Company executives, directors, lawyers, hedge funds, banks have all looked after themselves in the restructuring process currently underway at Canwest, but what about us workers? What is our self-interest and how can we best advance it?
So far in the restructuring process (This is all based on documents filed as part of the Companies’ Creditors Arrangement Act [CCAA] process [http://cfcanada.fticonsulting.com/cmi/]and news reports):
- Twenty “key” executives will share almost $10 million in retention bonuses, in addition to their already substantial salaries, simply to keep working.
- Canwest directors have made sure the company will pay for any financial liability they may face up to $20 million.
- Certain “current and former management employees” who were participants in the Canwest Global Communication Corp. and Related Companies Retirement Compensation Arrangement Plan were paid out on Sept. 4, 2009 the approximately $47 million promised to them (Part of the payment will be made later, after a tax refund from Revenue Canada.)
- All the lawyers, accountants and “restructuring specialists” involved in the CCAA process receive substantial remuneration that gets top priority for payment.
- Eleven defined benefit pension plans covering conventional TV and National Post employees suffer a total $32.8 million winding-up deficiency. Under previous CCAA scenarios, companies have been allowed to escape their commitment to make up similar deficiencies.
- Canwest TV employees who were recently laid-off or are about to lose their jobs will likely lose most of their severance and holiday pay owing.
- Canwest’s list of unsecured creditors is long and ranges in amounts owing from over $8 million to a few dollars for an outstanding cab fare. The vast majority of these creditors will receive a few cents on the dollar at best.
Clearly those with the power to look after themselves have done so. Others will be a lot less fortunate.
The most important question facing Local 2000 members who work for Canwest is: What can we do to protect our self-interest in the face of a seemingly inevitable CCAA filing on the newspaper side of the company?
First, we must use the power we have, which means our union and our collective agreements. Compared to non-union employees we have tremendous advantages. We get to negotiate. They must accept.
Of course, there is a high probability that sooner or later we will face tough bargaining, which might involve sacrifices and unpleasant outcomes.
But we do have the power through solidarity to resist unilateral changes to the terms and conditions of our employment. And we may be able to do more than simply defend what we previously won. There may be opportunities in the CCAA process, as well as unpleasant outcomes.
For example, if we stick together and show solidarity in difficult times, perhaps we can explore new models of decision-making that would allow workers a say in how the company is managed. Perhaps we can negotiate for an ownership stake.
This would certainly be in our self-interest because recent events have demonstrated the competency level of current Canwest owners and executives.
I believe we could do better. I believe our newspapers would improve if those who work for them had a substantial say in how they were run. I believe productivity would improve and democracy would be better served, as well.
I believe it is in our self-interest to achieve the same sort of power that allows company executives to look after themselves. If we had that power we could look after ourselves, our families, our communities and the principles of journalism we believe in.
Perhaps this is an unrealistic dream, but some of us refuse to be beaten down by bad times. Some of us prefer to imagine a better way. Sometimes opportunity comes in the middle of a crisis.
Gary Engler
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