. V. Clyne and his company pose as great patriots. But their patriotism is mainly to the profit dollar. Actually MacMillan Bloedel has been exporting large quantities of capital abroad to exploit labor in other countries. It has also been exporting huge amounts of raw or semi-processed wood products which if processed in B.C. would provide many new jobs. Here are some examples of how this company exports capital and jobs: * $75 million linerboard, sawmill and plywood plant — ° Pine Hills, Alabama $30 million fine paper plant — Lanaken, Belgium $4 million fine paper plant — Algeciras, Spain * $31 million contract with C.P.R. Bermuda to build foreign flag fleet. 100,000 acres of timber in Gougainville, Solomon Islands. _ 750,000 square feet corrugated containers, New Jersey & Baltimore, U.S.A. 550,245 tons of raw pulp exported. Large shipment of “squares” or large rough sawn timbers, which are re-sawn in Japan. This page is a special feature in B.C.'s fighting labor paper Subscribe to the Pacific Tribune: $5.00 for one year; $2.75 for six months. Write or phone: Mezzanine 3-193 E. Hastings St. Vancouver 4, 685-5288. PAA Page 12—PACIFIC TRIBUNE—MAY 10, 1968 By BRUCE YORKE J. V. “‘Bill-33’’ Clyne, chairman of Mac- Millan Bloedel, told the annual meeting of shareholders recently that if the Interna- tional Woodworkers of America persisted in its demands for a 50¢ per hour wage in- crease the result: “Will be a very lengthy strike which will have serious consequences for everyone in B.C..”’ The Vancouver Sun headlined the story on page one as follows: ‘“‘WOODS INDUSTRY CAN’T MEET UNION DEMANDS, SAYS CLYNE”’’. The Vancouver Province had a banner headline which stated: ““CLYNE _ TELLS LABOR, WE WILL BALK”’. In order to soften this propaganda threat, the “‘honorable’’ Mr. Clyne noted, ‘‘I am not being belligerent, but merely stating facts.” MacMillan Blodel, which makes up one third of the forest industry, reported profits in 1967 of $36.2 millions, down $6.3 millions from the previous year. According to ex- judge Clyne: “The sharp reduction in earnings is attributable to an important extent to the heavy increase in the cost of wages, salaries and employee benefits. In 1967 these amounted to $132.7 millions as compared to $116.8 millions in 1966.” : On the basis of these ‘‘facts’’ the media mafia are doing their best to paint a picture of a hard-up industry. But what is the real truth? To begin with, the $36.2 millions is not exactly a hard-up figure. It is equivalent to $1.08 per man hour for a full year for all of MacMillan’s 16,549 employees, more than double the 50¢ per man hour wage increase demanded by the I.W.A. But this is only half the story. Last year MacMillan Bloedel retained in cash $7.7 millions in ‘‘deferred income taxes’’ and $31.1 millions in paper ‘‘depreciation”’ charges. These two items more than double the real ability of the forest monopoly to pay the wages demanded by its workers. - Secondly, the increase in the total wage did NOT cause the drop in profits. The average wage rate increased approximately 542%, but because a larger number of workers were employed total wages increased, according to Clyne’s quoted figures by 13.6%. BUT, the total of all other non-wage expenses increased 19.2%, from $280.3 millions to $333.8 millions. Not a word about these increases from the “honorable’”’ Mr. Clyne, though they are very plainly stated on MacMillan’s financial statement. In order to determine whether or not the rise in the total wage bill was responsible for the drop in profits, a fair test would be to apply the same 13.6% increase in the total wage bill to the total of all the non-wage expenses. When this is done the resulting figure is $318.3 millions ($280.3 x 113.6), that is, $15.5 millions less than the actual figure of $333.8 millions. ' CONSEQUENTLY, PROFITS WOULD HAVE INCREASED BY $9.2 MILLIONS ($15.5 - 6.3), IF NON-WAGE EXPENSES Productivity gains —_and price increases since 1960 justify a 72¢ wage increase. Basic wage June 15, 1960 $1.92 Add, productivity increases of 43% 1960-1967 33 2.75 Add, price increases 16.4% 1960-1967 a f 3.20 Assume further 5% productivity increase 1968 16 3.36 Assume further 3.5% increase in prices 1968 me ae : $3.48 Less Present basic wage rate 2.76 Wage increase justified 72¢ per hour. HAD INCREASED AT THE SAME RATE AS WAGES. MacMillan’s operating statement provides only skimpy material re the $55.5 million ($333.8 - 280.3) increase in non-wage expenses. Depreciation is shown as having increased $2.8 millions, interest $3.5 millions, and marketing, advertising and promotions $3.5 millions. The total cost of the latter item was $12.4 millions. Apparently the media mafia were well looked after. One “‘small’’ slip was made, however. Buried in the 25th paragraph of a 35 paragraph story on the annual meeting, the Province quotes the ‘‘honorable’’ Mr. Clyne as follows: “‘When all the facts are considered, our company is in a very healthy condition That’s a fact! The company is ‘“‘in a very healthy condition . . .’’ Healthy enough to meet in full the justified demands of the woodworkers — whose incomes are far from being ‘‘in a healthy condition’ because of rising prices, taxes and higher interest rates on everything they and their families need. By meeting the woodworkers demands, this giant corporation will be forced to . spread some of their prosperity around which will help everybody in the province, workers and small business alike. Sales of Products and Services Millions of dollars 550 500 450 400 350 300 1963 ~—-1964 1965 1946-1967 SALES BOOMING! $349 million in 1963... $479 millions in 1966. . . $540 millions last year.