Militant History

10.6% of the Canadian workforce is at present unemployed. 19% of 19-to-24-year-olds are jobless. 1 in 6 Canadians live in poverty and 1 in 25 are officially classified as living in inadequate housing conditions. The economic upswing of the past 3 years has passed these working-class families by.

Economic developments in Canada cannot be viewed separately from the US economy. Canadian capitalism has historically been too weak to stand up to the colossus next door. 76% of Canada’s foreign trade is with the US and 7 out of the 12 top Canadian companies are US-owned. This domination by US capitalism is increasing as Canadian big business shows itself unwilling to invest its profits into Canadian manufacturing industry.

In 1985, more capital flowed out of the country than came in. Investment in 1985 was below the level of the 1981–1982 recession. Between 1974 and 1981 the book value of Canadian investment in the US quadrupled to C$27.4 billion and much of this went into real estate. This failure to invest is what lies at the heart of the economic crisis in Canada.

Upswing

The upswing of the past 3 years resulted mainly from increased demand in the US as the indebtedness of US consumers, corporations, federal and state governments increased. Canadian consumers also increased their indebtedness and the deficit of the Canadian federal and provincial governments rose to 9% of the GNP. This is now between 2 and 3 times the equivalent figure for the US. The federal deficit alone accounts for C$34 billion. The interest on this is equal to 25% of all federal spending, more than is spent on pensions, health, education and social assistance programs combined.

The US economy has slowed drastically from over 6% growth in 1984 to just over 2% in 1985. It can no longer continue to pile up the deficits that fueled the upswing. The Canadian economy is also reaching the limits of its borrowing capacity. The fall in the price of oil and raw materials further weakens demand.

Attacks

The attacks on workers’ living standards have continued unabated over the past decade. Between 1978 and 1984 wage increases were below inflation. These attacks as well as the rising unemployment add to the weakness in the economy. Canada will accompany the US economy into crisis in the coming 12 to 18 months.

As imports flood into the US economy, the call for protectionism gains strength. The Conservative Government in Ottawa resting primarily on finance capital and the section of the capitalists in Western Canada who are based on oil, minerals and lumber have pushed for a free trade agreement with the US.

This has led to a split with the manufacturing capitalists mainly based in Ontario, where 50% of all Canadian-manufactured products are produced, and Quebec, where 25% are produced. The Liberal Party recently won control of the Provincial Governments in Quebec and Ontario. The Conservative Government has shown increasing indecisiveness on the issue of free trade.

Labor’s power

This “Progressive” Conservative Government was elected in 1984 with 50% of the vote and 211 seats to 40 seats for the Liberals and 30 for the NDP. It is now a government off crisis staggering from one crisis and resignation to another. The main reason for this is the power of the Canadian working class.

39 million workers, 42% of the employed workforce, is unionized. The Canadian workers have been consistently in the top 3 to 4 of the main capitalist countries in days lost in strikes.

The partial general strike in British Columbia in December, 1983, when 80,000 public-sector workers were on strike and about to be followed out by the transport workers, shows Canadian labor’s fighting capacity. This powerful movement, which was the first of its kind in the post-war period in either the US or Canada, is a sign of things to come.

This combativity is rising. In 1985, wages were forced above prices for the first time in 7 years. On top of this, the strikes for union rights and recognition that have been conducted in Eatons in Toronto and in the Commerce Bank show that sections of workers not traditionally militant are now also taking action.

Labor’s program

Unfortunately, the labor leaders have not put forward a program on which labor can fight and solve its problems. Their main fight is against free trade. While it is correct to oppose any deal between US and Canadian capital, it is no alternative to argue for the status quo or more protectionism.

Canadian labor should unite with American workers in a fight-back against the common bosses and fight for an end to the dictatorship of American and Canadian corporations over all of North America and for it to be replaced by a Socialist United States of North America.

New Democratic Party

The strength of the working class is also shown by the base of the New Democratic Party – the Canadian labor party – the traditional political arm of the Canadian working class which is based on the unions. It won 20% of the vote in the last Federal elections. At present, it has a majority in the polls in all the Western Provinces except Alberta. And in an important new breakthrough, its support in the polls in Quebec has reached 19% as the Parti Québécois has split.

The leaders of the NDP and organized labor must fight for an alternative to Canadian capitalism and its parties, the (so-called) Progressive Conservatives, the Liberals, the Social Credits and the Parti Québécois. It must break all alliances with conservative parties such as it has in Ontario at present where it is propping up a minority liberal government.

Fighting on a socialist program and for a majority NDP government, the support of the majority of Canadian voters can be won and unity forged between French speaking and English speaking Canadian workers. This would not only offer a way out for Canadian workers but would provide a beacon for US workers struggling to make a decent life for themselves and their families.

OPPOSE MULRONEY AND REAGAN.
UNITY BETWEEN CANADIAN AND US LABOR.
FOR A SOCIALIST UNITED STATES OF NORTH AMERICA.