Re: Introductions

["Barry Randall" <brandall@fox.nstn.ca>]

To All,

 

Tim, your comments are correct about the trade unions.  We have not been able to get

full support here yet.  There are two unions involved.  The Power Workers Union represents

the workers of Ontario Hydro and about 50 of the 270 MEUs.  They are interested in being

involved in new power projects and they would like to invest some of their pension money.

They have not said one way or the other if they support the idea as we have laid it out.

 

The International Brotherhood of Electrical Workers represent the workers at the remainder

of the MEUs.  I talked to the local representative here in Ottawa and he was not keen about

having workers participate in ownership. 

 

I must admit that we have not spent a great deal of time trying to convince the unions to support

us.  Instead we have spent most of our time talking to the management of the four MEUs in the

Ottawa area.  They are supportive of the idea.

 

I agree with you that we must get the unions onside if we want this idea to fly.  I talked to

a highly place union official with the AFL/CIO in Washington DC about ESOPs and his remark

was ESOP stands for "eat shit or pay."  He of course does not support ESOPs. 

 

Lastly, I agree with you that it would be a good idea if we were to collaborate on this idea.  I agree

that Australia and Canada have a lot in common and that if we could get this idea off the ground in

one of our two countries, it would be much easier to get it off the ground in the other.

 

Best Regards

 

Barry Randall

-----Original Message-----
From: Tim Mitchell <pentim@netspace.net.au>
To: EOpriv@cog.kent.edu <EOpriv@cog.kent.edu>
Date: Monday, October 04, 1999 5:42 AM
Subject: Re: Introductions

Dear All

 

I viewed the information on Barry Randall's website detailing the Ontario Hydro Buyout Project. I fully concur with all of your ideas as set out.

 

I sent an email enquiry to the info address on the site but thought I might email EOPriv as well.

 

Here in Sydney, New South Wales, Australia, we have been debating the issue of privatising electricity for some time as well, in the context of an emerging national electricity competitive grid.

 

As I believe unions are an important part of the political mix when promoting Democratic Capitalism, I am most interested to know whether there has been any positive involvement by unions in the Ontario proposal.

 

My reason for saying this is I believe that if you can come up with a product that is saleable to the unions in a privatisation proposal then you can sell the idea anywhere.

 

Furthermore, if the penny dropped with the trade union movement worldwide as to why model ESOPs with formal union input can be advantageous to workers, than unions would do so much of the hard work that has to be done on this issue to promote it globally.

 

Could Barry or someone else please tell me what level of negotiations you have had with the MEU/Hydro unions in relation to the Democratic Capitalist approach to privatisation?

 

In NSW, unions have prevented privatisation to date but have never seriously been presented with the type of model you are suggesting for Canada's electricity supply. We have a strong Australian Labor Party (ALP) State Government that would dearly love to privatise these assets along with some of tis rail assets but the unions are resisting, correctly I believe, the trade sale approach.

 

This issue will continue to resurface in this jurisdiction. Perhaps, over time Barry, we could share ideas on how we progress the Dem Cap agenda in utility privatisation. Given the similarities between Australia and Canada in terms of culture, law, scale and political system, this could be fruitful for both of us.

 

Kind regards

 

Tim Mitchell

Senior Adviser

Office of the Minister for Fair Trading, NSW

Sydney NSW

Australia

 

Tel: 61-2-9619-8606

Mobile: 0417-606-679

 

PS Barry, I've also read "The Ownership Solution" by Jeff Gates and have been similarly inspired.

-----Original Message-----
From: Barry Randall <brandall@fox.nstn.ca>
To: eopriv <eopriv@cog.kent.edu>
Date: Friday, 24,September, 1999 06:48
Subject: Introductions

Hi Everyone,

 

I am Barry Randall from Ottawa Ontario.  I am a stockbroker with some

30 years experience.  I read "The Ownership Solution" by Jeff Gates

in the summer of 1998.  The book gave me the idea to try to use the

ESOP/CSOP technique for the privatization of Ontario Hydro.

 

I have been working with a group of economists and financial specialists

to promote the privatization of Ontario Hydro using ideas from Louis

Kelso.  We call ourselves the Democratic Capitalism Study Group

of Ottawa.  If you would like to know more about our project you can

visit our website at:

 

                              http://www.demcap.org/

 

Best Regards

 

Barry Randall

email:  brandall@fox.nstn.ca