We hear a familiar call coming from wealthy interests – joining forces once again with Conservatives – banging the drum for more corporate tax giveaways and deeper cuts to government spending in the upcoming Budget. Bay Street analysts and bank lobbyists loudly lament Canada’s “tumbling productivity”, sneeringly spreading blame on both workers and the government.

As Budget 2024 approaches, we must confront these anti-worker narratives head on. Because we’ve seen this movie before and, spoiler alert, it really doesn’t end well for workers and families.

Business lobbyists argue wages should be dependent on productivity when it suits them but ignore how for more than 30 years, pay for the bottom 80% has lagged far behind productivity growth. And that’s just the tip of the iceberg of how imbalanced our things have become.

A February 2024 report from Jim Stanford and the Centre for Future Work showed that “corporate profits remained historically high in 2023, despite the stalling of economic growth, rising unemployment, and stagnating consumer demand.”  Even the Bank of Canada’s January 2024 Monetary Policy Report acknowledged that “higher wage costs could be absorbed by businesses’ profit margins.”

So, let’s not get taken in by corporate gaslighting that takes aim at workers’ wages and public investments. Government should steadfastly reject a corporate narrative that rests its case on mistreating workers. Instead, government can use the upcoming budget to push companies to invest in their workforce. Things like new incentives to improve training and upskilling, and measures that will create good, sustainable union jobs in low-carbon industries.

With a looming recession, rising layoffs and so many struggling to get by, it would be devastating to families if we cut help now. The reality is slashing our social safety net will only weaken our economy.

National child care has meant more families can find affordable spaces and more women with young children could join the workforce. Creating affordable non-profit housing means more families have an affordable place to call home. According to a 2023 Deloitte report, increasing community housing to the OECD average by 2030 “would boost economic productivity by a staggering 5.7% to 9.3%.” Universal pharmacare will improve health outcomes and provide tangible, financial relief to families, while strengthening EI will mean more workers getting help when they need it most.

Can we afford these investments? Absolutely. Canada is a significant economic power. We’re in the top ten economies in the world with one of the lowest debt-to-GDP ratios in the G7. We can also make profitable corporations pay their fair share and use that revenue to help people.

We know what a Pierre Poilievre budget looks like. Poilievre and the Conservatives slashed programs and services and radically cut corporate taxes last time in power. This boosted companies’ bottom line but didn’t spur businesses to invest in their workforce. Instead, we saw CEOs acting like real-life Scrooge McDuckshoarding ever-growing piles of cash. Just like today, companies cry poor while handing out record bonuses to top executives.

Chrystia Freeland must reject the false narratives flooding in from business lobbyists and fight back against a vision of a Canada where corporations take care of themselves while our government stops caring for people. On April 16, let’s see a budget that puts workers and families, not corporate interests, first.

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Too many workers are currently underpaid, leaving them struggling to make ends meet. This especially impacts sectors that are predominantly staffed by women and racialized workers, like the care sector.

These workers’ contributions have an immense impact on our society and our economy and, like all workers, should be rewarded appropriately.

“We have heard countless stories about the low wages and disrespect care workers face”, says Siobhán Vipond, Vice-President of the CLC. “These worrying stories are being echoed from workers in other sectors too, as the affordability crisis deepens. We must confront this crisis now by making sure all workers earn a livable wage.”

Despite six provinces raising their minimum wage just last week, not one province or territory has a minimum wage that matches the income necessary to make ends meet. At a time when inflation is at an all-time high and soaring corporate profits are driving up the cost of unavoidable necessities like food and shelter, workers need decent jobs that pay a livable wage.

Canada’s unions celebrate the workers on the front lines of this fight. When faced with wages that don’t keep up with inflation and employers who are unwilling to do something about it, workers are using their collective power to demand better from their employers. This year saw significant wins from PSAC workers in the federal government and United Steelworkers at National Steel Car in Hamilton.

“Workers are saying enough is enough and using their power to strike for better wages. Union wins will mean better conditions for all workers, just like the statutory holiday many workers are enjoying this weekend,” says Bea Bruske, President of the CLC. “The wins gained in unionized workplaces often set trends that become the standard across the working world.”

“We need governments that will stand with working people, not the wealthy CEOs who suppress wages and make record profits off the efforts of their employees. It’s these corporate profiteers, not workers, who are the source of the current crisis. They must be made to pay their fair share.” Read the ITUC’s statement on the 2023 World Day for Decent Work.

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OTTAWA––With his lengthy anti-worker track record and history of cutting health care, Pierre Poilievre’s election as leader of the Conservative Party of Canada is a concern for working families, warned Bea Bruske, President of the Canadian Labour Congress.

“Pierre Poilievre has used populist rhetoric to hide away his real agenda. But his long track record of attacking workers’ rights and siding with profitable corporations over everyday people makes clear the kind of leader he would be if he gained power,” warned Bruske. “While Mr. Poilievre talks loudly about inflation, he cannot be counted on to push companies to increase workers’ pay to keep up with skyrocketing inflation.”

Bruske noted that while the evidence clearly shows wages are not contributing to rising inflation, ‘greedflation’ by large corporations – who are taking advantage of the inflation to raise prices – is helping to drive up the cost of living.

“While workers and their families see their buying power decreasing, Mr. Poilievre ignores the real problem. It is critical people see through his glib rhetoric to what his real plans are for our country,” explained Bruske. “All we hear from Mr. Poilievre are vague sound bites about freedom. But he isn’t talking about your freedom to make a fair wage or the freedom to make greedy corporations pay their fair share.”

Bruske added that Poilievre does have a previous record in government, having served in a Conservative government that cut health care, imposed austerity on everyday people, introduced anti-labour laws and helped rich corporations pay even less in taxes.

“In government, Mr. Poilievre and his Conservative colleagues ignored the warnings of frontline health workers and voted to cut tens of billions from public health care funding. He voted to cut support for unemployed workers and repeatedly attacked workers’ rights,” concluded Bruske. “Pierre Poilievre cannot be trusted now to repair our broken health care system, help struggling families or stand up for workers.”

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OTTAWA –– Yesterday, Loblaw CEO Galen Weston Jr., Empire CEO Michael Medline and Metro CEO Eric La Flèche testified before the Standing Committee on Agriculture and Agri-Food about sky-high food prices. Canada’s unions are now urging the federal government to crack down on corporate greed and make life more affordable for millions of hard-pressed workers and their families.

“We welcome the long-overdue decision to make Galen Weston Jr. and other wealthy CEOs answer for their company’s outrageously high prices. Throughout the pandemic and subsequent cost-of-living crisis, we have seen grocery giants celebrate monster profits while jacking up the price of essentials,” said Bea Bruske, President of the Canadian Labour Congress. “Exorbitant grocery bills, on top of inflationary pressures, high interest rates and stagnant wages, mean workers and their families are being pushed to the brink.”

In the first two quarters of 2022, grocery stores made around twice as much as their pre-pandemic profits. Grocery retail in Canada is heavily concentrated, with about 80 per cent of sales controlled by five major chains, including Loblaw, Empire and Metro.

Since the beginning of 2023, we’ve seen inflation decreased to the lowest rate since early 2022, yet food prices continue to soar. In January, the price for fresh vegetables was up 14.7 percent while pasta increased by 19.5 percent.

“Just last month, Loblaw predicted its profits would grow faster than sales this year. That means workers are going to take another hit, paying more for essentials like eggs and bread,” added Bruske. “Food prices show no signs of slowing down, while these grocery giants continue to report super-sized profits. This begs the question: Why does the government continue to allow these wealthy executives to gouge Canadians for essential goods, like food?”

Workers’ pay cheques are stretched further with every grocery bill, leading to tough decisions. Bruske pointed to a recent StatCan study indicating that low-income Canadians are being forced to borrow money from friends or relatives or take on additional debt to meet daily expenses due to rising prices.

A University of Saskatchewan study from October revealed that one in five Canadians skips meals because of high food costs.

“Rich CEOs cannot be allowed to continue accumulating excessive wealth at the expense of regular Canadians. Canada’s unions call on the federal government to rein in corporate greed by tackling corporate concentration, making corporations pay their fair share and redistributing proceeds to support low-income households,” said Bruske. “We also need political leadership to take strong and urgent action to make life more affordable by funding vital public services like Pharmacare, long-term care, mental health care, child care and public transit.” 

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OTTAWA- As the cabinet retreat adjourns and all parties prepare for the return of Parliament next Monday, Canada’s unions are urging cooperation and collaboration focused on helping struggling families.

December’s CPI numbers showed that inflation is moderating in Canada, but workers continue to see their wages lagging. According to the Bank of Canada’s most recent survey, Canadians are cutting down on their spending by fear of higher interest rates and the specter of a looming recession.

“I hope that Governor Macklem and the Bank of Canada are seriously considering pausing rate hikes this year,” said Bea Bruske, President of the Canadian Labour Congress. “Let’s hope they are just as quick to start reducing rates as they were hiking them. If we are thrown into a recession, that would initiate massive job losses and downward pressure on wages.”

Across the country, the effects of the Bank of Canada’s interest rate hikes are apparent. Big banks are expecting tens of thousands of people to default on their mortgages, and food banks are reporting a massive increase in usage. Meanwhile, before noon on January 3, Canada’s top CEOs had already pocketed the average workers’ annual salary.

“Parliament will resume next week and we’re at a crossroads. The rising costs of food, housing, and prescription medication are affecting everyone, meaning more and more people must make difficult choices – buying food to put on the table or buying the medication their kid needs. No one should have to make that impossible decision,” added Bruske.

“We are seeing public health care failing across the country – we have ERs shutting down, children’s hospitals are swamped, wait times for critical surgeries just keep getting longer and the worst recently happened when people died while waiting for care in an emergency room. At the heart of the crisis facing our health care system right now is the critical shortage of workers – the government needs to address this, and fast,” said Bruske.

To tackle the never-before-seen staff shortage, the government must invest in health care workers with better pay, benefits, pension plan and working conditions. Canada’s unions are asking the government to invest in addressing the underutilization of internationally educated health care workers with meaningful and faster licensure and certification.

Canada’s unions will be urging the government to increase investments in health care and to strongly oppose the privatization of our care systems. The Prime Minister needs to call a First Ministers’ meeting and work with provinces and territories to put in place programs like pharmacare and dental care for all to help alleviate some of the costs families are facing, ultimately helping reduce the impacts of inflation.

Canada’s unions will be pushing the government to fix the shattered Employment Insurance (EI) system. This must start with restoring temporary EI measures until permanent improvements can take effect.

Canada’s unions will also be calling on Parliament to pass anti-scab legislation, quickly. Workers don’t just need anti-scab legislation, they need strong anti-scab legislation. The government has an excellent model for this legislation in NDP MP Boulerice’s private member’s Bill C-302 and we are urging all parties to work together to pass this Bill.

Senators must also act swiftly to pass Bill C-228. This Bill will safeguard the hard-earned pensions of millions of workers and pensioners. It will also ensure that super-priority is given to pensioners and pension plan members in the event of an employer becoming insolvent, meaning they will have to pay pensions before addressing other financial liabilities.

Senators have a historic opportunity to restore fairness for workers and pensioners and ensure the injustice faced by Sears, Nortel, and Stelco workers is never allowed to happen again.

“Parliamentarians working together, across party lines, is key to progress. Cooperation between the New Democrats and the Liberal government resulted in significant gains – and Canada’s unions will continue to push for more cooperation to tackle the pressing challenges ahead of us,” said Bruske.

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Bank risks substantially weakening our economy, potentially throwing hundreds of thousands of Canadians out of work

Facing a one-two punch of sky-high prices on daily essentials combined with rising credit card, mortgage and other bills, the last thing Canadians need right now is a recession, which could mean massive job losses and economic upheaval. But that’s exactly what could happen if the Bank of Canada raises interest rates Wednesday for the seventh time in the past nine months.

The Bank of Canada, led by governor Tiff Macklem, has already raised interest rates faster than almost any other country. These hikes have left millions of Canadians facing eye-popping rises in credit payments. Combined, Canadians now owe $2.29 trillion in credit, according to TransUnion LLC’s Q3 2022 Credit Industry Insights Report. Rate hikes have even pushed the Bank of Canada itself into the red for the first time in history, with a loss of $522 million in the third quarter.

Central banks raise interest rates to cool the economy and slow inflation, but Macklem has been doing more than just tightening monetary policy. He has also been waging an ongoing public relations campaign against phantom wage growth, arguing that wages are fuelling inflation. There is zero evidence that wages are fuelling inflation. Statistics Canada’s labour force survey, released Friday, shows wage increases are lagging inflation, not driving it.

In a recent report from the Canadian Labour Congress and the Centre for Future Work called A Cure Worse than the Disease? Toward a More Balanced Understanding of Inflation and What to Do About It, economist Jim Stanford lays out evidence showing how wages are not the cause of inflation. Stanford points out that corporate Canada’s pricing power has been fuelling higher prices, resulting in corporate accounts being padded with sky-high, record profits. In 2022, corporate profits in Canada reached the largest share of gross domestic product (GDP) in Canadian history, or put another way, corporate profits grew three times faster than wages since 2019.

Despite all this, Macklem has stubbornly declared that the Bank of Canada will continue raising interest rates, even if it pushes our economy into a harmful recession. With the myopic policy focus on achieving the target inflation rate of two percent, the bank risks substantially weakening our economy and potentially throwing hundreds of thousands of Canadians out of work.

If the Bank of Canada is determined to manufacture an economic recession, we know the pain will not be shared equally. Just last week, the International Labour Organization (ILO) warned that global poverty and income inequality are on the rise worldwide while people’s purchasing power is falling behind. The ILO’s Global Wage Report recently warned that for the first time in history, real wages fell into negative territory in 2022, down 0.9 per cent, with low-income workers and households feeling the pinch most of all.

The ILO cautions that this not only puts the pandemic recovery at risk, but it could also fuel growing social unrest. As the inquiry into the Ottawa convoy occupation wraps up, and the U.S. hearings examining the Jan. 6, 2021 insurrection draw to a close, the prospect of a manufactured economic crisis driving growing social unrest is not one we should take lightly. Pouring more cold water on our economy now — and driving it into a damaging, monetary policy-induced recession — will only make things worse.

As Macklem announces the Bank of Canada’s interest rate decision this Wednesday, he should consider the well-being of the workers and families already paying the biggest price from the cost-of-living crisis. This should start with Macklem pushing pause on more interest rate hikes. Let’s take time to evaluate the impact of previous hikes before raising them any further.

Bea Bruske is president of the Canadian Labour Congress.

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OTTAWA –– Canada’s unions applaud the announced investment in workers, sustainable jobs and training that will help equip workers with the skills they need to meet the challenges of Canada’s economic future.

“Canada’s unions have long advocated for federal guidance and investment in the training workers need to meet the demands of a sustainable energy future,” said Bea Bruske, President of the Canadian Labour Congress. “Investments in sustainable jobs and training are vital to ensure Canada meets is climate goals, while realizing the economic opportunities of the sustainable energy economy.”

The $250 million investment in the Sustainable Jobs Training Centre, including the Union Training and Innovation Program will go a long way to transitioning workers to good-quality, low carbon jobs. It is unfortunate the government included private, for-profit training institutions, and employer-specific micro-credentials that won’t benefit workers long-term.

Canada’s unions also welcome additional income supports, while continuing to call for a much wider reform of the Employment Insurance (EI) system.

“Although new measures to support workers are welcome, the government missed an opportunity to fix Canada’s outdated EI program,” said Bruske. “The funds announced today will barely help workers most affected by the current affordability crisis and most prone to work loss. What we need is an EI system for the 21^st century.”

The Statement missed an opportunity to make clear the government will be there for the people who will be hurt in the coming recession. Repairing our tattered social safety net will ensure it is there for people when they need it.

Investments in health care, child care, long-term care and pharmacare would not only help reduce the costs workers and their families are facing face but alleviate some of the impacts of inflation, added Bruske. “Canadians expect leadership from this government with meaningful investments that help reduce their everyday costs.”

Also missing in the Statement was any movement on corporate taxation.

“Corporate profits are at an all-time high and inflation is rising faster than what we’ve seen in four decades,” said Bruske. “While European states are moving ahead with taxing excess profits, and the US President is talking about doing the same for oil and gas – Canada has not even explored the possibility. We need tax reform to ensure these big businesses are paying their fair share.”

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The economic impacts of the pandemic highlighted not only existing inequality, but showed how a lack of workplace benefits – like paid sick leave – can have severe repercussions on workers, their families and our broader communities.

“Workers in low-paid, frontline and precarious jobs were hit hardest over the last few years. The pandemic really showed us all that our existing system was heavily flawed and not at all designed to support workers through a time of crisis,” said Bea Bruske, President of the CLC. “So, workers strengthened their resolve, and have pushed back against their employers and against governments, demanding access to things like paid sick leave and other workplace and social benefits. We can’t claim to move forward from the last two and a half years, yet expect to go back to the way things were. The old way wasn’t working.”

The federal government made some commitments over the course of the pandemic and into the recovery period, aimed at improving supports for workers. Things like paid sick days, for example, go a long way to making work life better for those without workplace benefits.

“But workers know that temporary and stop-gap measures don’t go far enough. Which is why across Canada and the United States, workers from places like Starbucks, Amazon and Indigo are organizing in large numbers into unions. They’re demanding improved pay, better working conditions and supports, and benefits. They are winning over major corporations that have historically been anti-union. It speaks volumes to these workers’ determination and drive to win decent working conditions for themselves and their coworkers,” said Bruske. “They’re doing incredible work and they should be very proud of these victories.”

However, the ongoing affordability crisis is making life increasingly difficult for many workers. Wages are stagnating while the cost of living has continued to increase at a breakneck pace. Meanwhile, corporate profits are soaring, with company executives bringing in astronomically high payouts. None of the windfall is being shared through wage increases, nor is it contributing to social spending through taxes.

“Decision makers – like the Bank of Canada – want to blame everyone but the true culprits for rising inflation. But forcing the economy into a recession won’t solve the underlying problem: pandemic profiteers fixed prices on essential goods and pocketed the surplus cash. They must be made to pay their fair share through increased taxes; money that could be used to increase social spending and avoid another recession,” said Bruske.

Read the ITUC’s statement on the 2022 World Day for Decent Work.

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OTTAWA – As Parliament reconvenes this week, Canada’s unions are urging Members of Parliament to put aside glib rhetoric and work together to provide relief for those who need it most amid the ongoing affordability crisis. Today’s inflation numbers showed that while CPI has begun to level off, grocery prices continue to increase at rates not seen in over four decades, while workers’ wages lag behind.

‘’Everyday necessities like food, fuel and housing eat away at more and more of workers’ hard-earned paycheques. Meanwhile, large corporations see their profits soar while their employees’ wages lag behind. Canada’s affordability crisis has been made even worse by rich corporations cashing in at the expense of struggling families,” said Bea Bruske, President of the Canadian Labour Congress “MPs have an opportunity when Parliament reconvenes to help struggling families and make these profitable corporations finally pay their fair share.”

Bruske added that Canada’s unions welcome recent cooperation between New Democrats and the Liberal government to provide targeted help and put money back into the pockets of Canadians.

“This is a prime example of how democracy should work, and we need more of it. Dental care for kids, doubling the GST rebate, making housing more affordable. Politicians finding common ground and getting targeted help to people who really need it,” continued Bruske. “We really have to question those opposed to this collaborative approach. How can Conservatives like Pierre Poilievre talk so loudly about the challenges families face and then oppose this concrete help for those who need it most?”

Bruske added that with some of our most essential workers are being hit the hardest, Canada’s unions recently launched a campaign calling for increased investments in care services and improved working conditions for care workers.

“We need our elected representatives from across the political spectrum to recognize that we will all need care at some point. Care work is essential and care workers must be properly supported,” concluded Bruske. “With a crisis facing public health care and the chronic underfunding of Canada’s care economy, addressing the care crisis must be a priority for MPs.”

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If you appreciate having weekends, a forty-hour work week, pensions, compensation for workplace injuries, maternity leave or even collective bargaining at all, thank a union organizer.

The reality is, without the contributions of the labour movement, Canadian workers wouldn’t have these or so many other protections. But these gains were not accomplished without a struggle. Workers had to fight tooth-and-nail for every victory and every bit of progress in the long march to workers’ rights.

Today, inflation grows at a breakneck pace while wages fall further behind the fast-rising cost of living. Workers and their families struggle to put food on the table, keep a roof over their heads, or pay for all kinds of other essentials, like transportation and even medication.

But not everyone is hurting. While their employees are just trying to get by, grocery, oil and gas, and other companies rake in record profits. These companies’ inflation-driving profiteering has even given birth to a new word: “greedflation.”

Billionaire CEOs take home record profits while the wages they pay lag far behind inflation. The President of Loblaws – while lobbying hard against a $15 an hour minimum wage – raked in around $5,100 per hour last year. Meanwhile, Loblaws saw its profits jump by 40 percent in the first quarter of 2022.

In another display of greedflation, Canada’s four largest oil companies saw revenues skyrocket nearly three-fold over 2021, an eye-watering $12 billion in net earnings, just in the last quarter.

The rich have never been richer. And we know they aren’t going to give up their mega-profits without a fight. Bay Street CEOs, the corporate elite and their political friends will try and convince you you’re powerless against them. But they are wrong. Their voice isn’t the loudest, their position isn’t the strongest and they don’t have the most influence.

Part of Canada’s history, rarely taught in schools, is how unionized workers – not the corporate elite – were the ones who carved out a path to the middle class for millions of Canadians. And today it’s once again up to us, the workers of Canada, to come together and tell those in power that they’re working for us, for a change.

So, as we celebrate Labour Day, let us remember the collective power of workers – from all walks of life and in communities across Canada – to make positive change happen. We honour the workers who built this country and thank the ones who keep it running, day in and day out. We play tribute to the critical role unions have played in securing fair wages and better working conditions for all.

I invite all Canadians to march shoulder to shoulder with us this Labour Day. Help us in our work to make life more affordable for everyone and our fight for good jobs, ones that offer a living wage, with benefits and pensions. Join our growing movement of workers realizing that they deserve better, and are ready to stand up to employers who try to exploit them.

While giant corporations try to maximize their mega-profits at the expense of giving workers what they deserve, Canada’s unions will work tirelessly, today and every day, to make sure all workers have the opportunity not just to survive, but to thrive.  

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Bea Bruske is president of the Canadian Labour Congress. Follow her on Twitter @PresidentCLC

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OTTAWA–Canada’s unions are marking Labour Day by celebrating the hard-fought gains of the labour movement and bringing workers, their families and allies together in solidarity, united in their commitment to the important work ahead.

“The collective power of workers and our long fight for fairness has delivered the forty-hour work week, pensions, weekends and so much more. Unions have paved a path to the middle class for millions of Canadians,” said Bea Bruske, President of the Canadian Labour Congress. “Today, more and more people are standing up, joining unions and demanding better. Coming together to fight for good jobs with fair wages, better benefits and improved working conditions.”

With workers struggling to afford necessities, as inflation skyrockets and wages lag well behind, Canada is seeing growing momentum behind workers fighting back against those trying to make workers pay for today’s affordability crisis.

“We keep hearing Bay St. CEOs calling for austerity and warning about rising wages. But this corporate scaremongering ignores the fact that while corporations are doing better than ever, wages aren’t keeping up and family budgets are breaking under the weight of runaway costs for housing, food, transportation and so many other daily essentials,” explained Bruske. “What we have seen is growing ‘greedflation’ from profitable companies, using the crisis to jack up prices, rake in record profits and drive-up inflation.”

Bruske added that Canada’s unions will also continue to fight for government action to fix our public health crisis and address health worker shortages; help families struggling to survive the affordability crisis; and tackle climate change in a way that creates good jobs and leaves no worker behind.

“Canada’s unions stand united in the face of greedy corporations and demand governments make mega-profitable companies pay their fair share and play their part in making sure our economy can bounce back and people can prosper. We cannot solve today’s economic crisis by leaving workers and families behind,” concluded Bruske. “Today we march together in communities across Canada, in solidarity, because we believe in a country where workers have the opportunity not just to survive, but to thrive.”

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“Pensions are a deferred pay cheque. Workers have put in their hours, their hard work, and have earned those pensions. That investment deserves to be protected,” said Bea Bruske, President of the Canadian Labour Congress. “At a time when so many families are finding their budgets tight and anxiety around finances rising, it is important for workers to know their pension is protected.”   

The Canadian Labour Congress has been advocating for changes to the Bankruptcy Act and the Pensions Benefit Act for decades. Canada’s unions have worked alongside many New Democrat MPs over the years; including Daniel Blaikie (C-225), Scott Duvall (C-259) and Pat Martin (C-281), to previously bring forth elements of today’s Pension Protection Act (C-228). With today’s cross-partisan collaboration, MPs can now make protection for Canadian pensioners the law.

“For decades we have seen companies pay out creditors, even pay out bonuses to executives after declaring bankruptcy, while workers wait at the back of the line,” added Bruske. “The current law says if a company goes bankrupt, their taxes, lenders and suppliers are all paid before employees get their pensions, severance, or even are paid their wages for work they’ve already completed. This is unfair.”

Opposition MPs have now agreed on amendments so the Pension Protection Act, in addition to covering pensions in bankruptcy and insolvency proceedings, will also protect termination and severance pay of workers. The bill, with support of these three parties, will now move on to the Finance Committee for review and amendment before returning to the House for final approval. It now has sufficient support to become law.

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OTTAWA –– A new report shows billions of dollars in public funds for long-term care have been diverted from patient care into the pockets of shareholders. Canada’s unions call on the federal government to make long-term care part of Canada’s public health care system.

“This report is brutal evidence of higher death rates and lower levels of care at for‑profit long‑term care homes across Ontario,” said Bea Bruske, President of the Canadian Labour Congress. “Despite all this, Conservatives want more private care homes and privatized health care services. We can’t let that happen.”

Canadians for Tax Fairness released the report, Careless Profits, today. Their analysis shows that over the last decade $3.8 billion in public funds have been converted to profits instead of going to residents or staffing. They also estimate that 1,400 lives could have been saved during the pandemic if those funds had been spent on better care. 

For decades, Ontario’s long-term care sector has been weakened by chronic underfunding, severe staffing shortages and poor oversight. Staff at for-profit homes have been sounding the alarm for years, and they were proven right when the COVID-19 pandemic hit.

As of May 18, 2022, Ontario accounted for one-third of all long‑term care resident deaths in Canada. Ontario has the highest proportion of for-profit long-term care homes in Canada.

“At the start of the pandemic 80 percent of deaths from COVID-19 were in long‑term care homes and still the focus was on profits, not patient care. It’s despicable,” said Bruske. “It’s time to eliminate for-profit care homes and focus on decent jobs in the industry as it becomes more and more important to our population.” 

Ontario’s government has announced funding for new long-term care beds. The majority of those will go to for-profit companies, including those with some of the worst track records.

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OTTAWA – Canada’s unions are shining a spotlight on how the Conservative Party is missing in action when it comes to standing up for workers who are seeing their buying power shrink as their wages rise at half the rate of inflation.

“Workers are worried about how the rising costs of groceries, gas and family essentials are eating into their paycheques more and more each month. Conservatives love to talk about inflation yet are silent on how corporate greed is fuelling skyrocketing prices or how workers’ wages are falling behind,” said Bea Bruske, President of the Canadian Labour Congress (CLC). “All we hear from these leadership candidates is the same low-wage austerity playbook we have seen for decades from Conservatives and their Bay St. buddies.”

Evidence shows that continued government spending to help Canadians through these difficult times and wages aren’t what is driving up inflation, instead it is global events disrupting supply chains, pandemic profiteers, and the hollowing out of our manufacturing driving up the cost of living.

“Fair wages, good jobs and investing in our infrastructure and supply chains are all vital parts of the solution. This will help Canadians pay for family essentials and strengthen our ability to withstand international instability,” continued Bruske. “Yet what we hear from the Conservative Party and the candidates competing to lead them is scaremongering about government spending.”

Bruske added that if Conservatives on the leadership campaign trail want to talk about government spending cuts, they must be honest about what services and help for people they are planning to cut.

“Conservative candidates are attacking the Bank of Canada, talking about ending supply management, and floating bizarre suggestions around crypto currencies, while loudly condemning public spending,” concluded Bruske. “Yet they won’t say what they plan to cut. Conservatives must now level with Canadians. Are they planning to cut health care, employment insurance, and other vital services people depend on, just like last time they were in government?”

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To arrange an interview, please contact:
CLC Media Relations
media@clcctc.ca
613-526-7426

The post Conservatives refuse to talk lagging wages instead push low-wage austerity agenda appeared first on Canadian Labour Congress.

OTTAWA –– Replacing frontline workers with exploited offshore workers, as the restaurant chain Freshii is now doing, moves us towards a low-wage economy that weakens our communities and exploits workers, according to Bea Bruske, President of the Canadian Labour Congress.

“This is about replacing Canadian workers with low-wage offshore ones and using technology to skirt around our country’s labour laws and workplace standards. If this isn’t illegal, it should be,” said Bruske. “The workers serving Canadian customers aren’t paying taxes in Canada and aren’t protected by Canadian labour standards. Companies that profit off of Canadian consumers shouldn’t use low-wage offshore workers to serve customers here in Canada. It’s bad for workers and bad for our economy.”

Bruske said this isn’t about an inability to attract workers, which can be done through competitive wages, real benefits and proper working conditions, but instead another sign of corporate greed and exploiting a low-wage offshore workforce.

“Gig workers in Canada already don’t have proper workplace protections. But with the use of offshore workers, the exploitation of employees and move to a low-wage economy is being super-sized,” said Bruske. “Companies must wake up to the long-term benefits to both the communities they operate in and their business when they invest in the people who work for them.”

Bruske added that there are things consumers can do to voice their objections to this new concerning trend towards offshoring and automation.

“Is an employee 3000 kms away going to know if the avocado is fresh today or whether field greens or kale would make a better salad bowl?” asked Bruske. “Customers should understand they can vote with their wallets on the kind of communities they want to live in.

Choose companies that treat employees properly, with a fresh attitude towards workplaces, not greedy corporations with their stale approach of exploiting workers.”

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To arrange an interview, please contact:
CLC Media Relations
media@clcctc.ca
613-526-7426

The post Building a low-wage economy with stomach-churning greed appeared first on Canadian Labour Congress.

“The banks now want to reward themselves and investors with windfall gains that come as a result of government support during the pandemic. Excessive payouts to investors, while support for people is being cut off by the government, is just not right,” said Bea Bruske, President of the Canadian Labour Congress. “Rather than allowing this pandemic to further entrench existing inequalities and allow the gap between the rich and poor to widen, the federal government should instruct OSFI to maintain restrictions on shareholder payouts, and immediately impose a windfall gains tax on banks and insurance companies to prevent surplus capital from being distributed as jackpot winnings to shareholders and company executives.”

When COVID-19 struck, the federal government’s first order of business was to pump money and credit into the financial sector and ease reporting requirements to reduce “the operational burden” on financial institutions. In the early days of the pandemic, the federal government and the Bank of Canada provided three-quarters of a trillion dollars in liquidity and financial support. In return, the financial regulator instructed banks and insurers to suspend share buybacks and not to increase dividend payments.

“The banks now want to reward themselves and investors with huge increases in dividends and share buybacks. The government must make sure that the big businesses that made record profits in the pandemic now pay their fair share,” said Bruske. “The government should go further, frankly, and introduce a wealth tax to begin taxing the concentrated riches of Canada’s wealthiest families to make sure everyone is contributing fairly to a more equitable society.”

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To arrange an interview, please contact:
CLC Media Relations
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613-526-7426

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OTTAWA – Canada’s unions congratulate Justin Trudeau and the Liberal Party on their re-election and offer to work with the government and Parliamentarians from all parties on building a pandemic recovery that addresses the critical challenges facing workers and their families.

“Canadians have spoken, and their message is clear: it’s time for Parliament to get down to work on a progressive recovery,” said Bea Bruske, President of the Canadian Labour Congress. “This means MPs from all parties must act urgently on strengthening public health care – including implementing pharmacare; permanently improving our EI system so workers aren’t left behind; enacting fair tax reforms so that the richest pay their fair share; and instituting a mixed member proportional representation system.”

Bruske noted that Prime Minister Trudeau has committed to affordable child care, universal pharmacare and electoral reform, all included in Jagmeet Singh and the NDP’s platform commitments.

“Workers in Canada are worried about making ends meet, and they want to get back to work in decent jobs with real benefits and a path to unionization. Investing in key areas of the economy will create better jobs and help Canada thrive,” said Bruske. “We must now all work together on a COVID recovery plan that fixes our social safety net and addresses longstanding inequalities in our communities, so that we’re ready to weather the storm when the next disaster strikes.”

Over the course of the election campaign, Canada’s unions have been vocal about what a strong, worker-centered recovery should look like. This included measures to allow women to re-enter the workforce, including through finishing the implementation of a universal affordable child care system; strengthening health care and implementing universal pharmacare; enacting fair tax reforms; permanently improving EI; and replacing Canada’s broken first-past the post electoral system with mixed member proportional representation.

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Many of Canada’s largest companies have continued paying out dividends to their shareholders, despite receiving government aid and five of Canada’s six largest banks cut their workforces by 4.4% in the past year, while simultaneously increasing their customer fees.

“It’s clear that the pandemic has had winners and losers. While large corporations and banks, and their CEOs and shareholders, profiteer off the pandemic, they freely layoff workers and keep wages low,” said Canadian Labour Congress president Bea Bruske.

“In this election, parties must propose a recovery plan that doesn’t leave working families behind, with meaningful new investments to disaster-proof our social safety net.”

Rather than allowing this pandemic to further entrench existing inequalities and allow the gap between the rich and poor to widen, Bruske said Canada should make sure wealthy individuals and the big businesses that made record profits in the pandemic now pay their fair share. That money should be used to help Canada recover and keep us safe.

Canadians for Tax Fairness calculates that the federal government could generate over $90 billion annually and reduce inequalities by:

• Closing tax loopholes: $26 billion;
• Taxing the rich fairly: $24 billion;
• Making corporations pay their fair share: $25 billion
• Tackling tax havens: $14 billion; and
• Making polluters pay: $3 billion.

“Greater tax fairness could generate billions that could be re-invested into the social safety net and programs that so many Canadians need and depend on – like universal child care, long-term care, pharmacare, and job-training programs that will help workers transition to low-carbon and green jobs,” concluded Bruske.

To arrange an interview, please contact:
CLC Media Relations
media@clcctc.ca
613-355-1962

The post Record bank profits reveals pandemic’s economic winners and losers appeared first on Canadian Labour Congress.

“Decades of cuts and privatization in the long-term care sector have had tragic consequences during this crisis.

“Early in the pandemic, long-term care homes accounted for four out of every five COVID-19 related deaths in Canada. In Ontario, the Commission into long-term care said for-profit companies should no longer be in charge of care.

“The for-profit model has clearly failed seniors and their families. We welcome Jagmeet Singh and the New Democrats’ commitment to take profit out of long-term care.

“For years, long-term care workers, unions and advocates for senor’s health care have demanded systemic change to a broken system.

“Canada’s unions have been fighting for long-term care to be offered as a public service. This means making major changes to Canada’s long-term care sector, including regulating long-term care under the Canada Health Act.”

Canada’s unions have been calling on governments to address the failings COVID-19 exposed in long-term care by:

• Bringing long-term care into the public system and regulating it under the Canada Health Act;
• Removing private, for-profit businesses from the sector;
• Requiring proper staffing and health and safety protections for workers; and
• Permanently raising wages and benefits for long-term care workers to match the value of the work.

Full recommendations on Long-term care can be found here.

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To arrange an interview, please contact:
CLC Media Relations
media@clcctc.ca
613-355-1962

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Uber drivers successfully petitioned the court to certify a class action on behalf of all Uber drivers and delivery workers who submit they are employees misclassified as independent contractors.

“All workers should have workplace protections and benefits. Canada’s unions support the decision to certify this class action and invite Uber drivers from coast-to-coast to unionize and collectively bargain their rights,” said Bea Bruske, President of the CLC. “For too long, Uber has dictated terms of workers’ employment but hasn’t been accountable for providing basic employment standards like a minimum wage and vacation pay.”

In June of last year, an 8-1 decision of the Supreme Court of Canada found that Uber’s private arbitration clause in its contract with drivers is unfair, unconscionable and invalid. The company required Ontario drivers raising a dispute with the company to go to court in the Netherlands and pay legal and other fees amounting to most of their annual income.

“Courts cannot continue to be the main avenue through which workers demand their rights. It is too costly and time consuming, and companies like Uber have very deep pockets to drag out any legal challenge,” said Bruske.

“Governments must act to address the blatant misclassification of workers contained in gig economy employers’ business models. The competitiveness, growth strategy and business model of companies like Uber is built on denying workers their statutory and collective bargaining rights. Governments must step up and rectify the massive power imbalance between digital platform giants and low-paid gig workers,” Bruske added.

The post Canada’s unions welcome certification of Uber class action appeared first on Canadian Labour Congress.

“We urge all parties to adopt this legislation,” said Hassan Yussuff, President of the Canadian Labour Congress (CLC). “Workers and pensioners should not be written off as expendable in insolvency proceedings as they were in the Laurentian University disaster. Canada’s unions have long called for changes to bankruptcy laws so that workers and pensioners are first in line, not last, when it comes to paying creditors and we are pleased to see these proposed changes in Bill C-253.”

After a lifetime of hard work, nobody should have to struggle to make ends meet in retirement. Bill C-253 addresses many concerns advocates have had with the Companies’ Creditors Arrangements Act (CCAA) and the Bankruptcy and Insolvency Act (BIA). It amends the CCAA and BIA to ensure that workers’ wages, pensions and benefit programs are funded ahead of shareholder bonuses and payouts.

“In heartbreaking cases like Sears, we’ve seen how these insolvency filings play out, and workers and retirees are left holding the bag,” said Yussuff. “This bill will right those wrongs for future filings, and ensure that workers are treated with dignity and respect.”

Canada’s unions continue to encourage the federal government to work with the provinces and territories to create Canada-wide mandatory pension insurance. This would take worker protections a step further by guaranteeing monthly pensions whenever an employer with an underfunded pension plan files for bankruptcy.

To learn more about what we’re doing to strengthen pensions and Canada’s social safety net, visit canadianplan.ca.

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Before the pandemic, ever-increasing globalization meant many workers were employed in precarious, low-wage work with few, if any, benefits. Now millions of people across Canada and around the world have seen their jobs disappear. We need a worldwide recovery focused on secure employment and social protection.

This context serves as the backdrop for the annual commemoration of the World Day for Decent Work today, October 7.

“It’s clear that we need a recovery that is focused on shared prosperity and sustainability,” said Hassan Yussuff, President of the Canadian Labour Congress. “Better jobs are at the core of a robust recovery and that is true both nationally and internationally.”

The International Trade Union Confederation (ITUC) is calling for a new social contract to ensure a strong global economic recovery. Canada’s unions have similarly launched Forward Together: A Canadian Plan, a campaign calling for a similar focus on better jobs and reducing inequality.

“With millions of jobs lost across Canada, and hundreds of millions globally, we have to turn our focus to job creation. That includes focusing on secure employment, living wages, the universal right to collective bargaining and occupational health and safety,” said Yussuff. “The current economic model has failed working people. It’s time for us to rise to the challenge we’ve been presented with and to move forward, together.”

The CLC is marking the World Day for Decent Work with a webinar that aims to explore the issues at stake. It will be held on Wednesday, October 7 at 2 PM EDT. To register, click here.

Read ITUC’s statement on A New Social Contract for Recovery and Resilience here.

The post Canada’s unions mark World Day for Decent Work with a call for a robust economic recovery plan appeared first on Canadian Labour Congress.

“As we face the COVID-19 pandemic, the importance of the public sector has never been more evident,” said Canadian Labour Congress (CLC) President Hassan Yussuff. “Public sector workers have kept our communities running day-to-day, ensuring that Canadians can rely on the services they need. It is critical that governments safeguard these services against bids towards privatization.”

The CLC Task Force on New Forms of Privatization report, For the Public Good: The growing threat of privatization and workers’ proposals to protect our future, calls on governments to:

• Strengthen and expand public services and infrastructure for all;
• Expand public revenue;
• Expand and enhance public services;
• End the financialization of and the facilitation of privatization globally; and
• Expand public control over infrastructure development.

“As important as public services have been during this pandemic, they will be even more important as we re-open and re-build our economy,” said Yussuff.

The report’s recommendations on strengthening and expanding public services and infrastructure are especially relevant in the post-COVID-19 era. The report contains immediate actions to address threats and provides a long-term vision to build a sustainable and equitable public sector.

Read the Summary Statement here.

Read the Full Report here.

For more information:
CLC Media Relations
media@clcctc.ca
613-526-7426

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The images, the stories, the experiences of our seniors during this pandemic are enough to bring a grown man to tears.

In fact, it has.

Even Ontario’s Premier Doug Ford has, at times, become emotional while talking about the conditions in the province’s long-term care facilities. It’s a dire situation right across the country.

No one is doubting the sincerity of every single politician who is expressing frustration and helplessness at the pandemic’s scourge within these facilities. But we do have to question why it took the global crisis, hundreds of deaths and intervention by the armed forces for the message to finally get through: our system is broken.

It’s a message that unions and advocates have been communicating for decades. Long-term care should never have become the hodgepodge of private-public system it is today. This system has allowed for-profit agencies to take significant control, some of them led by politicians like Mike Harris who handed over 68% of 20,000 new spaces created during his tenure to the private sector. Ironically, Harris is now the Chair of the Board of Directors at Chartwell, a private company that runs many long-term care facilities.

Just over a year ago, the head of SEIU Healthcare joined fellow union members and advocates at Queen’s Park to call for better treatment and pay for workers in these facilities, which receive hundreds of millions of dollars from the government. By the way, the CEOs of these facilities have in the past received more than $9.2 million dollars of public money with nary a peep out of the same Premier who is now upset about the state of things.

The expansive growth of the private long-term care industry has led to a further devaluing of care work and driven down workers’ wages in order to boost corporate and shareholder profits. 

What we are witnessing is no accident. The horrific conditions that frontline care workers now describe occurred in spite of repeated warnings that have persisted for years.

Facilities are led by managers and owners who are looking after the bottom line, not the well-being of some of society’s most vulnerable. This has meant that workers are paid very little, forced to take on multiple shifts at different facilities and paid just under full-time hours so owners avoid paying benefits and therefore failing to adequately care for staff who take care of their clients.

“Private, for-profit services are necessarily more fragmented, more prone to closure and focused on making a profit. The research demonstrates that homes run on a for-profit basis tend to have lower staffing levels, more verified complaints and more transfers to hospitals, as well as higher rates for both ulcers and morbidity,” conclude Pat Armstrong, Hugh Armstrong, Jacqueline Choiniere, Ruth Lowndes and James Struthers in a recent research paper titled Re-imagining Long-term Residential Care in the COVID-19 Crisis.

It’s time to fix what is broken. The only way to do that is to take immediate steps to make private for-profit long-term care facilities part of the public health care system aligned with the principles of the Canada Health Act.

In fact, it is the exclusion from the Act that has allowed for the proliferation of private for-profit care in our country. We have repeatedly called on the federal and provincial governments to stop the funding cuts and to ameliorate the health care system so every Canadian can access vital health care services based on need, not an ability to pay. 

Whether you are worried about a loved one, or whether you or someone you know is one of the invaluable workers caring for Canada’s seniors, this is the solution we need.

Besides, we’re all ageing. Someday, it may be one of us on the other side of the window, looking out at a world that failed us.

Unless we act now.

Hassan Yussuff is the president of the Canadian Labour Congress. Follow him on Twitter @Hassan_Yussuff

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We are in the midst of a global pandemic. The federal government is introducing new programs almost daily to support millions of Canadians who have been affected by this crisis. Public service employees are doing amazing work getting that support to the people who need it.

Meanwhile, the calls for austerity are already coming fast and furious, heralded by right-wing conservatives, including former Prime Minister Stephen Harper. Even as we see our health care workers struggle with staffing and supplies as the result of decades of cuts in health care spending across the country.

The opinion pages are full of columnists explaining why program spending needs to be cut immediately – without any idea when a recovery will begin. Even arguing that the public service employees who have been doing unprecedented work processing millions of claims at unbelievable speeds should be punished for having job security.

Public service employees play a fundamental role in our democracy, informing our elected representatives and allowing them to make decisions based on evidence – which is a good thing, despite what some say. Our public service is full of subject-matter experts who our political representatives rely on to help them craft the best policies and programs. We should be glad when our leaders take their advice, rather than ignore it – as we’re seeing to the south.

Judging the amount of government spending that goes to public service salaries without referring at all to the work those employees actually do day to day to keep the country running is ludicrous. You cannot reference a productivity agenda without acknowledging the producers of the work.

Equally ludicrous is the leader of the opposition repeating the false message that applications to the CERB benefit are rampant with fraud daily. A vocal minority is concerned that a $2,000 per month benefit will create a population that doesn’t want to work, but waste no time and effort examining the conditions we are asking them to work in.

Being on government benefits should never mean being treated like a criminal – but perhaps especially now as we face global uncertainly and a new future ahead. The real criminals are the ones who are hoarding wealth on the backs of workers.  

We are about to crown the world’s first trillionaire. One man could single-handedly solve world hunger. The same man who gave workers a $2 per hour pay raise in these unprecedented times and is now clawing it back even as his own warehouses continue to see outbreaks and workers demand safer conditions. In Canada, we see employers like Loblaws boosting employee wages by 15 per cent – $2 an hour for those working minimum wage. Meanwhile, the company estimates that the pandemic has resulted in a $751 million increase in quarterly profits.

The wages and benefits of public sector employees do not represent a problem, they represent an example of what is possible. Every working Canadian deserves the security of a good job with a living wage, benefits and paid sick leave. Access to paid sick leave would give workers leeway so they wouldn’t have to choose between their job and their health, meaning fewer workers would feel forced to work while sick – key in slowing the spread of illnesses like COVID-19.

Getting to the recovery has been a group effort. Canadians, as a population, moved swiftly to protect each other.

We are a society that lifts everyone up, and now is not the time to start punching down.

When we plan out the recovery, we cannot return to the careless individualism that has led to the growing inequality we’re seeing globally. Collective action is what flattened the curve, and collective action is where progress lies.

The most important thing that we have seen over the past nine weeks is this: Canada has the capacity to move quickly to protect the most vulnerable. The money is there when we need it and when there is political will.

It’s time to leave the right-wing, me-first thinking in the past where it belongs. We can’t afford to work against each other anymore.

Hassan Yussuff is the president of the Canadian Labour Congress. Follow him on Twitter @Hassan_Yussuff

The post A call for collective action appeared first on Canadian Labour Congress.

Canada’s unions and civil society organizations are calling for immediate relief for workers and protection of rights in global supply chains.

The coalition says that concerns for workers cannot stop at Canada’s borders and the millions of women and men who make clothes in other countries cannot be abandoned. In particular, efforts to address and rectify dangerous working conditions following the Rana Plaza disaster must not be undone now in the midst of this global crisis.

On April 24, 2013, the collapse of the Rana Plaza building in Dhaka, Bangladesh killed at least 1,132 people and injured more than 2,500.

The tragedy put a spotlight on substandard working conditions and low wages in the industry. In response to public outrage at the disaster, more than 200 global brands and retailers signed a legally binding agreement with Bangladesh and Global unions that achieved important improvements in workplace safety.

The current pandemic has created new threats to the lives and livelihoods of garment workers.

Brands and companies have cancelled orders down their supply chains leaving factories unable to pay workers’ wages, even for work already completed. This is leaving millions of people without income and job security. Women are particularly hard hit by this crisis.

Eighty per cent of Bangladesh’s four million garment workers are women. These workers have received poverty wages for years, barely making ends meet and have no financial savings to draw on. Without work, without income, with little access to health care and without any social safety net, they can easily slip into abject poverty and struggle to feed themselves and their families.

In response to the crisis, the Bangladesh government instituted a nationwide public holiday for an extended period. Millions of workers have returned to their villages with empty pockets, unable to collect unpaid wages or severance pay from closed factories. Government relief packages are being channeled through factories, but are proving difficult for workers to access. Some factories have remained open where workers continue to work in cramped conditions, without personal protections.

Canadian unions and civil society organizations stand in solidarity with Bangladesh garment sector workers and with garment sector workers in all countries, and urgently recommend the following:

Payment of orders and wages & worker health and safety
Canadian brands and retailers must honour their obligations to suppliers and workers by paying for orders that are completed or in production. They should ensure the payment of wages or severance to all workers who were employed at the onset of the crisis and ensure that workers who work during the pandemic can follow World Health Organization protection guidelines and reserve the right to refuse unsafe work.

Emergency relief for workers
Governments, including Canada, should support global emergency relief programs for garment sector workers set up with contributions from international financial institutions, donor governments as well as brands and retailers. These programs must maintain workers’ employment and wages.

Mandatory Human Rights Due Diligence
The Government of Canada should legislate companies to respect human rights in their operations and supply chains. Such legislation should require companies to conduct due diligence on their human rights and environmental risks, take appropriate steps to prevent and mitigate such risks, and hold companies accountable in the courts if they abuse human rights.

Rebuilding a just economy after the pandemic
The industry as a whole must change the current pricing and business model moving forward. Canadian brands must commit to establish more sustainable and resilient supply chains that respect workers’ rights and ensure suppliers pay workers living wages and social benefits.

Endorsed by:

Amnesty International Canada (English-speaking branch)
Association québécoise des organismes de coopération internationale
Canadian Council for International Co-operation
Canadian Jesuits International
Canadian Labour Congress
Canadian Network on Corporate Accountability
Canadian Union of Public Employees
Centre international de solidarité ouvrière (CISO)
Fairtrade Canada
Inter Pares
KAIROS: Canadian Ecumenical Justice Initiatives
Maquila Solidarity Network
MiningWatch Canada
Nobel Women’s Initiative
Ontario Catholic No Sweat Network
Ontario Secondary School Teachers’ Federation
Oxfam Canada
Public Service Alliance of Canada
Social Justice Connection
The Ontario English Catholic Teachers’ Association
The United Church of Canada
United Food and Commercial Workers Canada
United Steelworkers
Workers United Canada Council
World March of Women Coordinating Committee

The post Protect the women who make our clothes: Canada’s unions and civil society organizations call for action appeared first on Canadian Labour Congress.

“This pandemic has led to major disruption in the lives of many Canadians and is taking a financial toll. Many people have no choice but to turn to their credit cards to pay for basic needs,” said Hassan Yussuff, President of the Canadian Labour Congress (CLC). “The banks have made some moves to help, but it’s simply not enough.

“With the Bank of Canada’s lending rate at a historic low, financial institutions have an opportunity to pass along those savings to help all of us weather this storm. It’s not enough to provide a break for only a segment of borrowers, forcing desperate people to jump through hoops; this policy must apply right across the board for all customers.”

Yussuff sent a letter to the CEOs of Canada’s largest banks and credit card companies late last week urging the reduction. That action is being followed by a broad campaign to encourage Canadians to add their voice to the campaign and to reach out to the banks as well.

So far, over 5,000 people have joined the campaign, sending letters and tweets to raise the issue and over 2,500 have signed on to a petition.

The CLC is calling on all financial institutions to reduce interest rates on all purchases made on credit cards after March 15, and all balances carried forward from prior to that date, for the duration of the COVID-19 health crisis.

“This is a defining moment in our country’s history, and CEOs need to show solidarity and step up to support the common good,” said Yussuff. “Canadians are watching closely and are expecting every institution to do its part to help.”

A copy of the original letter is available here.

To arrange an interview, please contact:
CLC Media Relations
media@clcctc.ca
613-526-7426

The post Canada’s unions call on banks to reduce credit card interest rates for all appeared first on Canadian Labour Congress.

Representing 40,000 employees, Canada’s airline unions participating in the meeting included the Canadian Union of Public Employees (CUPE), Unifor, the International Association of Machinists and Aerospace Workers (IAMAW), the Air Line Pilots Association (ALPA) Canada, the Air Canada Pilots Association (ACPA) as well as the Canadian Labour Congress (CLC).

“A key priority for today’s call was to ensure that front-line aviation employees still working have the appropriate personal protective equipment,” said CLC President Hassan Yussuff. “This includes pre-board screeners, flight crews, and passenger agents who are working to ensure the safety of both employees and the travelling public.”

Union leaders urged the federal government to consider measures similar to those in U.S. Congress where affected airline and airport workers are to be provided top-up benefits similar to those in U.S. Congress where 80% of wages are guaranteed. The Unions also proposed that employers extend health benefit plans and ensure pensionable service is accrued under retirement plans. Moreover, they also wanted to ensure that any federal aid allows laid-off employees to return to payroll and maintains employment levels.

Unions also asserted that any government support be accompanied by tight restrictions on executive compensation. This includes bonuses and stock options, share buybacks and dividend payments, as well as debt repayment designed to increase shareholder value.

“Air travel is a vital part of Canada’s transportation network and economy, and the success of any federal financial aid package will require worker supports,” added Yussuff. “Canada’s unions welcome the federal government’s efforts to work with Labour to ensure the airline industry will continue to flourish into the future.”

To arrange an interview, please contact:

CLC Media Relations
media@clcctc.ca
613-526-7426

CUPE
Philippe Gagnon
613-894-0146

UNIFOR
Hamid Osman
Hamid.Osman@unifor.org
647-448-2823

IAMAW
Frank Saptel
fsaptel@iamaw.org
416-386-1789

ALPA
media@alpa.org

ACPA
Kym Robertson
krobertson@acpa.ca

The post Canada’s unions deliver clear priorities for federal airline relief package appeared first on Canadian Labour Congress.

The Canadian Labour Congress (CLC) and Saskatchewan Federation of Labour (SFL) reaffirmed their commitment and solidarity with Unifor Local 594 workers who are ready to bargain a fair deal.

“The union has demonstrated a strong desire to bargain with their employer to get back to work,” said CLC President Hassan Yussuff. “Today, I’m calling on CLC’s affiliates to extend their support to these workers, and pressure the employer to bargain in good faith. It’s time to end this lockout.”

Executives at Federated Co-operatives Limited locked out Unifor Local 594 members on December 5, 2019. The dispute deepened through the use of replacement workers and picket lines.

“Over the last 60 days, this protracted dispute has not only harmed refinery workers, but the broader Regina community and needs to end,” added SFL President Lori Johb. “Regina area families, farmers and Co-op members have suffered enough. The community is frustrated and wants this lockout over.”

For more information and to set up an interview, please contact:

media@clcctc.ca
613-526-7426

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“Canada’s unions know the sacrifice it takes for workers to stand against an unreasonable employer,” said CLC President Hassan Yussuff. “The arrest of Unifor Local 594 workers on the picket line, including Unifor President Jerry Dias, is unacceptable. It is time for this lockout to end.”

Following the nationwide call for solidarity by Unifor leadership, Canada’s labour movement is answering in support of all workers. The escalation of this labour dispute through the use of replacement workers and last night’s arrests, signal that it is time for this lockout to end.

“Here we have a wealthy and powerful employer who makes billions in profits annually, locking out workers over pension concessions. The disrespect and unreasonable demands need to end,” added SFL President Lori Johb. “We understand the Co-op Refinery workers’ frustration and want to reaffirm that our support will be steadfast and ongoing.”

For more information and to set up an interview, please contact:

media@clcctc.ca
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One thousand members of USW have been locked out of their workplace at an aluminum smelter in Bécancour, Quebec for the past 17 months.

Over the spring of 2019, Quebec’s Premier François Legault made numerous public statements favouring ABI, the employer, and undermining the union representing ABI workers.

The USW lodged a formal complaint with the International Labour Organization (ILO), a United Nations agency whose mandate is to advance social justice and promote decent work by setting international labour standards. Canada has been a signatory to ILO Convention 87 – Freedom of Association and Protection of the Right to Organise – for over 45 years and, in 2017, Canada ratified ILO Convention 98 on the Right to Organise and Collective Bargaining.

In a letter to the ILO sent on June 19, 2019, CLC’s President Hassan Yussuff writes that, “The CLC supports the USW position that the Government of Quebec, through the public statements made by its leader and official representative, Premier François Legault, interfered in negotiations in the 17-month lockout at the aluminum smelter in Bécancour, co-owned by multi-national aluminum giants Alcoa and Rio Tinto.”

Click here to read the CLC’s full letter.

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Inflation was on the rise along with that unemployment. The Canadian dollar lost its value and drastic increases in the price of oil, caused by Organization of Petroleum Exporting Countries (OPEC) export quotas, resulted in price shocks that hit consumers hard. Over the 1970s, the price for a barrel of oil jumped from $3 to $40, an increase of over 1300%.

To compensate, workers demanded higher wages while businesses accelerated plans to cut costs while raising prices to satisfy their need for profit. Unemployment and prices continued to rise, while the economy sputtered – a phenomenon economists and politicians labeled “stagflation”.

During the 1974 federal election campaign, the Conservative Party campaigned on a platform to impose legal caps on wages and prices. Seeking re‑election, the Liberal Party, led by Pierre Trudeau, openly ridiculed the idea and presented itself to Canadians as an anti-control party. Working people, fearing the loss of jobs and income, flocked to the Liberals, returning them to power with a majority government.

Just one year later, Trudeau broke his promise. Canadians were outraged.

Wage caps were imposed on workplaces with 500 or more employees, on all federal workers, and on most other public-sector employees. While inflation stood at nearly 11% in 1975, Trudeau’s law limited wage increases over the next three years to 8%, then 6%, and finally 4%. The attack on inflation was, in fact, an attack on workers’ wages as negotiated pay increases and collective agreements were rolled back.

The labour unrest caused by Trudeau’s betrayal resulted in over 11.6 million work days lost to strikes and lockouts in 1976 alone. The CLC, under the leadership of Joe Morris, called for a National Day of Protest on October 14^th that resulted in the largest labour protest in the country’s history. Over a million Canadians took part – walking off the job, marching in the streets, and voicing their opposition to Trudeau’s unfairness.

Despite the sacrifice imposed on millions of Canadian workers, their families and their communities, inflation had declined by just 1.7% when wage-and-price controls ended in 1978. Trudeau’s Liberals were defeated in the next federal election.

Today, Canada’s unions continue to push back against unfairness. Government austerity – cuts to programs and services, wage and hiring freezes, privatization, the selling of public assets, etc. – shifts the burden onto those who can least afford to pay. “From each according to their means, to each according to their needs” remains the golden rule.

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The Canadian Labour Congress (CLC) responded by calling on the Trudeau government to rein in the Crown corporation. CLC President Hassan Yussuff called out Canada Post’s pension stance as inconsistent with the federal government’s stated commitment to improving retirement security, particularly for future generations.

“This government was elected on a commitment to support good jobs and help Canadians afford retirement. Canada Post’s attack on its workers’ pensions is completely out of step with that standard,” said Yussuff.

“Prime Minister Trudeau and Public Services Minister Judy Foote cannot stand on the sidelines – they need to tell Canada Post that its attack on pensions is unacceptable,” Yussuff added.

“At a time when Canada Post is reporting consistent profits, they are peddling a myth that they are struggling financially, in order to slash pensions for new employees and justify unfair wages,” Yussuff added. “Indeed, no other Crown corporation is threatening to introduce a two-tier pension that would put future workers’ retirement security at risk.”

The Canadian Labour Congress is calling on the Trudeau government to ensure Canada Post negotiates a fair deal that does not compromise pensions for future generations.

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Last week, Canadian Labour Congress President, Hassan Yussuff, and several other Canadian union leaders met with Trade Minister Chrystia Freeland to express serious concerns about the deal.

“We made it clear that Canadians must be fully informed and have their say before there is any talk of ratification,” said Yussuff.

In a subsequent letter to Minister Freeland, Yussuff provided a detailed list of Canadian unions’ concerns with the Trans-Pacific Partnership, including the following major threats:

Corporations get more power to sue; workers remain largely unprotected

Investor-state dispute settlement (ISDS) is a provision in many trade agreements, which allows massive corporations to directly sue democratically-elected governments, in an unaccountable system separate from national courts, in order to protect and expand their profits.

For example, Canada is currently being sued by drug company Eli Lilly for $500 million after our courts refused to extend patents on several of their drugs.

While corporations are given more rights, workers’ rights remain almost totally unprotected under multinational trade agreements like the TPP. For example:

• Chapter 12 of the TPP gives corporations the ability to bring employees to Canada en masse, without any requirement that these workers be paid fairly;
• Employers will be able to transfer skilled trades and technical employees to Canada, with no requirement that they attempt to hire within Canada first;
• The labour provisions of the TPP have no teeth and provide no guarantees that basic workers’ rights in TPP partner countries will be protected and that workers will be able to exercise their rights to form a union and to engage in collective bargaining.

Since the early 1990s, as international trade agreements have proliferated, work has become more precarious, income inequality has grown, and corporations have found more ways to escape responsibilities to treat workers fairly. The TPP will only make things worse. A simulation by Tufts University using the UN Global Policy Model projects greater income inequality in every TPP country by 2025 as a result of the agreement.

If the goal behind the TPP is to improve our global economy, we need to end the flawed experiment with ISDS. It’s time to rebalance the “investor protection” process and ensure companies’ responsibilities – to treat workers fairly and protect the environment – are emphasized just as much as the protection of their assets.

Massive Job Losses in Automotive Manufacturing

In 2014, approximately 40,000 Canadians worked in motor vehicle manufacturing and another 70,000 in parts manufacturing. A study by Unifor found the TPP could lead to the loss of 20,000 jobs in the Canadian auto sector alone by:

• Quickly eliminating any remaining incentive to manufacture vehicles in Canada, favouring imports from Japan; and
• Increasing the incentive for companies to source auto parts from low-wage non-TPP nations, discouraging engine and transmission manufacturing in North America.

Canadian dairy farms under threat

Our country’s supply management system ensures Canadians have access to high-quality, locally-produced food while supporting small family farms and rural communities. Unfortunately, Canada’s has been importing more and more dairy since 2006. The TPP will give foreign dairy producers an even bigger share of our dairy market. 250 million liters of milk, and the production jobs that come from that, are at risk annually.

While dairy farm owners (but not workers) have been promised a 15-year compensation package, it’s clear the TPP will only hasten the decline of Canada’s dairy industry.

Lower Food Safety Standards

The TPP makes it harder for the Canadian government to introduce new or maintain existing regulations such as safety standards, even when they are in the public’s interest.

For example, Canada’s food safety system currently bans the sale of products containing bovine growth hormone. Under the TPP, our ban on bovine growth hormone, and other regulations designed to protect consumers, could be challenged as a “trade barrier.”

Higher Prescription Drug Costs

Canada already has the second-highest per capita drug costs in the world. The TPP gives even more monopoly patent protection to drug companies than they currently have, meaning it will take longer for Canadians to access cheaper, generic versions of drugs. The TPP’s concessions to drug companies could see Canadians pay over $800 million annually in increased drug costs.

In addition, the TPP:

• Locks Canada into its current level of privatization and commercialization, preventing public innovation, such as the introduction of a universal, national, public pharmacare program; and
• Gives large drug companies even more power to sue our governments if their patented drugs are excluded from government pharmacare plans.

Companies could prevent countries from fighting climate change

By virtue of the TPP and previous trade agreements such as the Comprehensive Economic and Trade Agreement (CETA), government can no longer attach conditions to procurement contracts to foster local economic development or ensure environmental standards. Therefore, governments may be restricted from demanding local hiring, the purchase of local products or requiring workers to be paid industry wages.

This restriction will likely mean that governments will not be able to maximize the job spinoff of large infrastructure projects, such as those that are expected in the fight against climate change. For example, the TPP would prevent a government from requiring local sourcing in order to foster green industry.

With ISDS, corporations will also be able to challenge the regulations required to fight climate change if they deem them to be unreasonable or unfair obstacles to carry on their business activities. As a result, the TPP will put a chill on governments taking the steps necessary to fight climate change. Without governments taking a strong role, we will not be able to transition to a low-carbon economy in time to avert climate catastrophe.

When the Harper government began negotiating the Trans-Pacific Partnership, they did not take the time to perform any kind of economic or environmental analysis. While major concerns like the above have been raised, no convincing case has been made for why Canadians would benefit from the TPP.

To read the full text of the letter to Trade Minister Freeland, click here.

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A Canadian Labour Congress research report shows that, due to lavish tax breaks, the largest of Canada’s non-financial corporations had paid their entire share of taxes to all levels of government in 2012 by the end of January. We call that Corporate Tax Freedom Day.

Since 2000, the general federal corporate income tax rate has been cut almost in half, from 28% to 15 per cent, and provinces have also been dropping their tax rates on corporate profits. Corporate income taxes in 2012 amounted to only 7.85 per cent of all government revenues, down from 10.1 per cent in 2000, and an average of 11 per cent in the 1960s and 70s.

The Conservative government and special interest groups claim incessantly that cutting corporate income taxes is good for the economy and for individual Canadians. We have been led to believe that tax giveaways to corporations would lead companies to reinvest in research and development as well as machinery and staff training to boost productivity. This is supposed to stimulate economic growth and create better paying and more secure jobs. But that is not what has happened in Canada during the past decade.

Let’s look at the record since 2000, when the drive to slash corporate taxes began.  The average annual economic growth between 2000 and 2012 was 1.14 per cent, one of the longest periods of low economic growth in decades. Business investment in research and development has fallen from 1.13 per cent of GDP in 2000 to 0.88 per cent of GDP in 2012. Investment in employee training and skills development is down by 40 per cent since the 1990s. The amount spent on training per employee in Canada in 2010 was $688; in the U.S it was $1,071. And now, taxpayers will get the privilege of subsidizing companies for employee training, with the federal government’s proposed Canada Jobs Grant.

As a labour leader, I am particularly concerned about the number and quality of jobs that are being created in Canada, and the news is not good. Officially, there were 1.38 million unemployed Canadians in December 2013. That compares to 1.1 million unemployed in October 2008, just prior to the recession. Today’s official unemployment rate of 7.2 per cent remains well above the pre-recession rate of 6 per cent — but the real rate is much higher.

The jobs that have been recovered are disproportionately part-time and precarious. Part-time jobs grew at twice the rate of full-time jobs, and account for 40 per cent of the job growth between 2008 and 2013. Part-time positions make up 19 per cent of all jobs. All of the growth in part-time jobs was involuntary, where job seekers are looking for full-time work but can only find part-time hours. Over 20 per cent of all jobs are low wage, and the minimum wage hasn’t kept pace with inflation in most provinces. That’s a major reason why child poverty continues to be a problem in Canada. Children are poor because they have poor parents — and one-third of all children in poverty live in households where at least one parent works full-time at a low-wage job. The ranks of the working poor in Canada are increasing, not decreasing.

Good, family-supporting jobs are the key to Canada’s economic success and corporate tax cuts aren’t delivering. In fact, corporate tax cuts have delivered nothing, except windfall profits that haven’t benefited the ordinary Canadians who paid for them.

The years of tax giveaways have, indeed, been good for business. Their after tax profit margins rose from 6.9 per cent in 2000 to 8.1 per cent in 2012, and now we know what they have been doing with the money. Between 2000 and 2012, the total cash reserves of private, non-financial private corporations in Canada grew from $182 to $541 billion, an increase of over 300 per cent. During the same period, CEO pay went sky-high. The average CEO compensation at Canada’s largest non-financial corporations averaged $7.96 million in 2012.

Corporate tax giveaways mean that the federal government has foregone billions of dollars in revenues. To pay for the tax breaks, Ottawa has borrowed billions of dollars and driven up the national debt. Now, the government has chosen to make big cuts to public services essential to Canadians in order to pay the bill for its tax giveaways.

We hold Corporate Tax Freedom Day to draw attention to the failure of business to deliver on its promises to Canadians. Clearly, slashing corporate tax rates did not produce the expected outcomes. No strings attached corporate tax cuts are a cruel and very expensive hoax and we should demand our money back.

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“Governments have slashed corporate taxes so deeply that in 2012 companies paid their share of taxes to all levels of government for the entire year by January 29,” says CLC Secretary-Treasurer Hassan Yussuff. “We hold Corporate Tax Freedom Day to draw attention to the urgent need for the government to stop wasting dollars on tax cuts and start making sense.”

Since 2000, the general federal corporate income tax rate has been cut almost in half, from 28% to 15%, and provinces have also been dropping their tax rates on corporate profits. “The years of tax giveaways have been good for business,” Yussuff says. “Their after tax profit margins rose from 6.9% in 2000 to 8.1% in 2012.”

Yussuff says, “In return for tax breaks, business has promised to invest in training, research and development and job creation but they have failed to do that. Companies have instead been hoarding cash and paying out fat compensation to their CEOs.”

Cutting corporate taxes has not provided the investments needed to stimulate Canada’s economy, Yussuff says. The average annual rate of economic growth between 2000 and 2012 was 1.14%, one of the longest periods of low economic growth in decades. Business investment in research and development fell from 1.13% of GDP in 2000 to 0.88% of GDP in 2012. Investment in employee training and skills development is down by 40% since the 1990s.

Yussuff says that unemployment has also increased during the years that coincide with corporate tax giveaways. “The official rate of unemployment in December 2000 was 6.8% and today it is 7.2%, but the real rate is about 14%. The potential of our work force, especially our younger workers, is seriously under-utilized.”

So, what did lower corporate taxes really deliver? Yussuff says, “The answer is resounding, overwhelming and backed with clear evidence: corporate tax cuts delivered nothing – except windfall profits that haven’t benefited the ordinary Canadians who paid for them.”

The CLC study shows that between 2000 and 2012 the total cash reserves of non-financial private corporations in Canada grew from $182 to $541billion, an increase of over 300%. During the same period, CEO pay went sky-high. The average CEO compensation at Canada’s largest non-financial corporations averaged $7.96 million in 2012.

Corporate tax giveaways costs the federal government billions of dollars in foregone revenues, Yussuff says. “To pay for its tax breaks, Ottawa has borrowed billions and driven up the national debt. Now, the government has chosen to make big cuts to public services in order to pay the bill for its tax giveaways.”

Yussuff adds, “It’s time to stop unproductive corporate tax cuts and demand that big business pay its fair share of taxes – and invest windfall profits in creating jobs and strengthening Canada’s economy.”

The Canadian Labour Congress, the national voice of the labour movement, represents 3.3 million Canadian workers. The CLC brings together Canada’s national and international unions along with the provincial and territorial federations of labour and 130 district labour councils.

Web site: www.canadianlabour.ca
Follow us on Twitter @CanadianLabour

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“Corporate income taxes amounted to only 8.3% of all government revenues in 2011, down from 8.8% in 2010 and from an average of 11% in the 1960s and 70s,” says CLC Secretary-Treasurer Hassan Yussuff. “In return for tax breaks companies are supposed to be investing their windfall to create good jobs in Canada but instead they are hoarding cash and paying fat compensation to their CEOs.” 

The CLC study shows that between 2001 and 2011 the total cash reserves of Canada’s largest non-financial private corporations grew from $187 billion to $575 billion. Between 2010 and 2011, there was an astounding one-year increase of $72 billion. This is a figure equal to more than double the entire $33.4 billion federal deficit for 2010-11. 

Yussuff says, “Bank of Canada Governor Mark Carney has called these corporate cash reserves dead money and he says that private companies should invest and put it to work. Even federal Finance Minister Jim Flaherty is frustrated with the situation and has called upon private corporations to invest in Canada.” 

The top 10 corporate hoarders alone have accumulated $27.7 billion in extra short and long term cash assets between 2001 and 2011. Those companies include: Teck Resources Limited, Bombardier Inc., Suncor Energy Inc., George Weston Limited, Barrick Gold Corporation and Research In Motion. CEOs from the top 10 cash hoarding companies are among the highest paid in the country.

Corporate tax giveaways have cost the federal government billions of dollars in foregone revenues, Yussuff says. To pay for its tax breaks, Ottawa has borrowed billions and driven up the national debt. Now, the government has chosen to make massive cuts to public services that are essential to Canadians in order to pay the bill for its tax giveaways.

“Ottawa should target corporate tax credits to companies that actually do invest in machinery and increased productivity in Canada,” Yussuff adds. “The government should also be investing in public infrastructure including transit, literacy, workplace training and child care. These are good ways to prepare for the economy of tomorrow and to stimulate Canada’s economic growth and development.” 

The report, What did Corporate Tax cuts Deliver? is posted on the CLC website at: www.canadianlabour.ca. Follow us on Twitter @CanadianLabour

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