The North Star

Carney’s plan for Canadian Steel

Carney’s Steel Promise: Billions for Corporations, Crumbs for Workers

Last Wednesday in Hamilton, ON Prime Minister Mark Carney announced new tariffs against Chinese steel imports, in a so-called effort to 'protect' the Canadian steel industry and its workers.Carney's plan demonstrates considerable commitment to the interests of industry leaders. In contrast, the Prime Minister offered workers little more than a couple promises.

Over the past several months the United Steel Workers of Canada (USW) union has been vocal in demanding immediate action from the government to prevent further job losses and provisions for laid off workers, such as expanded Employment Insurance and tougher controls on foreign steel imports. 

By the end of March, nearly 200 steel workers had been fired by corporations. Included were Algoma Steel plant in Sault St Marie, ON, and the Canada Metal Processing Group (MPG) Ivaco plant in L'Orignal, ON. In June ArcelorMittal, a steel giant based in Luxemburg, fired 153 workers when they closed their wire mill in Hamilton. 

Up to June and July  some sources estimate that approximately 1000 workers have lost their jobs in the industry. For months these workers got nothing but the apologies and metaphors of their former employers, "Our employees are the backbone of our operations." Says MPG CEO Matt Walker as he fired over a hundred workers and defended his idea that somehow a corporation, just like a CEO, can be upstanding without a backbone.

In his announcement, the PM made two promises to workers:

"Building on the enhancements to Employment Insurance (EI) and the EI Work-sharing, the government is investing $70 million in Labour Market Development Agreements to provide training and income supports for up to 10,000 affected steel workers. Through reskilling investments and increased worker supports, we will ensure workers have the skills and support they need to meet the future needs of the industry."

The plan was applauded by the USW, whose leadership said the "announcement from Prime Minister Mark Carney reflects major wins for workers," but can Carney's tardy promises really be called a victory for Canadian steel workers?

It took five months and the failure of the industry and government to protect 1000 workers for Carney to say he will offer "enhancements" to EI. No word from the PM about whether he will make the steel corporations rehire the 1000, or prevent corporations from making any future firings. Despite being a strategic industry, corporations will not be held to account for endangering the livelihoods of Canadian workers. 

As for the $70 million in "training and income supports" there is no word on how this money will be distributed to workers, nor why the PM thinks Canadian workers need to be retrained for an industry they have already worked in. 

The rest of Carney's plan suggests that his government is much more comfortable writing huge cheques for corporations, than he is willing to help their workers. Along with a public money-funded shield from having to compete with foreign steel, the PM gives corporations $1 billion through the Strategic Innovation Fund, $150 million in tariff relief funds, and access to tens of millions more through the Large Enterprise Tariff Loan. A lot of solidarity for corporate bottom lines, but very little for the workers. 

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