LABOR

Union demanding gov't
close tariff loophole
as Shipyard jobs lost

While Canadian shipyard workers are suffering the
worst unemployment in decades, taxpayers’ dollars
are going to subsidize Scottish shipyards — and the
Marine Workers and Boilermakers Union is demand-
ing that the Tory government take action immediately
to close the loopholes that allow it.

Marine Workers Union president John Fitzpatrick
fired off a letter to Ottawa last week calling on the
federal government to compel a Canadian company
to pay the required 25 per cent duty on two offshore
oil vessels even though
the company is doing an
end run around the legis-
lation by leasing, rather
than purchasing, the two
ships.

The demand was
prompted by an article
in a recent issue of a
Scottish newspaper, the
Greenock Telegraph,
which revealed that Fer-
guson-Ailsa shipyard in
Scotland has just con-
firmed a £9 million order
to build two offshore oil
vessels for a Canadian

ee Pee JOHN FITZPATRICK

The article noted that “complex, hush-hush negoti-
ations” had been going on for some time but that
work on the first Vessel had now begun. It added that
the contract would provide ciamSyinent for some 400
__ shipyard workers at the company’s yard in Port Glas-
gow until year-end.

The two vessels are intended for offshore oil work in
the Beaufort Sea. John Townsend is thought to be
acting as the leasing company for another Canadian
corporation, Arctic Resources, Fitzpatrick said.

And it is through the lease arrangement that the oil
company is able to take advantage of a gaping loop-
hole in federal legislation that was originally intro-
duced to assist Canadian shipyards.

Bill C-16, passed by the Liberal government shortly
before Parliament was dissolved for the Sept. 4, 1984
election, provides for imposition of a duty equal to 25
per cent of the value of a vessel on all ships which have
been built outside Canada but are to operate in Cana-
dian waters.

Under that legislation, John Townsend would
normally pay 25 per cent of £9 million — approxi-
mately $3.3 million at current exchange rates — in

duty when the vessels were brought into Canada from
the Scottish yards.

“But because they’re leasing the ships, they pay only
1/120 of their value per month to the federal govern-
ment, and that’s peanuts.” said Fitzpatrick.

“But there’s also depreciation of the vessel. The less
they’re worth, the less the company has to pay,” he
said.

In addition to depreciation, the.oil company is able
to take advantage of tax breaks under the federal
Petroleum Incentive Program and write off the leasing
fees paid to the government.

“So they end up paying nothing — and Canadians
are subsidizing the oil company and the Scottish ship-
yards,” he said.

That is particularly galling since shipyards not only
in British Columbia but across the country are, “at the
lowest ever’’, according to the union leader.

The cut in the federal shipbuilding subsidy from 20
per cent to nine per cent several years ago resulted ina
sharp decline in Canadian shipbuilding. Fitzpatrick
cited figures showing that between 1980 and 1983, 38

vessels worth a total of $1.5 billion were built outside ,

Canada and then brought here for use in Canadian
waters, mainly in offshore oil exploration.

It was in response to pressure from shipyards and
the various unions including the Marine Workers, that
the Liberal government finally passed Bill C-16 with
the intention of forcing shipbuilding contracts back
into Canadian yards.

But now companies are using the leasing loophole
to circumvent the bill’s provisions while continuing to
build ships offshore.

“It's Canadian taxpayers’. money ‘that’s being
used — and that kind of nonsense has got to be
stopped,” declared Fitzpatrick.

The union has called on the Tory government to
close the loophole and impose the 25 per cent duty on
the two ships when they are brought to Canada some
time later this year.

““We’ve demanded that the bill apply even though
the vessels are to be leased,” he said.

“We've also told the government: better still, pass
legislation similar to the Jones Act in the U.S. which
states that any vessels operating in U.S. waters must be
U.S.-built, period.

“That should be the rule here, too. Ships in Cana-
dian waters should be built in Canada and manned by
Canadians,” he said.

“If it’s good een for the U.S., it should be good
enough for us.”

TWU action protests scheduling

Directory assistance and long distance operators at
B.C. Telephone staged a one-day walkout Feb. 22 to
protest attempts by the company to limit use of a

“coverage board” which operators use to provide

. _ some flexibility in their often gruelling shifts.

Telecommunications Workers Union Local 10
shop steward Stella Crampton said Monday that the
board allows operators to post unpopular shifts such
as a Saturday night shift which can then be picked up
by other operators.

Although it has been in existence for decades, B.C.
Tel management began calling people into the office
Feb. 22, announcing that coverage in the future would
be limited to 10 days a year, Crampton said.

After an hour-long meeting with B.C. Tel brought
no results, TWU representatives walked out, taking

with them most. of the directory assistance and long
distance operators on the day shift.

Crampton emphasized that the coverage system,
and another voluntary time-off arrangement which
B.C. Tel also wants to limit, are particularly important
to operators who often work 10 days at a stretch on
odd shifts.

Without it, she said, “‘Operators will either have to
commit their lives totally to the job or quit.”

Operators are already under increasing pressure
because of staff reductions through attrition and new
electornic monitoring systems.

At a meeting Monday between the TWU and B.C.
Tel, union officials tabled the demand that there be no
changes in the coverage ssytem and no reprisals
against those who took part in the walkout. The
company has two week to respond.

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_ 12. ¢ PACIFIC TRIBUNE, FEBRUARY 27, 1985

Dnoeeoeede

WE'RE STRIKING FOR
OUR FIRST CONTRACT

GIVE US A

QW 88:27:50

Strikers tour will
spur Eaton boycott

The Eaton’s boycott campaign will get a major push in this
province when two strikers from the retail chain’s Toronto store
tour the Lower Mainland and Vancouver Island Mar. 4-10.

Lynda McFann nd Claudia Giouinetti, members of the Retail,
Wholesale and Department Store Union, will be here as part of a
country-wide tour being co-ordinated by the Canadian Labor
Congress in its campaign to compel Eaton’s to return to the
bargaining table and sign a first collective agreement.

CLC regional director Len Ruel told the Tribune that the week-
long tour, which kicks off with a major reception at the airport Mar.
4, will take the two to several union locals and plant gates in
Vancouver as well as meetings in Victoria and Duncan.

On Mar. 6, they will be part of a leaflet blitz at 12 noon outside
the Eaton’s store in Victoria.

On Saturday, Mar. 9, McFann and Giouinetti will be marching

with the International Women’s Day parade in downtown Van-

couver. The march assembles at Victory Square at 11 a.m. and will
go past Eaton’s Pacific Centre store on the way to a rally at the Art
Gallery. The CUPE women’s conference, where the two strikers
will also be speaking, will adjourn for two hours to allow delegates
to participate in the march and rally.

Although media attention to the strike has been focused on the
Southern Ontario area where six Eaton’s stores have been behind
picket lines since Nov. 30, leafletting of stores has been going on
regularly on Friday nights and Saturdays i in this province, Ruel |
said,

Local unionists are out for two hours each day urging consumers
not to patronize the chain and to turn charge account cards back to
the store. In addition, a women’s support organization, Women
Supporting the Eaton’s Strikers, targets a different Eaton’s store
each Saturday for a major leaflet campaign.

“Tt was slow at first but the boycott campaign is picking up
momentum now,” said Ruel, noting that the list of volunteers for
the leafletting has grown considerably over the last few weeks.

“We also want to use the campaign to throw more attention on
the current strikes in this province where boycotts are also in
effect — at Slade and Stewart and Canadian Tire,” he said. The
Eaton’s strikers are scheduled to pay a visit to the Slade and Stewart
picket line outside the company’s Vancouver warehouse.

Ruel also noted that the boycott campaign is having some effect,
“although Eaton’s will never acknowledge that.” A straw poll taken
by unionists leafletting the store found that roughly 10 per cent of
patrons were being turned away after talking to boycott supporters
and the boycott committee is seeing an increasing number of
account cards being cut up and returned to the retail chain.

Across the country, the boycott is of critical importance in
forcing the chain to bargain a first contract which it has stonewalled
since talks first began nearly a year ago. The RWDSU recently
completed hearings before the Ontario Labor Relations Board
(OLRB) after charging Eaton’s with bad faith bargaining but evena
ruling favorable to the union is not likely to be enough in itself to
force Eaton’s management off its current bargaining stance.

Top executives for the corporation acknowledged before the
OLRB that they were not prepared to grant the union anything
more than the coniditions under which non-union employees cur- -
rently work. ;

Support action for the strikers is being stepped up in Ontario next
month with demonstrations planned for Mar. 2 and 9 as well as a
mass rally Mar. 16, jointly sponsored by the Metro Toronto Labor
Council and the Ontario Federation of Labor.

The Canadian Labor Congress has also sent out a country-wide
financial appeal to all unions, calling on them for a one-time
assessment of 50 cents per member to create a $1 million campaign
fund for the Eaton’s strikers.