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Wage Controls

In 1975 the federal government of Pierre Elliott Trudeau imposed a program of wage controls on Canadian workers. In his new book, The Struggle against Wage Controls: The Saint John Story, 1975-76, labour activist George Vair has explained how workers in one New Brunswick centre protested the controls and helped defeat the program. Here you are invited to add your own comments on this chapter in New Brunswick labour history. What happened at your place of work and in your community during the time of wage controls? Do you remember the Day of Protest on 14 October 1976? What can be learned from the experience?

From: Gregory Murphy
Date: 30 March 2007
Subject: Revisiting the National Day of Protest

My good friend, Brother George Vair, Saint John launched his book entitled “The Struggle against Wage Controls: The Saint John Story, 1975-1976” on February 28th at the New Brunswick Museum. I was pleased to be in attendance to help add to the launch and also to renew a lot of labour acquaintances from that era. I'm sure the presence of Bob White, former President of the Canadian Auto Workers and the Canadian Labour Congress added to that memorable evening for George.

Being a representative of the Canadian Labour Congress at the time of the Wage and Price Controls era, I thought it would be helpful to give my perspective of the period as I was servicing Labour Councils in New Brunswick as well as a number of directly chartered locals in Nova Scotia and New Brunswick. Although the  “Why Me? – Wage Controls” campaign undertaken by the Canadian Labour Congress (CLC) in early 1976 may only be a little over thirty years ago, it was an important event mobilizing workers to take a day away from work (losing a day's pay) to protest the anti-inflation program instituted by the Federal Government with the full support of the Provincial Governments against all Canadian workers who toiled for a living. It's important because at the time workers in Canada as a whole and more so in New Brunswick were facing the highest unemployment levels since 1961. This was a backdrop to workers who were being threatened that they would be fired or face suspensions if they chose to participate in the National Day of Protest on October 14, 1976 that took place throughout the country.

Bill C-73 – An Act to Provide for the Restraint of Profit Margins, Prices, Dividends and Compensation in Canada was passed by the House of Commons on December 3, 1975 despite what Prime Minister Pierre Elliott Trudeau had said on February 28, 1974:

 “Income controls risk hurting the small and the poor more than they do the big and rich; and while that may be of minor concern to the more conservative governments and political parties, it is of great and fundamental concern to this government.” 

Early in 1976, the Congress initiated a “Why Me?” campaign by developing speaker notes, leaflets, posters, stick-ons, etc. for all of the affiliated unions, federations of labour and labour councils. These were to be used in press releases, letters to the editor, public debates, open line radio programs and lobbying politicians whether at the municipal, provincial or federal levels.

The CLC in their annual brief to the Federal Government Cabinet on March 22, 1976 spoke of the importance of the issue. The delegation led by President Joe Morris had this to say to Prime Minister Trudeau:  “Your government has done what no other government of this country has been willing to do. It has legislated a programme which pits one group against another. It divides the Canadian community along class lines with employers and government ranged against the workers and their organizations.” 

Shortly after Bill C-73 was passed Congress officers and directors fanned out across the country to spread the message. John Simonds, Executive Secretary, CLC was assigned the Atlantic Region. Brother Simonds had come from Saint John and had been a representative of the Bakery and Confectionery Workers Union. I was assigned to set-up speaking engagements as well as press interviews in New Brunswick and PEI. In my notes of activities before the end of 1975 I see that Paul LePage spoke to sixty at a meeting in Bathurst on December 16th and on the following night he addressed 150 at a rally organized by the Newcastle-Chatham Labour Council.

Early in 1976, I replaced CLC National Director of Organization Ed Johnston on a panel of four in Halifax, NS. It was being staged by the Canadian Institute of Industrial Engineers on the topic of “Anti-Inflation Act and Its Regional Impact” . One of the panelists was Harold Renouf, who was appointed as Vice-Chairman of the Anti-Inflation Board and who later became Chairman. The reason I mention Mr. Renouf is that in June of 1977 my policy for auto insurance had to be renewed with Allstate. At the same time, the media was reporting that Allstate had exceeded the AIB guidelines in profits and they were ordered to return $15 M to the policyholders between July, 1977 and June, 1978. I sent the matter to the AIB and Mr. Renouf advised that they couldn't do anything as I had switched my policy to Co-operators.

The NB Federation of Labour organized a charter flight out of Moncton on March 22 to Ottawa when the Congress presented their annual brief to the Cabinet. On that day I was assigned to be in Charlottetown to assist the Prince Edward Island Federation of Labour with a similar brief to Premier Alex Campbell. The meeting lasted two hours and a press conference and interviews took place after the presentation.

The next event organized for New Brunswick was the rally that the NB Federation of Labour held in Fredericton on May 5th. I was responsible for organizing the day's activities, parade marshals, assembly areas, etc. There were over 3,000 that participated from around the province.

Mid 1976 the CLC commenced organizing for a National Day of Protest for Thursday, October 14th. I was assigned on August 23rd by the new Congress Regional Director Allister MacLeod to co-ordinate and organize in New Brunswick with the affiliates, seven labour councils and Federation of Labour. Up to that point, besides working with the above, I had been assisting the PEI, NS Feds and Amherst Labour Council with their “Why Me” campaigns. During the time leading up to October 14, I was servicing three directly chartered CLC locals: two locals being provincial with sub locals who were in negotiations with the Nova Scotia Liquor Commission, and National Harbour Board Local 24, Saint John, which also had gone through negotiations, conciliation and, in October, were dealing with Lorne Clarke of Nova Scotia as a conciliation commissioner appointed by the Federal Labour Minister John Munroe.

What happened around the province can best be described by what happened with each labour council.

Edmundston and District Labour Council Despite being in Edmundston a number of times in 1976 and being at a labour council meeting on September 15th with 21 delegates attending, I could not generate any interest or able to find a coordinator. There was little or no support on the 14th.

Campbellton-Dalhousie District Labour Council John McEwan was President of the Council and they participated in the demonstration in Ottawa as well as the May 5th rally in Fredericton. The Council held a special meeting on September 2nd with 60 delegates representing 17 locals. Brother McEwan didn't want to get involved as others were not pulling their weight and the general tone appeared to be non-supportive. At a regular council meeting on September 22, CUPE rep Leo Paul Arsenault agreed to act as coordinator. CUPE Local 76 , City of Campbellton outside workers, was very much in favour of the protest. The meeting decided to hold separate protests in Campbellton and Dalhousie. On the 14th there were 250 in the demonstration and 1,000 off the job. Local 76 saw 41 of their members fired. The Labour Council set-up a committee to support the local's members. Letters were sent to the councillors and mayor protesting the action and a fund was established. The committee also did an inventory of where the council members worked with the intent of initiating a boycott.

Bathurst and District Labour Council Bathurst was another area that it was difficult to generate any support despite being in there a number of times. A special meeting of the council was held on August 28 with 10 delegates from 7 locals. Sister Val Ward agreed to act as coordinator but later resigned. The main support was coming from CUPE locals in the area. Later, Ed Levert, a United Steelworkers of America rep, agreed to coordinate. The Canadian Seafood Workers wouldn't participate as their business agent Matilda Blanchard didn't agree. There was no action in the community on the 14th.

Newcastle-Chatham District Labour Council The council became involved in the “Why Me?” campaign. They asked me to address Grade 11 & 12 classes at Miramichi Regional High School on Wage and Price Controls. Also participating was the local MP Maurice Dionne. The council held a special meeting on August 30th with 30 trade unionists representing 17 locals to discuss the National Day of Protest. Bill Whalen, Canadian Paperworkers Union member, agreed to be coordinator. A follow up meeting was held on September 27th with 45 union members in attendance. The plans were laid as to speakers; site and format for the day were discussed. A press conference followed the meeting. When the Protest Day arrived, 900 were in the demonstration at the Sinclair arena with 1,500 off the job. John “Lofty” MacMillan, National Director of Organization, Ottawa, was the major speaker after coming over from Fredericton earlier in the day. All the MLAs and the MP for the area were invited to attend; only one was present.

Fredericton and District Labour Council The Fredericton and District Labour Council had thirty delegates to their weekend school in January where they were introduced to the “Why Me?” campaign. Their first meeting on the National Day of Protest and Fredericton activities was at a special meeting on September 8. Eight delegates attended representing five locals. Terry Carter, a member of the Retail, Wholesale and Department Store Union, Local 1065, agreed to act as coordinator. At the September 16 meeting, ideas were discussed, a phone committee was established to make contact with the area locals, press releases prepared and circulated. Another meeting was scheduled for September 28 with 30 attending. One CPU and 2 CUPE reps attended. Further plans were made and a press conference was held. The planning committee met on October 6th and I met with the business agents of the Building Trades seeking their support. I was assigned by the Congress to be in Fredericton on the National Day of Protest. I spent the evening before assisting the council's committee in preparing picket signs, going over the parade route, parade marshals and speakers. In Fredericton in the morning on the 14th it was raining, as it was throughout the province. We were provided with a police escort as we had a long march from the IBEW hall on the Nashwaaksis side of the Saint John River to the Federal Building on Queen Street, where a couple of speeches were made to rally the troops, before proceeding to the Centennial Building where a number of speeches were made condemning the Provincial and Federal Governments for the Wage Control program against workers. Speakers were John “Lofty” MacMillan, M.A. “Tex” Hughes, Saint John, Atlantic Region Director, CUPE, Jim Aucoin, Fredericton, President New Brunswick New Democratic Party and Gregory Murphy, Moncton, Regional Representative, CLC. 250 workers participated in the parade and an estimated 1200 were off the job.

Moncton and District Labour Council The Moncton trade unionists were exposed to the Anti- Inflation program of the Federal Government with support of the provinces at their weekend school in February with 70 delegates participating. They had also organized a panel discussion with Allister MacLeod, Moncton, CLC and Liberal MP Herb Breau from Gloucester County, New Brunswick.

The Council had a special meeting on August 24 with 70 delegates representing 27 locals attending. John Kingston, an officer of the United Steelworkers local at Moncton Foundry and President of the Council, was named as coordinator. A further meeting was held on September 23 where the plans were laid for October 14th. There appeared to be little support from the railway craft unions, running trades and the building trades. The parade route was from the Moncton Union Centre on Norwood Avenue to City Hall on Main Street. There were 1,500 demonstrators with 3,000 off the job. The keynote speakers were Allister MacLeod and Gil Levine, Ottawa, Director of Research, CUPE.

Saint John and District Labour Council Brother Vair has covered in great detail the happenings in the port city in 1976. As described by George, Saint John at the time was the industrial base of the province and had a large concentration of union members. Brother Vair in assuming President of the Saint John and District Labour Council early in 1976 indeed made my task much easier during that eventful year.

The team developed was young and had a desire to agitate the establishment of the labour movement for a National Day of Protest. As I mentioned earlier, I serviced the directly chartered Local 24 CLC which was basically maintenance employees of the National Harbours Board in Saint John. For a small local they had a good turnout on the 14th.

I made a number of trips to Saint John to meet with George Vair and his committee to provide advice, do media interviews and keep them posted on happenings around the province. On reflection, their leadership was strong and they were determined to have their views accepted by the labour movement around the province.

The committee had arranged for me to speak to members of various locals of the CPU in the area in late April for support of the NBFL rally in Fredericton on May 5th which I spoke to with no difficulty. It's ironic though that when we were nearing the Day of Protest, members of Brother Larry Hanley's Local 601 CPU (MacMillan-Rothesay paper mill) on October 5th after taking two votes refused me the opportunity to speak to them about the 14th. The Labour Council's coordinator Larry Hanley and George Vair were able to get me in to speak to two meetings of the IBEW Local 1148 (NB Tel operators and maintenance).

My notes indicate that CLC Regional Director Allister MacLeod convened a meeting in Fredericton on July 10th for the NBFL executive officers and the seven labour councils to give the latest information on the “Why Me?” campaign and possible future action. Those in attendance indicated that the CLC should set the date for the National Protest. As George has noted, the National Day of Protest was announced by CLC President Joe Morris on August 12th.

For this résumé, Saint John had the largest visible turn out in New Brunswick with over 3,000 in the demonstration with an estimated 10,000 off the job.

From: Kurt Peacock
Date: 6 March 2007
Subject: The Saint John Day of Protest

Having just finished George Vair's book, I must state it is a very compelling read. While the story of the national struggle against wage controls forms a good section of this book, the local narrative is what gives the book its character.

Having spent much of the last two years analyzing recent statistics about Saint John, what's most fascinating about reading Vair's look back at events that occured three decades ago is how he describes a very different city. The 1990s were a tough decade for Saint John - according to Statistics Canada, we led urban centres in the decline of the employment-intensive (and more-highly unionized) goods-producing sector... (An excellent 20 year examination of employment trends in Canadian cities can be found here .)

In Vair's book, the labouring workers (many of whom were producing goods that are no longer part of the local economy, like sugar) took a stand when they were being mistreated. In today's Saint John, these workers are largely retired, and the local movement is far different from what it was just 30 years ago. The key question moving forward is whether the coming era of local mega-projects (a possible second Lepreau, a cruise ship terminal, industry upgrades and expansion) will give workers another chance to make their voice heard...

Vair's book is an excellent examination of the national struggle against wage controls - an often overlooked chapter in the usually flattering Trudeau bibliography. Indeed, one of the book's best segments is found in its colourful description of a labour protest during a Trudeau visit to the port city.

Yet the book's most interesting character is in fact the Saint John of yesterday that the author vividly describes. It is a hard-working city, but is unafraid of spending a cold and rainy October Day without a paycheque, standing outside marching with placards in order to stand up for what is right.

From: Paul Young
Date: 28 February 2007
Subject: CPU Local 30 and IBEW Local 1888

I was a national representative for the Canadian Paperworkers Union (CPU) servicing New Brunswick in the pulp and paper sector and in forestry. We had separated from the international union in September '74 and we went to negotiations in 1975. In the previous two years, the industry had made unprecedented profits. We went to the table with our demands which we thought were reasonable in light of all the profits. (They had never made profits like that before.)

The industry decided to take us on because they knew that we were a new Canadian union with no money for defence. So by July of '75, mills in British Columbia and some in Ontario were on strike. We were trying to force the companies to come forward with a response to our demands. By September they still hadn't replied. So we knew then that we were going to have to expand. We had no money. We had to go to our local unions and say, “We're going to pick local unions to go out on strike. And you're going to have to bite the bullet.” We picked prime mills in order to keep the national union operating and the people in the mills, they took it. People weren't getting paid. They just went out. I had to strike in Newcastle. They got thirteen dollars once in that period of a hundred and eight days that they were on strike. That was it. The reps worked at half salary. Strikes continued through Ontario into Quebec and into Atlantic Canada. We shut down three operations in New Brunswick: St.Anne-Nackawick, Boise Cascade in Newcastle and the MacMillan Rothesay paper mill in Saint John which today the Irving company owns, but it was MacMillan Rothesay at that time. So those mills were out.

The pulp and paper industry in Canada had formed a cartel to really take us on. They were supplying one another. They were buying pulp. They were working behind the scenes to try to break the union. Anyway, Irving was not part of the cartel. He wanted a settlement. We were at the bargaining table and he came out with the twenty three point eight and the two percent. He also said that if the industry settled more in the second year, more than the two percent, he would match that. Well, the rest is history. That was the agreement. That was the agreement we were going to take to all the other pulp and paper companies. Then of course, the government established the wage and price controls board.

The AIB came along and said that was too rich for the guidelines and we went through all the arguments right up to the cabinet to fight that. We were the “cause celeb” , CPU Local 30 and IBEW Local 1888. We were the main case. I got our national president Henry Lorraine involved and we hired legal council out of Ottawa. And we met before the tribunal in Saint John but to no avail, we got rolled back to fourteen percent.

Before we went to their tribunal, Irving and I and Marshall Leavitt and Gerry Lawson met with the person sent by the tribunal to interview us and he asked how we arrived at our arrangement, or our contract of twenty three point eight and two. I explained that Irving had made a lot of money, that was our story. And Irving told him that he had made a lot of money and he figured what he was doing was fair to his employees. We had asked Irving in light of the AIB to put a hundred thousand dollars in escrow. And he did that. And then when the tribunal came down, they took the hundred thousand dollars that was in escrow and then another fine of twenty-five thousand dollars against Irving. And we got rolled back. And that then set the guidelines in the paper industry of how much you could negotiate to, that set the standard for negotiations under the AIB. At the time, the industry had done very well. And I guess – well we figure we were, robbed by the government. We had negotiated in good faith with the pulp and paper company. And we had an agreement that we could justify. And the company was prepared to pay. We were let down by the government that time.