LABOR _ The awarding of two Expo contracts to low-wage non-union contractors, while they provide “unconscionable profits for the non-union contractor” will result in a net loss of income to the province of $121,744, the Carpenters Union said last week, basing its charge on a study pre- pared by a leading trade union economist. The study, carried out by Emil Bjarna- son, director of Trade Union Research Bureau, examined the Expo contracts for the east gate complex, awarded to J.C. Kerkhoff and Sons Construction, and a module erection contract, awarded -to Marbella Pacific, a consortium of non- union contractors headed by Rempel Concrete. Bjarnason compared the non-union contract price to the lowest union bid submitted on the same work and worked out the wage costs of each. Based on that figure, he computed the taxes payable and the “multiplier effect,” a figure used by economists to determine the effects on money spent generating more employ- ment income and tax revenue. Because of the substantially higher wages paid by union contractors to their employees, he said, the difference in the wage content between the union and non- union contracts is significant. And when that difference is followed through the economy, in income tax revenue generated and the impact of the multiplier effect, the result is a net loss ‘to the province of $77,792 in the case of the module contract and $43,951 on the east gate contract, he said. In both cases, the loss was a net figure which took into account the difference in bids between the union and non-union contracts. In the module: contract, Mar- bella-Pacific was only urder the lowest union bid by $21,644; on the east gate Kerkhoff underbid the union contractor by $43,951. But despite those minor differences in bids, the differences in the wage costs to the non-union and union firms was signif- icant. In the case of the module contract, the union firm would have put $644,895 more into wages than Marbella-Pacific. On the east gate, the union bidder would have paid out $535,459 more in wages than Kerkhoff. In percentage terms, Marbella pays only 32 per cent of its total contract price in wages, compared to 45 per cent for the union contractor. “And we saw some wage slips form the mudule erection job so ‘Non-union contracts cost taxpayers $121,744 we know what Marbella is paying,” Bja nason noted. “What it means is that Kerkhoffis mal ing unconscionable profits — and nor of that money is going into provinci coffers — it’s all going to Kerkhoff Carpenters Provincial Council secretat Robson charged. He also responded to comments t Expo president Michael Bartlett that tl same argument could be applied “‘to tl whole union-non-union thing.” “Bartle is absolutely right — the same thing ap| lies to contracts at Vancouver Gener Hospital and elsewhere. “The idea that going with the lowe saves money is a myth,” he said. “Not on do the workers lose but taxpayers lose well.” a Fightback should top B.C. Fed’s agend: By SEAN GRIFFIN When the B.C.:Federation of Labor con- vention opened Nov. 28 last year, it was probably the most closely watched event throughout the province — for convention ‘delegates had been given the task of review- ing the Socred government’s progress in implementing the agreement reached two weeks earlier ending the escalating strike by Operation Solidarity. Next week, when the 1984 B.C. Fed con- vention opens, trade unionists across the province will again be watching — but this time they'll be looking for a sign that the main trade union central is going to begin a co-ordinated fightback against the continu- ing anti-labor offensive of that same Socred government. The convention is likely to generate con- siderable interest because of the contest for the presidency betweeen incumbent Art _Kube and Vancouver and District Labor Council president Frank Kennedy. But behind the election is probably the key issue before the week-long meeting: how the trade union movement is going to stop the attack on trade union rights — and on trade unionism itself — by the Social Credit government and the province’s cor- porate employers. : : Tied up with that is federation action on the unemployment crisis which both the Socred government and the employers have exploited to enact anti-labor legislation and to force wage increases down to their lowest levels in decades. Kennedy is running on a program to “revitalize the federation,” emphasizing res- istance to the government attack, a pro- gram of bargaining co-ordination and better consultation with affiliates. The drumfire of government legislation over the past 10 months — the back-to- ~ work legislation against pulp workers and transit workers, the amendments to the provincial Labor Code, the designation of Expo 86 as an “economic development project — coupled with threatened gov- ernment action to introduce “economic free zones” and to ban public sector strikes has put an urgent agenda on the table of every convention delegate. Just how serious is the situation facing the labor movement is detailed in the report of the legislative and research committee which will be presented to the convention next week. “This past year has been marked by con- tinuing massive levels of unemployment and continuing Socred attacks on the rights of workers,” the report states in its opening paragraph, “The economy remains in a depressed state at both the national and provincial levels. ..Recent forecasts indicate that 1985 will prove little different from preceding years and we can probably look forward to even higher levels of unemployment at the national level.” At the same time the report notes, “rec- overy has ocurred for one group in our society, big business. After-tax corporate profits grew by 105 per cent in 1983 and appear likely to grow by a further 25 per cent in 1984. Financial institutions have profited from usurious interest rates and these profits will continue as long as interest rates are kept high... “Another reality is that B.C. government policies have severely damaged the provin- cial economy, something even Finance Minister Hugh Curtis recently admitted.” On the wage front, the report points out: “Real wages have declined by almost 10 per cent over the past eight years. With unem- ployment remaining high, we can see little hope for increases in income that are needed to fuel consumer spending.” And on the government’s legislation pro- gram, it warns: “One of the central elements of the government response has been to continue its attempts to de-unionize this . province. The latest suggestion emanating from Victoria is to ban all public sector strikes. It seems likely that we will see even Analysis partly because federation officers felt affil- iates weren’t prepared to take action. As a result, a program that Federation president Art Kube acknowledged had been dismissed as ‘too. meek and mild” by a conference of affiliates went unchanged. Similarly, the executive council has not taken a co-ordinated approach either to bargaining or strike support, leaving affil- iates to make decisions on their own or to co-ordinate support only if requested. On economic policy, the federation offic- ers have effectively criticized the govern- ment’s disastrous economic policies, emphasizing how they have aggravated unemployment and bankruptcies. But the important half of the equation — the pro- motion of the federation’s own alternative eocnomic program including the demand for a shorter work week and public owner- ship of resources — has been missing, des- pite key resolutions calling for the promotion of that program which were — passed at the 1983 convention. Obviously, much more is required if the labor movement is to hold its own in-the face of the attack outlined so graphically in the convention’s legislative report. The lesson in the Solidarity events last fall was that the federation took the initiative to ‘ENE OEeE oer RCE EE ETT BOSE ER more amendments to the Labor Code that will weaken union rights in this province. .. “Another policy being promoted by the Fraser Institute and many B.C. cabinet min- isters is the creation of free trade or eco- nomic processing zones. What is really meant are union-free zones where compan- ies could run the work place the way they did during the industrial revolution, with no opposition and a totally compliant labor force.” In fact, in its 15 pages, the report carefully outlines the scope of the unrelenting attack that has been waged both on living stand- ards and union rights by the government and the employers since the last convention and since the end of the Solidarity strike. Yet despite the militant tone that was set at last year’s convention — when delegates united behind a program to defend teachers jobs — the federation has not mounted any significant fightback against that attack over the past several months. Although there was a demand from fed- eration affiliates for a co-ordinated opposi- tion to the amendments to the Labor Code when they were introduced, the B.C. Fed officers were reluctant to mount a cam- paign, partly because of the NDP leadership race then in progress and the desire not to make labor confrontation an issue, and, organize Operation Solidarity and united the labor movement behind the 10-point program of action against the government’s legislative program. For the federation now to back away from a central organizing role in the face of a continuing government attack, is having the effect of disuniting the trade union movement. The common message that has come from the many trade union leaders the Trib- une has interviewed over the past several . months has been that their membership would be prepared to take action — if they could see that the leadership of the trade union movement had a program laid out and was attempting to mobilize affiliates to put it into effect. That is the major issue before the convention — putting the federation again at the front and centre of a fightback. Because of the growing unemployment crisis and the government’s continuing legis- lative restrictions on labor rights, there are likely to be several resolutions going before this year’s convention calling for opposition to threatened government legislation on economic free zones; calling for action to stop further amendments to the Labor Code or extensions of the economic devel- opment projects; and urging federation: efforts to press the unemployment issue. Together with the policies of past ) particularly those from the 1983 co! tion, they will give the federation exec council a powerful mandate of oppo’ to the Socred government and emp attack. But the key is getting the leade to use that mandate — and to devise a strategies to fight back at every opportt That doesn’t mean organizing a ge strike and even necessarily mount campaign on the scale of Operation SO ity’s program last fall. But there are a! sand tactics that can be used short o} objective, including demonstrations, publicized rallies and massed. picket the disputes involving Labor Code aml ments.such as the Slade and Ste out.” That also presumes a much more co-ordinating role for the federation, ' that was effectively carried out by the! ation under Ray Haynes and Len GU And organizing the trade union me! ship behind a fight to defend trade! rights and oppose Socred policies is! tial, not only for the immediate su: the labor movement — but also fo longer term goal of ousting this 0 ment. z The recent byelection victories fo NDP, particularly in Okanagan * where the NDP candidate ended 32 y& Socred rule, demonstrates that the be opposition to the Social Credit gove has widened since the May, 1983 elect a direct result of the Solidarity evet™ the growing public rejection of Soci restraint policies. The civic election results in Vance which COPE and the Civic Indepé extended their support despite the financed campaign mounted by the _ backed NPA underscores that co The election of a COPE majority 01 board, particularly, emphasizes ance to Socred restraint that has devé The possibilities are growing defeat of the Socreds in the next election. The cracks in the 1975 alliance are begining to show, as t1 vote indicated, and the base of su Socred policies has narrowed. Ousting the Socreds is going tO ® broad popular opposition and the ment of thousands of people into against government policies, wi’ labor legislation, social service cuts: tion cutbacks or human rights. It ¥ require that the New Democrat’ commit itself to repeal of the antl= islation passed by the Socreds, t0.” tion of social services and the P™ education funding. Those were the ingredients create the 1972 election victory fo’ and they mut be present if anotht government is to be put out of of