Minimum wage

Starvation to poverty

By BRUCE MAGNUSON

David B. Archer, President of
the Ontario Federation of Labor,
in his address at the opening of
the Federation’s 12th annual
convention in London, Ontario,
Qn November 4th, made the
statement that when the new
minimum wage law in this pro-
vince goes into effect in Janu-
ary, 1969, the status of some
200,000 people will be raised
from starvation to poverty.

Mr. Archer also stated that
“The Employment Standards
Act is indefensible in its pre-
sent form and the government
is abrogating its responsibility
in failing to act more vigorously

to help eliminate substandard’

living in this province.”

Mr. Archer called for the el-
imination of poverty in Canada,
and referred to the Economic
Council of Canada as stating
that poverty in our rich ‘country
is disgraceful. ‘

Mr. Archer said that his or-
ganization demands the imple-
mentation of the Carter propo-
sals insofar as they would bring
about a more just distribution
of the national income. The Fe-
deration, he said, demands
changes in our tax laws which

‘will remove the heavy burden:

of taxation from the backs of
low income groups.

The OFL President spoke
about the huge American-own-
ed, world-wide company Smith-
Coront whose subsidiary called
Proctor-Silex: now operates a
branch at Picton, Ontario, pay-
ing women workers.-as low as
90 cents per hour.

Mr. Archer accused Paul Hel-
lyer, federal minister in charge
of housing, of diverting funds
originally earmarked for public
housing to the kind of housing
which only those earning $10,-
000 a year can really afford. At
the same time the Ontario Hous-
ing Corporation has not given

top priority to the people who
need housing most — the in-
come group below $6,000 a year.

The real need today, Mr.
Archer continued, is homes for

low income families at subsidiz- .

ed rents. Legislation allowing
municipalities to apply for pub-
lic housing with shared federal
and provincial funds has not
been taken advantage of by
more than a handful of muni-
cipalities. The real reason may
be found in the fact that “‘...Too
often the effective voices at the
local level represented real
estate and other vested inter-
ests that have always opposed
public housing.”

Mr. Archer urged the pro-
vince of Ontario to adopt the
national medicare program.
Even though it falls far short
of what we have been calling
for by way of a comprehensive
program to keep people well—
rather than taking care of them
only after they are sick. Speak-
ing of drug costs, Mr. Archer
referred to a Federal Court in
New York City which convicted
three leading drug manufactur-
ers on three counts of a crimi-
nal conspiracy to fix prices on
an important antibiotic. The
firms were fined $50,000 on
each count which was a maxi-
mum penalty.

One piece of. evidence was
that these firms produced 100
capsules of a drug for $1.52,
then over a period of eight
years sold them to druggists at
$30.60. (The druggist had to add
his costs afd = profit to that
price). Eventually the patient
paid about 4,000 percent over
the cost of production. Every
one of these companies operates
in Canada. In fact, U.S. com-
panies ‘control the Canadian
drug industry. Mr. Archer ask-
ed: “What is our government
doing about this ridiculous situ-
ation? What protection are the

sick getting against this cruel
exploitation? >

While the President and Exe-
cutive of the Ontario Federation
of Labor showed some real ap-
preciation of the problems of
labor in an exploitative society,
another guest speaker lapsed

into complacency about the
whole problem.
William Dodge, _ secretary-

treasurer of the Canadian Labor
Congress sounded more like an
employer than a leader of labor
when he took it upon himself
to contradict what everybody
knows, that wage increases
have been swallowed by price
increases. Accepting official sta-
tistics he claimed that per capi-
ta income in Canada’ between
1957 and 1967 increased by

‘65.7 percent while the consumer

price index rose 22.2 percent.
Based on these highly mislead-
ing figures, Mr. Dodge suggest-
ed that the average Canadian in
terms of what he could buy
with his money income made a
30 percent gain in his standard
of living during that period.
Without taking away any of
the credit that goes to organ-
ized labor for its valiant strug-
gle to catth up with monopoly
price fixing and to provide the
whole community with some
measure of social security, the
worker is still the underdog in

Our capitalist society. To even

hint at anything else is utter
nonsense.

As any worker and housewife
knows, the cost of living index
never rejects the price in-
creases of life necessities. As
for per capita income it only
serves to give some idea of the
fabulous incomes of the rich
exploiters of labor. When over
90 percent of working people in
the country can barely make
ends meet—and a large number
cannot manage that—it indic-
ates what fabulous incomes léss

Withdraw from
NATO—

Nixon’s election signifies a
shift to the right in U.S. politics.
This warning was given by Wil-
liam Kashtan, leader of the Com-
munist Party speaking in Win-
nipeg Jast week. The large vote
for Wallace points to the possi-
bility that a third party may be
rising, not based on the labor
movement dnd the progressive
forces but Jased on a racist po-
licy to upite all the fascist and
racist forces,

“The McCarthyism of the ’Fif-
ties was a rightist phenomenon
but had no mass base whereas
the Wallace movement does
among the sections of farmers,
small business people and even
some blue collar workers.”

Nixon opposes the nuclear

~non-proliferation treaty already

signed by about 90 countries and
has called for redressing the
balance of armaments with the
Soviet Union \which is nothing
more than a threat to renew the
arms »race and deepen the cold
war, said Kashtan.

This will result in pressure on
Canada to increase her spending
on NATO. West German mili-
tarists and the Pentagon are call-
ing for more funds to be poured
into NATO and are using the
Warsaw Pact actions aimed to
thwart counter revolution in
Czechoslovakia as a pretext to
turn over more control of NATO
affairs to West Germany.

« the Warsaw Pact’s decisive

action in Czechoslovakia was a
blow for peace and is only op-
posed by those who want to see
West Germany expand its influ-
ence in Europe, said Kashtan.
Rather than pour more money
into NATO at a time when the

Kashtan

government claims there 1s ne
money for medicare, housing 4%
expanded social welfare, Cana 0
should withdraw from the NAT
Treaty which is up for renews
next year. “Canada cannot hay!
a Just Society and. spend my
lions on preparations for Wat
he declared. :

Kashtan referred to wale
Lippman’s warning that the ¥»'
was entering a period of rep
sion. “Nixon may very well tak
actions against the black Pe,
ple, youth and peace foro
Coupled with this will be te
tempts to increase taxes on in
American people and a cul ™
welfare programs, The pro
tionist policies of the Republica
Party could lead to increas?
unemployment in Canada, 54
Kashtan.

Turning to Vietnam, Kashtan
claimed that Johnson’s last mi
ute bombing halt was a manor
evre dictated by the hope that”
would achieve victory for a
Democrats. But it also reflect?
the reality of the situation a
the U.S. which cannot achievé
military victory but can 0 ;
negotiate a political settlemet”
“Will Nixon recognize the rea!
ties of the war in Vietnam ee
move in the opposite direction ©
escalating the war?” : ef

Opposed to Nixon’s repressiV”
policy at home and cold wat P®
licy abroad will be the growi0g
forces of the democratic, Cv!
rights, peace and labor move
ment. Kashtan viewed Euget™
McCarthy’s luke \warnt»endors®,
tion of Humphrey..as one sigh Ae
a thove to a possible democrat
coalition of forces ‘to challeng*
the two monopoly parties.

than 10 percent of the filthy
rich appropriate for themselves
out of a steadily rising national
income.

Dodge would do well to give

some second thoughts to oi
way he placed the economl™
position of the more than wr
thirds of the labor force st
unorganized.

alf dewhurst |

Unity

— a pressing

need

The constant strivings of or-

ganized labor for “strength
through unity” has produced
numerous forms: for united ac-
tion against the boss. In some
cases mergers and amalgama-
tions of unions have come into
being as a result of these striv-
_ ings.

Two years ago an important
merger was carried through by
the Steelworkers and Mine Mill.
A number of railway running
trades unions have recently mer-
ged. A few weeks ago another
important merger took place be-
tween the Amalgamated Meat

Cutters and Butcher Workmen:

and the United Packinghouse,
Food and Allied Workers,

Not all unity agreements and
solidarity pacts result in mer-
gers. For the problems connect-
ed with achieving organic unity
are many and varied. Neverthe-
less, the urge towards organic
unity is ever present. And, to-
day, in the wave of industrial
restructuring on a massive scaie
the need of union restructuring
is ever more apparent. ~

The impelling reasons for
unity at this time are set forth
quite succinctly in the preface to
the’ Merger Agreement between
the Amalgamated and Packing-

PACIFIC TRIBUNE—NOVEMBER 15, 1968-Page 4

house. It is worthy of study by
every unionist. A major part is
reproduced below.

“We are heading into a time
of trouble, Sober analysis indi-
cates that the thin margin of
liberal political influence in the
Congress and Administration
(United States) may be washed
away in the elections of 1968.
The picture is no brighter in
Canada.

“Our bargaining committees
report that employers are taking
the offensive. The proportion of
organized labor to the’ total
work force appears to be on
a downward curve. Frankness
compels us to admit that or-
ganized labor is in many ways
on the defensive. We must ad-
mit that divisions and rivalries
within labor often contribute to
these very problems which
plague us now, and threaten to
grow worse.

“It is clear that economic
trends in our basic industries
point toward more and more con-

centration of corporate strength

and economic power in the
great “conglomerates” of indus-
try. We also see a rapid multi-
plication of individual plants
scattered throughout the coun-
tryside, each of which must be

rire .
LSGHrs $535

organized if hard won standards
are to be maintained in our union

contracts.

“The members of our unions
face the simultaneous need,
therefore, to develop the

strength adequate to bargain
with ever more powerful em-
ployers who are themselves often
a single unit among many in a
still greater corporate constella-
tion, At the same time the grow-
ing number of relatively smaller
plant units across the country
dilutes the bargaining strength
which used to be concentrated
in a smaller number of big plants
with great numbers of employ-
ees.

“In the face of these accelerat-
ing trends the workers are in
danger of losing thir leverage to
bargain for their fair share of
the proceeds of the great increas-
es in man-hour productivity that
new technology is producing
daily.

“Bearing in mind the basic
trade union axiom, ‘In Unity
There is Strength,’ the officers
of the two unions have conclud-
ed that the overriding issue of
the moment is the creation,.of a
unified labor union structure

through the merger of these two.
organizations which run paral-.

lel through much of the food and
related industries.

“By taking this step to organic
unity,.earnestly recommended by
the officers of both unions, a
more powerful union of nearly
half a million workers concen-
trated in the food manufactur-
ing and distributive industries
will be created.

“It will speak with authority
to even the largest employers.
With a single voice, it will con-
duct organizing campaigns
among the unorganized rather
than in the tones of rivalry and
confusion that have contributed
too often to the defeat of both
unions and the triumph of the
employers. It will mobilize maxi-
mum participation by the work-
ers in their shops and grass
roots communities around pro-
grams to deal affirmatively, and
in the progressive tradition, with
the political problems and social
crises which naw loom so large
at home and abroad.”

An additional reason for de-
veloping forms of unity as quick-
ly as possible, not mentioned in
the Preface, is the quickened

. pace of state intervention in bar-

O13 5 S55

gaining and strike-breaking acti
vities on the side of the on
ployers. Such intervention ~~
increasingly finding expression
by way of reactionary labor lee
slation enacted by the province

The trade union movement ha
the strength to turn back- ©
attacks of the industrial and fg
ancial corporations. But he
strength must be united ait”
mobilized. And it must draw
fully upon the great reservoir 9
public support that will rally 1
the cause of labor once won 12 —
an understanding of labor’
aims. But, time is of the essenc®

;
In this connection the Cana —
dian Labor Congress has a grete ;
responsibility. It can begin
once by taking steps to unilé
within its own ranks all unios’
presently outside of Congres®
who desire to join and abide bY ©
the stated aims of that body- 199
so doing, it will. advance a
cause of further development 0 ©
other forms of united strugg og
Such steps will express full¥
the overwhelming sentiment
unity which was a hallmark 9
the CLC convention last May: ;
To continue to .delay means tO”
play the game,.of the big cO™
porations. Hak ;