ALF V1

EDMONTON - Just because more and more employers are clamoring for access to easy-to-exploit temporary foreign workers doesn't mean the government should ignore the broader public interest and give them what they want.

That was the message of a strongly-worded letter sent today by Alberta Federation of Labour president Gil McGowan to federal Human Resources Minister Monte Solberg.

McGowan was responding to a new pilot program announced this week aimed at making it even easier for employers in Alberta and B.C. to bring foreign temporary workers into the country.

In the letter, McGowan pointed out that the federal government already dramatically lowered the bar for employers in November 2006 when the introduced the now-notorious "Lists of Occupations Under Pressure" for Alberta and B.C.

Under those changes, any employer looking to fill jobs that appear on the list has essentially been able to skip over steps in the application process aimed at proving they have actually tried to find people locally.

"When I heard about the latest move to expand the program, the first question that sprang to mind was:  hasn't the government already given employers everything they asked for," says McGowan. "When exactly is enough enough?"

McGowan scoffed at promises made by Solberg that measures would be implemented "in the coming year" to introduce protections aimed at discouraging abuse and exploitation of temporary foreign workers.

"Shouldn't mechanisms for 'monitoring and compliance' be put in place before, not after, you open the door to thousands of new workers?" he asked.

McGowan agreed that a growing number of employers, especially in the restaurant and hospitality sector, are having a hard time finding people willing to work for the wages that they're used to paying.  But he argued that "government shouldn't be in the business of helping employers keep wages down."

"Basic economics tells us that the first response of employers to tightening labour markets should be to make their jobs more attractive and introduce labour-saving innovations," wrote McGowan.

"But instead of doing that, more and more employers are turning to your government for a quick fix - and you're bending over backwards to give it to them ... I would argue that your efforts ... distort the labour market, discourage innovation, act as a disincentive for businesses to invest in training and put a drag on wages for Canadians. I would also argue that your efforts represent an illegitimate use of the government's legislative power."

McGowan concluded by saying that the real solution to Canada's labour force challenges lie with education and meaningful immigration reform.

"I'm going to start calling the minister Monte 'Open the Floodgates' Solberg," said McGowan. "He's deliberately turning what was a trickle of temporary workers into a disturbing torrent. And he's doing that without a broad public debate and without any evidence that this approach is really in the long-term best interests of Canadians."

- 30 -

For more information call:

Gil McGowan, AFL President @ 780.218-9888 (cell)

Without safeguards, Keystone pipeline will act as a spigot draining thousands of potential value-added jobs out of Alberta says McGowan

If Alberta Premier Ed Stelmach was looking for another good reason to implement all of the recommendations put forward by his government's blue-ribbon Royalty Review panel, the National Energy Board (NEB) has given it to him.

In a ruling handed down late this afternoon at its Calgary headquarters, the NEB gave the green light to a controversial mega-pipeline that will ship more than 600,000 barrels of raw bitumen each day from Alberta to upgraders and refineries in the American mid-west.

For the past year, two labour organizations - the Alberta Federation of Labour (AFL) and the Communication, Energy, Paperworkers (CEP) union - have led the fight to stop the pipeline on the grounds it will ship literally thousands of high-quality upgrader and refinery jobs down the pipeline along with the bitumen.

"The bottom line is that every barrel of raw bitumen shipped to upgraders and refineries in the U.S. is a barrel of bitumen that's not available for Alberta-based upgrading or job creation," says McGowan.

"In effect, the NEB is allowing the creation of a 'bitumen superhighway' that will take Alberta resources to refineries in the States. That may be great news for the Americans, but it's bad news for anyone who believes, as we do, that Albertans should be more than 'hewers of wood and drawers of water'."

In a letter sent to Premier Stelmach shortly after the NEB decision was announced, McGowan argued that the NEB decision makes full implementation of the royalty panel's recommendations more crucial than ever.

"Without safeguards like the proposed upgrader royalty credit, the Keystone pipeline and others like it will act as a spigot draining thousands of potential high-paying, value-added jobs from Alberta," wrote McGowan.

McGowan says that "more aggressive action" - like regulation or even government ownership of projects - may be necessary to promote a "more vigourous Alberta-based downstream petroleum industry." But he said an upgrader royalty credit is the bare minimum of what should be done to keep jobs and value-added production in the province.

- 30 -

For more information call:

Gil McGowan, AFL President @ 780.218-9888 (cell)

The decision rendered this morning by the Alberta Labour Relations Board (LRB) declaring the strike notice filed by the Carpenters union invalid is the latest example of how Alberta's labour laws illegitimately restrict fundamental rights for Alberta workers.

"The LRB decision this morning is an outrage," says AFL President Gil McGowan, "but the main culprit in this injustice is Alberta's horrible labour laws."

"The carpenters acted appropriately and democratically in their efforts to stand up for their members," observes McGowan. "In any jurisdiction with truly free and open collective bargaining, they would be in a legal position to strike today. However, we live in Alberta, where workers are not afforded even the most basis of rights."

McGowan states the decision takes an unnecessarily narrow interpretation of the sections of the Labour Code at question in the case. However, he suggests, the primary problem is the convoluted and restrictive rules governing bargaining and the right to strike in the construction sector.

"You need a masters degree in mathematics to understand all the numerical requirements in the construction part of the Code," notes McGowan. "The multitude of roadblocks, hoops and hurdles in the law are designed explicitly and intentionally to prevent workers from expressing their democratic right to strike."

"And that," says McGowan, "leads us straight to the doors of the legislature and the Alberta government. They created a bad law that must be changed."

"I take my hat off to the thousands of carpenters in Alberta for trying to exercise their democratic right to strike," says McGowan. "And I say to the rest of Albertans that it is time to force the Conservatives to change the labour laws."

- 30 -

For more information call:

Gil McGowan AFL President  @  780.218-9888 (cell)

It was only a matter of time.

Whenever the economy heats up, business people reward themselves with bigger salaries and hefty bonuses.

"We've earned it," they tell themselves as they put orders in for the latest BMW status symbol or the newest gas-guzzling monster SUV.

But when ordinary, wage-earning workers begin asking for a bigger piece of the pie, they're usually denounced as greedy, selfish and short-sighted.

Over the past few months, this old double-standard has re-surfaced with a vengeance in Alberta.

As groups of unionized workers - from nurses and paramedics in the public sector to construction and energy workers in the private sector - have tabled aggressive contract positions, a wounded cry of protest has gone up from corporate boardrooms and the business press.

One prominent columnist described unionized Alberta construction workers as among the most "coddled" in the world and called their wage demands "absurd."

A short time later, a well-known business professor and an influential energy industry analyst both warned darkly that the wage demands being advanced by Alberta workers threaten to drive up inflation, undermine our province's "business-friendly" reputation and scare away oil sands investment.

One B.C.-based construction boss went so far as to say that unionized workers were "holding a loaded gun" to the head of Alberta's economy and that all workers (not just "essential" public sector workers) should be stripped of their right to strike.

In the face of these kinds of verbal assaults, some working people might start wondering if, just maybe, the bosses are right. But they shouldn't allow themselves to be sucked in by all the hype and mock indignation.

The truth is that the wage increases being sought (and won) by unionized Alberta workers have been reasonable, fair - and entirely appropriate.

In most cases, unions have been asking for increases of between five and seven percent a year. This might be out of line in other provinces, where the cost of living has been increasing by only about 2 percent annually.

But in Alberta, inflation shot up by more than five percent in the first six months of this year - and in June it rang in at a whopping 6.3 percent over the cost of living in June 2006. That's three times higher than the national average.

In this climate, wage increases of anything less than five or six percent represent a cut in real taken home pay and purchasing power.

Given the unprecedented growth in the Alberta economy - and the fact that inflation adjusted wages have remained essentially flat for the past fifteen years - is it unreasonable for workers to aspire to something more than simply treading water?

If the working middle class can't get ahead during a boom, when exactly can they?

As far as claims go that wage increases will drive up inflation or discourage investment, two things need to be said.

First, growing unionized wage demands haven't caused Alberta's overheated economy - they've been a response to it.

If the only way the boom can be sustained is by convincing workers to take cuts to their inflation-adjusted take-home pay, then the boom is probably not sustainable.

Second, threats about "capital flight" are over blown. Even factoring in rising costs for things like labour and building materials, the Conference Board of Canada projects that the Canadian oil industry is on track to $12.6 billion in profits this year - not a record, but still very healthy.

What really determines whether energy companies invest in Alberta is not labour costs - it's global demand and international prices for oil.

As Newfoundland Premier Danny Williams recently demonstrated, in a world of rapidly disappearing "cheap" oil and galloping demand from monster economies like China and India, energy companies will (however reluctantly) pay more for the privilege of exploiting publicly-owned energy resources.

Oil executives may bluster and rattle their sabers - some of them may even take their balls and leave the sandbox for short periods. But as long as we have the resource that the world wants under our feet, they'll be back.

Having said all that, union members and leaders agree that inflation is a real concern for Albertans. It bites into both corporate profits and individual workers' standard of living.

But it's not workers who are causing the problem - they're just trying to avoid being swamped by the rising economic tide.

The real cause of overheating in the Alberta economy is the decision by energy companies to develop an unreasonable number of oil sands projects at once - and the decision by the provincial government to stand passively on the sidelines and simply let that happen.

If our leaders in government and business really want to tame the excesses of the Alberta economy, then what we need - as former Premier Peter Lougheed has urged - is a plan to regulate the pace of development so that it doesn't outstrip the ability of our labour force or community infrastructure to handle the growth.

We also need rules to ensure that upgraders and refineries are built here - as opposed to having valuable "down-stream" jobs shipped down pipelines along with our oil to destination in the U.S.

Left to their own devices, energy companies will never do this - none of them will voluntarily move to the back of the line. And none of them will willingly put the Alberta public interest ahead of their narrow corporate self interest. Only government can effectively play the role of referee, traffic cop and steward of the public interest.

Unfortunately, our barely visible premier, Ed Stelmach, has made it clear he has no plans to "touch the brake" or address the energy industry's Wild West approach to development.

This stubborn refusal to stand up for the public interest may cause the Alberta's economic house of cards to come tumbling down. But let's be clear - that collapse will be the result of business and government policy failures, not the result of wage demands from workers.

So what's my advice to working people as they return from the Labour Day long weekend? Don't be afraid to use the power that the market is giving us to drive hard bargains and grab the biggest piece possible of Alberta's growing economic pie.

As market-loving business people might admit themselves, smart people take advantage of market conditions to get the highest possible returns. The labour market is a market like any other, so we'd be suckers if we fell for corporate guilt trips and missed out on this opportunity to make gains.

Unions are warning Alberta's employment minister they will take the government to court if it doesn't change labour-relations rules that contravene a recent Supreme Court ruling.

The Alberta Federation of Labour -- the province's largest labour organization -- sent a letter Friday to Iris Evans asking for a meeting to discuss legislative changes. If changes are not made, unions will look for specific cases they could use to challenge Alberta labour laws in court, according to the letter sent just before Labour Day.

"And we both know a number of sections will not survive a court challenge. But there is another option," Alberta Federation of Labour president Gil McGowan wrote to the minister.

"We can work together to repair the damaged parts of the (Alberta Labour Relations) Code and other labour legislation and save Albertans the money, time and hassle of having to use the lengthy court process."

The AFL met last week with 50 senior labour leaders who represent most of Alberta's unionized work force to discuss the June Supreme Court decision that affects unions' right to collective bargaining.

The Supreme Court of Canada ruled that collective bargaining rights are protected under the Charter of Rights and Freedoms, which guarantees freedom of association.

The landmark ruling came out of a British Columbia case but has repercussions for laws across the country.

The Alberta Federation of Labour argues there are numerous pieces of labour legislation in this province that interfere with unions' now constitutionally protected right to bargain collectively.

For instance, said McGowan, a group of carpenters who voted last month in favour of a strike still can't walk off the job because current laws group that union with another union representing labourers. The votes of both unions must be counted before either one can serve strike notice.

"The section of the labour code dealing with construction workers was designed to make it almost impossible for those workers to go on strike. Those kinds of unreasonable and unfair rules and hurdles are no longer constitutional as a result of the recent court decision," McGowan said.

Other Alberta legislation prevents provincial employees from bargaining their own pensions, and separate rules stop agriculture workers from joining unions, McGowan said.

"So basically, what the court said in this decision was that labour law in all Canadian provinces should be used to facilitate collective bargaining, not to undermine it."

A spokeswoman for Alberta Employment, Immigration and Industry said the department is already working with Alberta Justice to review the Supreme Court decision and determine its implications for Alberta legislation.

Calgary Herald, Page B2, Mon Sept 3 2007

KEVIN NEWMAN: Well with so many of us returning to the habit of waking to an alarm clock again, a new survey of Canadian workers on this Labour Day showing that in spite of a booming economy in much of the country, job satisfaction is sinking. Francis Silvaggio is also on his first day back from vacation, so he seemed like the right guy to handle this one.

FRANCIS SILVAGGIO (Reporter): Alberta's economy continues to boom. There's more work, more money, more people. So why are these labour leaders concerned?

GIL MCGOWAN (Alberta Federation of Labour): We've got a growing disparity between people on the top end making a lot of money and people on the bottom end making much less. And it's not just a disparity in wages.

SILVAGGIO: In fact Graham Lowe's research discovered even though Canada's economy has grown over the past 25 year, actual job quality has declined and only about half of us are satisfied with our jobs.

GRAHAM LOWE (Employment Researcher): Because the economy is so strong these days, you might think that there would be benefits for people in terms of improvements in the quality of their workplace. We're not seeing that.

SILVAGGIO: That's no surprise to national labour groups that have seen union memberships fall sharply as well.

SID RYAN (CUPE Ontario President): They're making profits at the expense of the workers is what they're doing, and they're using globalization as the battering ram to force unions and to force employers to, employees to lower their wage demands, open up their collective agreements, give concessions.

SILVAGGIO: As the workforce begins to shift with the retirement of our baby boomers, experts say job quality will be more important than ever to keep our economy growing.

LOWE: By providing people with better quality work environments. Work environment that really encourage them, inspire them to contribute their best, that is going to improve business success. It's also going to make people want to stay with their employer so it's going to reduce turnover. It's going to reduces absenteeism, and absenteeism is trending up in this country, that's a problem. So it's going to have a lot of positive chaos for the economy overall.

SILVAGGIO: Which is why on this Labour Day, labour officials are urging all levels of government to take action.

MCGOWAN: Is this the kind of Canada that we want, that's sort of divided between the haves and have-nots. Shouldn't we be fighting for a stronger middle class Canada that allows everyone to share in the prosperity? That's the challenge for our policymakers.

GLOBAL NATIONAL, Mon Sept 3 2007

EDMONTON - Unions are warning Alberta's employment minister that they will take the government to court if it doesn't change labour relations rules that contravene a recent Supreme Court ruling.

The Alberta Federation of Labour, the province's largest labour organization, sent a letter Friday to Iris Evans asking for a meeting to discuss legislative changes. If changes are not made, unions will look for specific cases they could use to challenge Alberta labour laws in court, says the letter sent just before Labour Day.

"And we both know a number of sections will not survive a court challenge. But there is another option," Alberta Federation of Labour president Gil McGowan wrote to the minister.

"We can work together to repair the damaged parts of the (Alberta Labour Relations) Code and other labour legislation, and save Albertans the money, time and hassle of having to use the lengthy court process."

The AFL met last week with 50 senior labour leaders who represent most of the province's unionized work force to discuss the June Supreme Court decision that affects unions' right to collective bargaining.

The court ruled that collective bargaining rights are protected under the Charter of Rights and Freedoms, which guarantees freedom of association.

The landmark ruling came out of a British Columbia case, but has repercussions for laws across the country.

The AFL argues there are numerous pieces of labour legislation in this province that interfere with unions' now constitutionally protected right to bargain collectively.

For instance, said McGowan, a group of carpenters that voted last month in favour of a strike still can't walk off the job because current laws group that union with another union representing labourers. The votes of both unions must be counted before either one can serve strike notice.

"The section of the labour code dealing with construction workers was designed to make it almost impossible for those workers to go on strike," McGowan said.

"Those kinds of unreasonable and unfair rules and hurdles are no longer constitutional as a result of the recent court decision."

Other Alberta legislation prevents provincial employees from bargaining their own pensions, and rules stop agriculture workers from joining unions, McGowan said.

"So basically, what the court said in this decision was that labour law in all Canadian provinces should be used to facilitate collective bargaining, not to undermine it."

Senior labour lawyer Bob Blair said he can't predict if the Alberta government will change laws before unions challenge them in court.

"Certainly, the history hasn't been one of changing legislation to head off constitutional challenges. In fact, the legislation hasn't changed since 1988 in any substantial way."

Blair, who was chairman of the Alberta Labour Relations Board from 1994 to 1999, said the government has never amended laws that prevent agriculture workers from unionizing.

"Similar laws have been struck down in other provinces," said Blair, whose law firm represents trade unions and has acted for the AFL.

"The Supreme Court of Canada has clearly said that it is not permissible, and it said it several years ago and the legislation hasn't been changed."

A spokeswoman for Alberta Employment, Immigration and Industry said the department is working with Alberta Justice to review the Supreme Court decision and determine its implications for Alberta legislation.

"Minister Evans has already directed her officials to prepare a plan to consult with Albertans regarding consolidation of labour legislation in the province," Lorelei Fiset-Cassidy said.

"However, there is still a significant amount of work to be done, and that will take some time."

Edmonton Journal, Page A13, Mon Sept 3 2007
Byline: Andrea Sands

Days after Alberta's labour market was declared tops in North America, 125,000 of its unionized workers are demanding a review of provincial labour legislation they say is weak and unconstitutional.

The Alberta Federation of Labour has sent a letter to Iris Evans, minister of employment, industry and immigration, to review the laws -- two days after the Fraser Institute declared Alberta the labour market champ among the 10 provinces and 50 U.S. states.

AFL president Gil McGowan blasted the study, saying it claims unions are "a drag on economic performance."

"Alberta has a higher rate of unionized workers than every American state and yet we outperform them," he said.

"How does the Fraser Institute explain that?"

McGowan said aspects of Alberta's labour legislation don't conform to recent Supreme Court decisions -- including a recent ruling in B.C. that enshrined the right to collective bargaining -- which spurred the call on Evans for a review.

"We're not asking her to change labour law in the province, we're telling her," said McGowan.

"The most recent decision is something too big and too significant to be ignored."

More than 50 of Alberta's labour leaders discussed the B.C. ruling before the long weekend, saying they would be prepared to take the law to court as a result.

Sections of the laws that could be overturned if challenged include prohibiting agricultural workers from joining unions and bans on secondary picketing, said McGowan.

The Calgary Sun, Page 8, Sun Sept 2 2007
Byline: Katie Schneider

It was only a matter of time.

Whenever the economy heats up, business people reward themselves with bigger salaries and hefty bonuses.

"We've earned it," they tell themselves as they put orders in for the latest BMW status symbol or the newest gas-guzzling monster SUV.

But when ordinary, wage-earning workers begin asking for a bigger piece of the pie, they're usually denounced as greedy, selfish and short-sighted.

Over the past few months, this old double-standard has re-surfaced with a vengeance in Alberta.

As groups of unionized workers - from nurses and paramedics in the public sector to construction and energy workers in the private sector - have tabled aggressive contract positions, a wounded cry of protest has gone up from corporate boardrooms and the business press.

One prominent columnist described unionized Alberta construction workers as among the most "coddled" in the world and called their wage demands "absurd."

A short time later, a well-known business professor and an influential energy industry analyst both warned darkly that the wage demands being advanced by Alberta workers threaten to drive up inflation, undermine our province's "business-friendly" reputation and scare away oil sands investment.

One B.C.-based construction boss went so far as to say that unionized workers were "holding a loaded gun" to the head of Alberta's economy and that all workers (not just "essential" public sector workers) should be stripped of their right to strike.

In the face of these kinds of verbal assaults, some working people might start wondering if, just maybe, the bosses are right. But they shouldn't allow themselves to be sucked in by all the hype and mock indignation.

The truth is that the wage increases being sought (and won) by unionized Alberta workers have been reasonable, fair - and entirely appropriate.

In most cases, unions have been asking for increases of between five and seven percent a year. This might be out of line in other provinces, where the cost of living has been increasing by only about 2 percent annually.

But in Alberta, inflation shot up by more than five percent in the first six months of this year - and in June it rang in at a whopping 6.3 percent over the cost of living in June 2006. That's three times higher than the national average.

In this climate, wage increases of anything less than five or six percent represent a cut in real taken home pay and purchasing power.

Given the unprecedented growth in the Alberta economy - and the fact that inflation adjusted wages have remained essentially flat for the past fifteen years - is it unreasonable for workers to aspire to something more than simply treading water?

If the working middle class can't get ahead during a boom, when exactly can they?

As far as claims go that wage increases will drive up inflation or discourage investment, two things need to be said.

First, growing unionized wage demands haven't caused Alberta's overheated economy - they've been a response to it.

If the only way the boom can be sustained is by convincing workers to take cuts to their inflation-adjusted take-home pay, then the boom is probably not sustainable.

Second, threats about "capital flight" are over blown. Even factoring in rising costs for things like labour and building materials, the Conference Board of Canada projects that the Canadian oil industry is on track to $12.6 billion in profits this year - not a record, but still very healthy.

What really determines whether energy companies invest in Alberta is not labour costs - it's global demand and international prices for oil.

As Newfoundland Premier Danny Williams recently demonstrated, in a world of rapidly disappearing "cheap" oil and galloping demand from monster economies like China and India, energy companies will (however reluctantly) pay more for the privilege of exploiting publicly-owned energy resources.

Oil executives may bluster and rattle their sabers - some of them may even take their balls and leave the sandbox for short periods. But as long as we have the resource that the world wants under our feet, they'll be back.

Having said all that, union members and leaders agree that inflation is a real concern for Albertans. It bites into both corporate profits and individual workers' standard of living.

But it's not workers who are causing the problem - they're just trying to avoid being swamped by the rising economic tide.

The real cause of overheating in the Alberta economy is the decision by energy companies to develop an unreasonable number of oil sands projects at once - and the decision by the provincial government to stand passively on the sidelines and simply let that happen.

If our leaders in government and business really want to tame the excesses of the Alberta economy, then what we need - as former Premier Peter Lougheed has urged - is a plan to regulate the pace of development so that it doesn't outstrip the ability of our labour force or community infrastructure to handle the growth.

We also need rules to ensure that upgraders and refineries are built here - as opposed to having valuable "down-stream" jobs shipped down pipelines along with our oil to destination in the U.S.

Left to their own devices, energy companies will never do this - none of them will voluntarily move to the back of the line. And none of them will willingly put the Alberta public interest ahead of their narrow corporate self interest. Only government can effectively play the role of referee, traffic cop and steward of the public interest.

Unfortunately, our barely visible premier, Ed Stelmach, has made it clear he has no plans to "touch the brake" or address the energy industry's Wild West approach to development.

This stubborn refusal to stand up for the public interest may cause the Alberta's economic house of cards to come tumbling down. But let's be clear - that collapse will be the result of business and government policy failures, not the result of wage demands from workers.

So what's my advice to working people as they return from the Labour Day long weekend? Don't be afraid to use the power that the market is giving us to drive hard bargains and grab the biggest piece possible of Alberta's growing economic pie.

As market-loving business people might admit themselves, smart people take advantage of market conditions to get the highest possible returns. The labour market is a market like any other, so we'd be suckers if we fell for corporate guilt trips and missed out on this opportunity to make gains.

It was only a matter of time. Whenever the economy heats up, business people reward themselves with bigger salaries and hefty bonuses.

"We've earned it," they tell themselves as they put orders in for the latest BMW or gas-guzzling monster SUV.

But when ordinary, wage-earning workers begin asking for a bigger piece of the pie, they're usually denounced as greedy and short-sighted.

Over the past few months, this double-standard has re-surfaced with a vengeance in Alberta.

As groups of unionized workers -- from nurses and paramedics in the public sector to construction and energy workers in the private sector -- have tabled aggressive contract positions, a wounded cry of protest has gone up from corporate boardrooms and business press.

One prominent columnist described unionized Alberta construction workers as among the most "coddled" in the world and called their wage demands "absurd."

Calgary Herald, Page A23, Sat Sept 1 2007
Byline: Gil McGowan

A well-known business professor and an influential energy industry analyst both warned darkly that the wage demands being advanced by Alberta workers threaten to drive up inflation, undermine our province's "business-friendly" reputation and scare away oilsands investment.

One B.C.-based construction boss went so far as to say that unionized workers were "holding a loaded gun" to the head of Alberta's economy and that all workers (not just those deemed "essential") should be stripped of their right to strike.

In the face of these kinds of verbal assaults, some working people might start wondering if, just maybe, the bosses are right. But they shouldn't allow themselves to be sucked in by all the hype and mock indignation.

The truth is that the wage increases being sought (and won) by unionized Alberta workers have been reasonable, fair -- and entirely appropriate.

In most cases, unions have been asking for increases of between five and seven per cent a year. This might be out of line in other provinces, where the cost of living has been increasing by about two per cent annually.

But in Alberta, inflation shot up by more than five per cent in the first six months of this year -- and in June it rang in at a whopping 6.3 per cent over the cost of living in June 2006. That's three times higher than the national average.

In this climate, wage increases of anything less than five or six per cent represent a cut in take-home pay and purchasing power.

Given the unprecedented growth in the Alberta economy -- and the fact that inflation-

adjusted wages have remained essentially flat for the past 15 years -- is it unreasonable for workers to aspire to something more than treading water?

If the working middle class can't get ahead during a boom, when exactly can they?

In response to the claim wage increases will drive up inflation or discourage investment, two things need to be said.

First, growing unionized wage demands haven't caused Alberta's overheated economy -- they've been a response to it.

If the only way the boom can be sustained is by convincing workers to take cuts to their inflation-adjusted take-home pay, then the boom is probably not sustainable.

Second, threats about "capital flight" are overblown. Even factoring in rising costs for things like labour and building materials, the Conference Board of Canada projects that the Canadian oil industry is on track for $12.6 billion in profits this year -- not a record, but very healthy.

What really determines whether energy companies invest in Alberta is not labour costs -- it's global demand and international prices for oil.

As Newfoundland Premier Danny Williams recently demonstrated, in a world of rapidly disappearing "cheap" oil and galloping demand from monster economies like China and India, energy companies will (however reluctantly) pay more for the privilege of exploiting publicly-owned energy resources.

Oil executives may bluster and rattle their sabres -- some of them may even take their balls and leave the sandbox for short periods. But as long as we have the resource the world wants, they'll be back.

Having said all that, union members and leaders agree that inflation is a real concern for Albertans. It bites into both corporate profits and individual workers' standard of living.

But workers are not causing the problem -- they're just trying to avoid being swamped by the rising economic tide.

The real cause of overheating in the Alberta economy is the decision by energy companies to develop an unreasonable number of oilsands projects at once -- and the decision by the provincial government to stand passively on the sidelines.

If our leaders in government and business really want to tame the excesses of the economy, then what we need -- as former Premier Peter Lougheed has urged -- is a plan to regulate the pace of development so that it doesn't outstrip the ability of our labour force or infrastructure to handle the growth.

We also need rules to ensure upgraders and refineries are built here -- as opposed to having valuable "downstream" jobs shipped down pipelines along with our oil to the U.S.

Left to their own devices, energy companies will never do this. And none of them will willingly put the public interest ahead of their corporate self-interest. Only government can effectively play the role of referee, traffic cop and steward of the public interest.

Unfortunately, our barely visible premier, Ed Stelmach, has made it clear he has no plans to "touch the brake" or address the energy industry's Wild West approach to development.

This stubborn refusal to stand up for the public interest may cause Alberta's economic house of cards to come tumbling down. But let's be clear -- that collapse will be the result of business and government policy failures, not wage demands.

So what's my advice to working people?

Don't be afraid to use the power that the market is giving us to drive hard bargains and grab the biggest piece possible of Alberta's economic pie.

Smart people take advantage of market conditions to get the highest possible returns. The labour market is a market like any other, so we'd be suckers if we fell for corporate guilt trips and missed out on this opportunity to make gains.

Calgary Herald, Sat Sept 1 2007
see also Edmonton Journal, Mon Sept 3 2007
By Gil McGowan
AFL President