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Lethbridge Herald, The (Newspaper) - June 13, 1970, Lethbridge, Alberta Labor Geared For Battle On Issue By CRAIG ASPINALL Canadian Press Staff Writer The batllelines are drawn for what is becoming a major confrontation between organized labor and the federal government on the issue of wage restraint. Labor leaders, simmering for months over sugges- tions that their wage demands are a block to curing in- flation have been brought to the boil by a government proposal to put a six-per-cent ceiling on wage in- creases. Major unions are lining up behind the nation s postal workers now engaged in a contract dispute with the treasury board in a move to break the six-per-cent guideline before it becomes established. Labo- leaders this week started offering the postal workers financial backing which would enable them to call a national strike and maintain it as long as would be necessary to break the government's will. Controversy Boils The wage restraint controversy is heating up just as industry and labor are preparing, and in some cases engaged in, one of file toughest bargaining years ever. The current militancy shown by labor at the bar- gaining table comes in the wake of 1969 contracts which were awarded average wage increases of 7.9 per cent and as high as 30 per cent in some cases effectively shattering the government's attempts last year to promote a guideline of five per cent. This year major contracts are'up for renewal in the aerospace, automobile and forestry industries and major contracts are being sought by public servants and the railway unions. Those provinces most likely to be affected are Ontario, Quebec and British Columbia. B.C. has been hit by major disputes in the con- struction industry and a walkout by tugboat officers which stopped log booms from reaching the mills. Montreal only recently settled a major contraction strike; Saskatchewan has been hit by a province-wide plumbers' strike; and Ontario secondary schools have been engaged in a series of tough wage negotiations. Guidelines Broken Since the federal prices and incomes commission announced its six-per-cent guideline at a federal-provin- cial conference in Winnipeg June 5, several contracts have been signed which are well above the guideline. For example: 275 Vancouver bookbinders got 28.9 per cent over two years; elementary school teach- ers in the area around Oakyille, Ont., got 9.4 per cent; public sen-ices employees in the Northwest Territories got 11 per cent. These contracts involve only small numbers of employees and can he'regarded as local in nature But statements by the leaders of major unions, and Hie postal workers' demands for a 20-per-cent increase over two years, indicate trouble on a larger scale. Prime Minister Trudeau said in Ottawa Friday there appears to be a "wee beginning of success" in the battle against inflation, and that wage guide- lines could1 be lifted in six months or a year. At the same time, he insisted the six-per-cent guide- line will be maintained in current bargaining with fed- eral employees even if it means a sacrifice in the ef- fectiveness of such government services as the post of- fice. Other Controls Needed Union leaders reject what they term the govern- ment's use of labor as a scapegoat in controlling in- flation. They have insisted for months that before labor can accept wage restraint, the government must control other forms of income, such as business profits, rents, interest and real estate speculation. A promise to hold down prices by 300 business and professional leaders at a February meeting in Ot- tawa left labor leaders unimpressed. Stanley Little, president of the Canadian Union Public Employees, said Friday the guideline gives the government something to hide behind, "because they realize their own fiscal and monetary policies are main- ly to blame for inflation." Marcel Pepin, president of the Confederation of Na- tional Trade Unions, said "Nobody believes that the people who earn a week are the real causes of in- flation." Claude Edwards, president of the Public Service Alliance of Canada, said negotiations between the alli- ance and the government are "deteriorating rapidly" as negotiations for about federal employees re- main stalled after months of negotiations. There also has been hesitancy on the part of some provincial political leaders regarding the wage guide- lines. Saul Cherniack, Manitoba's finance minister, said the position of his- New Democratic Party government is that it doesn't make sense to fix the penalties of the economic situation on the people who are first to be hit by unemployment or falling incomes. B.C. Premier W. A. C. Bennett, although prepared to back Ottawa even in the event it declared a state of emergency and passed a special act of Parliament to halt inflationary trends, said there also should be a compulsory limit on profits. Ontario Premier John Robarls said his cabinet would have to take a careful look at wage guidelines although the province is "generally" in favor of anti- inflation measures. But there could be no question of imposing any punitive measures against workers who rejected the guidelines. As the politicians debate how guidelines can be effective without some clement of compulsion, labor is moving to take definite action in what has become a symbolic confrontation between Ottawa and the postal workers. Roger Decarie and William Houle, co-chairman of the Council of Postal Unions, are to appear before an emergency meeting of the executive of the member Canadian Labor Congress on Tuesday to ask for financial support from the CLC-affiliated unions. The Canadian Brotherhood of Rail, Transport and General Workers already has announced it will donate because as CERT president William Smith put it: "The guideline battle is between the government and the entire labor movement." Support for the postal unions also has been an- nounced by the Windsor, Out., local of the United Automobile Workers; the Pub- lic Service Alliance; the 15.000-inomber Brotherhood of Hallway and Airline Clerks; and the Canadian Union of. Public Employees, The LetHbridge Herald HIGH FORECAST SUNDAY 65 VOL. LXIII No. "Serving South Alberta and Southeastern LETHBRIDGB, ALBERTA, SATURDAY, JUNE 13, 1970 Pries 15 Cents FOUR SECTIONS 70 PAGES Raps Anti-Inflation Measures ous nme By .JOHN HAY OTTAWA (CP) Opposition Leader Robert Stanficld told the Commons Friday that the gov- ernment has bungled its housing policy and created a disastrous PM AT GOVERNOR-GENERAL'S SPLASH Prime Min- ister Trudeau stole the show at Governor-General Mich- ener's garden party in Ottawa Friday. About people attended the informal party and crowds surrounded the prime minister wherever he went. Brazilian GovL Meets Kidnappers' Ransom Request RIO DE JANEIRO (AP) The Brazilian government agreed today to release the 40 political prisoners demanded by terrorists as ransom for the re- Car-Train Collision Kills One CALGARY (CP) Leroy Arnold Odegaard, 34, of La- combe, Alia., today was iden- tified as the person killed in a car-train collision Friday near Aklersyde, 25 miles south of Calgary. His wife, Sandra Jean, 29, is reported in serious condition in Holy Cross Hospital at Calgary and his son, Darrin Martin, 4, is in critical condition. The crash between a Cana- dian Pacific Hallway dayliner and the Odegaard car occurred at a level crossing on High- way 2. A. W. Blair, Uie dayliner's engineman, found Andrea Gail Odegaard in a ditch where the train stopped, about 300 yards down the track from the level crossing. Mr. Blair said he got down from the train and heard a crying sound several times be- fore he spotted the girl in the ditch. He said the girl likely was thrown from the car onto the dayliner and carried down the track. She was treated for mi- nor injuries. The train, heading [or Cal- gary from Lelhhridgc, remain- ed on the track and none of 20 passengers aboard was in- jured. Damage to the train was estimated at The same crossing was the scene of a truck-freight train collision March 31 in which the driver of the truck was seri- ously injured slid four cars iu the 'train were derailed, Seen and Heard ABOUT TOWN I.IARDY young picnickers Lois Jcstin, Cindy Bar- tosck, Michael Bourdon, Trlna LaKorlunc, Linda Lai- la. Dianne. Whitchcact, Larry Watmough, Doug ,1 e s t i n, Kevin Baranyi. Mary Ann Leisliman, Linda Watmough and Kim liariinyi having "the whole park to them- selves" as they persevered through the. wind and rain at Park" Late Friday evening. housing shortage through anti-inflation policies. He was speaking on a Con- servative which there is no for new measures before the Commons summer recess to stimulate ex- pansion of house construction, reduce housing costs and reduce or eliminate unemployment in the construction trades. Mr. Stanfield said housing By THE CANADIAN PRESS S c a 11 e re d gunshots were heard in Amman today as an- other planeload of about 150 for- eign nationals flew out of the troubled Jordanian capital and Amman radio appealed to resi- dents not to heed rumors of fresh trouble. Several trucks packed with Palestinian guerrillas raced through the city to investigate a rumor of clashes between com- mandos and guards at the royal PHNOM PENH (AP) A Cambodian military spokesman said today that the Viet Cong are setting up hospitals and storage areas in the famed tem- ple ruins at Angkor Wat about 185 miles northwest of Phnoin Penh. He also said more Viet: Cong were massing near Kompong Speu, a provincial capital on the only highway open between Phiiom Penh and Cambodia's major port. Maj. Am Bong said villagers in the Angkor Wat area had told of the Viet Cong installations there and had reported fighting Fighting continued for the second day today at Kompong Speu, a provincial capital on Route 4, the only highway still open between Phnom Penh and the port city of Kompong Som. Am Hong said about 1.000 Viet Cong soldiers were reported massing south of Kompong Speu for fresh attacks. He said Route 4 was still op.en but that trips through the area were risky. Oied'CU. At lease of a kidnapped West Ger- man ambassador. "In an effort to save the life of West German Ambassador Ehrenfield von Hollenben, the government has agreed to re- lease the 40 political a note from the government said. The note broadcast by a radio station here was signed by the ministers of justice and foreign affail's. Earlier the kidnappers had demanded the release of 28 pris- oners and issued a call for guer- irilla war. Then- manifesto was distributed by the government to newspapers ar.d radio sta- tions at the kidnappers' de- mand. Presumably the increase to 40 prisoners from 28 to be freed came in a later demand from the kidnappers. NOT IDENTIFIED YET Th3 government note said the identity of the 40 political pris- oners would be given by the kid- napper later. The kidnappers' document charged that the "military dic- tatorship unmasks itself more and more as ah enemy of the people, as a servant of the big foreign capitalista as well as the big property owners." munist forces Li the temple area. He said he did not know which temples the Viet Cong were using as hospitals and storage areas. The major said the Commun- ist troops "don't respect our sa- cred place. Making storage areas and hospitals in temples is not only a serious matter to us but to 'all those interested in cultural aspects of temples." Royal Family Cheered Ceremony LONDON (AP) At least flag-waving people cheered Queen Elizabeth today as she rode out from-Buck- ingham Palace on a black mare and took the salute at the troop- ing'-the-color ceremony in the of- ficial observance of her 44th birthday. The Queen's actual birthday is April 21. but the ceremony is held over to June when the weather is usually better and is an added attraction to thou- sands of tourists. Dressed in a scarlet tunic ard a dark-blue riding habit, the Queen rode along the royal mall to Horse Guards Parade where the Scots Guards passed before her to take part in the parade. With the Queen was the Duke of Edinburgh. The cruwd also cheered the Queen Mother, Princess Anne, Prince Charles and Prince Ed- ward as they passed in a horse- drawn carriage. palace of King Hussein. The palace is located on the route to the airport. Although firing was heard, there appeared to be no other evidence of new fighting in the city, still catching its breath in the calm that followed an agree- ment between the king and Pal- estinian guerrillas to end fierce clashes that threatened to plunge Jordan into civil war. However, stores in the city centre reacted to the rumors by quickly shutting their doors, and people" scurried for their homes on foot or by taxi. Joint patrols of Jordanian army troops and commandos quickly appeared on the streets to uree storekeepers to stay open and made loudspeaker ap- peals to the people not to listen to baseless rumors aimed at disrupting normal life. The patrols detained a man who rede through the cily on a motorcycle shouting that he had seen tanks moving into Amman from the outskirts of the city. But a Reuters correspondent who toured the central area saw no tanks, although he saw ap- parently terrified people run- ning to their homes. King Hussein drove through the city at high speed in a sil- ver-grey car escorted by at least 20 Land Rovers full of armed soldiers. The convoy was heading down the road which leads both to his office and to Amman airport. starts had dropped 43 per cent in the first five months ot this year, with May the v.-oist. Robert Andras. minister re- sponsible for housing, responded wiih predictions announced ear- lier that "close to units" wculd be started by the end of the year. He said "we should get starts of at least 30.000 low-income housing units in BLAMES STRIKES The minister said three-quart- eiS of the decline in housing starts in April and .May was due to a decrease in starts of low-in- come housing ar.d the impact of construction strikes in Quebec and British Columbia. The rate of low-income hous- ing starts was depressed by de- cisions of provincial sirencies and non-profit or low-income housing corporations, he said. Mr. Andras said a committee of officials from the finance de- partment. Bank of Canada and CMHC are monitoring housing starts and mortgage-lending. The government would consi- der "remedial action'' if things did not go smoothlv, he said. Mr. Stanfield accused Mr. An- dras of a "very high degree of incompetence" in his predic- tions and blamed the goveiti- ment's fight on inflation for the current housing shortage. CITES TIGHT MONEY He said the government's tight money high interest dis- couraged housing starts and raised prices. This had led to demands from labor for ever-higher wage and salary settlements, the Conserv- ative leader said. Mr. Stanfield suggested some "bold and imaginative mea- sures" required to meet the housing crisis: easier terms for Centra! Mortgage and Housing Corp. loans, abolition of the li- ner-cent federal sales tax on building materials and removal of the "unsettling effects" of some of the proposals in the white paper on taxation. Reach Settlement In Toivboat VANCOUVER (CP) strik" ing towboat members of the Canadian Merchant Service Guild today announced accep- tance of a settlement proposal, but the guild emphasized that the six week strike is hot over yet. A guild spokesman said pic- ket lines will be maintained until agreements are signed will each towboat company. The British Columbia Towboat Owners Association, represent- ing the 53 companies, earlier recommended acceptance of the three year package pro- posal worked out by federal mediators. Cecil Rhodes, secretary-trea- surer of the western branch of In, Lengthy Postal OTTAWA (CP) Postmaster General Eric Kierar.s today is the man caug'nt in the squeeze between federal wage restraint guidelines and the growing anger of organized labor. Mr. Kierans. who hopes to turn the post cffice into a mod- ern. mechanized, profitable business, now must watch as ro- tating mail strikes disrupt his plans. lower post office income and threaten permanent busi- ness. Both the postal unions and his fellow cabinet ministers are turning a deaf oar to his pica for a fast settlement of the postal dispute as I hey move into battle over the six-per-cent guidelines. Friday, with the postal nego- tiations' still deadlocked in their ninth month, the postal unions accepted promises of financial support from oticr trade unions and announced they can now keep the rotating strikes going indefinitely. "Eventually somebody will have to give in but it won't be us." said Roger Decarie. co- chairman of the Council of Postal Workers, representing the country's 27.000 mailmen. STANDING Plltti Earlier Prime ..Minister Tru- deau told reporters the govern- ment will maintain its support of the guidelines in negotiations with federal civil servants even if it means a sacrifice of effi- ciency in re.rnc government de- partments such as the post off- ice. Mr. Kierans called a news conference last week to warn that the post office is losing major customers and that its p o's t a ge sales had dropped in Cecil Harper, chief negotiator for the treasury board, said Fri- day he is aware of Mr. Kierans' concern over the stale of the post office, but the minister's concern "had no bearing" on the way the treasury board is conducting negotiators. And Willir.ni Houle. co-chair- man with Mr. Decarie of the postal council, said Mr. Kier- ans' announcement meant to him that the government was beginning to feel the. squeeze of the rotating strike tactic. Mr. Decarie sr.id that when Mr. Kierans spoke to the postal union leaders the lone- effects c' Ihe dilute on tiie rffirv "1 I old him Ite'd hotter put the pressure on Mr. Drury." However. C. M. Drury, presi- dent of the treasury board, has already indicated he too is willing' to risk lonn-lor.ii dam- ;ge to me post office rather than yield on the six-per-cent >vafie guidelines. the guild, issued the following statement early today: "Towboat members of the Merchant Service Guild have by secret ballot ratified the proposed agreement by a vote of 805 in favof and 195 against. "However, the strike is not over and picket lines will be maintained and honored by all unions until the agreements are signed (by the individual com- The strike began May 3 and hit hard at the B.C. economy, particularly the forest industry. Some 400 fugs, necessary to the forest industry for log and barge lowing, have been out of sen-ice because of the strike. The settlement proposal in- cludes a 26 per cent compounded wage increase over three years and extensive improvements Jn manning find accommodation clauses, together with new de- partment of transport regula- tions regarding safely condi- tions on the tugs. The pay increase is 10 per cent each year in the first two years and "six per cent in the third. Existing rates for licens- ed personnel range from to a month. Israeli Jets Raid Suez Canal Front CAIRO filcu'err.l Thirty- four Israeli jets raided .-evera] Kgynlisn I lie en- tire'Sue- ransl fivint Ki-kfoy mah: End e..uy wounding six Egyptian fokiiers, a military spokesman said. He said areas attacked in- cluded posts south of Port Said, at the northern tip of the canal, Qanlara in the central sector, and Port. Tewfik at the southern tip, ;