BANKS HURT JOB GROWTH
In 1995 the Bank of Montreal made a profit of $986 million (an increase of 20% over the previous year) and cut 1,428 jobs from their pay roll. Other banks have followed the same pattern. The CIBC increased their profits by 14% and cut 1,289 jobs. The Toronto Dominion Bank increased their profits by 16% and cut 354 jobs.
Although the small business sector has created 90% of the jobs in Canada since 1983, and employs half of all Canadians, only 3% of the banks' total lending goes to small business, while 77% goes to big business in loans over $5 million.
BANKS ARE UNFAIR EMPLOYERS
Beyond laying off staff while making huge profits, there is a vast gap between the salaries of bank workers and management. For instance, Matthew Barrett, the CEO of the Bank of Montreal made $3.9 million in 1996, while an average teller with 20 years experience made $11 an hour. Full time tellers earn an average of $21,000 at all major banks. Statistics Canada lists the poverty line in Toronto as approximately $20,569 for a family of two.
There are a number of bank branches which have been unionized in an attempt to gain better wages and working conditions for bank tellers and non-management staff. If you are a bank worker and want information on organizing your work place, call the Metro Labour Council at 441-3663.
BANKS WANT SOCIAL PROGRAMS CUT
All major banks are members of the C.D. Howe Institute. This private think-tank has called for the cutting of almost all federal spending on health care, and for drastic cuts to employment insurance, post-secondary education, welfare and old age security payments.
The Royal Bank, CIBC, and the Bank of Montreal are all members of the Business Council on National Issues. The BCNI was the major lobby group behind the free trade agreements with the U.S. and Mexico. Since the free trade agreements came into effect, the 48 biggest corporations in Canada (all members of the BCNI) have increased their annual revenues by more than $32 billion, while at the same time eliminating 200,000 jobs.
BANKS ARE RUN BY CANADA'S CORPORATE ELITE
The directors and shareholders of the major banks include many recognizable names from Canada's corporate elite. Wallace McCain (of the McCain Foods family, and head of Maple Leaf Foods) owns $4.32 million of shares in the Royal Bank; Galen Weston (of Loblaw's and husband of Ontario's Lieutenant-Governor) owns $4.05 million of shares in the CIBC; and Eric Molson (of the Molson Brewery family) owns $3.9 million of shares in the Bank of Montreal. As a further example, the Board of Directors of the Royal Bank includes the corporate heads of Alcan Aluminum, McDonald's Restaurants, NOVA Corporation, Canadian Pacific, Imperial Oil and IBM.
BANKS CAN BE BOYCOTTED:
There are existing alternatives to the major banks. Across Canada there are approximately 1,000 credit unions and 1,500 caisses populaires serving more than eight million Canadians. Credit unions are financial cooperatives jointly owned and democratically controlled by their customers. In addition, credit unions offer the same complete range of banking services as the major banks, very often with smaller service charges. Free information on the locations and service areas of credit unions is available from the Credit Union Central of Ontario at 1-800-661-6813. Unbank Your$elf!
BANKS AND MIKE HARRIS
All of the major banks gave the maximum amount allowable by law to the Ontario Progressive Conservative election campaign fund in 1995, the campaign which elected Mike Harris as premier of Ontario. Since the election, the Harris government has rammed through the unpopular megacity legislation, cut funding to public schools, colleges and universities, reduced social assistance rates by 21.6%, decimated worker protection legislation, and reduced environmental protection regulations.
BANK PRESIDENTS SHOULD KNOW
The average salary of bank presidents was $2.99 million in 1996. It's time they earned some of that money by answering some difficult questions directly from Canadians. Call them and let them know your concerns:
John Cleghorn Royal Bank 974-4049
Matthew Barrett Bank of Montreal 867-4686
Peter Godsoe Bank of Nova Scotia 866-6081
Richard Thompson Toronto Dominion Bank 982-8356
Al Flood CIBC 980-4101
We believe that banks are at the visible centre of the corporate agenda in Canada. You are welcome to join the Metro Network for Social Justice Action Campaign on the Banks which will leaflet in front of banks across Metropolitan Toronto and offer "teach-ins" at King & Bay streets on a regular basis. To join call 598-4945.
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