Caterpillar lockout signals a nasty turn in labour strife

Canadians knew as they headed into 2012 that the job outlook was bleak, but the lockout of 465 workers at a diesel plant in London sets a grim new standard.

On New Year’s Eve, Electro-Motive, owned by the U.S. industrial giant Caterpillar, issued a final take-it-or-leave-it offer — a 50 per cent wage cut, no cost-of-living adjustment and a new co-payment for health insurance. The union said no. On New Year’s Day, it locked them out.

“I don’t recall it ever happening where a company in that situation came at workers to cut their wages in half,” said Mike Moffat, a professor of labour at the Ivey School of Business, part of the University of Western Ontario.

The company’s “bargaining” tactics weren’t the only thing that differentiated the first labour showdown of 2012 from past disputes.

The union representing the workers, the Canadian Auto Workers, was essentially powerless. “How do we find some space to negotiate?” asked president Ken Lewenza, predicting a long, drawn-out struggle.

Caterpillar, based in Illinois, didn’t bother to answer questions. It used a Toronto-based PR agency to give the company line.

The federal government, which approved the sale of the London company (then known as Progress Rail) to Caterpillar in 2010, washed its hands of the matter. A spokesman for Industry Minister Christian Paradis said the minister would not intervene because “these disputes are between a private company and a union.”

Ontario Labour Minister Linda Jeffrey’s office issued a pollyana-ish statement urging both sides to resume negotiations. “Bargaining in good faith behind closed doors is the best way to resolve these labour issues,” the ministry suggested unhelpfully. (Premier Dalton McGuinty at least said he was “very concerned” and urged both sides to moderate their tone.)

The workers braced for a long, difficult standoff. “It’s not just about the union,” said Paul Dona, a six-year Electro-Motive employee. “It’s about the whole country. Where the hell’s it stop?”

Many people — especially those living in the industrial heartland — are asking exactly that. Labour strife has taken on an ugly edge they’ve never seen before. No one seems able or willing to stand up to companies that unilaterally slash wages and benefits.

The statistics don’t yet reflect this bitter reality. The December unemployment rate, released on Friday, stood at a relatively moderate 7.5 per cent. But there are trouble signals in the numbers. Public sector hiring fell off dramatically. Full-time positions gave way to part-time work and self-employment. The youth unemployment rate was 14.1 per cent.

The only solace is that Canada, thanks to its oil wealth, is doing better than most other developed countries. But here in Ontario, where the manufacturing sector is being hollowed out and corporate giants are rewriting the rules of work, 2012 will be a year of painful adjustment.

Original Article
Source: Star