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Neo-Liberals Are Not the Answer to Growing Populism Remarks by USW National Director Ken Neumann at the Broadbent Institute Progress Summit, March 28, 2019. Thank you. My name is Ken Neumann. I’m the National Director of the United Steelworkers. The Abacus Data polling results concretely show that the affordability gap in Canada is increasing. It clearly shows that Canadians are increasingly anxious about their economic wellbeing. This should not be a surprise to anyone here. Housing is becoming less affordable. Transportation and auto insurance, prescription medications, tuition for colleges and universities – all are getting more expensive. People understand that they are falling further and further behind. And they recognize that their children will be in even more trouble. This data shows in graphic detail what we all know: Canadians are getting increasingly worried about their financial situation. In fact, 74% of these Canadians tell us their income is not enough to even cover their “day-to-day” expenses. This anxiety is real. This lack of affordability is real. The decline in living standards is real. The deep concern people have for their children’s future is real. The impacts are real, they are profound, and they are heartbreaking. What we have documented is the subjective, personal impact of the changing economic reality in this country. The real, lived experience of everyday Canadians. However, we should not be framing this as an “affordability crisis.” By doing so, we solely focus on the symptom – the economic bind on individuals – rather than the conditions that create this bind. Focusing on the symptom fails to identify the culprit. It fails to identify why Canadian workers and families are struggling economically, even when the economy is actually growing. By focusing on an “affordability crisis,” we suggest the solutions are to be found in the situation facing the family under pressure. This often obscures any search for a real cause. This approach would lead us to fine-tune the specific situation of individual families, rather than understand that the situation is created by economic forces that are not natural, but human-made and based on government decisions. The real frame, of course, is growing inequality. If we are interested in more than the ‘psychology of economic decline,’ we should NOT be talking about affordability. We should rather be talking about inequality and wage stagnation. We all know that inequality in Canada has been increasing for decades. The average Canadian CEO today makes 197 times the wage of the average worker. Yet for years, real wages in Canada have completely stagnated. Growing inequality is structural and severe: Canada’s 87 richest families own more than the lowest-earning 12 million Canadians – combined! But the problem is not just the wealthiest one percent. Inequality is a much broader problem than that. While real wages have stayed flat, the return on capital has been increasing rapidly. So, real estate prices, spurred on by greater wealth and more and more speculation, continue to spiral upwards in Canada’s largest cities, while more and more workers simply cannot afford to buy their first house, or pay the rent. Wages for Canadian workers no longer provide the security they once did. Traditionally, wages are in virtual lock-step with productivity. That makes sense. As labour produces more value, workers get a comparable share of the value. However, this is no longer true today. Throughout most of modern times, Canadian productivity has increased at a relatively stable pace. This is true right up to today. However, in recent decades real wages have stagnated and have not even come close to following productivity increases. The inevitable structural result is what we see now: affordability problems at the individual level. And the real problem with framing the issue as an “affordability” gap is that it doesn’t suggest the solution – a way forward. It provides no real solutions for those analyzing the problem. And no constructive way forward for those living the reality of this problem. As the Abacus data shows, many Canadians believe the solution to their affordability problem is lower taxes. Lowering taxes is NOT a solution. Rather, it intensifies many of the affordability problems across society. If we look through a glass darkly at the data, we can see that Canadians already sense the problem is not simply “affordability,” but involves profound inequality. An overwhelming 80% of Canadians believe “the people at the top are making more and more, and everyone else is just struggling to get by. And, 71% say that inequality – the gap between them and the 1% – is getting ‘worse’ or ‘much worse.’ They are pointing to a concept of ‘equity’ not just ‘affordability.’ This points to the need for solutions beyond a band-aid to the family that is being ‘squeezed.’ Recognizing the structural component, radical changes are needed to our tax system, to reverse the growing inequality in our society. And consider new ideas appropriate to today. We need to look seriously at increasing the top marginal tax rate – reversing the drop in that rate that started under Brian Mulroney. We have to consider estate taxes in this country. We need to talk about taxing wealth in Canada, and get serious on tax avoidance. Ideas such as a Financial Transaction Tax need to be developed. This is where we as ‘civil society’ come in. While politicians and parties can champion real change towards more equal taxes, the groundwork for radical changes – like dramatic marginal rates, a transaction tax or a wealth tax – needs to become more accepted in the general public. This requires commitment by civil society and progressives, including debate, education and choosing parties that are committed to transforming inequality. What we don’t need is what we now have: a neo-liberal federal government that says it “feels the pain” of the affordability crisis. A government that loves the slogan, “the middle-class – and those wanting to join it,” while at the same time reinforcing the pillars of structural inequality. From half-measures on stock options, to one regressive trade deal after another. More galling than anything is the Liberal government’s touchstone of progressive validation. Their so-called “middle-class tax cut.” Well, this middle-class tax cut gives you $680-a-year if your income is $200,000. But if, you’re at the median income of $50,000, you get a lousy $71. And if you earn only $45,000? Well, you get zero from this so-called ‘middle-class tax cut.’ As we come to the end of Trudeau’s majority government, we find that inequality is unchanged from four years ago. And we’re still waiting for a national childcare program. And I don’t know about you – but I don’t see a truly universal public pharmacare program in the Liberal plans any time soon. More importantly – it has become as clear as it could possibly be, that first and foremost, the Liberals pay greatest attention to the loudest voices in corporate Canada when they make policy decisions. So workers and their families become cynical. That’s what happens when neo-liberal governments cloak themselves in socially progressive values. People hear a Liberal government say it wants to “stand up for the middle class.” Then they see a Prime Minister beholden to corporate Canada. Workers’ real-life experiences are proving to them that their lives are NOT getting better. Viewing our neighbours to the south these days, we can see how these things can get dangerous. Disaffected, cynical, frustrated workers are vulnerable to right-wing populists who tell them what they want to hear… who can channel their anger and frustration. If we want to avoid this in Canada, we need to get serious about reforming our tax system. We need to address wage stagnation. We must strengthen the universal public services that Canadians need in order to make ends meet. As Ed Broadbent wrote just a few days ago, the antidote to such populism is not the complacency of the neo-liberal centre. The solution, Ed reminded us, lies in “a passionately democratic and pro-pluralist left – championing the interests of ordinary people and acting as their voice against prejudice, inequality and the domination of extreme wealth.” Thank you. — Mar 28
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USW Works to Safeguard Canadian Steel Jobs USW is part of a coordinated industry effort to preserve good Canadian jobs in the steel sector, calling on the federal government to keep current steel industry safeguards in place. “We need decisive action by this government to preserve 22,000 direct steel jobs and the 100,000 indirect jobs that come from the steel sector,” said USW National Director Ken Neumann. “The importance of these safeguards cannot be overstated – Canadian workers and their jobs must not be fodder in an international trade dispute.” USW has been working alongside the Canadian Steel Producers Association to press the government to impose safeguards, similar to those introduced by the European Union, in response to the heavy U.S. tariffs. The Canadian government imposed provisional safeguards back in October for a period of 200 days, after significant pressure from the union and industry. USW recently testified at the Canadian International Trade Tribunal (CITT) that Canadian workers and producers are facing job losses and considerable uncertainty as a result of foreign steel imported into the Canadian market and the imposition of 25% U.S. tariffs on Canadian steel. The CITT will make a ruling on the safeguards on April 3 and a final government decision on whether to keep them in place is expected for early May. USW has actively been calling on the government to maintain the safeguards for three years in order to stabilize the sector. Do you work in the steel sector? Share your story on Twitter or Facebook and join our social media campaign by using the hashtag #safeguardCDNjobs. Take action now – send a letter to federal Minister of Finance Bill Morneau and urge him to make the steel safeguards final: www.usw.ca/act/campaigns/safeguard-steel-jobs — Mar 11
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Humanity Fund: Young Musicians of the World Since 2016, the Steelworkers Humanity Fund supports the Young Musicians of the World music school in the Kitcisakik Anicinape First Nations community, near Val d’Or, Québec. The goal of this unique project is to foster the personal development of children and teenagers through musical learning. Watch this short video (with English subtitles) to learn more about this initiative. Watch the video — Feb 25
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Brian Corcoran Wins 2017 Lynn Williams Award Labrador City, N.L. – It was a pleasure to attend the annual SOAR Chapter 6-SA2 Christmas dinner and dance on Dec. 14 2018. I was there to present the Lynn Williams Award for Service to Chapter President Brian Corcoran. People could not have been friendlier and more accommodating to me and the fact that all former presidents of the chapter were in attendance made the event especially memorable. The Canadian Lynn Williams Award is open annually to all chapters in Canada to nominate a person whom they believe has demonstrated exemplary service to the membership and community in keeping with SOAR’s constitutional mandate. The Canadian SOAR executive considers all written submissions and votes by secret ballot to select a winner. Each year the selection become more difficult as the number of quality nominees increases annually. Brian Corcoran is well-known in his community for his selfless service to others. For many years he has served as President of his Canadian Legion Branch as well as President of SOAR Chapter 6-SA2, where he keeps members well-informed of political and social issues and activism. Brian’s contributions to his community are too numerous to list, but here are a few examples. He is the go-to person for any senior who has problems with their social security pension or benefits, helping them navigate the complexities of government bureaucracies. He negotiates reduced air fares for seniors and others facing medical emergencies, given that residents of remote Wabush and Labrador City often must fly out of the community for treatment. There is not a community event or a fundraising effort that takes place without Brian’s active participation. Brian is in every respect the epitome of what Lynn Williams envisaged a SOAR chapter leader to be. He is a worthy recipient of this prestigious award. — Feb 5
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Health Care Activists Advocate Universal Pharmacare on Parliament Hill More than 100 public health care advocates, including members of the United Steelworkers, visited MPs on Parliament Hill last week to push for universal public pharmacare. While we in Canada currently enjoy universal health care, this currently does not include prescription medications, with levels of drug coverage varying across the country. This patchwork system leaves many Canadians paying out of pocket for prescription drugs. Nearly one in four Canadians reported that they or someone in their household did not take their medications as prescribed in the past 12 months because of cost, according to information distributed by the Canadian Department of Finance in June 2018. An estimated one million Canadians were forced to cut back on food or heating in order to afford prescription medications. Momentum has been building for universal prescription drug coverage. The federal government appointed an advisory council last year to research options for how to implement such a system. It is due to receive the final report in spring 2019. Pharmacare will be an issue in the Canadian federal election, scheduled for October 2019. Activists scheduled more than 100 meetings with MPs and other officials on Jan. 29 to advocate for national pharmacare that meets five core principles: that it be comprehensive, affordable, accessible, publicly funded and publicly administered. To read more about the lobbying effort, click here and here. — Feb 5