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After picketing the Sandman Inn, which was built, nonetheless, with
non-union labor, the trade union movement has at least won its point
in the hotel’s operation. Hotel, Restaurant and Bartenders delegate
John Clarke told the Vancouver labor council Tuesday that the Inn
in Kelowna has been organized with a vote pending at the Revelstoke
Operation. “And we're working on the one in downtown Vancouver,”

he said.

“Unemployment is not a mere
accidental blemish in a private
economy. On the contrary, it is
part of the essential mechanism of
the system, and has a definite
function to fulfill. The first function
of unemployment (which has
always existedin open or disguised

form) is that it maintains the.

authority of master over man.”
This quotation from a _ 1943
editorial in the London Times
‘appeared in a discussion paper
read to arecent meeting of 22 labor
researchers sponsored by the
Ontario Federation of Labor.
Advancing the thesis that the
Times editorial of 1943 is ap-
plicable to conditions in Canada in

. 1977, the discussion paper stated:

“Unemployment is a conscious tool
of a business-backed government
against labor. Furthermore, the
level of unemployment reflects the
relative political power between
labor and business.”’

It concluded that ‘‘the fact
Canada now has the highest
unemployment in the  in-

Public inquiry demanded
into Mac Blo operations

Cont'd from pg. 1

rise to suspicion that one or more
government employees might have
received something of value from
the agent;

e $206,000 paid to an agent
during 1972 and early 1973 which
certain employees of the Company
knew was being turned over by the
agent to the principal executive
officer of the government-
controlled purchasing corporation,
possibly for political or personal
use;

e $344,000 in agency com-
missions and special allowances
paid at an agent’s request to ac-
counts and persons outside the
agent’s country which may have
permitted the agent to circumvent
local tax or foreign exchange laws.
There is some reason to believe
that a portion of these payments
may have been passed on by the
agent to government employees.or
used by him for political con-
tributions.

e $1,773,000 in agency com-
missions, allowances or. sale
discounts or other amounts paid at
the request of agents of customers
to persons or accounts, in most

cases in countries other than the

country of the agents or customers,
under circumstances which may
have permitted circumvention of
local tax or foreign exchange laws,
or which may have enabled some
agents or others to withhold
amounts due customers;

e $745,000 paid at the request of
customers, after the Company had
received payment of requested
overstated invoices, to accounts in
countries other than those of the
customers where the practice
followed may have permitted
circumvention of local tax or
foreign exchange laws; and

e $5,000 paid by a foreign sub-
sidiary to induce investment in
that subsidiary, with the result that
the investor obtained an ee tax
advantage.”

Certainly disclosures of this
kind, involving admissions that
corporation funds may have gone
to “‘one or more government
employees,” that funds were paid
to a “principal executive officer of
the government-controlled pur-
chasing corporation, possibly for

political or personal use,”’ and that
funds had been passed on ‘“‘to
government employees or used by
him for political contributions” are
not the exclusive concern of Mac
Blo. They are serious revelations
of corrupt practices involving
possible individuals in the
government, political parties, and
officials of government-controlled
agencies.

The most amazing feature of the
present disclosures is that the
media has played it at such a low
key. The Province, although it had
a copy of the report, has not
reportedit. The Sun gave it a news
story but featured the exorbitant
wage of the company’s president,
which tended to bury the most
serious exposure of wrong-doing.
Most of the media, including
newspaper columnists and open
line programs, have buried the
story.

The disclosures by wre Bio are
the most serious since ‘the Som-
mers scandal shook the province.
The public cannot be satisfied to
leave it where it is, and to accept
the results of Mac Blo’s own study
of itself. Nor is the public prepared
to accept assurances that the
company will not repeat these
“irregularities” again.

The public will want to know and
have answers to the following
questions!

Who were the ‘one or more
government employees’ who
“might have received something of
value” from a Mac Blo agent?

Who was “the principal
executive officer of the govern-
ment-controlled purchasing cor-
poration’”” who received money
“possibly for political or personal
use.”

Who was the head of Mac Blo
during these “Grregularities”” and
what was his part in these ac-
tivities? The public must know
what political contributions were
made and whether government
officials or employees received
funds from Mac Blo which went for
“personal use.”

A full public inquiry ‘into the
dealings of Mac Blo is essential if
the public is to get an objective
report and full disclosure of the
facts. Mac Blo is a powerful cor-
poration with extensive influence
in provincial life, but it must not be
allowed to intimidate the public or
its elected representatives. The
provincial legislature should
launch a full public inquiry into
MacBlo’s admitted ‘‘irregulari-
ties’’ and bring the full facts of the
company’s operations to public
light.

NDP caucus names speaker
for city May Day rally

Former NDP municipal affairs minister James Lorimer,
representing the NDP caucus, and George Johnston, president of the
B.C. Federation of Labor will be the featured speakers of this year’s
May Day rally set for Sunday May 1, 2 . m. in the Templeton Secon-

dary School Auditorium.

Other prominent labor and progressive speakers are expected at the =
rally which will also feature a concert program with Tom Hawken.
George Hewison and Bargain at Half the Price.

Proceeds from the May Day rally will go to the Canadian: Aa ee

: Vietnam Civilians campaign to equip a 100-bed hospital in Vietnam.

This year’s May Day theme will centre around the struggle to end
wage controls, for restoration of free collective Dargai: for a

: united Canada, and for peace and social progress. => :
Born out of the struggle for the 8-hour day, May Day has won
universal support from world labor and was endorsed oe the Comdep:
_ Labor Congress at its last convention. __ —
_ With rising unemployment, it’s also likely tha
_ rally will seea stronger dema for governmer

PACIFIC TRIBUNE—APRIL 8, 1977—Page 12

dustrialized world is related to the
political weakness of organized
labor.”’

Robert Lekachman, professor of
economics at City University in
New York, advanced the same
argument in the February issue of
Harper’s Magazine: ‘It is no
accident that we tolerate seven,
eight or even nine percent
unemployment ... The brutal

fact is that unemployment confers:

a good many benefits upon the
prosperous and the trily af-
fluent . . . it calms the unions and

LABOR
COMMENT

BY JACK PHILLIPS

moderates their wage demands.”
Finance minister Donald

MacDonald, when he introduced.

the budget March 31, proved that
the Trudeau government is more
concerned with the welfare of the
corporations than with the welfare
of the people. Despite the more
than one million unemployed in
Canada, he said this when he
tabled the budget for debate:
“We would like to have lower
levels of unemployment in Canada.
I think that Canadians recognize,
however, that the very strong
economic stimulus needed — and it

would be a very substantial in- |

crease in public spending to reduce
unemployment — would also bring
the risk of a return to inflationary
conditions.”’ :

The labor movement has never
accepted the argument that it must
choose: between a high level of
unemployment and a high level of
inflation. Its position is that given
the correct social policies, there
can be full employment with little
or no inflation.

The objectives of the Trudeau
government come into sharper
focus when we recall the bill before
parliament to reduce unem-
ployment insurance benefits.

Thirteen Liberals, many from
the Atlantic provinces where
unemployment levels are among
the highest in the country, are
threatening to vote with the op-
position and bring down the
government if the bill is put to final
reading in its present form. It
doesn’t say much “for the
“prosperity’’ of the country when
many communities in the Atlantic
provinces are highly dependent on
unemployment insurance and
welfare payments.

Here, in this province, thousands
of workers stand to lose their
benefits if the qualifying period is
extended. At the same time, the

' president of MacMillan Bloedel is

receiving an annual salary of
$250,000. If he is fired. during the
first three years of employment, he
is guaranteed three years salary —
at full pay, commencing from the
date of his employment with the
company. Compare that unem-
ployment insurance with what is
available for the workers of
MacMillan Bloedel!

Both the Vancouver and the New
Westminster labor council
requested the B.C. Federation of
Labor to organize demonstrations
at the provincial legislature to put
the unemployed back to work, and
they have called upon the
Canadian Labor Congress to
organize such a demonstration in
Ottawa.

With more than 100,000 unem-
ployed in B.C., these proposals can
be expected to receive the at-
tention of the Federation’s

-mittee.’’

have.

executive council when it oe
this month.

When 150 workers from Railwe
car plant in Squamish 7
strated in Victoria in March, th
compelled the premier to ‘ne
with them on the steps of
legislature, to listen to the!
demand that the plant be ke
open. This demonstration W*
organized by the es
representing the workers 2
underscores the correctness of
position adopted by the two 1a
councils.

The labor movement can pay!
key role in providing the lea
ship that is required in the fight
put Canada back to work.
October 14 day of protest agail
wage controls dramatically prow :
the power of organized labor int
battle for social justice.

Julien Major, executive vic’
president of the CLC, indicate.
few days ago that the Congres
leadership is considering
organization of massive ee
strations across the country, #
jobs and for an end to wage cot
trols. Trade unions and la
councils in B.C. can best show th
support for such a_ policy b
organizing more demonstratio
like the Railwest rally in Victor!
The B.C. Federation of Labor has?
vit al role to play, assisting the i
for jobs in B.C. and calling u
the CLC to proceed with the pla.
indicated by Major.

Labor has the program to pi
Canada back to work — withol s
inflation. What is required is unit :
action by the labor movement af"
its democratic allies. The politic
parties of the left, the Commul®)-
Party and the New Democrat
Party, should give every suppoll
encouragement and assistance #
the development of the actid®.
program: suggested by Majong

Food inquiry
to hear VLC

“The Vancouver and “pistridl
Labor Council will be presenting?
submission to the newly
established commission of inquif! ;
into the food industry — altho
council president Syd ‘Thomps6
expressed some doubts as to t
impartiality of some of the Socié!
Credit members of the 10-membée
committee.

The Trade Union Reseat
Bureau will be enlisted to prepal®
the council’s brief which will b?
presented some time during thé
course of the commission® .
hearings, which are to be held ove!
a period of one year and are to 8?
into all aspects of the B.C. fo
industry.

Thompson told delegates to thé
council’s meeting Tuesday, ‘“Wé
need an investigation into the pric?
of food in this province, not 2
whitewash — but we’re not likely
get it from the agricultural com

Thompson was _ particularly
concerned with issue of marketing’
boards which he likened 1
“regressive taxation.”

He urged delegates to maké
representation to the food probé
however, to make their view®
known on all aspects of the fo
industry.

Plumbers. delegate Joh
McKnight also outlined the need
for labor to advance its' views but
emphasized “It’s time we start
talking about nationalization 0
basic industry such as energy
housing, and food processing — it’
the only answer in the long ru