Working In These Times
Canada’s Labor Movement Digs in for ‘PATCO Equivalent,’ as Lockouts Drag On
A poster calling for direct action by locked-out workers and supporters in London, Ontario. (Image courtesy of CAW Local 27)
It's usually difficult to get more than a few hundred union activists to show up to a rally in support of a small workforce facing steep concessions. But on January 21, more than 15,000 people showed up to a rally in support of 420 workers locked out in London, Ontario, according to organizers. That struggle, combined with a mine lockout in Alma, Quebec that also began on New Year's Day, is being billed by some embattled Canadian union officials as a pivotal moment for the country's labor movement akin to the failed 1981 air traffic controllers union (PATCO) strike that kicked of an era of unionbusting in the United States.
On January 1, Electro-Motive Diesel and England- and Australia-based mining giant Rio Tinto both decided to lock out workers in what some union officials see as a coordinated attack. Rio Tinto, which locked out 780 workers represented by the United Steelworkers, wants the right to replace each union worker that retires with a contract employee making half a union-level wage and ineligible to join the union. The result would be that in one decade, unionized workers would likely be in the minority in the aluminum smelting facility in Alma, and that in two decades the union would not exist, according to USW organizer Joe Drexler.
U.S.-based Caterpillar, which owns the Electro-Motive Diesel locomotive plant through a subsidiary, locked out 420 members of the Canadian Auto Workers Local 27. Despite Caterpillar increasing its profits by 44 percent over the last year, the company is asking union workers to let it cut wages by by as $18.50 an hour (55 percent) in some cases. The company is also asking for the elimination of defined benefits pensions as well as reduction in overtime and vacation plans.
“It’s no coincidence in my view that two different companies decided to lock out the two biggest industrial unions in Canada—the Steelworkers and the CAW—on the same day. This looks like an orchestrated attack,” said Communication, Energy, and Paperworkers Union President Dave Coles, whose union is in the process of merging with the CAW. “When you have these kind of big gigantic struggles, you don’t know who is going to win, but by the time this is done, these employers are going to have goddamn bloody noses. We are not going to allow Canadian employers to kick the shit out of Canadian workers.”
Both unions and their supporters are demanding that Canadian Prime Minister Stephen Harper get involved, since these are foreign-owned companies. "Get back to the table, Caterpillar," London, Ontario's Mayor Joe Fontana said at the rally. "Get your ass down here, Prime Minister Harper."
Under the Investment Canada Act, takeovers of Canadians companies by foreign companies require those foreign companies to demonstrate a "net benefit" to Canada. In 2007, Canadian Prime Minister Stephen Harper gave approval to Rio Tinto for the takeover of the mining facility in Alma, Quebec, previously owned by Alcan. In 2010, Harper also approved the takeover of London, Ontario-based Electro-Motive Diesel by Caterpillar. Workers say it’s time for Harper to step in and help negotiate a fair settlement.
"Both Rio Tinto and Caterpillar are committing economic rape of Canadian workers and communities, with help from Prime Minister Stephen Harper, who allowed foreign corporations to invade our country without any net benefit to Canada," USW Canada National Director Ken Neumann says.
The Caterpillar lockout in particular is international in scope, because the company says that if workers don’t agree to cut their wages in half, it will move production to a facility in Muncie, Indiana, where workers are already making less than $16 an hour. The Muncie facility is already nonunion and the unions in Indiana faced with a loss of dues from the Indiana's recently passed "Right to Work" law would most likely have a difficult time mustering the resources to organize the plant.
“It’s what we have been facing at the bargaining table quite a bit in the private sector in Canada. When we are at bargaining table, they compare what we make to lower wages in U.S. facilities,” says CAW Local 27 President Tim Carrie, whose union represents Caterpillar workers in London, Ontario. “President Obama talks a lot about creating goods jobs in America. I hope that his idea isn’t taking good-paying jobs from Canada and creating low paying jobs in the U.S. Otherwise, we are going to go to be in a race to the bottom.”
In both fights at Caterpillar in Ontario and Rio Tinto, workers are gearing up for a massive fight in their respectively small workplaces that could redefine labor relations not just in Canada, but worldwide.
"Rio Tinto has declared war not only on USW members but on our communities, on Quebec and on Canada," said Quebec Director USW Daniel Roy. "We believe Rio Tinto will use its attacks in Alma to begin a major assault on workers and communities around the globe."
“The lockout with Caterpillar is a watershed moment in Canada, it’s our equivalent of the PATCO strike," Carrie says. "When PATCO happened [in 1981] we didn’t see an uprising of the labor movement, the silence was almost deafening. If we lose this fight at Caterpillar, other employers will recognize that the labor movement in Canada is weak."
But Carrie is optimistic that with international and community support putting pressure on the Canadian government, victory at the Electro-Motive plant is possible.
“What Caterpillar has done has really galvanized the labor movement. I haven’t seen this level of community and labor support in a long time. ... I think the Occupy movement had something to do with the level of community support we are getting in regards to education of public about what’s happening in class struggle and society," he says. “This is an opportunity to fight back... It’s a watershed moment for the labor movement in Canada.”
Full disclosure: The United Steelworkers union is a sponsor of In These Times.

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Comments
Hello from Sweden,
i want to tell my opinion regarding Caterpillar. I was there at the event and i can say that the range of speakers who followed Zaczyk to the microphone showed the breadth of support for the lock-out workers, both in the London community and across the Ontario and Canadian labor movement. Speakers included the presidents of both the Canadian Labor Congress and the Ontario Federation of Labor; the leader of the New Democratic Party, Canada’s labor party (in Sweden:Geschenkideen ), in the federal Parliament; the president of the Canadian Union of Public Employees, the country’s largest public-sector union; a daughter of a locked-out EMD worker; the president of the graduate employee union at the University of Western Ontario; the director of the London Abused Women’s Center, an activist from Occupy London, and a nun who is a leading social justice activist in London. Several speakers noted how significant it is that the GE locomotive workers are in solidarity with the EMD locomotive workers - including London Mayor Joe Fontana, who took issue with the company’s claim that the EMD workers perform “unskilled” work.
What we should not forget is an important fact:
Today, tensions are once again high between the Federal Aviation Administration and the union that eventually emerged to replace PATCO, the National Air Traffic Controllers Association. NATCO and the FAA cannot agree on a new contract, so the FAA (in france: Werbemittel plans to impose its own contract, which includes major wage concessions.
What i forgo to mention: Some people may forget that the past few years have been turbulent at the London plant! After producing locomotives for General Motors for decades, the firm was sold by the beleaguered automaker to Greenbriar Equity Group and Berkshire Partners (equal to the Kellnerbörse partners in West-Europe) in 2005, before Caterpillar took over 2010. But in the last year, Caterpillar has opened several new locomotive assembly plants, including one in Muncie, Ind., where workers are paid less than what the company is offering its employees in London. Though there are questions about whether Muncie has the skilled labour required to supplant the experience and expertise of the so called London Freemail facility, some speculate that the lockout may be a precursor to shifting production south of the border.
With best regards from europe,
James Weston