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 ;