Posted: Thursday, 4 November 2010

OTTAWA – The president of the Canadian Labour Congress says the federal government has made the right decision in its apparent refusal to allow a hostile takeover of the Potash Corporation of Saskatchewan by the Australian multinational BHP Billiton Inc.

“This foreign takeover could have been hugely detrimental to the people of Saskatchewan and to workers in the potash industry,” Georgetti says. “We are pleased that Ottawa has turned it down in the national interest.” He was responding to an announcement made by Tony Clement, the industry minister on November 3. Clement said the government’s decision does not become final for 30 days.

BHP Billiton promised to be a good corporate citizen in Saskatchewan and Canada but Georgetti says foreign multinationals have routinely broken promises made during previous takeovers. “When the Brazilian-based multinational Vale bought out Inco, they soon demanded concessions that forced Sudbury workers into a punishing year-long strike. The same thing could well have happened to potash workers with BHP Billiton in Saskatchewan.”

Georgetti says that the Investment Canada Act should be changed to allow for an open and transparent process when reviewing proposed foreign takeovers. “The BHP Billiton sale was prevented only because workers, citizens and the opposition parties placed incredible pressure on the federal government. The Investment Canada Act provides no process for dealing with these legitimate concerns.”

The Canadian Labour Congress, the national voice of the labour movement, represents 3.2 million Canadian workers. The CLC brings together Canada’s national and international unions along with the provincial and territorial federations of labour and 130 district labour councils. Web site: www.canadianlabour.ca

Contacts: Dennis Gruending, CLC Communications: 613-526-7431 or
Mobile: 613-878-6040 Email: dgruending@clc-ctc.ca