elite = By KIMBAL CARIOU EDMONTON — In the largest convention of the Alberta Federa- tion of Labor’s history, more that 800 delegates re-elected) AFL president Harry Kostiuk as leader of the 800,000-member organiza- tion. Kostiuk, a member of the Canadian Food and Allied Work- ers union (CFAW), was re- elected to a second two year term. Expressing dissatisfaction with the positions of some Canadian Labor Congress, (CLC), and AFL leaders, the Convention cal- led for a ‘‘new militant program of action’’ to defend unions such as the Canadian Union of Postal Workers, (CUPW) which are under attack. In recent months the Edmon- ton Labor Council protested CLC president Dennis McDermott’s stand on the postal strike, and the Edmonton local of the Letter Car- riers Union requested his resigna- tion. Although a few delegates ob- jected to the use of the world “‘militant’’ in the resolution, say- ing that laws should only be chal- lenged at the ballot box, the resolution passed easily. Bill Paterson; secretary-treasurer of Corporate profits and inflation are on the rise in Canada. This is taking place at a time when wages are declining. Statistics Canada reports that food prices in April 1979 were up 16.5% from April 1978, while all consumer prices were up by 9.8% from the previ- ous year. Perhaps the most significant fact is that non-food prices are sw- inging upward, particularly hous- ing, clothing and transportation. With a $2-per-barrel oil price in- crease pending, while industrial profits jumped. 58.3% over the first three months of 1978, in- flation is sure to take on galloping proportions. The $4.1-billion or 58.3% after-tax profits made by industry in Canada in the first quarter of this year was far ahead of the 38.9% increase shown in the fourth quarter of 1978. This fan- tastic upward surge in profits be- comes even more significant when we take a look.at the value of sales by the same companies for the first three months of 1979. These sales were worth $88.9- billion, or 17.8% over that of the same period a year earlier. It is this kind of galloping profits that result in galloping inflation. The cut from 12% to 9% in the. federal sales tax charged at the manufacturers’ level last November, has not been passed On to consumers. At the same time manufacturers have been able to charge much higher prices because of the drop in the Cana- dian dollar which has helped to reduce import competition. Lower cost per unit of production has not resulted in lower prices. Instead prices have increased, re- sulting i in much higher profits per unit of production. - + * * * The workers are taking a catas- the Calgary Labor Council, spoke for many when he said he would oppose any law passed to hurt working people, even if it meant going to jail. Another resolution pledged further support to CUPW in its struggle for genuine bar- gaining rights. The current Pwo’ campaign was also a major topic at the convention. Based in Cal- gary, an association of business- men has been pushing for such legislation since last year. Recent Statements by Alberta’s new Minister of Labor, Les Young, indicate a continued anti-labor bias in the Tory cabinet. The Alberta labor movement faces a major problem in organis- ing workers in the growing heavy oil industry. So far little progress has been made in areas such as Fort McMurray, where-the Syn- crude and other plants are operat- ing. The convention unanimously agreed to intensify the AFL’s ef- fort to prevent ‘‘right-to-work’’ laws from being adopted. The privincial governments’ policies of wage restraints, cut- backs, and restraints on spending came under heavy fire. The To- ries, it was pointed out, are doing their best to make public sector POSTAL The Alberta Federation of Labor convention called for a ‘new military program of action” to defend unon such as CUPW, who are under attack. Photo shows a Toronto rally iast sanpary in support of CUPW nea facing firings and prosecution. workers the ‘‘favorite whipping boys”’ for inflation. Delegates ap- proved a policy paper condemn- ing these policies and calling for, more pressure on the government to abandon them. The convention also approved resolutions calling for a 32-hour work week with no cut in pay, and for an increase in the minimum wage, from the current level of $3.00 per hour, (for those over 18), to $5.50 per hour. Profits up, trophic drubbing. The Anti-In- flation Board, so-called, held back wages while allowing prices to rise along with unconscionable profits. Wage settlements in major collective agreements cov- ering 500 or more workers in all industries (other than construc- tion) within both federal and pro- - vincial jurisdictions averaged 7.7% in the fourth quarter of 1978. Similar wage settlements reached in the first three months of 1979 showed an average annual rate of increase of 7.1%. In other words, there is a drop in monetary wage increases, which means an even steeper decline in real wages in face of rising inflation. The 26 one-year settlements in the first quarter provided for an 8.7% increase in basic rates of wages. The 57 two-year agree- ments provided for 8.4% in the first year and 7% in the second year. The 24 three-year agree- ments provided for 7.5% in the first year, 2.4% in the second year and 5.9% in third year. These wage settlements do not include any pay increases due to cost-of-living allowances (COL- A). Out of the total of 107 settle- +... 2 Affordable food = > eg controlled profits PACIFIC TRIBUNE—JUNE 1, 1979—Page 8 ments in the first quarter of 1979, only 28 provided for a cost of liv- ing increase. The average annual increase in base rates for these settlements was 5.3%, excluding the effect of the COLA clause. The remaining 79 settlements without a COLA provided for an annual average increase in base rates of 8.1%. During the 12-month period ‘ending with the first quarter of 1979, there were 668 collective agreements settled providing for an average annual gain of 7%. * * * It is easy to see from the above who is the villain in the inflation picture. It is super-profits by monopoly, not wages. Inco in Sudbury, which pays little or no taxes and makes wind- fall profits from stockpiled metal at ever-rising prices, is now trying to drive a wedge between the community and its workers with the lie that the strikers rejected an offer of $3.67 an hour increase. What Inco offered was 71 cents for a three-year contract until 1982. In addition, it offered a COLA payment of $1.65 up to February 1982. But supposing inflation de- velops at a higher rate of say 15, 20 and, perhaps, 25% per annum by 1980-82? At the rate monopoly profits are soaring that is not to be excluded. Under our system of state- monopoly capitalism, there is no guarantee of a job or an income even in a collective agreement, unless the workers and their unions are prepared to struggle for their rights at any given mo- ment, even during a collective agreement. If ever there was a time when vigilance is the price of both economic survival and free- dom of action, that time is surely now. '. An executive resolution which would have cut representation at future AFL conventions to one delegate per 200 members, down from one per 100 members,’ was soundly defeated. -*Some changes took place in elections for the AFL leadership. Kostiuk was. unopposed in this bid for re-election, although there was considerable discussion be- fore the convention about running a candidate against him. For sev- eral years, the public sector un- ions have been dissatisfied with what they feel is inadequate rep- resentation at top levels of the AFL. Industrial unions such as the CFAW and the Oil Chemical and , Atomic Workers, (OQCAW), now account for only about 15,000 of the AFL’s membership, but for .~ years have held many of the top posts in the organisation. Public sector unions wanted more mem- bers on the executive, to strengthen their position in deal- ings with the Lougheed govern- ment, which has come down hard on their members. For example, the Alberta Union of Provincil Employees’ 40,000 member have been denied the right to strike or bargain effectively, by the Tory government. An attempt. to make the secretary-treasurer’s position full-time, backed by most public. sector union leaders, was referrel to next February’s convention. Jack Dyck, leader of the Labor ers’ Union, was re-elected to the secretary-treasurer’s posta out opposition. : But former first vice-preside nt of the AFL, Frank Kuzemski of the Steelworkers, was defeated by Dave Eastmead of CUPE, in what many considered a move towards more militant leadership. AUPE president John Booth wai unanimously elected second vice-president. The four vice presidents at large are: Reg Bas. ken of OCAW; Mason Di Edmonton president of CUPW; Jack Hubler of Plumbers. Pipefitters Local 488 in Edmor ton; and Merle Schnee, president of the firefighters’ union in Bi monton. CLC leader on record profits Prices board needed ings of.the labor and progressive OTTAWA — Calling for a prices commission with teeth to roll back price gouging, Canadian Labor Congress president Dennis McDermott suggested the recent 58% hike in corporate profits, an- “nounced May 16, should have been diverted to reduce prices. In a statement the next day, the CLC president said the profit hike in the first quarter of 1979 ‘‘proves once more that the Trudeau government has done nothing to put a break on the cost of living. __.“Profits are up 58%. Prices are . up 9.2%. But the increase in wages’’, McDermott said, ‘“‘has gone down from 7.7 to 7.1%. And while this is allowed to happen, Harold Renouf of the National Commission on Inflation has the gall to warn wage and salary ear- ners that they must be modest. ‘“*The time has come for a Fair Prices Commission to investigate unreasonable Prices and roll them back if necessary’’, McDermott said. a The CLC pibeident’ s statement was followed May 18 by a study of the Conference Board in Canada which showed that the Trudeau government’s so-called ‘‘anti- inflation program’’, helped to increase profits while cutting wages, thus confirming the warn- ’ while the consumer price index ‘would have risen by only abou! -program, profits would have been movements when the AIB was introduced in 1976. The study showed that the av- erage weekly level of wage! would have increased by 7.7% the third quarter of 1978 if wage controls hadn’t been introduced, 2%. The study looked at the im pact of controls for the 1977-18 period. Average weekly wages rose by an average of 10.8% in the first year of wage controls, the study showed, whereas they should have risen 14.1% the board esti- mated. The next year wages would have risen by 11.1% ac- cording to the board’s estimates, but due to wage controls they only increased 8.7%. For 1978 average weekly wages increased by 6.2% where without controls they should have been oxpea to rise 9%. SS The study showed the Con- sumer Price Index, (CPI), actu ally accelerating through 1977 and 1978, resulting in the present in- flation rate running at about 9%. The study also suggested that by the end of the wage controls 9% lower than if controls had not been legislated into effect.