‘Cooked up statistics’

Theyre out to kill

By RAE MURPHY

NEW plot against the Can-

anadian nation has been

discovered. The plot ema-
nates from the United States, in
particular the head offices of the
international unions. The
scheme is to win higher wages
for Canadian workers, in the
form of wage parity in the same
industry. This, we are told, will
undermine the Canadian econo-
my, because if Canada isn’t a
cheap labor reserve there will
be no incentive for Americans
to invest here.

The opening salvo in this ex-
posure came from a member of
that bastion of Canadian inde-
pendence, the federal Liberal
cabinet, in the person of Indus-
try Minister C. M. Drury. His
remarks were based on ambi-
guities in that catalogue of am-
biguities, the third report of the
Economic Council of Canada.

The cudgels have now been
taken up by the Toronto Star’s
financial writer, D. H. Fullerton.
In a two-part series, Fullerton
argues:

“What concerns us more is
that those who run the United
Automobile Workers (and other
international unions) face a real
conflict of interest in seeking to
bring wages in Canada to the
USS. level. The higher wages can
be pushed in Canada, the less
attractive American industry
will find it to move north, and
the more jobs there will be for
UAW’s American membership
(to say nothing of the better bar-
gaining position the American
union will have in their own
subsequent negotiations with
U.S. producers).”

As an example of the dire re-
sults of wage parity Fullerton
cites Puerto Rico:

“Puerto Rico might provide
some further- evidence of this

question. When ‘operation boot-
strap’ was introduced over 15
years ago tu attract industry
from the U.S_ mainland it was
most successful, but a recent
newspaper report suggested that
the operation was running out
of steam because of ‘pressures
from international unions for
wage equalization with contin-
ental United. States.”

The article states that as a
result the inward movement of
industry has slowed and some
industries have left. Puerto
Rican industry and local unions
argue that a policy of wage par-
ity with the mainland makes no
sense with continuing and heavy
unemployment and underem-
ployment.

“We are not Puerto Rico, and
the parallel may be unfair, but
there could be a lesson in it for
us. Wage parity in an industry,
when Canadian income is 25
percent below the U.S. average,
means that the capacity of that
industry to grow rapidly and to
compete with American industry
is reduced. In this sense, the
drive of the international union
for parity reinforces the com-
petitive ability of the ‘“main-

land’’-—U.S. manufacturing in-
dustry.”
Nobody makes any _ bones

about the fact that the UAW is
concerned that the auto pact
does not develop in such a way
as to perpetuate Canada’s exist-
ence as a low-wage area. Natu-
rally this would operate against
the interests of the American
workers. But the question is,
does being a low-wage preserve
for American monopolies oper-
ate in the interests of Canadian
workers?

Of all the arguments against
wage parity, this one is most
specious for it seeks to set up
2 cut-throat competition be-

After all, it is the PROFIT system

* Go EASY. SAVE SOME FOR MINE!” —=

WAGE PARITY

tween American and Canadian
workers for each other's jobs.
This line of reasoning would
make it wrong for the workers
in Quebec, for example, to
strive for wage parity with Ont-
ario workers because this would
make the investment climate in
Quebec discouraging.

The argument against wage
parity is buttressed by produc-
tivity statistics. It is said, for
example, that Canadian produc-
tivity is 35 percent lower than
that of the American worker.
But generalized figures on pro-
ductivity have very little rela-
tion to the concrete demand for
wage parity, which simply
means that a person doing
equal work should receive equal
pay, In an industry such as
auto, where workers do the
same work for the same compa-
ny, there is no, getting around
the demand for the same pay
because some other area of our
national economy may not be

as productive as that of the
United States.
Furthermore, workers have

every right to be suspicious of
Statistics about our gross na-
tional product. The research
bulletin of the United Electrical
Workers union illustrates how
the books can be cooked: -

“GNP comparisons between
Canada and the United States
are badly distorted because of
U.S. investment contro) over
Canadian industry. The conven-
tion report on UE Bargaining
and Legislative Program last
March pointed to the inflated
costs in Canada because of U.S.
parent companies charging their
Canadian subsidiaries goods,
licensing fees, research, admini-
stration, etc. These extra charg-
es result in higher prices paid
by Canadian consumers. The
high material cost and resulting
high manufacturing cost is then
used as an argument that Can-
adian workers are not entitled
to higher wages because costs of
production per unit are too
high!”

As a final note in his argu-
ment against wage parity, Ful-
lerton suggests that “the burden
of lower regional
should not all be taken up in
wages—but if workers in the
depressed areas are unable or
unwilling to move to areas
where production is more eco-
nomic, they should be asked to
accept lower wages as part of
the added costs of staying put.”

This means that workers in
the Maritimes should al] move
to Southern Ontario, but once
here they should all move to
Detroit or Pittsburgh. Either
that or accept lower wages to
subsidize poor little outfits like
General Motors so they will be
kind enough to keep us at work.

But if everyone moves, who
will be left to buy the Toronto
Star?

productivity:

= of
Workers install a new type of rudder on the nee
Island Master at Victoria, A cylinder around the rudder P “

designed to give 20 percent more thrust for better mange
Februaly:

The 85-foot tug went into. West Coast service in

ek

AN ANGRY TORONTO Labor Council meeting last ute ;
nimously passed an emergency resolution protesting tiom
ence on the picket line at Coleman’s Itd. The resolun il
protested the use of police to break the Coleman st

manded their withdrawal from the line, came in the wa gett

charges against two workers during a mass picket-liné

tion on Thursday. inst,
d any

The resolution charged that “this American-dom th
pany has refused to negotiate with the union in good fal
resorted to the hiring of strikebreakers in order to
plant .. and that the company can only operate He by
cause strikebreakers are forced through the picket!
Toronto police force.” gest Od

Speaking in the discussion, Murray Tate, vice-pres! jab”!
council, said that “labor had been challenged and tha

going to take up the challenge.” !

jo"
eke atl?
The following morning a further solidarity demonst! :

place on the picketline, in which more arrests were nan
In other developments in the strike there are ny
that the company is being forced to move toward the tf
table. However, Coleman’s have also applied for @ oy
tion to limit picketing at the plant to nine people. —_ of
The union which represents the workers, Canadian 0
of Labor Local 24514, has urged the boycott of Colema?
* eae

fl
a
THE ELIMINATION of the hourly rate of paymen tf
establishment of salary payment for all auto workers nt
goal of the United Automobile Workers in the commie
tions with the industry. According to UAW President ©
ther, the union will tell the owners of the auto giants: eal
“If you can pay the chairman of your board by the 7 tf
can’t you guarantee a full year’s pay for every wor ren
he is skilled or. production or on salary? It’s that simp”.
: * * * ; nate
THE DIRECTORS of the Ontario Farmers’ Uni0® git
proved a milk strike by union members if demands fo! the
$5 per hundredweight for industrial milk is not met i’ coil
national dairy policy. Union President John Dolmer y afte
said the strike could be in effect April 18, two wee
April 4 date when the new policy is to be announce “peste”
The directors sent telegrams to Prime Ministel ing
son and federal Minister of Agriculture J. J. Green infor et
that strike action will be taken if the $5 price is not

po
Pe
March 31, 1967—PACIFIC TRIBUNE