2002 JULY 31.
MEDIA RELEASE
DEFEAT FOR CEMEX -
VICTORY FOR THE PEOPLE OF TRINIDAD & TOBAGO AND THE CARIBBEAN!
The Oilfields Workers’ Trade Union hails the decision by shareholders of Trinidad Cement Ltd. to defeat the Resolution brought by Cemex to the TCL EGM to have removed, the 20% ceiling on share ownership by any single investor. Had the Resolution been supported by 75% of the shareholders (present and voting), then the way would have been open for Cemex to takeover TCL.
The wisdom of the shareholders prevailed. Monday’s vote was a resounding defeat for Cemex and of big capital, and a victory for the ordinary people of Trinidad and Tobago and the entire Caribbean. Let us explain.
Approximately 90% of the total number of TCL shareholders voted, either on Monday or by proxy earlier. The vote at the EGM was 67% in support of the Resolution and 33% against. Cemex’s 20% shareholding meant that it had more than 20% of the vote at the EGM (20% of the total shares adds up to more than 20% of the votes if there is a 90% turnout). So of the 67% of the vote in support of the resolution, more than 20% was Cemex voting for itself!
So Cemex had the support of less than 47% of the other shareholders. But of this 47%, just over 10% represented the shares held by the National Insurance Board. Excluding Cemex and NIB, fewer than 37% of TCL shareholders supported Cemex! In fact had the NIB Board voted in the interest of NIS contributors and beneficiaries, then the vote at the TCL EGM would have been over 43% against and less than 37% in support of Cemex.
Much is being confused about the Court action against the NIB. The fact is that we were able to defeat Cemex regardless of the outcome of the Court matter involving the NIB. While therefore we thank the Directors of the NIB appointed as Labour Representatives for taking the principled position to support the struggle against TCL by voting at the level of the Board of the NIB that the NIB should vote against the Cemex resolution, and while we support their taking legal action against the NIB and three of its Directors, it must be emphasized that their action did not determine the defeat of Cemex.
The shareholders that voted and which supported Cemex represent primarily the big institutional investors – the banks and insurance companies, the big corporations and the private investment companies owned by the very rich. On the other hand, the shareholders who voted to save TCL represented the ordinary people of this country – the workers at TCL, the pension fund assets of Petrotrin, Trinmar, TSTT and T&TEC workers, credit unions, and the many thousands of citizens of Trinidad and Tobago and in the Caribbean.
Indeed, the vote at the TCL EGM demonstrated the power that ordinary people possess! The retired persons, the small business-people, the teachers and public officers, professionals and blue-collar workers, regardless of race, religion, age or gender affirmed that they wish to be an integral part of building a Trinidad and Tobago and a Caribbean where we can all have an equal place.
These shareholders, the ordinary people, made a very clear statement - that they believe in a society where making a quick dollar is not the most important objective. These shareholders expressed commitment to the vision of a strong national and regional economy, to the growth of our own capital market and the establishment of a Caribbean Single Market and Economy. The ordinary shareholders, who number more than 5,000, said TCL is our company and we want it to remain TCL –owned and managed by Caribbean people in the interest of Caribbean people!
The vote also demonstrated the power of workers who own the largest single source of savings in the country – pension funds with $15 billion in assets! For years the owners and managers of big capital saw these pension funds as “their money” so that they, and they alone, would decide how to invest and use it. Well, that is the past. A new chapter has been opened in the exercise of power by workers. From now on the workers will be involved in making the decisions about their money! This is a major victory for workers’ power! And we shall be following this up by having all the Pension Plan Trust Deeds and Rules amended so that, similar to that of T&TEC, workers are able to exercise their decision making power more directly.
On the other hand, most of those who voted in support of Cemex represent the owners and mangers of big capital. For them, the primary objective of investment is not to build the local and regional economy, it is to maximize the bottom-line. They have no problem if all our major economic sectors are owned and controlled by foreign multinationals. For them, it matters not if Cemex came in, closed down the TCL plants and sent home workers. For them, it is unimportant if the products that we consume are made here in T&T. In fact they could buy it in Westmall or in Miami, for that matter. All that is important is that they have the right credit card.
The irony is that while they may be the owners and managers of big capital in T&T terms, they are small fry in the global scheme of things. Our struggle to save TCL from Cemex was also a struggle to save them from the giant multinationals who may one day decide that they want to buy out RBTT, Republic, FCB, Guardian Holdings, Neal & Massy etc. The shareholders who voted for Cemex therefore didn’t even understand that they voted against their own interest!
Many of the companies on the local stock exchange ought to be protected by a 20% or similar ceiling on share ownership by any one individual or company! If not then our local firms would be vulnerable to every big multinational or big drug dealer who had some extra millions and who was looking for a good investment. We therefore call upon the Government, the Stock Exchange and the Securities and Exchange Commission to put in place the regulatory framework to ensure that such ceilings are established more widely.
Everyone is well aware of our view on the position adopted by the Government. The defence by a Government of companies and industries that are deemed to be of strategic importance is not in conflict with globalisation. There is no excuse for the Government’s position. It was nothing short of scandalous. Indeed, the Minister who has responsibility for Trade, Industry and Investment virtually told shareholders and the country as a whole that they should “support Cemex”.
We have no doubt that this may have influenced several shareholders since subsequent statements about the Government having a “hands-off” position, could not undo the earlier damage. Indeed, it is our very strong view that even a “hands-off” position would have been wrong, since the Government ought to have come out with a clear and unequivocal position in support of the process of building a local and regional economy, in which process TCL is playing a key role. We also are of the view that the Government’s position was a contributor to the majority decision by the National Insurance Board to vote in support of the Cemex resolution, as the majority could not have been achieved without the government representatives being in favour. We reiterate – we shall not rest until the Government alters its position on such matters.
We are also very concerned that at least two of the NIB members voted on the issue at Board level in spite of the fact that they may have had a pecuniary interest and/or a conflicting interest in the matter, being senior employees of financial institutions that were very deeply involved in the Cemex-TCL takeover bid. It is extremely disconcerting that an institution such as the NIB, established as a crucial social security mechanism, could be making decisions influenced by persons who must also seek the interest of large and powerful financial firms. The Biblical injunction “You cannot serve God and mammon at the same time” is most apt. We are therefore demanding that the Employer and Government representatives on the Board of the NIB be immediately removed and a new Board constituted.
Round One has been won, but the Battle continues since as soon as early September, Cemex and big capital will be seeking to remove the existing TCL Board and replace it with their nominees, persons who will do their bidding. We must not let them succeed. As we won Round One so too we shall win Round Two! Let us remain ever vigilant and united!
Ø ALL THE SHAREHOLDERS WHO VOTED AGAINST THE RESOLUTION: The thousands of ordinary shareholders, the TCL employees, the UTC, pension funds, and credit unions. YOU MADE THE DIFFERENCE
Ø THE WORKERS OF THE ENTIRE TCL GROUP IN T&T, JAMAICA & BARBADOS for the historic struggle waged by you in defence of your jobs, TCL and the people of the Caribbean.
Ø The National Workers’ Union of Jamaica; the Barbados Workers’ Union; the National Union of Public Workers (Barbados); the Estate Police Association & the TCL Senior Staff Association of Trinidad & Tobago for demonstrating what workers’ and trade union solidarity is all about
Ø Oilworkers at Petrotrin and especially Trinmar for taking action to protect your interests as owners of pension funds holding shares in TCL; to all other OWTU officers and members who engaged in solidarity action; to the CWU for acting to ensure that the Trustees of the TSTT pension fund voted against the resolution; and to all other trade unions that expressed solidarity in the struggle
Ø The Board and Management of TCL who courageously took a principled position and were prepared to stand by it
Ø The many thousands of citizens, and representatives of civil society who supported the struggle to keep TCL
Ø Those Caricom Heads of Government who understood the issues
ROUND ONE OF THE STRUGGLE HAS BEEN WON, BUT THE BATTLE CONTINUES. WE ARE PREPARED TO INTERVENE AGAIN TO ENSURE THAT TCL REMAINS ONE COMPANY, ONE CARIBBEAN!
Errol K. McLeod
President General