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Editorial

THE BUSINESS OF EXTORTION


October 14, 1999

The Canadian Auto Worker's Union has made great strides in its recent contract with the Ford Motor Company of Canada. Critics charge that this contract, which has now been accepted by the other large automobile manufacturers, (GM and the CAW were still negotiating at press time) will lead to higher prices for consumers. The CAW states that this will not be the case, since Canadian Autoworkers are among the most efficient in the world. Time will tell, but we expect that prices of cars will continue to rise as long as the public is prepared to pay today's outrageous prices.

Details of the contract ensure beginning hourly rates of $24.68 per hour for unskilled labour. Included in the package are full medical and dental benefits, pension benefits and financial assistance for the education of autoworker's children. Nice deal if you can get it.

This is not enough for the CAW. They recently threatened Daimler Chrysler, that to avoid labour strife they would have to convince auto part's manufacturer Magna International to become a union shop.

Daimler Chrysler, for its part, had indicated that they did not wish to become involved with what they viewed as a dispute between two other parties, i.e. Magna and the CAW.

Why should Chrysler, its workers, shareholders and customers be held hostage just because Buzz Hargrove wants to expand his horizons?

What is most galling is the arrogance of the CAW which seemed to feel justified in holding Daimler Chrysler hostage to further feather its own nest. Why should Chrysler, its workers, its shareholders and its customers be held hostage just because Buzz Hargrove wants to expand his horizons? And what of Magna and its workforce? As far as we know, there is no huge interest in becoming members of the CAW on the part of Magna workers, who are among the best compensated in the country. Surely, before holding some third party hostage, Hargrove should ensure that the Magna workers not only want to sign up, but want to join his autocratic little outfit.

We do not allow this kind of behaviour on the part of business. We don't let the banks say we will withhold our mortgage financing from you unless you get a credit card and insurance with them. We do not even allow government to behave in this manner. Could you imagine the Liberals refusing transfer payments to Ontario unless everyone joins the Liberal party?

There is a movement afoot to allow workers to choose if they wish to belong to a union or not. This should be nothing less than an inalienable right. Automakers should also have the right to choose who their suppliers are. There is no question that Magna is a preferred supplier to the auto industry. Why should that industry be forced to select less appropriate vendors just to accommodate the ego of Buzz Hargrove?