ie ea. 2 ASS P : ; WESTERN CANADIAN LUMBER WORKER From Page 2 “Cyne” of Statistics when he claims that high wages have been mainly responsible for unemployment. We advise that he should do more than study the financial. statements of his company, as the prosperity of MacMillan, Bloedel and Powell River is not always identifiable with the prosperity of the country as a whole. Facts Dealt With Unfairly We do not expect Mr. Clyne to subscribe to our economic theories, but we have a right to expect that he should act fairly in dealing with the facts. A wealth of evidence can be produced from impartial and reliable sources to show :— 1. That wage increases since 1949 have not been the chief factor in price increases. A month-by-month analysis of the statistics on wholesale prices, retail prices and wages furnished by the Dominion Bureau of Statistics throughout that period conclusively demonstrates that wage increases have followed price increases, and not preceded them. Prices have been inflated to a degree that cannot be accounted for by the total of wage increases during the period. Obviously, other factors were at work. 2. That wages have never determined prices. The spokesmen for big business have repeatedly stated that prices are set by their own estimates of what the traffic will bear. That prices are “managed”, “administered” or even “fixed” is clearly revealed by the numerous enquiries and convictions under ‘the Anti-Combines Investigation Act. No reduction in wages will alter this price-fixing policy. 3. That the continuing displacement of workers by reason of greater mechanization and automation is a factor in the present unemployment situation which cannot be ignored, and which will not be remedied merely by increasing the profits for exports. 4. That on two former occasions, trends toward serious recession were warded off by a rise in wage levels. Increased consumer spending gave business the lift required. 5. The serious drop in consumer spending causing -a stationary or declining Gross National Product is our chief economic worry in Canada at the present time. Any decline in consumer spending power re- acts against export trade. Even if we could out-bid competitors in the export market, our customers abroad would still have to pay for our exports with goods which we would be expected to buy. 6. The output per man-hour of labour has substantially increased. Unless wage levels are adjusted upward : to this rising productivity, the productive capacity of the nation will never be utilized to provide full employment. It will thus be seen that a sober and unprejudiced consideration of all the facts makes Mr. Clyne’s statements incredible of belief. The employers’ continued reiteration of such statements does not make them true. No Reference Made To Profits If Mr.,Clyne desires the full confidence of the public, why does he not deal with the question of profits, as a factor in the present economic situation: No economist would dare to say that the degree and manner in which profits are made have no relation to economic stability. The Rt. Hon., the Prime Minister recently bracketed profits with wages, when he proposed a voluntary freeze for both. We regret his omission of any reference to prices, but nevertheless he was much more realistic than Mr. Clyne, in his search for better export market prospects. Will the Investors Do the Same? The profits accumulated by MacMillan, Bloedel and Powell River are a matter of public knowledge. These profits have provided for large capital expansion and generous dividends for the investors. In view of these circumstances, it is surely fair to ask if the investors are prepared to do what they ask the workers to do—tighten their belts and surrender a portion of their income until the economy is again on an even keel. I remind Mr. Clyne that a smaller dividend usually means only fewer luxuries, while a cut in wages more often means for a family the difference between a healthy or a sub-standard living. f The unkindest cut of all from Mr. Clyne for his em- _ ployees is the suggestion that lower wages would be to the advantage of Canada in the world markets. He is like a doctor who prescribes more poison for a tient already at death’s door with poisoning. He should informed about the facts of our economic life. Stripped down to the bare facts, less wages means less spending; less spending means less business; less spending means also less imports; less imports mean less exports; less exports ‘mean still less production. This is the vicious circle which we had hoped the depression of the “hungry thirties” would have ended forever. We Do Tighten Our Belts Mr. Clyne’s attack on wage levels to the exclusion-of all factors in the situation makes it impossible to envisage kind of economic structure he would place us in, if he ts his own way. Suppose he persuades the workers to take in wages until industry is what he -would call com- e. Wages would be brought down to the rates paid Bits i CLC Aids Union Drive Building trades unions engaged in a massive drive to organize construction workers in apartment and housing fields have been offered the use of Canadian Labour Congress organizers. The 17 unions involved have accepted the offer and plan to expand the drive from Toronto to take in the Hamilton and Oshawa areas. James Black, newly appointed co-ordinator for Eastern Canada of the AFL-CIO building trades department, said the respective international unions concerned have also pledged their support. workers in any other country offering serious competition, and some goods are produced under very primitive condi- tions. The workers would surrender their present living | | standards, live on beans and sleep in shacks, and the retailers would adjust themselves to the reduced take. When all this has been done to the point where we would capture the entire demand of the markets for which we have goods to export, what then? What Kind of An Economy? Who would pay for the imports offered in payment for our exports? On what basis could we continue exporting? What sort of production could we continue that would pro- vide full employment? On what would we build a stable economy? How would we influence the trend of international affairs? What are the extremes to which Mr. Clyne’s logic carries us? Mr. Clyne, of course, may not take the trouble to explain his Victorian era philosophy to his em- ployees. He must know that it.contains no element of comfort or security for them. Perhaps it is well that he spoke out as he did at Calgary. We know now what to expect from him and his representa- tives next year. We know now what we must do to get ready. JACK MOORE Regional Ist Vice-President Upon discharge from the RCAF, and while employed in the logging section of the industry, Jack Moore became active on IWA camp com- mittees at Englewood and Bloedel. He was elected Secretary of the Alberni Plywood Sub-Local 1-85, IWA, in 1949 and in 1952 was named ~ Financial Secretary of Local 1-85, IWA, Port Alberni. He held this position until 1957, when he ‘was appointed District Executive Assistant. He was elected to his present post in 1959. FIRST MCAT 4/N TOK OS ANDO STILL SHOWING OFF CO. (B.C) LTD. 2248-50 East Hastings St. Vancouver, B.C. 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