Courtesy of repairpal.com

There are vast differences in the outcome of public sector and private sector strikes. The union is omnipotent within the public sector but becoming impotent in the private sector. The tragedy is that unions have not come to grips with this new reality and as a result they irreparably damaging the lives of the rank and file in the private sector. Such is the sad case of the employees at the Lever Brothers soap factory.

In 2002 Unilever sold the Lever Brothers soap factory to Korex Don Valley. With the purchase Korex inherited the best paid workers in the soap manufacturing business at $25/hour with benefits. This is indeed an incredible wage for unskilled labour. The reality was that the company was no longer financially viable. When the contracts were renegotiated the workers agreed to a five-year wage freeze, cuts to disability benefits and the loss of their defined-benefit pensions in exchange for job security. When that contract expired in June 2007 Korex wanted more concessions. In June 2008, 160 workers went on strike to protest a new contract that they said wiped out seniority rights. The factory continued to run at a reduced rate until May 2009. Korex Don Valley has now filed for bankruptcy. The remaining 110 workers who are members of the Communications, Energy and Paperworkers Union of Canada local 132-0 now have no jobs and very poor prospects.

According to Korex the strike went on far too long and as a result they lost their consumers. The union has only one job – to represent the rank and file. Why would they have encouraged prolonged strike action with a company who was not on solid footing financially? If these unfortunate and ill-advised workers had it all to do over again I’d be willing to bet that they would be happy to accept Korex’s concessions and continue working. Who is going to hold the union responsible for the livelihoods of these 110 people, many of who have worked 30 years or more at this same factory?