LABOR FRONT By WILLIAM KASHTAN Quite a bit has been written recently on the forthcoming merger of the National Union of Public Employees (NUPE) and the National Union of Public Service Employees (NUPSE) and this is understandable. The merger, if it is carried through will result in the formation of the Canadian Union of Public Employees (CUPE) with a membership of well over 80,000, making it the largest union in Canada. Moreover, once the merger is effected, it could open the door to the organization of a vast body of workers in that jurisdic- tion. It is estimated there is a potential 500,000 workers who could become mem- bers of CUPE, providing of course that the merger convention sets itself that aim and really undertakes a vast campaign of organ- ization of the unorganized. One can well imagine what that would mean in terms of the strengthening of the current in the trade union movement of this country towards a greater mea- sure of Canadian autonomy and the extent to which that process could be stimulated in all unions here,. The merger could likewise set itself new targets on the economic and legislative field no less than on the political field. : * a * But, as we said last week in this column with respect to the Steel Union Conference, bigness isn’t everything if that new strength is not used to advance the cause of the workers concerned and the cause of the working class generally. There are some elements in the trade union movement who relish bigneSs because it gives them empires to play around with, not because it creates new opportunities for the workers con- cerned to advance on all fronts. In this merger the opportunity exists for a Canadian union to help chart a new course for the entire trade union movement — to lead the fight to end the divisions within the ranks of labor — to lead the fight to put an end to the cold war and anti-Communism which has for too long plagued the trade union movement and held it back from making the advances the situation demands and makes possible today. . * * * Unfortunately this is not yet in the thinking of those who have worked out the merger terms. Instead of orientating on a new course, those who worked out the merger terms seem to have been following U.S. practice, particularly with respect to the democratic rights of the membership. * * * It is a matter of record that all the anti-Communist clauses in international union constitutions were U.S.-made and brought into the trade union movement of this country. Under pressure of the U.S. State Department some international union leaders have gone even further and brought U.S. laws into Canada, and compelled union leaders in this country to subor- dinate themselves and the union membership to the Taft- Hartley and the Landrum-Griffin acts. This applies equally to the Canadian Labor Congress. This shameful situation has not yet been corrected and it is high time it was. ' _ It is also a matter of record that practically no Canadian union, as distinct from an international union, has placed such anti-Communist clauses in their union constitutions. This record is now being broken by the proposed consti- tution the merger convention to form CUPE will be asked to adopt. Why? Who is forcing this negative, divisive issue into the merger? What is its purpose? Is the leadership of the Canadian Labor Congress laying down the line on this question to make it conform with their anti-Communist position. Are civic governments insisting on this clause? Are there elements in NUPSE who demand it? And what is it to be used for? It is common knowledge by now and the record speaks for itself, that wherever political discrimination has been exercised democracy and the democratic and autonomous rights of locals have gone out the window. Anti-Communism’ covers a wide net and ought to be decisively repudiated by all sections of the trade union movement. * * * It is said in some quarters that the terms of the merger are inviolate and cannot be changed. That is sheer nonsense! If that viewpoint is accepted what is the purpose of a merger con- vention? What remains of the democratic right of delegates to speak their minds and decide on the basic questions involved in the merger? The place to debate these questions is the convention floor and if the merger is to have value to the workers concerned, they must have the right to make the de- cisions which will affect their future. It is fairly clear that the majority of the workers, in NUPSE as in NUPE, welcome the idea of merger and the building up of a powerful and united union better able to cope with the complex problems confronting them and the Canadian people. But if the merger is to be fruitful and long lasting it must be built on sound foundations and working class principles. Progressives have the responsibility to work ~ for that objective. : : - June 28, 1963—PACIFIC TRIBUNE—Page 2 AN ECONOMIC ANALYSIS The Gordon budget Walter Gordon’s new budget poses two big questions. Does it really tackle the problem of United States domination of the Canadian economy? Do Gordon’s proposals really get at the ques. tion of unemployment? In his budget speech, Gordon said: ‘I suggest that a 25 per- cent equity interest is in most cases appropriate to ensure that a Canadian point of view is al- ways available when company policy decisions are arrived at.” One is tempted to ask: ‘Does this make Gordon a 25 percent Canadian? The overall Liberal policy is economic ‘‘coordination’’ with the United States. It is true that some of Gordon’s proposals — because of contradictions within the ruling circles of Canadian capitalists — seem to conflict slightly with this overall policy. But it is not a big or significant conflict. One of the major proposals in the original budget, (a proposal since withdrawn under pressure from the Toronto and Montreal stock exchange), was the 30 per cent ‘tax on the sale of a Canad. ian company’s shares to non-res- idents. ° This proposal was supposedly aimed at foreign ownership and provided that unless the sale was done on the stock exchange in amounts less than $50,000 a day - the 30 percent tax would have to be paid. In a straight takeover of a .€anadian firm evasion of this tax could have taken place in two ways: by simply keeping sales less than $50,000 a day; or by the foreign buyer, who usually has the advantage, shifting the tax on to the Canadian seller. 25% CANADIAN Another budget proposal — is that the 15 percent witholding tax on dividends paid abroad will be reduced to 10 percent on payments by companies with at least 25 percent on dividend pay- ments abroad by companies with less than 25 percent Canadian ownership. Canadian investment men, who have beeen clamoring for a chance to share in money-mak- ing U.S. corporations here, have welcomed these proposals. But even if this proposal were to result in a certain shift in ownership, it would do absolute- ly nothing to solve the basic problem of domination of the Canadian economy by foreign interests. Seventy-five percent of the industries which now control the basic sectors of the Canad- WHY GORDON CAN'T ‘BUDGE IT' LOOKING FOR UNUSUAL BUYS AT POPULAR PRICES? l We have an interesting choice of goods from ancl — CHINAWARE | — LINENS U.S.S.R., Czechoslovakia, China and Poland. TEA AND CONFECTIONERY | _ FROM U.S.S.R. | _— EMBROIDERED GOODS — SOVIET WRIST WATCHES — CERAMIC FIGURINES ke