Strong leadership or political theatre? Ontario Premier
on international booze corporation Diageo can be seen either way.
The premier was in a fury over the company’s plan to eliminate a Crown Royal whisky bottling plant in Amherstburg, Ont. at the cost of about 200 local jobs, most of them unionized.
Ford certainly created a media moment when he poured out a bottle of Crown Royal at a press conference and threatened the company by saying, “You hurt my people, I’m gonna hurt you.” The company was “as dumb as a bag of hammers” for making the decision, Ford added
It was an elbows-up response that offered a sharp contrast to Prime Minister Mark Carney’s policy of making concessions to the U.S. government in exchange for nothing.
The problem is Diageo’s move seems to be about
corporate efficiency, not tariffs
, although the Amherstburg jobs will be going to the U.S.
Diageo is an international company headquartered in London, England and it will still produce and warehouse Crown Royal in Canada. Whisky for the Canadian market will be bottled in Canada; whisky for the American market will be bottled in the U.S.
Ford’s rant this week is reminiscent of a similar one in August when he
went after the CEO of Stelco’s American parent company
, Lourenco Goncalves, for supporting U.S. steel tariffs. “I got a problem with that guy,” Ford said. “He doesn’t give two hoots about his workers at Stelco.”
Ford said he expected to get a phone call from Goncalves, and if so, Ford would “blast him” for favouring the company’s U.S. interests over its Canadian ones. We don’t know if he ever did get that phone call.
Ford’s sending a bad message about his province when he attacks business people for acting like business people. As a guy who comes from the business world himself, Ford knows — even if, as premier, he won’t say it — that the main obligation of companies like Diageo and Stelco’s owner, Cleveland-Cliffs, is to their shareholders, not their workers.
Cleveland-Cliffs has been losing money. It’s no surprise that its CEO loves U.S. President Donald Trump’s big steel tariffs. Stelco only represents $2.9 billion of Cleveland-Cliffs $19.2 billion in sales. High U.S. tariffs will benefit the company more than hurt it.
Meantime, Diageo has seen a decline in profits recently. Finding spending efficiencies is the CEO’s job and the smart thing to do. The Ford government boasts about doing the same.
Ford’s futile attacks on the leaders of big international corporations are unlikely to benefit Ontario, and his reaction reveals the weakness of his government’s economic approach.
Too often, the Ford government treats jobs as something to be bought with public money, not something created by companies with good ideas and their own money. Ford asked Diageo “
Is there any incentive I can give you to stay here, to save these jobs?
” Thankfully, the company said no. When Ford didn’t get what he wanted from Stelco, he
mused about the province buying the steel company
, which sold to Cleveland-Cliffs for $3.4 billion last year. Let’s not mention the Ford government’s multi-billion-dollar “investment” in electric car battery plants that looks increasingly ill-fated.
Ford is almost certainly sincere in his concern for workers losing their jobs, but his pandering to unions is purely political. Unions are an important part of Ford’s voting coalition and their support is key to keeping the other two parties in the political cellar. The workers at Diageo plant and Stelco are unionized.
This week, the premier even went so far as to say, “Thank you to my brothers and sisters at Unifor over at Crown Royal, I got your backs. We’re gonna be there to help you.” Unifor is the largest private sector union in the country.
These union members are not the premier’s brothers and sisters. They are people looking out for their own interests, as are their corporate bosses. Ford’s job is to focus on the entire economy, not work himself into a fit because of a couple of hundred jobs at a bottling plant.
In his enthusiasm for unions, Ford is losing sight of the big picture: Corporation create jobs; unions and governments don’t.
Ford’s government can’t look forward if it spends too much time and public money trying to “protect” jobs. The economy is always dynamic. Jobs come and jobs go as economic conditions change. Ford can’t prevent job losses.
Behind the rhetoric, Ford seems to get that. He recently announced
$70 million in support for retraining workers
affected by U.S. tariffs, which could include Stelco employees. That’s an acknowledgement that workers and the government need to adapt.
While Ford’s fuming might not benefit the economy, his tough talk is a political hit. A recent
shows that Ford’s government has 53 per cent support, up 10 points since the March election.
Unfortunately, leadership involves more than leading in the polls. It requires a plan for the province’s future, not clinging to the past.
National Post
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