Taxes, service cuts hot topics at Redford’s economic summit
CALGARY - Premier Alison Redford's first economic summit primed Albertans for a consumption tax, foreshadowed coming service cuts and reiterated the need to access new markets for oilsands products.
Virtually all of the economists at the Saturday summit in Calgary agreed a sales tax makes financial sense for Alberta, either because it will lower personal and corporate taxes, or because it will underwrite government spending.
That led critics to conclude the panels were "stacked" in favour of the government's existing agenda, but Redford said only that she will continue to engage with Albertans on the issue.
"I think it's really important to talk to Albertans about (the idea of a sales tax)," Redford said. "One of the other things a lot of people in the room said was that even before you start having a conversation about this, you have to understand what the fundamentals are."
Under Alberta law, a referendum would be required before the government could implement a tax. Asked if it's time for a referendum, Redford said: "I don't think we're anywhere near that at all. I think the fact that people are beginning to think about it and talk about it as an idea is a really important thing. ... No need to jump the gun."
Redford said more than 70,000 people engaged in the discussion through the online social media network Twitter. Roughly 300 people attended the summit in person, including most Tory MLAs and members of Redford's inner circle.
Redford listened to all the panels and said afterward she took particular interest in discussions about increased use of public-private partnerships and the notion that assuming low-interest debt is a worthwhile risk to build public infrastructure.
"This isn't about incurring debt, this is about assuming risk," Redford said. "These are still assets that continue to be publicly owned, but they allow us to build them in an effective way."
Redford also took note of the role not-for-profit agencies play in the service delivery, and touted her Canadian Energy Strategy.
Opposition parties said Redford is laying the groundwork for a sales tax.
Wildrose opposition leader Danielle Smith said she was disappointed the conversation turned so often to the idea that Alberta has a revenue problem and should either take out debt or raise taxes.
"I'm very worried that what we're going to see is that this is laying the table to try to soften the ground for tax increases in future years, and I don't think that's what Albertans want."
Smith said a sales tax will hit low-income Albertans hardest.
Alberta NDP Leader Brian Mason was disappointed nobody talked about the need to upgrade bitumen in Alberta and that economists talked almost exclusively about a sales tax, not about increasing taxes on corporations and wealthy Albertans.
"My sense from this is that those panels were stacked with people who wanted to have a sales tax," Mason said. "It was not unanimous, but it was pretty close. And nobody talked about a progressive income tax, nobody talked about making sure the wealthiest in our society pay their fair share.
"I think the government ... is trying to set the stage for a sales tax, and that's not something we support, because it is a more regressive tax, because it doesn't tap into the wealth that is there."
Several prominent Alberta economists and business leaders called for a sales tax, including the University of Alberta's Joseph Doucet, AIMCO's Leo de Beaver and AltaCorp CEO George Gosbee, who advocated a five-per-cent sales tax.
Jack Mintz, chair of the University of Calgary's public policy school, said the province should levy an eight-per-cent consumption tax and the money collected should be used to offset personal income and corporate taxes.
"The art of taxation is plucking the goose with the least amount of hissing," Mintz said, adding the case for a sales tax is a "slam dunk."
In the final session, panellists discussed Albertans' expectations, and talk turned to cuts.
University of Calgary professor and Wildrose strategist Tom Flanagan said the best solution is Ralph Klein-style budget cuts.
"Politically, the only thing that works is virtually across the board," Flanagan said. "I'm talking about fairly drastic action ... what you have to do to bring your budget back into line."
Alberta Federation of Labour president Gil McGowan objected.
"We've seen this movie, and it was a horror story," McGowan said. "It vaporized an entire generation of nurses and teachers ... and created an infrastructure deficit that undermined the productivity of our private sector.
"Haven't we learned anything?"
Calgary Herald, Sunday, Feb. 10, 2013
Byline: Karen Kleiss, Edmonton Journal
Alberta issues record setting fine to Chinese state-owned oil firm
An Alberta judge has ordered the Canadian arm of a Chinese state-owned oil company to pay the biggest workplace safety fine in the province's history after the death of two foreign workers at a massive construction project about five years ago.
"The fine is good, but no amount of money can make up for what they did wrong in the first place," said Wayne Prins, Alberta director of the Christian Labour Association of Canada (CLAC).
"In our view, the fine sends the right message to contractors and people in the industry that you must follow the procedures and rules in place."
Alberta Provincial Judge John Maher ordered Sinopec Shanghai Engineering Company (SSEC) to pay a $1.5 million fine in a St. Albert court room on Jan. 24.
The fine is related to the deaths of a welder named Ge Genbao, 27, and an electrical engineer named Lui Hongliang, 33, at the Canadian Natural Resources Ltd. (CNRL) Horizon oilsands project.
They were killed on April 27, 2007 at the facility located north of Fort McMurray.
The Chinese temporary foreign workers were welding the wall structure inside a massive storage tank when the roof support structure collapsed onto them.
Two other foreign workers were seriously injured.
Under Alberta's Occupational Health and Safety Act, 53 charges were laid against three companies in the deaths of Genbao and Hongliang and the injuries of the other workers.
CNRL, who was in charge of the construction site at the Horizon oilsands project, hired SSEC to build the storage tanks.
SSEC is the Canadian subsidiary of Chinese state –owned oil company Sinopec.
Sinopec hired more than 100 temporary foreign workers in China and began work on the construction of two oil storage tanks in late 2006.
SSEC pled guilty to three charges in September 2012 of failing to ensure the health and safety of workers.
The company was given the maximum $500,000 fine for each charge. Despite this fact, some people believe the fine will do nothing to deter them from practices that endanger workers.
"Sinopec didn't just import workers from the third world, they also imported third-world health and safety standards," said Alberta Federation of Labour President Gil McGowan.
"Alberta missed its chance to send a message that Chinese companies working in the oilsands need to play by Canadian rules."
McGowan argued that the fines are too small to make a difference to the massive corporation.
"One and a half million dollars doesn't even amount to a rounding error in the annual budget of a monstrous global corporation like Sinopec," he said.
"This fine does nothing to dissuade them from playing fast and loose with the safety of their workforce."
The original plan was to build the tank walls first, then use them to support the roof while it was under construction.
That plan changed when the project fell behind schedule.
CNRL approved the construction change, but SSEC did not prepare any formal written procedures that should have been certified by a professional engineer.
As a result, other charges in this case include failing to ensure that a professional engineer prepared and certified drawings and procedures; failing to ensure the roof support structure inside the tank was stable during assembly; failing to ensure that U-bolt type clips used for fastening rope wire were installed properly; and failing to ensure that wire rope being used was safe.
"We shouldn't forget the circumstances that led to the deaths of Genbao and Hongliang," McGowan added.
"The company did not get the construction plans certified by an engineer. The wires weren't strong enough to hold up against the wind. It was a complete abdication of responsibility on the part of the employer."
Crown prosecutors and SSEC lawyers came up with an agreement, which allocates $1.3 million of the fine to create an education program to train temporary foreign workers about their legal rights, as well as workplace health and safety.
The program aims to hire 45 instructors to train about 5,500 workers in a three year period.
Journal of Commerce, Wednesday, Jan. 30, 2013
Byline: Richard Gilbert
Local organizations pledge support for Idle No More
EDMONTON - The Idle No More movement marked a global day of action Monday with a rally in Churchill Square that saw leaders from a variety of organizations declare solidarity with the movement.
More than 200 people gathered in Churchill Square to hear representatives from nine organizations, including labour and environmental groups, share short messages of support for Idle No More and sign a declaration of solidarity. The speeches were followed by a tea dance with the Dene Tha' Drummers.
"There are exciting moments in history where people stand together, they band together and begin to resist. I believe that we're witnessing that today when we announce Common Causes, a national movement to bring together people of differing passions," said Nancy Furlong with the Alberta Federation of Labour.
On Monday, groups across Canada launched Common Causes, an assembly of social movements dedicated to defending democracy, social justice, the environment and human rights. Common Causes held rallies and marches in co-ordination with Idle No More's global day of action, which came as Canada's MPs returned to the House of Commons.
In Alberta, other Idle No More events included a march in St. Paul and a protest in Little Buffalo.
Garrett Tomlinson, communications co-ordinator with Lubicon Lake Nation, said about 50 people took part in a roadside protest on Highway 986, which began at 1 p.m. and was expected to last until dark.
In Edmonton, Morningstar Mercredi co-hosted the Churchill Square event with Public Interest Alberta's Bill Moore-Kilgannon.
"We will not stand by idly, we will not be silenced, we will unify and that is what you're witnessing today," Mercredi said.
Lori Sigurdson, on behalf of the Alberta College of Social Workers, declared solidarity with Idle No More and made reference to the controversial omnibus Bill C-45.
"We see first-hand the suffering of the aboriginal people and this bill that has gone through will only continue that," she said.
Representatives from the Canadian Labour Congress, the Council of Canadians, Greenpeace, Friends of Medicare, the Sierra Club's prairie chapter and the Memoria Viva Society also signed the declaration.
Kayla Scanie, a member of Cold Lake First Nations, called Monday's rally "awesome." She hopes to see even more people support Idle No More at future events.
Nancy Dodsworth, with the Canadian Union of Postal Workers, attended the event and said she has waited a long time for a movement such as Idle No More.
"Our environment has been destroyed for so long, so to have everyone come together and start to be really active is phenomenal. People are waking up and I'm grateful for that," she said.
Edmonton Journal, Monday, Jan 28 2013
Byline: Cailynn Klingbeil
Idle No More event aims to teach, build support for movement
Edmontonians packed Allendale Community Hall Sunday evening for a discussion of Idle No More, as communities and organizations worldwide planned for a show of solidarity with the movement on Monday.
"The goal here is to educate," said Richard Merry, chair of the Council of Canadians' Edmonton chapter. The group organized Sunday's event, titled Building Edmonton Solidarity with Idle No More.
The discussion was a chance for people of all backgrounds to learn more about the movement and how to participate.
"We hope to stimulate people to support the grievances of First Nations people much more directly, not just to watch it," Merry said.
More than 100 people gathered in the hall to hear Tanya Kappo, a member of the Sturgeon Lake Cree Nation who launched the Alberta version of Idle No More, speak about the movement.
Darian Selander, 24, attended the discussion with her brother, William Selander, 15, and friend Ellen Parsons, 24.
"It's a cause I want to know more about," said Selander, who has not been to any other Idle No More events.
"I've heard a lot of negative stuff about Idle No More, so I wanted to hear more about it from people who support it and are involved with it," Parsons said.
Mervin Grandbois, a member of the Cold Lake First Nation, was pleased to see so many people show an interest in learning about the movement.
"We need events like this to show that this is not only an aboriginal thing, it involves all people," Grandbois said.
The Edmonton event came as an assembly of 47 groups across Canada, including the Council of Canadians, prepared to launch a national effort Monday in support of Idle No More, timed to coincide with Parliament resuming in Ottawa.
United under the banner of Common Causes, the assembly's mandate includes defending democracy, social justice, the environment and human rights.
"We see the First Nations' struggles as a struggle of all Canadian people," Merry said.
Public Interest Alberta is one of the organizations joining Common Causes.
Executive director Bill Moore-Kilgannon helped put together an event at Churchill Square Monday that will feature speakers and a tea dance with the Dene Tha' Drummers.
"We are all deeply concerned about how we, as citizens, can make sure those voices that are concerned about the environment, health care, foreign policy, and human rights are being heard. Common Causes joining up and supporting Idle No More is really what (Monday) is all about," Moore-Kilgannon said.
While flash mobs and rallies have been used to protest Bill C-45 and C-38, Moore-Kilgannon said teach-ins are now helping people, many of whom are not First Nations, delve deeper into the issues the Idle No More movement addresses.
A teach-in session on Sunday afternoon connected the labour movement with Idle No More, attracting close to 100 people. Morningstar Mercredi, who has been active with Idle No More, was the main organizer of the event.
"We are all idle no more because of the bills, because of (Prime Minister Stephen) Harper's mandate, because of his inability to consult," said Mercredi.
Mercredi isn't surprised Idle No More is expanding to labour groups and other organizations.
"The bills will affect and have direct impact on every person, every single women, child, elder, man, everyone," she said.
Amanda Freistadt, a representative with the Canadian Labour Congress, attended the teach-in Sunday and plans to be at Churchill Square Monday.
"If we make connections with each other and we share commonalities and we build relationships with each other, we have the ability to influence progressive change in a way that we wouldn't if we didn't get together," Freistadt said.
Gil McGowan, president of the Alberta Federation of Labour, was also in attendance.
"We in the labour movement share the First Nation communities' concerns about this breakneck approach to development, because we don't think that it's in the long-term best interest of Canadians who own the resource, whether they're aboriginal or non-aboriginal," McGowan said.
"It's not just about First Nations, it's about all of us and all of our relations to each other and to our environment," Moore-Kilgannon said.
Edmonton Journal, Sunday, Jan. 27, 2013
Byline: Carilynn Klingbeil
Firm linked to China ordered to pay $1.5 million in deaths of workers in Alberta
ST. ALBERT, Alta. – A firm linked to a Chinese state-owned company was ordered Thursday to pay $1.5 million in penalties in the deaths of two foreign workers at an Alberta oilsands project.
SSEC Canada Ltd. pleaded guilty last September to three workplace safety charges in the deaths of the Chinese temporary foreign workers.
The men died in 2007 at Canadian Natural Resources' (TSX:CNQ) Horizon project near Fort McMurray when an oil storage tank they were building collapsed.
Alberta Justice spokeswoman Michelle Davio said the penalty is the largest ever imposed by a judge in the province on workplace safety charges.
"The penalty is made up of a $200,000 fine and $1.3 million payment to the Alberta Law Foundation that will be used to support outreach and education programs for temporary foreign workers and for workers who are new to Alberta," she said.
SSEC Canada is the Canadian subsidiary of Sinopec Shanghai Engineering Company Ltd.
The case involved a total of 53 charges involving three different companies, including Calgary-based Canadian Natural Resources and Sinopec.
Charges against Sinopec were withdrawn. All 29 charges against CNRL were stayed, meaning the government can reactivate them at any time over one year.
According to an agreed statement of facts filed in court, problems at the Horizon project began in 2006 when 132 Mandarin-speaking Chinese workers recruited by SSEC Canada were late in getting to the worksite.
Work on the large metal storage tanks fell behind schedule.
SSEC Canada proposed revised construction in which the tanks' walls and roofs would be built at the same time.
CNRL agreed to the revisions, but said the work should be done under its own construction management team which would supervise quality control and safety.
SSEC Canada began work using the new method before CNRL's team arrived on site, even though the procedures hadn't been certified by a professional engineer.
On April 24, 2007, about three weeks after SSEC Canada began using the new approach, a roof collapsed when the wire cables holding it up snapped after being kinked and torqued in high winds.
The two workers were crushed by falling steel. Five other Chinese workers were injured.
Gil McGowan, president of the Alberta Federation of Labour, called the penalty "less than a drop in the bucket."
"This was an opportunity for the Alberta government to send a clear message to companies like Sinopec that if they want to do business in Canada, then they have to observe and follow our rules when it comes to workplace rights and health and safety," McGowan said.
The case was delayed for years by uncertainty over which company was responsible and whether they would be responsible as an employer, contractor or prime contractor.
Sinopec Shanghai Engineering Co. went to the Alberta Court of Appeal in a losing effort to argue that it hadn't been properly served with legal documents, since it had no presence in Canada.
The Supreme Court of Canada refused to hear a challenge.
Sinopec Oil Sands Workers' Deaths: Energy Giant To Pay $1.5 Million
ST. ALBERT, Alta. - A firm linked to a Chinese state-owned company was ordered Thursday to pay $1.5 million in penalties in the deaths of two foreign workers at an Alberta oilsands project.
SSEC Canada Ltd. pleaded guilty last September to three workplace safety charges in the deaths of the Chinese temporary foreign workers.
The men died in 2007 at Canadian Natural Resources' (TSX:CNQ) Horizon project near Fort McMurray when an oil storage tank they were building collapsed.
Alberta Justice spokeswoman Michelle Davio said the penalty is the largest ever imposed by a judge in the province on workplace safety charges.
"The penalty is made up of a $200,000 fine and $1.3 million payment to the Alberta Law Foundation that will be used to support outreach and education programs for temporary foreign workers and for workers who are new to Alberta," she said.
SSEC Canada is the Canadian subsidiary of Sinopec Shanghai Engineering Company Ltd.
The case involved a total of 53 charges involving three different companies, including Calgary-based Canadian Natural Resources and Sinopec.
Charges against Sinopec were withdrawn. All 29 charges against CNRL were stayed, meaning the government can reactivate them at any time over one year.
According to an agreed statement of facts filed in court, problems at the Horizon project began in 2006 when 132 Mandarin-speaking Chinese workers recruited by SSEC Canada were late in getting to the worksite.
Work on the large metal storage tanks fell behind schedule.
SSEC Canada proposed revised construction in which the tanks' walls and roofs would be built at the same time.
CNRL agreed to the revisions, but said the work should be done under its own construction management team which would supervise quality control and safety.
SSEC Canada began work using the new method before CNRL's team arrived on site, even though the procedures hadn't been certified by a professional engineer.
On April 24, 2007, about three weeks after SSEC Canada began using the new approach, a roof collapsed when the wire cables holding it up snapped after being kinked and torqued in high winds.
The two workers were crushed by falling steel. Five other Chinese workers were injured.
Gil McGowan, president of the Alberta Federation of Labour, called the penalty "less than a drop in the bucket."
"This was an opportunity for the Alberta government to send a clear message to companies like Sinopec that if they want to do business in Canada, then they have to observe and follow our rules when it comes to workplace rights and health and safety," McGowan said.
The case was delayed for years by uncertainty over which company was responsible and whether they would be responsible as an employer, contractor or prime contractor.
Sinopec Shanghai Engineering Co. went to the Alberta Court of Appeal in a losing effort to argue that it hadn't been properly served with legal documents, since it had no presence in Canada.
The Supreme Court of Canada refused to hear a challenge.
The Canadian Press, Thursday, Jan. 24, 2013
November 2012: Help us defeat Bill C-377, TFW program under the microscope, AFL and UFCW lead the charge for food safety
Temporary Foreign Worker program under the microscope
The Alberta Federation of Labour will be paying close attention to the Federal review of the Temporary Foreign Worker Program that was announced on November 8, 2012.-
The program will be reviewed due to criticism over the approval of a deceitful application that allowed a northeast B.C. coal project to hire 200 Chinese nationals for jobs that could have been filled locally. The AFL has concerns that the review will be used as a smokescreen to hide deeper problems, and called for meaningful participation from labour activists and from the public at large.
If they want to find the source of the problems with the Temporary Foreign Worker Program, the Harper Conservatives just need to look in the mirror," AFL president Gil McGowan said. "They created this monster by removing any checks and balances from the Temporary Foreign Worker Program, and by rubberstamping every application."
For more information see Nov 9 AFL release and backgrounder.
AFL and UFCW lead the charge for food safety
- The Alberta Federation of Labour and United Food and Commercial Workers are calling on Premier Alison Redford to stand up for the province's beef industry by conducting an independent public inquiry.
In a public letter sent to the Premier on Thursday, October 18, AFL president Gil McGowan and UFCW Local 401 president Doug O'Halloran explained the reasons a public inquiry into the causes of the E.Coli outbreak at the Lakeside plant in Brooks would be in the best interest of consumers, the cattle industry and of Albertans.
Read the whole story: Oct 18 AFL Release
Urgent Action
Help us defeat Bill C-377
- The Alberta Federation of Labour is calling on all of our affiliates and members to help quash the anti-union Bill C-377.
This private-members bill is not about transparency; it is an effort on the part of the Harper Government to undermine the ability of unions to act as an effective voice for working people. The bill is designed to increase costs to unions and divert resources from collective bargaining and servicing towards accounting and bureaucracy.
"This is a political bill. In the same way that they have cut funding to environmental groups and women's groups, they are trying to weaken and muzzle a strong progressive voice," Alberta Federation of Labour president Gil McGowan said. "We have an obligation to act together to protect the labour movement, and in doing so, protect broader civil society."
To join the fight, contact your Member of Parliament: CLICK HERE
Download the AFL Submission to the House of Commons Standing Committee on Finance on Bill C-377: CLICK HERE
Events
November 23-25: Parkland Institute's 16th Annual Fall Conference: Petro, Power and Politics
November 24: International Day for Elimination of Violence against Women
December 4: AFL Open House
December 7: Deadline to register for 2013 AFL/CLC Winter School
Did you know ...
- In 2010, 74 per cent of employers with workers under the TFW Program were found to be in violation of the Alberta Labour Code.
- There are currently more than 60,000 Temporary Foreign Workers in Alberta, giving the province the biggest TFW population in Canada as a proportion of the labour force.
- More than 50,000 additional TFW applications from Alberta employers were approved in 2011.
- Between 2002 and 2008, the number of TFWs present in Canada rose by 148 per cent, from 101,259 to 251,235.
Will Tories Fix Temp Foreign Worker Program?
Social justice lawyer Fay Faraday says it's time for Canadians to insist on sweeping reforms of the federal Foreign Temporary Workers Program to protect workers from the kinds of abuses reported on in the three previous articles in this series. "It's a systemic problem and we will keep hearing those horror stories until we do something about it."
Faraday offers 22 recommendations in her Metcalf Foundation funded report titled "Made In Canada: How the Law Constructs Migrant Workers' Insecurity," which found that abuse of migrant workers is endemic. Faraday's proposals include allowing work permits to be tied to an industry or a province rather than a single employer. She also advises the government to "reverse" the trend of temporariness and allow all workers the chance to apply for Canadian residency.
Faraday, together with other lawyers, Ai Li Lim and Charles Gordon, and union leaders Joe Barrett and Gil McGowan, emphasize the need for enforcement mechanisms: a civil body or employment standards investigators to ensure labour laws are respected. It's not like it's not possible. In Manitoba, for example, all employers and recruitment agencies must be registered with the provincial government, and inspectors are sent to worksites.
Alberta Federation of Labour President Gil McGowan calls the Manitoba government's system the "gold standard" of protection for migrant workers. Because of the oversight, the federal government will not process an application for a migrant worker if the provincial government believes that an employer would break labour laws. To Faraday, this collaboration suggests that "national standards" can be accomplished to provide "front-end protection against migrant worker exploitation."
Manitoba also transitions many migrant workers into permanent residency through the Provincial Nominee Program, through which 90 per cent of its economic immigrants come. From 2005 to 2009, Manitoba granted residency to 13,089 foreign workers, representing 38 per cent of all nominees, whereas Ontario accepted only 1,247 in that same four-year span.
In 2011 the federal government introduced changes to the TFWP to "provide further protections for temporary foreign workers while alleviating temporary labour shortages." These three changes include:
• ensuring the "genuineness" of the job offer;
• banning employers for two years if they fail to respect wages and working conditions;
• imposing a limit of four years in which migrant workers are eligible to stay in Canada -- and they cannot return until another four years has passed.
The first change, say critics, is virtually meaningless, while the second is not being enforced. There is currently not a single employer on the blacklist -- and no regulating body exists to find and ban bad employers. Only the last change -- limiting stays to four years -- is actually implemented by the government, which, say critics, merely serves to heighten workers' disposability in Canada. Within four years, workers most likely would have improved their language skills, have learned their rights, and be more willing to unionize.
Protections do exist: government
An October report by Jeremy J. Nuttall in The Tyee that a recruiting company was asking Chinese coal miners to pay an illegal $12,500 recruitment fee to gain work in B.C. through the Temporary Foreign Workers Program raised further concerns about the mistreatment of migrant workers. Two Canadian unions responded by launching a judicial review to investigate whether the workers were given employment authorizations, also known as a Labour Market Opinion, that ensures Canadian workers were sought before recruiting miners from China. As the controversy over the HD coal mine in Murray River grew, Human Resources and Skills Development Canada announced that it was already investigating the entire Temporary Foreign Worker Program.
HRSDC says the government is concerned over the "integrity" of the program. "When Canadians are not available to fill vacancies, temporary foreign workers who are hired must be treated fairly and the same as Canadians doing the same job," says Marian Ngo, press secretary for Human Resources Minister Diane Finley.
The other federal department that oversees the TFWP, Citizenship and Immigration Canada (CIC), says it has plans to further protect workers. In an email, CIC communications representative Paul Northcott told The Tyee that the government introduced "new legislative authorities that will allow for inspections of employers, including site visits, to verify their compliance with program requirements" as part of the Economic Action Plan 2012. He also highlighted separate efforts of provincial governments to prevent abuse, such as Ontario's June 2012 inspections of recruitment agencies, Manitoba's and Nova Scotia's requirement for employers and recruiters to be provincially registered, and Alberta and Saskatchewan's new legislation to crack down on unscrupulous agencies and improve transparency.
Alberta Federation of Labour president Gil McGowan isn't impressed. The provinces took responsibility because they had to "fill the vacuum" of inaction on the part of Ottawa, he said.
"The federal government has literally spent tens of millions of dollars on expanding the TFWP and introducing mechanisms to speed approval for the employers but they spent barely a cent on investigation and enforcement [to protect the workers]," he added.
McGowan also expressed doubt about the CIC's announced changes, noting that he and the Alberta unions have been asking for changes for at least five years. "Given the Harper government's reluctance to spend on public services, I remain skeptical about whether or not they will actually put the resources in place to make these rules anything more than a paper tiger."
Temp workers and Canada's job landscape
Earlier in this series we met Costa Rican Jose Salguero, one of the imported workers who helped build the Canada Line railway for pay so low they took action by joining a union and winning a BC Human Rights Tribunal decision. We met Filipino Alfredo Sales, who fought to reclaim over $6,000 in lost wages from Denny's, and leads a class action suit on behalf of dozens more migrant workers the restaurant chain employed. Workers like Jose Salguero and Alfredo Sales require courage to stand up for themselves by filing legal action. According to McGowan and Faraday, low-wage workers in general tend not to complain to the authorities over employment violations until after they quit and find work elsewhere. Adding their temporary status to the equation makes it all the more risky.
Industry argues that Canada is a big country with a lot of tough or specialized jobs that need doing in hard places, and that foreign workers can be the only way to fill the need. But critics respond that the Temporary Foreign Worker Program, wittingly or unwittingly, creates Third World conditions for migrant workers, and risks putting similar pressures on the domestic workforce. By moving entire employment categories, which Canadians will always have a need for, to non-resident workers, the TFWP encourages economic dependency abroad while discouraging the development of local job markets. It's outsourcing by insourcing from abroad, a two-tiered system wherein no one wins.
The lack of enforceable rules allows major corporations, medium-sized businesses and even middle-class Canadians who need caregivers to do as they please with migrant workers. Neither SELI and SNC Lavalin, who paid their Latin workers a fraction of what they paid Europeans, nor Denny's, who did not pay for Filipino workers' airfares and overtime work, -- nor even Sinopec, who was ruled responsible for the deaths of two Chinese oilsands workers, due to safety violations -- have paid any fines. Nor have they been banned from hiring migrant workers in future.
Becoming the 'Dubai of the North'
McGowan believes that the continued use of migrant labour will heighten racial tensions, as local and foreign workers are pitted against each other. "It flies in the face of Canadian values and it's being used as a tool to undermine the Canadian labour market," he says. The AFL believes that the system is broken, that the Temporary Foreign Worker Program should be scrapped and replaced with permanent immigration -- the way Canada was before.
"We're not saying that Canada should stop bringing workers from overseas to work in our economy, he says. "What we are saying is that this is not the way to do it."
The risk with the current loosely regulated system is that the hard-won rights to eight-hour work days, overtime pay, medical coverage and worker protections may be eroded by transnational corporations who have access to a cheap workforce that is more docile by the nature of the regulatory framework.
"If they can mistreat foreign workers I don't think it's long before they mistreat domestic workers as well," says lawyer Charles Gordon. He also says eventually migrant workers will want to stay – and they will, "legally or illegally." Other experts anticipate that the nearly half a million migrant workers present in Canada in 2011 could go underground when they are expected to return to their home countries after four years in accordance with new legislation.
"The United States is an example of that, where you have a lot of illegal foreign workers but they're working and they're a significant part of the economy," Gordon says.
McGowan draws a comparison to other countries. "We're becoming the Dubai or Saudi Arabia of the North, not only because we have oil, but because we're abandoning real immigration in favour of using an exploitative guest worker program to fill our most menial and undesirable jobs. We've joined a global underground railway trading in human misery. It's a shameful transformation and a betrayal of Canadian values and our traditional approach to immigration."
The Tyee, Thursday, Jan. 10, 2013
Byline: Krystle Alarcon
The Invisibles: Migrant Workers in Canada
Reports of exploited foreign temps have grown as fast as the federal program.
First in a series.
They hand you a soothing cup of Tim Hortons, pack frozen beef in factories, pick blueberries and apples on Abbotsford farms, serve fast-food meals and wipe tables, excavate mines and drill for oil in Western Canada, and raise your kids as if they were their own. Typically paid far less than Canadians, unprotected by labour laws, and disposed of when their contracts end, these migrant labourers have become ubiquitous while remaining all but invisible.
Under the Conservative government, the pool of migrant labour has expanded rapidly with almost no public discussion or oversight -- yet who benefits, and at what cost?
There were 300,111 migrant workers in Canada in 2011-- a more than three-fold increase over the previous decade. Another 190,769 entered that year, creating a temporary foreign workforce of nearly half a million. In 2010, the government accepted one and a half times more migrant workers than permanent Canadian residents.
Migrant workers have been cycling in and out of Canada since 1972, when the Non-Immigrant Employment Authorization Program was introduced. In 2002 it expanded to become the Temporary Foreign Worker Program (TFWP) to service the oil and gas industries in Alberta.
Since the Conservative government of Stephen Harper came to power in 2006, the TFWP has expanded rapidly, becoming an unseen pillar of Canada's economic policy. That year, migrant workers admitted to Canada exceeded permanent residents for the first time. And for the first time, employers no longer had to advertise for a minimum of six weeks on a national job bank before being granted permission to hire a migrant, but could do so after just seven days. The shortened processing was a gift to employers, who were allowed to designate workers they needed under "Occupations Under Pressure."
So fast growing are such designations that between 2007 and 2011, the program created a total of almost 30 per cent of all new jobs -- this at a time when the government, grappling with the financial crisis, claimed that creating jobs for Canadians was a key priority. And in 2012, under a little-noted provision of the omnibus budget bill that managed to avoid public debate by sliding in with so much other legislation, the Conservatives introduced changes for high-skilled workers such as dropping application times from 12 weeks to 10 days and permitting employers to pay them 15 per cent less than the average Canadian salary for the same work.
Critics argue that such changes lower standards for all workers, and that it won't be long before the majority of migrant workers, who are considered "low-skilled" in fast-growing sectors such as construction, hospitality, caregiving and agriculture, can legally be paid less than Canadians -- a trend that is already happening, due to the lack of oversight. Many endure mistreatment that, in the most severe case to date, has cost lives.
On April 27, 2007, Canadians woke up to news that two Chinese migrant workers employed by Sinopec Shanghai Engineering Canada near Fort McMurray had been killed when a tank's structure fell on them. Charged with violating safety standards, Sinopec, a part owner of the pipeline transport company Enbridge, initially argued that the Chinese state-owned company "has no official presence" in Canada and therefore did not fall under Canadian jurisdiction. Only recently, on Oct. 10, 2012, did the company plead guilty to three safety violations.
Growing list of abuses
Reports of migrant workers being exploited by powerful corporations have increased almost as fast as the TFWP.
In Oct. 2008, migrant workers at Maple Leaf Foods in Edmonton went on strike with their Canadian counterparts for not receiving the $15 per hour promised in their contracts. Many relied on food banks during the strike as they couldn't survive on the strike wage of $230/week and could not, because of the nature of their work permits, work elsewhere.
On Christmas Eve of 2009, four migrant workers, whose names and the company they worked for were not disclosed, died when the scaffolding of the building they were constructing fell on them.
In May 2009, youth and multiculturalism critic and Liberal MP Ruby Dhalla was criticized for allegedly abusing her caregivers from the Philippines, by forcing them to do work outside their contract and underpaying them.
In Nov. 2010, the UN's International Labour Organization found Ontario, and Canada, guilty of violating the rights of 100,000 migrant and domestic farm workers in the province by banning farm unions. In May 2011 three Filipino temporary workers, dubbed "the Three Amigos," were deported when their permits became invalid after their employers in Alberta laid them off due to the recession. They worked at a Manitoba gas station for another employer who promised to change their permits, but never did.
Roof collapse
Storage tank roof collapsed in April 2007 killing two Chinese migrant workers employed by Sinopec Shanghai Engineering Canada near Fort McMurray. (CBC)
In May 2012, a union staged a blacklist tribunal in front of the Mexican consulate for all the farm workers who have allegedly been sent home for attempting to unionize. Later in June, the exotic dancer stream of the TFWP was cut after the immigration and the human resources departments deemed that there were risks of human trafficking and exploitation within the stream. And this fall the premier of B.C. was severely criticized for advertising a Chinese mining project as a way to bring jobs to Canadians, when up to 2,000 Chinese migrant workers will be recruited to work in mines -- rather than offering the jobs to locals, including the First Nations from those areas. The job ads also listed Mandarin as a language requirement, ruling out most Canadians from applying.
It was also discovered in an investigation by The Tyee that Chinese workers were being charged recruitment fees of more than $12,500 in exchange for work in the mine. Two unions have challenged the Chinese workers' entries, through a judicial review that was approved by the Federal Court. As the controversy grew, Human Resources and Skills Development Canada announced it was reviewing the entire program.
XL Foods, based in Alberta, also came under fire for laying off 2,000 workers, 800 of whom turned out to be migrant workers, after the massive beef recall in September 2012.
And earlier in November four Mexican migrant workers filed a human rights case against their employer at Tim Horton's in Dawson Creek, B.C., who they say gave them the "double-double" treatment, by doubling them up in bunk beds and charging them double in rent, as well as withholding their passports and calling them, according to reports, "Mexican idiots" -- charges their employer said were "made up."
Alberta's two-tier labour system
Alberta currently has the highest per capita use of migrant workers, largely due to the oil sands projects -- 22 times higher than the rest of the Canada -- and their situation reveals troubling rates of mistreatment. As a 2010 audit by the Alberta Ministry of Employment and Immigration discovered, 74 per cent of migrant workers were mistreated by their employers, who typically violated labour laws on overtime, holiday and vacation pay.
Gil McGowan, president of the Alberta Federation of Labour, sees the treatment of migrant workers as an issue that affects Canadians directly. "They are being used as pawns to drive down wages and conditions across the board, especially in the service sector but also in higher income sectors like construction."
McGowan thinks the growing reliance on temporary foreign labour is a move backwards for Canada: "The Harper government is changing that model in a profound way without any kind of public discussion: to replace the citizenship-based model with a model focused on creating underclassed ghettos of exploitable workers."
He foresees future labour tensions, such as those in Western Europe and the Middle East where "guest workers" perform work their citizens refuse to do. "It set off a powder keg of resentments and animosities between the guest workers and the citizens of the countries in which they are working," he says. The citizens felt that the guest workers "were being used to undermine their wages and conditions, which frankly, they are."
The Tyee, Monday, Jan. 7, 2013Byline: Krystle Alarcon
URGENT ACTION: Information picket in support of United Nurses of Alberta (UNA) strikers
Issue: Information picket in support of United Nurses of Alberta (UNA) strikers.
Action Requested: Affiliates are urged to attend an information picket at Alberta Health Services headquarters.
When:Friday, January 4th, 2013 from 11 a.m. to 1 p.m.
Where: Alberta Health Services at 10030 – 107 Street, Edmonton
Additionally:
Affiliates are encouraged to join the striking workers at the picket line.
Where:
Devonshire Care Centre, 1808 Rabbit Hill Road, Edmonton
When:
Weekday afternoons between 2:30 and 3:30 p.m.
Supporters are urged to participate to keep up the morale of the strikers and show the employer that support and determination remains strong.
Background:
Nurses as the Devonshire Care Centre went on strike on Monday, December 31st seeking wages and benefits that are closer to provincial standards. The nurses at Local 417 are paid about $9 less per hour than registered nurses elsewhere in the province. These nurses have been in negotiations for more than a year seeking their first collective agreement.