07) ECONOMIC CRISIS AND GRAND LARCENY

People’s Voice Editorial

            During January, Canada was hit by a series of retail closures and mass layoffs in the energy industry. Even before the so‑called "recovery" from the crisis of 2008 brings any genuine relief to working people, it's already over.

            This won't stop neoliberal think tanks from repeating discredited theories about the '"trickle down effect", or the lie that the super‑rich are the drivers of the economy. This nonsense has been shot down by Target, which stomped into the Canadian retail market by replacing the Zellers chain, laying off thousands of unionized employees, and re-opening without establishing adequate supply chains. The predictable result of this genius corporate strategy: an estimated $2 billion in losses over two years, and then an epic shutdown of 133 stores.

            Naturally, heads rolled as a result of this debacle, right? Well, not exactly. Target CEO Gregg Steinhafel was dunped last May over his role in the Canadian expansion mess, and for the massive data breach during the 2013 holiday season that affected 70 million U.S. customers. But for his efforts while the retail giant lost billions, Steinhafel received a total compensation package of about $61 million, which included severance of $15.9 million.

            In mind‑boggling contrast, Target's 17,600 Canadian wage slaves will share an Aemployee trust package" worth some $70 million, which is supposed to cover 16 weeks of pay ‑ apparently about $3181 each on average. If there was any justice, Steinhafel would be headed for a long stretch in prison, with his ill‑gotten millions going to workers. But capitalism is a system based on very different principles, including frequent economic crises, and a form of exploitation which some might consider grand larceny. Target's venture into the Canadian market was certainly a "teachable moment," but that's small consolation for employees now paying the price.

(The above article is from the February 1-14, 2015 issue of People's Voice, Canada's leading socialist newspaper. Articles can be reprinted free if the source is credited. Subscription rates in Canada: $30/year, or $15 low income rate; for U.S. readers - $45 US per year; other overseas readers - $45 US or $50 CDN per year. Send to People's Voice, c/o PV Business Manager, 706 Clark Drive, Vancouver, BC, V5L 3J1.)