The Vancouver Sun        Friday 20 Sep 1996     A1 / Front

SHIELDS WARNS PREMIER OF 'ALL-OUT' LABOR WAR:

     The BCGEU head fires his first salvo at the B.C.
     government for pandering to business interests
     at the expense of the working class.

     By: Karen Gram

The president of the B.C. Government Employees' Union
said Thursday he no longer believes Premier Glen Clark
is on the side of middle and working class people in
B.C.

In the first salvo of what he promises could become an
all-out war between the union and government, John
Shields said Clark is pandering to the banking and
American bond-rating interests when he says he will
balance the budget by laying off up to half the
unionized employees on the government payroll.

But Clark said he is living up to his pre-election
promise of a balanced budget and that means tough
choices.

"What I can't do is respond to interest groups or
advocacy groups," said Clark.

Liberal leader Gordon Campbell said Shields' tough talk
is designed to create the appearance that Clark is
tough on B.C.'s dominant public-sector union, even
though it was a major election supporter.

"John Shields is supposed to stand up and put out that
kind of rhetoric and Glen Clark is supposed to look
like Mr. Tough Guy," said Campbell.

Shields said Clark's determination to cut $750 million
-- half the unionized payroll -- from government
expenditures through layoffs demonstrates how far he
has strayed from the pre-election rhetoric about
protecting jobs and public services.

"Now he is making a determination that it is more
important to pay off the banks with their record
profits than protect the jobs of the government
workers.

"There is nothing sacrosanct about a balanced budget,"
he said. "I'd worry less about the banks, which are
making record profits, than I would about the wage
earners who will lose their jobs."

Shields said the cuts will inevitably reduce service to
the public.

"It could end all attempts to protect children as
recommended by the Gove commission. It could mean the
early release into the community for hundreds of
criminals because there won't be enough staff to look
after them. It could mean real and tangible cuts in
alcohol and drug treatment, transition houses, child
care and other services that are part of the fabric of
every community in the province."

Shields says he can see little difference between what
Clark is doing and what the Liberals would have done if
elected.

"It seems to me the Liberals would have cut the public
services and acted with glee, the NDP is cutting public
services and saying they are sorry."

Last week, Shields said layoffs were inevitable given
the financial constraints of the government. But
Thursday, Shields said he expected to work with the
government to find alternatives.

He said he is still willing to work with the
government, but claimed there has been no response to
his overtures.

"[Finance Minister Andrew] Petter promised he would get
back to us positively and he has not. It seems to me
that's a pretty clear message. Silence is the action."

But in a press release, Petter said he had invited
Shields to meet Thursday morning, but the union
president decided to hold a press conference
criticizing the government instead.

He said the government squanders money in every
department and that the number of managers per employee
has ballooned in recent years.

"One high-priced manager for every three employees --
that is a stupid way of doing business," he said.

If the government continues to pursue this course of
action, Shields said he will not hesitate to respond
aggressively, beginning with an advertising campaign
and ending with traditional militant action.

"I'm not ruling out any course of action," he said.

Clark said that if Shields wages war with the
government, he will not shy away from his
responsibility to taxpayers.

"That's what government is all about," he said. "I've
never been afraid of that before."

Clark said that while the people of British Columbia
want jobs, they want to see savings in government
bureaucracy more.

"There will be layoffs in the public service, I am
quite candid about that," he said. "But we will try to
do it as compassionately as possible."

He said government waste and duplication will be
targeted, as will unnecessary administrative costs.

And while Clark said he is disappointed Shields has
taken this stand, he said he can understand it.

"I understand that he has to advocate for his members."

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