July 5, 2010 - No. 126

Steel

U.S. Steel CEO Feigns Ignorance of
Global Capitalism's Fatal Flaws

- K.C. Adams -

 

Steel
• U.S. Steel CEO Feigns Ignorance of Global Capitalism's Fatal Flaws - K.C. Adams
• U.S. Steel Appeals Court Defeat
• Steel Producers in Europe Fined 518 Million Euros for Cartelization

Letters to the Editor
• Eastern Quebec: Economic Diversification Projects of "Builder" Jean Charest Are a Sham
• Quebec's National Day in Montreal and the G20 in Toronto: No to Police Impunity and the Militarization of Public Spaces!
• Harper and CSIS Are the Real Foreign Agents in Canada

Cuba
• Right-Hand Man of Terrorist Posada Carriles Captured in Venezuela
• Down with U.S. Criminal Blockade of Cuba! All Out to Support the 21st Friendshipment Caravan for Cuba!

Steel

U.S. Steel CEO Feigns Ignorance of
Global Capitalism's Fatal Flaws

- K.C. Adams -

"The overwhelming dynamic affecting the pace and level of our industry's return to profitability today is the state of the raw materials markets," said U.S. Steel CEO John Surma during a speech at the recent American Metal Market's Steel Success Strategies conference.

If the state of the raw materials market is the overwhelming dynamic affecting the steel industry then it would be fair to ask why U.S. Steel characterizes concessions from workers as a structural necessity.

It would also be fair to ask what CEO Surma and other powerful members of the international financial oligarchy are doing to fix the raw materials markets so those markets do not wreck the Canadian steel industry, if they are really the "overwhelming dynamic" Surma contends they are.

However, Canadian workers are learning from direct experience that the "captains of industry" say whatever is expedient to serve their narrow interests at any particular time. They do not really mean what they say because they know it is not based on economic science but on pragmatic self-interest to deflect people away from facing up to the fatal flaws of the capitalist economy and resolving those fundamental contradictions with new arrangements.

The people who hold the decision-making powers do not know what they do not want to know about the contradictions within the capitalist economy. They and their fellow über-rich do not want to lose their class privilege and grip on power because it sustains their domination over the economies of the world, which is the key to satisfying their insatiable greed, no matter how much damage they cause. Losing their hold on political and economic power would result in the removal of the block to really solving the economic crisis and moving the country forward to an alternative People's Canada with a People's Economy.

In the same Reuters' report on Surma's speech, the CEO is asked "whether U.S. Steel was considering shutting down any of its operations."

Given his earlier comment that "the state of the raw materials markets is the overwhelming dynamic affecting the return to profitability today," one would expect a plan as to how to deal with this problem of raw materials markets to forestall shutting down mills. But no. Surma went off on another tangent about "overcapacity in the North American steel market" and what he feels are reasons for shutting down a mill. He even added that shutting mills is a possibility under consideration but he cannot speak about it openly citing the blackout period before announcing U.S. Steel earnings results for the second quarter.

Surma's quite casual comment about shutting mills could only be described as detached in the sense of not giving a damn about steelworkers, their steel producing communities, the Canadian and U.S. steel industries and the health of the socialized economies of both countries. Surma mused offhandedly about shutting mills as if such a decision were an act of forces beyond human control for which he as CEO bears no social responsibility. He continued, "We take what the order books give us and try to configure our operating facilities to meet that with what's cost effective. Logistics, cost structures, all things come into it. At some point during the cycle there are some facilities that don't have enough book to keep them open."

But where do the orders originate Mr. Surma and who or what unknown force makes that decision to order or not to order? Are we ordinary folk to assume that the entire economy, and its destructive business cycle, is out of control and cannot be changed and humanized to serve the needs of the people? Surma's offhand comments are a most disgusting example of the anti-human factor/anti-social consciousness of the ruling elite. Canadians should ask themselves why such detached useless characters are in charge of their lives, for in fact monopoly capitalists such as Surma have the power of god over Canadians and their economy.

What is the reality of the order book for U.S. Steel's Canadian operations? Stelco steelworkers know that U.S. Steel Canada's order book was filled by steel plants in the U.S. while Hamilton Works and Lake Erie Works were shut down by Surma's dictate. Steelworkers know that Canadian steel capacity is less than Canadian steel demand even at the lowest point of the business cycle, with most of the shortfall filled by U.S. steel mills.

Surma's anti-Canadian unscientific views are similar to Prime Minister Harper's words during the G20 summit that Canada does not have an economy; it is supposedly only a factor within the global economy he said. Amazing statement for such a patriotic leader who has his CSIS spy director accuse in a blanket statement that unnamed Canadians of Chinese nationality are agents of China. Who are the real agents of foreign powers and monopolies in Canada if not the governments and ruling elite who let them plunder our natural resources, shape our economy to serve their global empires, wreck our mills and plants without any serious opposition and generally run roughshod over ordinary Canadians.

This shameless nation-wrecking and prostrating before economic forces, described as beyond human control by Surma and his ilk, is why the wrecking of manufacturing has taken place in Canada and no real solutions to the economic crisis have been introduced because that would require restricting monopoly right and taking action against class privilege and the U.S. Empire. The only thing Canadians receive as official policy are pay the rich "stimulus" schemes and "pay down the debt" austerity measures to attack the people, which are two sides of the same anti-social agenda.

Workers and their allies have to come to the realization that the rich and their monopolies have no intention of ever dealing with the economic problems of global capitalism because they do not want any alternative to emerge. To solve economic problems requires an effective Workers' Opposition that is determined to fight for a People's Canada based on a People's Economy over which the actual producers have the power to decide its direction and fix its problems.

U.S. Steel Appeals Court Defeat

U.S. Steel is appealing the June 14, 2010 order of Justice Hansen upholding the constitutionality of the Investment Canada Act. TML has learned that pending the appeal, U.S. Steel is seeking a stay of proceedings in the federal government lawsuit against it for breach of contract under the ICA. The request for a stay will require a hearing at the Federal Court sometime during the summer. Lawyers involved in the case estimate that U.S. Steel by appealing to the Federal Court and then to the Supreme Court, if the foreign monopoly receives a stay of the main proceedings, could conceivably delay the case for over two years even if it loses the appeals.

This unconscionable delay could be overcome through emergency legislation demanding U.S. Steel live up to its commitments on production and employment or be divested of its Canadian steel facilities allowing them to be taken over by another private or public enterprise willing to renew and expand both Stelco steel mills.

Europe

Steel Producers Fined 518 Million Euros
for Cartelization

The European Commission said several steelmaking firms, including world number one steel maker ArcelorMittal, operated a price-fixing and market-sharing cartel from 1984 to 2002 in all the countries that then formed the EU except Britain, Ireland and Greece.

The largest fine of 276 million euros was imposed on ArcelorMittal, a Commission statement said, adding that any person or firm affected by the anti-competitive behaviour could seek damages in member-state courts.

EU Competition Commissioner Joaquin Almunia in the statement expressed amazement at how such a significant number of companies abused nearly the entire European construction market for such a long time and for such a vital product. It was almost as if they were acting as part of a planned economy, he remarked.

The Commission states it will have no sympathy for cartelists; recidivists will face increased fines. Claims of inability to pay fines will be accepted only when it is clear fines would send a company into bankruptcy, which is rare even in the current difficulties, the Commission noted.

The Commission said that over the 18-year period, the companies fixed individual quotas and prices, allocated clients and exchanged sensitive commercial information.

In addition, the companies monitored price, client and quota arrangements through a system of national coordinators and bilateral contacts. The Commission said companies involved in the cartel usually met in the margins of official trade meetings in hotels all over Europe adding that it had evidence of more than 550 such meetings.

(The News (Pakistan))

Letters to the Editor
Eastern Quebec

Economic Diversification Projects
of "Builder" Jean Charest Are a Sham

Since the spring of 2010 the Gaspé region has been the site of two examples of the destruction of Quebec's capacity for production.

The first case is that of the Gaspésia Plant in Chandler, a paper mill owned by Abitibi-Bowater which is being demolished. The City of Chandler, which has owned the factory since its failed relaunch in 2004, has sold it to Asian interests.

The second case is that of a former Smurfit-Stone cardboard plant in New Richmond, which is slated to meet the wrecking ball in the next 12 months. Green Investment Group, a firm from Illinois, will oversee the destruction of this factory. All dismantling work prior to the demolition will be carried out by American Iron and Metal in Montreal. The factory was built in the mid-'60s, which is the average age of paper mills in Quebec, and has been closed since 2005.

On May 25, the Charest government's minister responsible for the region Nathalie Normandeau said that "$18 million over three years will go to Gaspésie-Îles-de-la-Madeleine to boost its economic diversification." The minister added, "We are aware that the Gaspé has its challenges. That the government has extended the same amount as in the past is a miracle, given the budgetary context."

The arrogance of the Charest government and its officials is boundless and unacceptable. The $6 million per year is divided over two programs. First, the financial assistance program for the development of the territories which permits devastated communities to maintain projects in recreational tourism, environment and culture ($2.4 million), and second, the Regional Strategic Action Fund to support the continued competitiveness of businesses ($3.6 million).

These amounts do not even represent the annual payroll of each plant in Chandler and New Richmond when they were in operation and which are currently slated for demolition.

Monopoly right, despite the fierce struggle of the workers in the two plants to protect their livelihood, has trumped that of the people concerned with the support of the government.

It must not continue! It must not pass!

A Reader in the Gaspé

Quebec's National Day in Montreal and the G20 in Toronto

No to Police Impunity and the
Militarization of Public Spaces!

On the evening of June 24, I went with friends to the concert for the national holiday at Maisonneuve Park in Montreal. Thousands of people went to the show: families, youth, elderly people, people from all walks of life. They had the day off and wanted to celebrate the holiday together. Sherbrooke street was blocked between Pie-IX and Viau streets so as to permit people to circulate freely.

Freely? It was more of a setup for intimidation than anything else. There were dozens of police who popped out of nowhere in groups of 5 or 10, armed with batons and guns. The riot squad was present on horseback wearing their Darth Vader helmets, their bullet proof vests, with paddywagons and police cars present in excess. Not to mention the helicopters flying over the event all night, canine units, poorly disguised undercover officers, etc. A festive atmosphere wouldn't you say? We asked ourselves: are we at the G20 summit? We weren't just in a "protected" zone but a "surveillance" zone.

July 1, 2010: Montreal demonstration against police violence at G20 summit in Toronto.

Near Sherbrooke and Pie-IX streets I witnessed two youth being chased down. There were three police on horseback circling the scene, three police on crowd control and a little farther back were the two youth who had just been forced to the ground, each with three armed officers on top of them. One youth shouted that he had done nothing. This was a human being, a youth maybe 15 or 17 years old that three huge cops had immobilized, flat on the ground. I called out, "What is this? What's going on?" A cop arrogantly answered, "Do you at least know what he did Madame, do you?" What an answer! I replied that I didn't care, that it was simply no way to treat the youth: surrounded by horses to hide the scene from the crowd, the cops on top of him. Then the "good cop" approached me to take me aside, "Come with me Madame, I'll explain," he said. I refused and said that I was leaving, appalled at the situation. To which the first cop arrogantly shot back "Good riddance!" So in such a situation of impunity, an attack and abuse of a youth's safety, to whom do I turn? Who ensures and provides safety? The police who are there to intimidate, question and circulate are not there for security.

Farther up I found my friends waiting for me. The cops had gone to see them to ask them to move. Then there were four "checkpoints," like in Palestine, where we were searched, our bags, purses and backpacks were searched, for what I don't know. Jokingly someone quipped that soon visas will be required to enter. In previous years there were many cadets, youth who verified that no one was bringing in alcohol, as well as ambulances, police, but the ambiance then was one of celebration, not intimidation.

A dangerous situation is developing: 200-300 police with their horses, tasers, batons and guns have the power to terrorize and intimidate 200,000 people who had come to celebrate. This small handful have the power to treat the youth, whether or not they committed a crime, as criminals, as wild animals to be despised and crushed. All these events raise a number of questions. One wonders who to notify or where to turn so that action is taken to denounce this militarization of public life.

Montreal: July 1, 2010: "Police, which world are you defending?"

On June 25 and 26 we witnessed the resistance of Torontonians and people from across Canada to the G8 and G20, to the anti-people agendas of these summits. We also saw the massive repression of their political views. We witnessed the brutality, the militarization of the public spaces there, the impunity of the police state and the pretense of legality to justify this revolting spectacle. The latest reports state that more than 1,000 brave people were arrested. What is happening is being trivialized by the powers that be and monopoly media so as to establish a new normal of impunity, arbitrariness, massive police repression of political views in the name of "crowd control exercises." The G20 agenda is one which trivializes and justifies the militarization of cities for the protection of the worst villains in the world and which attempts to delegitimize the people's forces by associating them with "violence." Meanwhile, law enforcement, the leaders and their working sessions at the summits are said to represent "security" and "democracy." On the evening of June 24 in Montreal, on a smaller scale, the state associated the words "control" with "public security" and "youth" with "troublemakers."

Through these events in our day-to-day lives and struggles, despite the loss of innocence, we are coming to terms with the fact that security for the people will only come through our own resistance and struggle to affirm our rights.

A Reader in Montreal

Harper and CSIS Are the Real
Foreign Agents in Canada

On June 22, the Director of the Canadian Security Intelligence Service (CSIS), Richard Fadden, stated that foreign governments have infiltrated Canadian politics and that Cabinet ministers in two provinces are under control of foreign governments. Yes, Mr. Fadden, the U.S. imperialists long ago infiltrated Canadian politics and the Harper government and various provincial politicians, e.g., those who serve the foreign oil monopolies in Alberta, are certainly under the control of U.S. imperialism. Harper and his ilk make no bones of their subservience and proudly trumpet their allegiance whenever the U.S. suppresses the rights of the world's people. This includes supporting U.S. client states like Israel when they commit crimes such as the attacks against the Palestinian people. What can such shameless obeisance to foreign powers be called other than acting as a foreign agent?

Of course Fadden, the CSIS, and the Harper government have their own definition of "foreign agent" which boils down to anyone who does not support U.S. imperialism. In fact, the hallmark of a "patriotic Canadian" to Harper is someone who agrees with the policy of abject submission to the U.S. But the majority of Canadians oppose U.S. imperialism. For example, the latest polls show that the majority of Canadians oppose the use of Canadian troops to support U.S. aggression in Afghanistan. From Harper's perspective this makes the majority of Canadians foreign agents! It is no wonder that his government is more and more trying to criminalize dissent, for example, through attacking the people during the current G8/20 conferences or through labeling any criticism of Israel, another foreign power that he acts as an agent for, a "hate crime."

It is ludicrous that the head of CSIS is the person making accusations about foreign agents in Canada. The main job of CSIS is to protect the Harper government, its U.S. masters, and the other states dominated by the U.S. In other words, the main job of CSIS is to protect the foreign agents and the governments under their control, which is the very thing that their man Fadden is railing against. This protective role is of course in addition to CSIS's routine commission of crimes against the Canadian people that foreign agents commonly carry out, e.g., spying on the people, using an agent to funnel money to a neo-Nazi organization, fabricating plots, leaking sensitive information to foreign powers such as the United States and Israel, and so on.

It is no wonder that Harper was so hell-bent on having the G8/20 meetings in Canada and spent more than a billion dollars to protect them from the wrath of the people. The G8/20 is an organization of the most powerful countries and those annexed to them such as Canada. The G8/20 represents the negation of the peoples of the world within an imperialist system of states dominated by the U.S., and stands for everything that Harper admires and everything that the people oppose. The people must resist the Harper government and all those who hold power on the behalf of foreign imperialism by building nations and economies independent of the big powers. The people must fashion self-reliant nations and economies where the people themselves control their own destiny and not the foreign powers and their agents such as Harper.

A Reader in Edmonton

Cuba

Right-Hand Man of Terrorist Posada Carriles
Captured in Venezuela

Venezuelan President Hugo Chávez informed on July 2 that Salvadoran fugitive Francisco Chávez Abarca, the right-hand man of the terrorist Luis Posada Carriles and mastermind of several bombings in Cuba, was captured in Venezuela. His capture came in the wake of an intelligence operation on the night of July 1, while Abarca attempted to enter Venezuela.

During a speech from the Miraflores Presidential Palace, the president explained that Chávez Abarca was detained in the Simon Bolivar International Airport and was transported to the headquarters of the Bolivarian Intelligence Services (SEBIN) to be interrogated.

Also known as "El Panzón" (Pot Belly), Abarca was on Interpol's list of wanted terrorists for his participation in a series of bombings in Cuba during the 1990s.

In the wake of his capture, President Chávez questioned what Abarca's intention in Venezuela could have been and ordered that whoever was waiting for him be revealed.

"What did Chávez Abarca want to do in Venezuela? Who was waiting for him?," asked Chávez, prior to stating that he would be turned over to Interpol so that he could be transferred to Cuba, which has sought his arrest.

President Chávez stated that it was strange that a "terrorist of his calibre" appeared in Venezuela in the midst of preparations for September's legislative elections.

Who Is Chávez Abarca?

Chávez Abarca had been detained in El Salvador for two years for being the leader of a group dedicated to stealing cars, but he was never charged with the other international crimes for which he was wanted.

On October 28, 2007, a judge freed Chávez Abarca, and he was never forced to answer for his activities as an accomplice of Luis Posada Carriles during a campaign of bombings that had never been investigated by Salvadoran courts.

In the '90s, he dedicated himself to trafficking drugs and the sale of weapons and money forged in Guatemala.

On April 12, 1997 he set off a 600-gram C-4 bomb in the bathroom of the discotheque Aché located in the Meliá Cohíba Hotel in Havana. On April 30, 1997 he set off a 401-gram C-4 bomb placed in an ornamental vase on the fifteenth floor of the same hotel.

On May 24, while Chávez Abarca was in Mexico, a bomb exploded in the entrance of the offices of the corporation Cubanacán in the Mexican capital.

President Chávez noted that five years have passed since the Venezuelan government formally requested to the U.S. the extradition of Posada Carriles, a former CIA agent responsible, amongst other crimes, for bombing a Cuban civilian airliner in October 6, 1976 that left 73 civilians dead.

Posada Carriles remains free in the U.S. and is only charged with minor immigration offenses. The U.S. has not responded to Venezuela's extradition request.

(Telesur, Press and Communications Office of the Embassy of the Bolivarian Republic of Venezuela to the U.S)

Down with U.S. Criminal Blockade of Cuba!
All Out to Support the 21st
Friendshipment Caravan for Cuba!

This year's Friendshipment Caravan for Cuba is the 21st such action carried out by activists from Canada and the U.S. meant to challenge the U.S. government's criminal blockade of Cuba and show solidarity with the Cuban people and their revolution by providing them with humanitarian aid. The caravan is realized through the assistance of Cuban friendship and solidarity organizations across Canada and the U.S., and is organized by Pastors for Peace, a project of the Interreligious Foundation for Community Organization (IFCO) that was launched in response to the 1988 civilian attack by contra forces in Nicaragua.

By travelling through Canada and the U.S. to gather the material aid that Cuba has identified as most crucial at this time, these humanitarian aid shipments not only mitigate the impact of the embargo but mobilize support for the Cuban Revolution and the just demand that the blockade be brought to an end, once and for all.

Events in support of the caravan have already taken place in Montreal, Ottawa, Vancouver, Regina and Kingston. Upcoming events for Toronto, Winnipeg and Hamilton are posted below. For events across the United States, to follow the progress of the caravan or for more information on what items are needed as donations, visit the Pastors for Peace website: www.pastorsforpeace.org.

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