Union Pensions and the Inconsistency of Union Leaders

The following was posted on Facebook by one of my friends. It refers to OMERS

“OMERS, the Ontario Municipal Employees Retirement System, invests on behalf of more than 500,000 public servants, including police officers and firefighters. The fund manager’s largest customer is the Canadian Union of Public Employees. In an interview, CUPE Ontario president Fred Hahn said the union is calling for a review of OMERS investment decision-making processes after “an epic failure for workers.”

“We understand that we are long-term investors, and should not focus on results from just one year. However, OMERS has consistently underperformed versus other, similar plans,” Mr. Hahn said.

OMERS’s annual return of 8.2 per cent for the 10 years prior to 2020 trails the 9.8-per-cent performance in the same period at the Ontario Teachers’ Pension Plan and the 11.4-per-cent return over the past decade at the Healthcare of Ontario Pension Plan.

CUPE is in negotiations on retirement benefits for its members, and is pushing for increased employer contributions to pension plans.”
My reply: 
 
Once again [a similar post was posted on the same day, to which I also replied], references to OMERS’ loss of profits by Mr. Hahn involves silence concerning the source of those profits. The source of those profits is–the exploitation of workers. However, nothing is said at all about that. The concern, rather, is with the loss of profits for the plan–and not at all about the exploitation of the workers who produce profits for employers.
 
Hence, Mr. Hahn’s own statement can be turned against him. He claims:

” In an interview, CUPE Ontario president Fred Hahn said the union is calling for a review of OMERS investment decision-making processes after “an epic failure for workers.”

After Mr. Hahn’s epic failure in criticizing the exploitation of workers–the source for OMERS’ investment profits–we should review CUPE’s own silences concerning the exploitation of workers.

To start with, CUPE’s own idealization of collective agreements as “fair contracts” (fair collective agreements) shows CUPE’s “epic failure for workers.” No collective agreement is fair because working for an employer is unfair–period.

The silence of unions over such issues speaks mountains about “the epic failure for workers.”
I may add that CUPE is the largest union in Canada, and I have provided proof that it claims that collective agreements are somehow fair (see  Fair Contracts (or Fair Collective Agreements): The Ideological Rhetoric of Canadian Unions, Part One). 
 
 
Of course, there was no reply to my criticisms. The union reps do not feel the need to justify their assertions–or perhaps they prefer to keep silent since they cannot justify their assertions. 
 

Critical Education Articles Placed in the Teacher Staff Lounge While I Was a Teacher, Part Seven: Critique of the School Curriculum

This is a continuation of earlier posts.

When I was a French teacher at Ashern Central School, in Ashern, Manitoba, Canada, I started to place critiques, mainly (although not entirely) of the current school system. At first, I merely printed off the articles, but then I started to provide a summary of the article along with the article. I placed the summaries along with the articles in a binder (and, eventually, binders), and I placed the binder in the staff lounge.

As chair of the Equity and Justice Committee for Lakeshore Teachers’ Association of the Manitoba Teachers’ Society (MTS), I also sent the articles and summary to the Ning of the MTS (a ning is “an online platform for people and organizations to create custom social networks”).

As I pointed out in a previous post, it is necessary for the radical left to use every opportunity to question the legitimacy of existing institutions.

The context of summaries related to the brain was that the principal of Ashern Central School, where I worked, started talking about “brain research’ and how teachers needed to implement such research in their daily teaching practice. He even placed an article on brain research in our school mailboxes. As a consequence, I researched the issue and provided critical summaries that critiqued his reductionist view of human intelligence as “brain work.”

Good morning, everyone,

I sent the attached article to the ESJ Ning yesterday. I prefaced it with the following:

After attending the ESJ workshop, it is evident that many consider the school system is equivalent to education and that education is equivalent to schooling. John Dewey, throughout his long life, criticized such a view since most schools become formal organizations isolated from life and organized in such a way as to prevent children from becoming educated.

The author of the following article, “John Dewey’s The Child and the Curriculum,” (D.C. Phillips) provides a summary of Dewey’s 1902 work The Child and Curriculum. Dewey opposed throughout his long career many dualisms, such as mind/body, thought/action, the individual and the social—and the child and the curriculum.

Typically, schooling has focused on the curriculum at the expense of children (subject matter organized logically in the form of the disciplines and attendant skills of reading, writing and arithmetic) but has, at times, focused on children at the expense of the curriculum.

Dewey argued that children’s experience is merely the beginning of education and the curriculum is the end of the education. The child experiences the world in a certain way and the logical curriculum in the form of the disciplines is the culmination of that experience when it is organized to maximize control of that experience. Formal education is to be designed in such a way that childhood experiences become increasingly differentiated until they assume the form of the disciplines. Formal education must provide a mediating process by which childhood experience can be both differentiated into the disciplines and integrated, with each logical form (the disciplines) reinforcing the other logical forms so that the child can engage in the world in as artistic manner as possible (since art integrates the diverse into a coherent whole, with each aspect modified by the other distinct aspect but at the same time supported by the other aspects).

The curriculum developed in the twentieth century and still prevailing in the twenty-first century in most schools has not solved the problem pointed out by Dewey. Given this curriculum, the child’s interests and the objective nature of the content of the disciplines often clash. It has, alternately, emphasized the child (whole language, to a certain extent) and the content of the curriculum. Nowadays, of course, the content of the curriculum is emphasized at the expense of the child. Dualism prevails in schools.

Rather than seeing the curriculum as defined by the disciplines as the end point that requires a mediating structure that transforms childhood interests into more logical forms (forms designed to increase our control over our lives), and the end point thus serving as a basis for interpreting and guiding childhood behaviour, the modern curriculum defines childhood experience as merely a simplified form of the logical form of the disciplines. Such a view has no theoretical basis.

One aspect that was not mentioned in the article was the eventual departmental structure of the Dewey School (the University Laboratory School), with teachers being specialists so that they could interpret adequately the potentialities of childhood behaviour. Initially, a generalist teacher was hired, but it was found impossible for a generalist to provide the precision necessary for learning to occur.
Integration of the specialized departments and teaching occurred, in terms of the curriculum, through the mediating structure of the use of social occupations linked to the basic needs stemming from the human life process: food, clothing and shelter. These needs and the activities required to satisfy them have been subject to evolution as social life has become more complicated. The disciplines emerged from the pursuit of such basic needs (chemistry in the case of cooking and wool dyeing) and mechanics (and physics) in the case of the shelter. Pedagogically, integration occurred through weekly meetings of teachers. Experientially, the children did not experience “studies,” but rather the studies were functions of the life process—means to the end of that process and not ends in themselves. Socially, the school was a community.

Childhood experience requires many transformations before it can be organized into a logical form. Furthermore, for most people, learning is a means towards the end of life and not an end in itself; human beings are not academics (how many reading this dedicate themselves to inquiry for inquiry’s sake?). Although children and adolescents should learn to appreciate the pursuit of knowledge as an end in itself (making inquiry into inquiry an end in itself so that the consequences of inquiry must conform to the conditions for further inquiry), most will not engage in the active pursuit of inquiry for inquiry’s sake in their own vocation; being an academic or scientist is not the calling of most people. To assume otherwise is both unrealistic and authoritarian.

The analogy of the relationship between a journey and a map illustrates Dewey’s concerns. A journey forms the presupposition for the creation of a map; it constitutes the psychological aspect of map making. The actual temporal process of the journey may lead to unexpected and unwanted experiences.

But a map, once it is created, enriches the journey by providing a summary and a form which can guide future activities and make the journey more efficient; it constitutes the sociological aspect of map making. The map is intermediary between the original experience and the enriched experience.

The making of the map must, at some point, become the end in order for an enriched experience is to emerge. However, a map is still intermediary between the original journey and the enriched journey. It is not an end in itself except temporarily; when viewed from the totality of experience, it is intermediary. Learning is, likewise, intermediary and not an end in itself when the totality of experience is considered.

The child and the curriculum are thus not opposed. The curriculum must be organized to enable the child to organize her/his own experience into an increasingly organized, controlled and meaningful manner.

The author also points out a weakness in Dewey’s theory: some dualisms cannot be resolved but rather one side must win out against the other side. Dewey recognized this situation in the case of the natural sciences but in the case of the social sciences he often failed to recognize the irreconcilable nature of social conflicts between classes, for instance, where one class controls, oppresses and exploits another class. The Deweyan curriculum must, therefore, be modified to incorporate the dualism of social relations.

How can equity and social justice be achieved when the dualism characteristic of the modern curriculum prevails (with the content of the curriculum being opposed to children’s own experiences)? Can living beings be treated as central when the environment constitutes necessarily part of the life process? Can the environment be considered central when an environment is an environment only in relation to living beings? Can equity and social justice be achieved when the life process is simply set aside or considered from only one side of the relation?

How can equity and social justice be achieved when human beings lack so much control over their own environments in school and at work? Is not real education to increase control over the environment? How are teachers real teachers if what they do leads to a lack of control by students over their own environments? Given the modern economic structure, how can students gain control over their own environments?

When teachers begin to face these issues (rather than avoiding them through silence), then perhaps inquiry can begin and education can be released from its shackles. Until that time, students will be shackled to the chains of the modern curriculum—despite the pedagogical efforts of teachers and the illusions that such pedagogical efforts engender by being restricted to that level.

Fred

Striking Brewery Workers and a Fair Deal or Contract (Collective Agreement): The Impossible Dream

I thought it might be useful to paste a short conservation I had on Facebook concerning locked-out brewery workers:

February 26 2021 at 1:50 p.m.

Thank you to everyone who has shown support for us during this lockout.
As essential workers, we were pretty shocked to be put out on the street since bargaining was progressing. Your solidarity is very important to us and will help us get back to the table with Molson Coors to negotiate a fair deal[my emphasis] for all of our members.

Keep the solidarity coming!

What is a fair deal? How can any collective agreement express a fair deal when workers (including brewery workers) are used as things for other people’s benefits?


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Author
Fred Harris
 i hear you, a fair deal would be a planned economy and a transition to socialism, but workers need means to keep from pauperization between revolutionary upsurges. I would also tend to think worker associations would still be relevant in a communist society to advocate for specific industries and sectors. But you are definitely hitting on something.

The issue is not that workers need to construct organizations of defense against the rapacious and oppressive power of employers; of course they need to do so. The issue is: Why is it that the reps in such defensive organizations time after time then turn around and claim that defensive measures (such as a collective agreement) are then idealized by claiming that all workers want is a fair contract.
On my blog recently, I posted a collection of quotes from CUPE reps that claimed that collective agreements were fair. I will, in the future, find and post similar claims by the next largest union–Unifor.

Socialists need to constantly criticize such idealization of collective agreements since fairness cannot be achieved in such terms.; it is an illusion.

Collective agreements are, certainly, in general better than no collective agreement–but fairness is not one of their characteristics.

Unless of course the implicit or explicit management clause is also fair–which requires workers to follow orders and transfer some of their decision-making power to the employer and reps of the employer. I have also provided on my blog many examples of management clauses that specify the general power of management in relation to work and workers.

How to Aim for Socialism Without Aiming for It, or The Nature of the Social-Democratic or Social-Reformist Left

The above title is a take on a scene in the movie Enter the Dragon, where Bruce Lee says: “My style is the art of fighting without fighting.” See the end of this post for a description. 

This is a more colloquial or informal way of expressing my point about the need to include the goal or the aim in present actions if we are going to go beyond a society characterized by a class of employers (capitalism) and live a socialist life (see Reform Versus Abolition of Police, Part Three). It does so by briefly looking at what I mean and then looking at a concrete example of this by a self-declared socialist feminist, Sue Ferguson (or what she calls a social-reproduction feminist).

To start with a conclusion: aiming for a socialist society is just that–incorporating the goal, consciously, of overcoming the class power of employers, including the economic, political and social relations and structures connected to that power and the creation of a society free of class relations and relations of oppression.

Social democrats and reformers (including self-proclaimed Marxists who practically do the same thing), on the other hand, believe (even if they are not conscious of this belief) that it is possible to achieve a socialist society without aiming for it.

The movie Rocky III illustrates what I mean. Rocky Balboa (played by Sylvester Stallone), who had lost his title of world heavyweight champion to James “Clubber” Lang (played by Mr. T), was being trained by former heavy-weight boxing champion Apollo Creed (played by Carl Weathers, who won the first match against Balboa in the first movie and lost in the second movie). (There are undoubtedly racist overtones in the movie–see  Siobhan Carter’s  master’s thesis  Projecting a White Savior, the Body, and Policy).

At one point in his training, Rocky said that he would train later. Apollo answers: “There is no tomorrow.” The basis idea is that if you want to accomplish anything in life, you had better not procrastinate–putting off tomorrow what needs to be done today. Social democrats (and the radical left here in Toronto) act like Rocky Balboa did before Apollo Creed criticized him–they believe that socialism can arise in some distant future without explicitly incorporating the aim in the present, just as Balboa believed that he could regain the heavyweight title without incorporating that goal into his present actions. In other words, he believed that he could engage in procrastination.

The social-democratic or reformist left do the same thing. They shift the fight for socialism to some distant future and content themselves with fighting for reforms that fail to challenge the class structure. Their socialism is always pushed into the future as an ought that never meets the present conditions and circumstances; future and present (and past conditions) are severed. 

They may indeed achieve social reforms–as they have in the past, but the claim that they are aiming for socialism is untrue–as was Rocky Balboa’s efforts at training to regain the heavyweight championship of the world until Apollo Creed criticized him.

The social-democratic left (and, practically, much of the radical left here in Toronto and undoubtedly elsewhere) consider that it is impossible to aim for socialism by incorporating it into our daily lives. They believe in magic; an aim can be realized without the aim organizing our activities in the present. 

John Dewey, one of the greatest philosophers of education, saw the distinction clearly in relation to schools. Most of those reading this post merely have to reflect on their own experiences in schools and how schools have often severed their interest in the present and forced an external future upon them. As Dewey noted, in chapter five of one of his two major works in the philosophy of education, Democracy and Education (2004), pages 58-59):

Chapter 5

Preparation, Unfolding, and Formal Discipline

Education as Preparation

We have laid it down that the educative process is a continuous process of growth, having as its aim at every stage an added capacity of growth. This conception contrasts sharply with other ideas which have influenced practice. By making the contrast explicit, the meaning of the conception will be brought more clearly to light. The first contrast is with the idea that education is a process of preparation or getting ready. What is to be prepared for is, of course, the responsibilities and privileges of adult life. Children are not regarded as social members in full and regular standing. They are looked upon as candidates; they are placed on the waiting list. The conception is only carried a little farther when the life of adults is considered as not having meaning on its own account, but as a preparatory probation for “another life”. The idea is but another form of the notion of the negative and privative character of growth already criticized; hence we shall not repeat the criticisms, but pass on to the evil consequences which flow from putting education on this basis.

In the first place, it involves loss of impetus. Motive power is not utilized. Children proverbially live in the present; that is not only a fact not to be evaded, but it is an excellence. The future just as future lacks urgency and body. To get ready for something, one knows not what nor why, is to throw away the leverage that exists, and to seek for motive power in a vague chance. Under such circumstances, there is, in the second place, a premium put on shilly-shallying and procrastination. The future prepared for is a long way off; plenty of time will intervene before it becomes a present. Why be in a hurry about getting ready for it?

We have already seen this severance of the future struggle for socialism and the present struggle for socialism by Herman Rosenfeld, a self-styled Marxist who refers vaguely to socialism a hundred years from now (see Reform Versus Abolition of Police, Part Three and, more generally, Reform Versus Abolition of the Police, Part Five: More Philosophical Considerations). The focus on reforms above all else and the denigration of the need for incorporating an explicit aim in the present of abolishing the class of employers and the associated economic, political and social relations will at best lead to capitalism with a human face–and not its abolition. 

There are two typical tendencies that express this attitude of severing the present from the future and the future from the present. Treating reforms as if they were, in themselves, somehow leading to a socialist society is a typical trick among the left; they treat the future (socialist society) as already present rather than the present being in need of radical reconstruction. The second tendency denigrates the need for aiming explicitly or consciously at radical transformation of class, economic, political and social structure in the present (which in effect is a revolution–although I believe that politically it is a waste of time to call for revolution–as the sectarian radical left frequently do

The treatment of the present as if it were already the future via current experiences and reforms is reflected by Sue Ferguson, a self-proclaimed socialist, who claims the following  (Women and Work: An Interview with Sue Ferguson):

As I argue in Women and Work, social reproduction feminism provides a strategic focus and direction that avoids the contradictions of equality feminism. Because, in this view, oppression is built into the very ways we reproduce ourselves, overcoming oppression requires reorganizing the processes and institutions of life-making. This cannot happen in boardrooms or by electing more women into state office. It can happen only when people are encouraged to mobilize with others to resist the priorities of the current social reproduction regime, and learn together how to reorganize and take collective, responsible control of the resources of life-making. And in a small way, this is what education worker strikes do: they assert the need for and possibility of expanding and democratizing our life-making powers and resources, of deploying them in ways that prioritize meeting human needs [my emphasis]. 

Do “education worker strikes” really “assert the need for and possibility of expanding and democratizing our life-making powers and resources, of deploying them in ways that prioritize meeting human needs?” Perhaps they do–“in a small way”–but that is not the same as aiming for “expanding and democratizing our life-making powers and resources” at more than a local level. That teachers who go out on strike may well aim to improve their working lives and the lives of their students is not in question. The issue is whether the aim of such actions is of the same nature as aiming for a socialist society. I deny that such is the case in most cases since there is no explicit aim to overcome a society characterized by the class of employers; improvements in working lives and lives of children does not necessarily involve aiming for a socialist society.

By claiming “in a small way,” that education workers somehow, is the same as the “democratizing our life-making powers and resources” is a social-democratic trick. It equates reformist changes at the local level with radical changes in  social structures and relations.

This social-democratic trick is reiterated in her book (she goes by Susan in the book), Women and Work: Feminism, Labour, and Social Reproduction, pages 135-136:

That is, strikes do not have to be exercises in revolutionary commons to model alternative ways of organizing life-making. The potential to unleash creative energies and ideas about how to build a better world and engender social bonds to counter the alienation and isolation of capitalist subjectivity is inherent in the very act of organizing with others to improve control over the conditions of work and life. Perhaps the most vivid recent example of this come from the 2018 wave of education worker strikes to hit the United States. Eric Blanc’s interviews with more than a hundred people involved in the West Virginia, Arizona, and Oklahoma strike movements lead him to conclude that strikers were “profoundly transformed” [my emphasis] by their participation. They connected in new ways with co-workers they had barely known and had little in common with culturally and ideologically; they strategized, waved placards, shared meals, chanted, sang, and camped out on the state legislative grounds together; they jointly endured moments of disappointment, debate and defeat, and even bigger moments of celebration. And they connected in new ways with the communities they worked in as passersby honked and waved in support, as strangers identifying them by their distinctive red T-shirts approached them in grocery stores to thank them for their job action, and as students and parents stood on their lines and rallied in support. In the words of Arizona teacher Noah Karvelis, interviewed by Blanc:

Since the strike, there’s a definite sense of solidarity that wasn’t there before. When you go into school and see all of your coworkers in red, it’s like they’re saying, “I’m with you, I got you.” It’s hard to even sum up that feeling. You used to go in to school, do your thing, and go home. Now if there’s a struggle, we go do something about it because we’re in it together. It’s not just that there are a lot more personal friendships—we saw that we had power.

Such solidarity did not magically appear. It had to be built. The strikers were divided by all the usual social cleavages. Not all teachers were in the union and most were white. They differed in political allegiance, religious affiliation, and income (in West Virginia bus drivers, cafeteria cooks, custodians, and other support staff walked out as well). Moreover, as social reproductive workers in the public sector, the walkout risked creating a wedge between themselves and the community they served. Rather than deny these divisions, organizers and strikers consciously addressed them—figuring out imaginative ways of addressing needs and drawing people in: bilingual signs and chants, GoFundMe sites to help lower-income strikers make ends meet, soliciting food donations, and delivering care packages for families who otherwise rely on school lunches. As Kate Doyle Griffiths observes, strikers temporarily and partially reorganized the relations of social reproductive labour “on the basis of workers control for the benefit of the wider working class” while also fostering solidarity with community members. And although strikers did not generally politicize around racial issues, Blanc notes, they were self-consciously inclusive and won the support of the majority black and brown student base and their families through their calls for increased school funding and (in Arizona) opposition to cuts to Medicaid and services for those with disabilities.37 These are not-so-small and incredibly important examples of how strikers organize new ways of life-making, ways that defy the alienating, individualizing experiences of everyday life under capitalism.

Of course, such struggles and organizing should be supported, and they do indeed form a possible bridge between the conscious aim of struggling in the present for a socialist society and the creation of such a future society. However, let us not idealize them. They are not necessarily expressions of a conscious aim to overcome the class power of employers. As I have shown elsewhere (see for example The West-Virginia Teachers’ Strike and a Socialist Movement  and   Review of Jane McAlevey’s “A Collective Bargain: Unions, Organizing, and the Fight for Democracy”: Two Steps Backward and One Step Forward, Part One), such movements do not necessarily involve such an aim. By equating such struggles with the conscious aim to overcome such class power, social democrats in effect claim that we should not struggle to aim for such a goal in the present by, among other things, criticizing the limitations of the aims of such strikes and movements.

To not question whether there has indeed been “profound transformations” is to be blind to the force of habit in working-class and community behaviour. Not just decades but centuries of indoctrination, of exploitation, subordination and oppression are not going to magically be transformed through such efforts. To overcome such situations will take years if not decades of internal struggle in order for a conscious movement aiming to overcome the class power of employers to arise in the present and not vanish because of superficial adherence to “social justice” and similar general terms. The present leftist movement must aim for a socialist society in diverse domains and integrate such domains in as coherent a fashion as possible.

The other tendency of splitting the present from the future and the future from the present by denigrating the need for radical transformation of economic, political and social structures. frequently by casting the term “revolution” in a purely negative light. As I noted above, I do agree that using the term “revolution” is a waste of time politically; workers and community members will likely look upon such talk as akin to religion. Nonetheless, their attitude of avoiding the term “revolution” often leads to reformism by being unable to offer anything other than reform and more reform–as if many reforms will not be absorbed by the capitalist economic, political and social structure. The class power of employers and the capitalist state have many resources to engage in reformist politics if there is sufficient organization and power to threaten the power of the class of employers.

I have referred to Jeffrey Noonan’s opposition to “revolution”–but he has little to offer but more reforms within the present class structure (see The Poverty of Academic Leftism, Part Four: The Myth of Creating Socialist Spaces). Another example is the article written by Richard Sandbrook and posted on the Toronto-based Socialist Project website (Racism, Class Solidarity and Systemic Change). Here is what he claims:

Non-Reformist Reformism

But what strategy would horizontal unity serve? Any viable strategy would be gradualist. Compromises would need to be made to build a majority coalition in a (quasi)democratic process. But gradualism does not signify mere reformism or cosmetic changes. The widespread disaffection and the challenge posed by invigorated populist-nativists demand genuine structural changes. Policies to de-commodify labour, money, health care, knowledge, and education; to democratize the economy by promoting cooperative production; and to deepen political democracy must be pressed at the local, national and, eventually, global level. But there would not be a “big bang”, in which society is irrevocably transformed; instead, we would have non-reformist reformism.

The problem with the above view is that Mr. Sandbrook does not discuss how such reformism in the present can be prevented from leading–as it so often has in the past–to incorporation into the class structure and to the continued control of our lives by a class of employers. I seriously now question the real intent of those who claim that they aim for a socialist society and yet not only accept compromises that need to be accepted because of the present limited power but freeze such compromises into an ideology of the left (such as the terms “fair contract,” “fair or free collective bargaining,” “fair wages,” “decent work,” or the pairing of the term “Fairness” with the movement for the fight of a minimum wage of $15.

Mr. Sandbrook appears to see the need for avoiding both reformism characteristic of the social-democratic left and the sectarianism of the radical left:

If this is the only viable and morally justifiable path, the progressive movements would need to steer clear of two pitfalls that have ensnared earlier experiments: Third-Wayism and revolutionism. The first represents compromise to the point of co-optation, leading to renewed hegemony; the second, an unwillingness to compromise in order to preserve the ideal, leading to irrelevance.

Avoiding Two Pitfalls

The Third Way, as it developed in the early 1990s, reflected the attitude “If you can’t beat ‘em, join ‘em.” …

The lesson is clear. Reformism that, in the longer term, reinforces the hegemony of neoliberalism and plutocracy is self-defeating. When times get hard, voters dessert “socialist” parties that lack an alternative vision.

The opposite pitfall is a purist approach that, positing a narrow choice between capitalism and socialism (or “barbarism or socialism”), refuses to compromise with the former. In the academy, this approach is often associated with a scholasticism that is strong on abstract theorization but weak in developing concepts with any popular appeal. The purists are also prone to an irritating smugness, as though moral superiority is more important than winning power.

Starkly casting the alternatives as binary is problematical for two reasons. It strikes many people as unrealistic. How, for example, do we totally transform society and economy to replace markets with participatory planning at all levels? And secondly, it essentializes capitalism. The latter comes in a myriad of forms. If its essence is private ownership and free labour, there are many degrees.

Capitalisms are not all the same. The Anglo-American model differs from the Scandinavian model, which differs from Chinese authoritarian state capitalism. The Keynesian accord introduced what many have called the golden age of capitalism, which neoliberalism ended. A gradualist program of decommodification, democratization, and equal freedom is a voyage that begins within capitalism; however, we may not even be aware of the precise point at which we traverse the boundary.

There are indeed variations in the kind of capitalism, and some forms are definitely preferable to other forms. This hardly addresses the issue of how any “gradualist” approach is going to maintain the aim of eliminating the general class power of employers over our lives in the present without being co-opted. (The Scandinavian model is, in any case, itself in retreat because of general changes in capitalist class structures and the idealization of such models in the past and present). Mr. Sandbrook does not address what workers and community members who live in any form of capitalism (as depicted in The Money Circuit of Capital, for example), are supposed to do to overcome the general nature of capital. Or is the general nature of capital somehow just or fair?

Decommodification, for example. of health services, does not mean that those who fight for such decommodication or those who implement it or those who use such decommodified services aim to achieve a socialist society. (See A Basic Income Versus the Expansion of Public Services? Part One: Critique of the Social-democratic Idea that the Expansion of Public Services is Socialist). Decommodification or the conversion from gaining access to commodities (including services) by means of purchase and sale to direct access or use without the mediation of purchase and sale may or may not express the aim of achieving a socialist society.

My experiences in Toronto and elsewhere is that we need to aim consciously and persistently in the present for radical changes in various domains (with the focus on the work relations dominated by a class of employers). We indeed will have to make compromises because we lack the necessary power to do otherwise–but that also should form part of our own consciousness–and not the acceptance of such compromises through such social-democratic phrases as “decent work” or “fair contracts.” To achieve such deep-seated consciousness and aim will require years if not decades of internal struggle within working-class communities and workplaces.

We need to use the aim for a future socialist society in the present to realize such a future society while all the time modifying specific goals within that general aim based on current conditions and circumstances.

As I indicated at the beginning, the title of this post is a take on a statement made by Bruce Lee in the movie Enter the Dragon. The following is a description of the scene by Brian Freer: 

There is a scene in the 1973 kung fu classic “Enter the Dragon” where a man (Peter Archer, who plays Parsons] walks around a boat bullying passengers. When the man accosts Bruce Lee by throwing air strikes near his face, Lee unflinchingly looks at him and replies, “don’t waste yourself.”

“What’s your style?” the bullying man asks.

“The art of fighting without fighting,” says Lee.

“Show me some of it.”

Lee tries to walk off, but the bullying man insists he show him what the “art of fighting without fighting” looks like. Since the boat was crowded, Lee suggests that they take a dingy to a nearby beach for more space. As the bully boards the dingy, Lee releases slack from the rope, watching the dingy with the bully inside drift away. Lee then releases the rope to the bully’s onetime victims who laugh heartily as the dingy takes on water from the crashing waves.

Although this isn’t the most exhilarating fight scene in “Enter the Dragon,” it is clearly the most complete victory in the film. Lee uses wit to overcome his opponent without ever raising his fists. He is without fear and clear of mind. The bullying man wanted to fight so badly that he was willing to ride a dingy to a remote island to do so.

Freer then philosophizes: 

There are many reasons to fight. It’s deep within our nature. And yes, sometimes we have no choice. Ideologues tell us the world is a scary place. They attempt to influence our interpretation of the world to reinforce our fears. And fear is the real bully in the boat. You see, Bruce Lee’s character mastered his fear. He liberated his mind from it. Fear is a tarp that covers our understanding. It stifles our self-control. You have to look it right in the eye, because when you must finally resort to violence, you’ve clearly run out of ideas.

I take something different from the scene. Firstly, Lee did not directly engage in a fight with the bully at the time, but enabled those who were bullied to hold the power to let go of the rope attached to the dinghy. 

Freer fails to ask, however, the following obvious question: What happened to Lee and the bully once they landed? Would not the bully try to fight Lee? The art of fighting without fighting might have been a short-term tactic, but the goal of avoiding a fight would might not have been achieved. The fight might have occurred on the island where they landed. The aim of avoiding a fight was put off to a not-so-distant future. The aim was perhaps to, avoid a fight under existing conditions of riding the boat

Freer simply ignores this aspect. Lee would undoubtedly have known that there would exist the possibility of a fight in the near-future. Or perhaps Lee would  hope that, having arrived on the island, the rules of the tournament would convince Parsons to not engage in a fight?  We could speculate forever, of course.

In the case of the social-democratic left, the art of aiming for socialism without aiming for it, ignore the need to aim explicitly for a socialist society–a society without classes. The social-democratic or social-reformist left do not aim to achieve a classless society but rather a humanized capitalist society. Their view, explicitly or explicitly, is that aiming for such a society is idealist or utopian at present (and will, practically, forever, be the case). 

Reform Versus Abolition of the Police, Part Six: Unions and the Police

I read an article on unions and the police that I thought would be useful for readers: George Rigakos & Aysegul Ergul (2011), “Policing the Industrial Reserve Army: An International Study,” in Crime, Law & Social Change, Volume 56, Number 4. (see https://www.researchgate.net/publication/227052617_Policing_the_industrial_reserve_army_An_international_study). I came across the article while researching the function of the police in a society characterized by the domination of a class of employers. The article explains, indirectly, why social democrats like Herman Rosenfeld have a hostile attitude towards more radical political positions (see earlier posts in this series for a criticism of Mr. Rosenfeld’s social-democratic position on the issue of the abolition of the police).

In the article, the authors argue that there is empirical evidence (factual data used as evidence for a hypothesis or theory) among many countries that shows that unions, at the micro level, function to limit exploitation of workers but, at the macro level, they may well function to limit the radical nature of the working class. This is consistent with some of my own experiences with and observations of unions–as well as the social-democratic left.

Let us first look at their arguments and evidence for their view that unions limit the radical nature of the working class (page 330):

After the Second World War, the dominant form of trade unionism recognized the primacy of the liberal democratic state and accepted the capitalist organization of production and private property. The revolutionary Marxist claims of overthrowing the state through the destruction of the capitalist mode of production were replaced by efforts to generate a dialogue and social pact among labour, capital and the state [158]. To put it differently, the goal of trade-unions to mobilize working class power for revolutionary purposes was abandoned in exchange for the legal recognition of collective bargaining and thus the state of trade-unions became crystallized as that of political actors representing an organized interest group within liberal democracy. The internalization of the attitude of “peaceful accommodation with capitalist interests” caused a deradicalization and depoliticization of the trade union movement [158]. The effects of a paradigm shift from Keynesianism to neoliberalism, therefore, have deeply cut into both trade-union membership and political activism.

In the context of the accumulation process of capital (the reinvestment of the surplus produced by workers), some workers are thrown out of work (the unemployed, or what Marxian economists call the reserve army of labour), others are insecure in their work and some are more secure.

The end of the social pact among “labour, capital and the state [government]”–at least from the point of view of capital, and increasingly of the state or government–has left workers with less protection from the onslaught of the vicious nature of a society dominated by a class of employers and the associated economic, political and social relations. There has been an increase in inequality in terms of income and wealth in the neoliberal era of privatization, deregulation and trade liberalization (page 342):

The income gap between people living in the top fifth of the richest countries and those living in the bottom fifth was 30:1 in 1960, 60:1 in 1990, and 74:1 in 1997. In 2005, the Human Development Report stated “the world’s richest 500 individuals have a combined income greater than that of the poorest 416 million.” In the same year the 2.5 billion people, or 40% of the world’s population, that lived on less than two dollars a day accounted for 5% of global income while the richest 10%, almost all of whom lived in high income countries, accounted for 54% of global income [163]. According the World Institute for Economic Research [31], the richest two per cent of adults in the world owned
more than half of global household wealth while the poorer 50% of the world’s adults owned barely 1% of global wealth.

The increase in inequality in the neoliberal era has led to increased insecurity. You would think that with increased insecurity and inequality, there would be a need for more police, both private and public. However, what is interesting is how the presence of unions has generally not led to increases in the level of policing. Ironically, Mr. Rosenfeld, in his criticism of the idea of the abolition of the police, refers to the concept of “legitimation”:

In reality, though, bourgeois democratic institutions are not simply a façade for a bloody and murderous dictatorship over the poor and colonized. Yes, there are instances of state acts of murder and even terrorism. The liberal democratic state and institutions facilitate private capital accumulation and are structured in ways which seek to repress, diffuse and co-opt alternative political and social movements, but these are mediated by the necessities of legitimating capitalism. The relative power, political ideology and organization of the working class and colonized Indigenous peoples also affect the character of liberal democracy (and in the subordinate strata, there are forms of class differences and other contradictions that also matter).

Yes, the working class can modify or reform certain economic, political and social institutions through their strength. However, Mr. Rosenfeld does not look at the opposite process: how this modification leads to the modification of the demands of the working class, blunting their power to oppose the class of employers as an independent class.

This limitation of the potential power of the working class can be seen in the lack of the need for increased policing despite increased levels of insecurity–because most unions now serve at the macro level to legitimate the continued existence of the class of employers (page 354):

Union membership was unrelated to policing employment, whether public, private or
combined for all countries. But when post-USSR states were removed from the sample a
statistically significant inverse relationship between private security or total policing employment and unionization appeared. … This finding provides empirical evidence for the claim that unions may actually provide a surrogate policing function for capital in western nations. That is, a stronger union presence lessens the necessity for more policing. This is particularly evident among northern European (and Ghent countries [Belgium, Denmark, Finland, Iceland and Sweden) where the average unionization rate is 25.6%, the highest by far among all regions, but the average total policing rate is 453.4, the lowest among all regions.

The reason for excluding the former USSR countries is because in those countries there is indeed a positive relationship with high unionization and high levels of public policing–undoubtedly because of the centralized policing function of the former USSR-countries (page 354):

In former USSR countries, on the other hand, a high unionization rate (12.5%) coincides with more
policing, particularly public policing (620.6) as the massive post-totalitarian apparatus has been largely maintained in the form of new protection rackets.

Should workers then not form or join unions? This is hardly what is being argued. It is vital for workers to protect themselves–but of course this protective function should be such that it does not legitimate the power of employers as a class. Furthermore, unions that rely on the organizational strength of their members rather than mainly on the power of the government or the state to enforce the protective function are superior.

At the macro level, modern unions often function to legitimate the class of employers, thereby serving a legitimating function for that class. At the micro level, however, they do serve as organizations of resistance (provided that they are indeed independent organizations at the micro level) (page 355):

What labour militancy does seem to provide, however, is a reduction in the rate of exploitation as measured by the extraction of surplus-value. Thus, surplus-value is inversely correlated to strikes and lock-outs)even when post-USSR states are omitted. There is no direct relationship, however, between policing employment and strikes and lock-outs. This suggests that while strikes and lock-outs may not directly threaten capitalist relations as measured by the necessity to employ more police and security, such work interruptions do have a statistically significant impact in reducing rates of exploitation. As Marxian political economy would indicate, the data also suggest unions are adept at checking exploitation by pushing for more favourable wage and hourly conditions but this does not translate into any direct threat to the established order of security as indicated by more policing.

In other words, unions are contradictory. On the one hand, they function to legitimate the power of the class of employers (even if that is not their intention), but simultaneously they function to limit the exploitation of workers.

Another way in which the legitimating function of unions can be seen is when mass movements that clash with the police arise. Unions often are aloof from such movements, or even engage in conservative attacks on such movements. For example, in France (page 358):

The 2006 youth protests occurred throughout the country as an opposition to the new labour law (First Employment Contract) whose goal was to reduce high youth unemployment through giving more flexibility to employers. In other words, the bill was to make it easier for employers to fire young workers without any compensation. Consequently, the youth responded to this bill by demonstrating on the streets, occupying universities, and blocking university activities including strikes. The insistence of youth in their opposition to the First Employment Contract eventually brought them support from unions. But why did the trade-unions not resist such a bill in the first place? How would the unions have acted had the youth not challenged the First Employment Contract? The unions’ (overly) cautious attitude in responding to issues concerning the labour market and the vested rights of workers is one of the most overt examples of their “policing” role in society. Perhaps the low employment and unionization rates among Parisien youth made them unrestrained by union membership, necessitating massive police intervention. …

It should come as no surprise by now that France and Greece have among the highest rates of total policing employment in Europe.

What should the radical left do? It depends, of course, in part on “where they are at.” They may be unemployed, retired or working (in unionized jobs, professional jobs, insecure jobs and so forth). What can generally be said is that the class issue, or the macro issue, needs to be addressed wherever possible. At the same time, it is of course necessary to engage in tasks that protect the immediate interests of workers.

What they should not do, though, is engage in legitimizing acts and rhetoric for the class of employers–which is what they also often do, in which case they need to be criticized.

Management Rights, Part Nine: Is A Collective Agreement that Involves Management Rights and the Exploitation of Workers a Fair Contract?

In the previous post, I calculated the rate of exploitation of workers who work for Rogers Communication (see The Rate of Exploitation of the Workers of Rogers Communications Inc., One of the Largest Private Employers in Toronto). Below you will find the management rights clause of a collective agreement between Rogers Communications and Metro Cable TV Maintenance and Service Employees Association.

In a previous post, I also posted several quotes by the largest union in Canada, the Canadian Union of Public Employees (CUPE) that assert, without proof, that the collective agreements of CUPE locals are fair contracts (see Fair Contracts (or Fair Collective Agreements): The Ideological Rhetoric of Canadian Unions, Part One).

I will continue to provide occasional posts with management rights clauses from collective agreements from different provinces to show that the management rights clause is something that unionized workers face throughout Canada–and which deserve to be often discussed among union members to see whether such clauses express in any way a democratic way of living or a dictatorial way of living (for the dictatorship of employers, see for example, Employers as Dictators, Part One).

However, I will also include collective agreements that relate to my other posts on the rate of exploitation of workers who work for a particular employer. I will, in future, post both the management rights clause (if there is an explicit one since arbitrators recognize management rights even if there is no such clause in the collective agreement) from the collective agreement and simultaneously my calculation of the rate of exploitation of the particular employer in another post (when possible).

A question for those who consider collective agreements to be fair and to provide conditions for decent work to be performed: Does the following management rights clause express the freedom of the unionized workers or their lack of freedom to determine their own lives at work? If it expresses a lack of freedom, how is the collective agreement fair? How is the work performed an expression of decent work (another cliche expression used by union reps)?

I have found it interesting that, despite my posts that refer to the management rights clauses of collective agreements and my criticisms of such clauses, there have been no explicit criticisms of such posts by defenders of union reps. I suspect that unions reps, like their social-democratic counterparts, simply want to avoid the issue since it is an Achilles heel for their claim to produce “fair contracts”

From page 9:

COLLECTIVE AGREEMENT BETWEEN
ROGERS COMMUNICATIONS PARTNERSHIP
AND
METRO CABLE TV MAINTENANCE AND SERVICE EMPLOYEES ASSOCIATION
SEPTEMBER 1, 2014 TO AUGUST 31, 2019

Section 3 – Management Rights

3.01 The Association acknowledges that the Company retains the right to manage its operations in all respects in accordance with its commitments and its obligations and responsibilities, to direct the working force and to hire, promote, transfer, demote or lay off employees and to suspend, discharge or otherwise discipline employees for just cause, the right to decide on the number of employees needed by the employer at any time in accordance with the provisions of Company and Association seniority, the right to use modem methods, technology and equipment, and jurisdiction over all operations, buildings and equipment are solely and exclusively the responsibility of the employer; provided that any exercise of these rights by the Company which conflict with any provisions of this agreement shall be subject to the grievance procedure set out in Section 11. The employer also has the right to make, alter and enforce rules and regulations to be observed by the employees provided such rules and regulations are not inconsistent with the terms of this agreement.

3.02 The Company and Association agree that no employee shall in any manner be discriminated against or coerced, restrained or influenced on account of membership or non-membership in any labour organization or by reason of activity or lack of activity in any labour organization.

3.03 Supervisory/Managerial personnel will not perform bargaining unit work unless an explanation acceptable to both parties is provided for the performance of such work.

The Rate of Exploitation of the Workers of Rogers Communications Inc., One of the Largest Private Employers in Toronto

Introduction

In two others posts I presented the twenty largest employers in Toronto according to level of employment (see A Short List of the Largest Employers in Toronto, Ontario, Canada) and the twenty largest employers in Canada according to profit (see A Short List of the Largest Private Employers in Canada, According to Profit). 

I have tried to calculate the rate of exploitation of workers of Magna International in an earlier post (see The Rate of Exploitation of Workers at Magna International Inc., One of the Largest Private Employers in Toronto, Part One); Magna International is one of the largest employers in Toronto. I also calculated the rate of exploitation for Air Canada workers and the Canadian Imperial Bank of Commerce (CIBC) workers. 

The Nature of the Rate of Exploitation

But what is the rate of exploitation? And why not use the usual rate of profit or the rate of return? The rate of profit is calculated as profit divided by investment. Since employers purchase both the means for work–buildings, computers, office supplies, raw material–and hire workers–we can classify investment into two categories: c, meaning constant capital, or the capital invested in commodities other than workers; and v, or variable capital, the capital invested in the hiring of workers for a certain period of time (wages, salaries and benefits).

The purpose of investment in a capitalist economy is to obtain more money (see The Money Circuit of Capital), and the additional money is surplus value when it is related to its source: workers working for more time than what they cost to produce themselves. The relation between surplus value and variable capital (or wages and salaries) is the rate of surplus value or the rate of exploitation, expressed as a ratio: s/v.

When the surplus is related to both c and v and expressed as a ratio, it is the rate of profit: s/(c+v).

In Marxian economics, you cannot simply use the economic classifications provided by employers and governments since such classifications often hide the nature of the social world in which we live. The rate of profit underestimates the rate of exploitation since the surplus value is related to total investment and not just to the workers. Furthermore, it makes the surplus value appear to derive from both constant capital and variable capital.

I decided to look at the annual report of some of the largest private companies in Toronto and Canada if they are available in order to calculate the rate of exploitation at a more micro level than aggregate rates of surplus value at the national or international level. Politically, this is necessary since social democrats here in Toronto (and undoubtedly elsewhere) vaguely may refer to exploitation–while simultaneously and contradictorily referring to “decent work” and “fair contracts.” Calculating even approximately the rate of exploitation at a more micro level thus has political relevance.

Conclusions First

As usual, I start with the conclusion in order to make readily accessible the results of the calculations for those who are more interested in the results than in how to obtain them.

Income before income tax expense s=$3.773 billion or $3773.5 million and
Employee salaries, benefits, and stock-based compensation v=$1.8045 billion or $1804.5 million

The rate of exploitation or the rate of surplus value=s/v=3773.5/1804.5=209%.

That means that for every hour worked that produces her/his wage, a worker at Rogers Communications works around an additional 125 minutes or 2 hours 5 minutes for free for Rogers Communications. Alternatively, in terms of money, $1 of wage or salary of a regular Rogers Communications worker produces $2.09 surplus value or profit for free. 

  1. In a 4.5-hour work day (270 minutes), the worker produces her/his wage in about 87 minutes (1 hour 27 minutes) and works 183 minutes (3 hours 3 minutes) for free for Rogers Communication.
  2. In a 7.5-hour work day (450 minutes), the worker produces her/his wage in about 146 minutes (2 hours 26 minutes) and works 304 minutes (5 hours 4 minutes) for free for Rogers Communications.
  3. In an 8-hour work day (480 minutes). the worker produces her/his wage in about 155 minutes (2 hours 35 minutes) and works 325 minutes (5 hours 25 minutes) for free for Rogers Communications.
  4. In an 10-hour work day (600 minutes). the worker produces her/his wage in about 194 minutes (3 hours 14 minutes) and works 406 minutes (6 hours 46 minutes) for free for Rogers Communications.

Of course, during the time that the worker produces her/his own wage, s/he is subject to the power of management and hence is also unfree during that time (see The Rate of Exploitation of Magna International Inc., One of the Largest Private Employers in Toronto, Part Two, Or: Intensified Oppression and Exploitation and   Employers as Dictators, Part One).

Do you think that these facts contradict the talk by the left and unionists of “fair wages,” “fair contracts” (see  Fair Contracts (or Fair Collective Agreements): The Ideological Rhetoric of Canadian Unions, Part One for the rhetoric of the largest union in Canada, the Canadian Union of Public Employees (CUPE)) and “decent work?” Do they ignore the reality of life for workers, whether unionized or non-unionized? If exploitation and oppression of workers is a constant in their lives, even if they are only vaguely aware of it, should this situation not be frankly acknowledged by their representatives? Do such representatives do so? If not, why not?  Do workers deserve better than neglecting the social context within which they live and work? Should such problems be addressed head on rather than neglected? 

Data on Which the Calculation Is Based

The calculation of the rate of exploitation is undoubtedly imperfect, and I invite the reader to correct its gaps. Nonetheless, the lack of any attempt to determine the rate of exploitation at the city level has undoubtedly reinforced social-reformist tendencies.

Now, the calculation:

In millions of Canadian dollars:

The data are taken from Rogers Communications Inc. Annual Report.

Total revenue 15,073

Operating Expenses

Operating Costs

Cost of equipment sales 2,254
Merchandise for resale 242
Other external purchases 4,360
Employee salaries, benefits, and stock-based compensation 2,005

Total operating costs 8,861
Depreciation and amortization 2,488
Restructuring, acquisition and other 139

Total operating expenses 11,488
Finance costs 840

Interest on borrowings  746
Interest on post-employment benefits liability  11
Interest on lease liabilities  61
Capitalized interest (19)
Loss on repayment of long-term debt 19
(Gain) loss on foreign exchange (79)
Change in fair value of derivative instruments 80
Other 21

Total finance costs 840
Other income  (10)
Income before income tax expense 2,755

Total revenue therefore=11,488+840-10+12,318+2,755=15,073 (as above)

To calculate the rate of surplus value, the key categories are “Employee salaries, benefits, and stock-based compensation,” which is equivalent to wages/salaries (=v) and “Income before income tax expense” (surplus value (s) or profit).

Adjustments

In Marxian theory, it is necessary to question whether some expenses are expenses for both the individual employer and for the class of employers (and fractions of their class, such as those who live on interest); in such a case, the expense is deducted from total revenue. On the other hand, there are expenses that are expenses for the individual employer but are not expenses when looked at from the point of view of the class of employers; in such an instance, they are paid out from the surplus value produced or obtained by workers and are to be included in income before taxes.

Adjustment of Stock-Based Compensation

The subcategory “stock-based compensation” in the category “Employee salaries, benefits, and stock-based compensation” includes two further subcategories (sub-sub categories, so to speak): 1. Options to purchase Class B Non-Voting Shares on a one-for-one basis (granted to employees, directors, and officers) and 2. Performance options (granted to certain key executives). It may seem unnecessary to adjust for the second sub-sub category since there were ” nil performance-based options” in 2019. However, there are at least two reasons for making adjustments. Firstly, payment for some of the stock-based compensation is due to stock-based compensation acquired in previous years: “These options vest on a graded basis over four years provided that certain targeted stock prices are met on or after each anniversary date. As at December 31, 2019, we had 1,068,776 performance options outstanding.”

Secondly, some of the stock options  in the first sub-sub category are based on “performance-based options” on the part of middle and senior management: “We granted 180,896 performance-based RSUs [restricted share units] to certain key executives in 2019.” 

I use the following logic from my post on the rate of exploitation of Canadian Imperial Bank of Commerce Workers to justify shifting 10 percent of the amount from the category ” (I change the wording slightly to make the quote apply to Rogers Communications workers): 

Most employees, whether executive or not, seem to be eligible to some support of bonus as a function of performance. However, the gap between executive pay and the pay of regular employees has widened over the years, so it is reasonable to infer that the category “Stock-based compensation” is divided into two parts: one part is a function of the number of hours worked as well as the intensity of that work by regular employees; the other is based on the extent to which managers and senior executives are successful in exploiting those regular employees. 

It is impossible to determine the proportion of stock options that form part of salaries and bonuses that represent the exploitation of Rogers Communications regular workers. 

It is probably reasonable to assume that a minimum of 10 percent of the “Stock-based compensation” comes from the exploitation by middle and senior Rogers Communications executives of regular workers.

It would be necessary to have more detailed information to determine whether more or less of the money obtained in this category were distributed between regular bank workers and management executives. If regular bank workers received more, then the rate of exploitation would be less than the rate calculated below. If management executives received more, then the rate of exploitation would be more than the rate calculated below.

On the assumption of 10 percent, this means that 10 percent of the total “Stock-based compensation is reduced by 10 percent, or $200.5 million dollars, and that amount is added to “Income before income tax expense.” This gives, so far: 

Employee salaries, benefits, and stock-based compensation $1804.5 billion
Income before income tax expense $2955.5 billion

Adjustment of Finance Costs

Another adjustment relates to interest. As I indicated in my post about the rate of exploitation of workers at Magna International:

An adjustment should probably be the treatment of the payment of interest: despite being an expense from the point of view of the individual capitalist, it probably forms part of the surplus value. It should be added to “Income before income tax expense.”

As for the category “Interest on post-employment benefits liability,” from the point of view of Rogers Communications, it is an expense or cost because, presumably, Rogers Communications had to borrow money (and pay interest) to meet its financial obligations to its retired workers; this interest comes from the surplus value produced by the workers and is therefore included as part of profit.

I treat the category “Interest on lease liabilities” like other interest categories: it is paid out of the surplus value produced by Rogers Communications workers.

The interest charges so far that must be subtracted from “Finance costs” and added to “Income before income tax expense” is $818 million. 

That leaves $22 million for Finance Costs so far. 

As I explained on my post on the rate of exploitation of Air Canada workers:

Some explanation of “interest capitalized” is in order. I have had difficulty in understanding the nature of “Interest capitalized.” As far as I can tell, interest that is normally paid and is an expense for the particular employer is treated, in Marxian economics, as part of surplus value because, at the macro level, it comes from the surplus value produced by the workers.

Interest capitalized seems to be different since the interest charged on money borrowed for the purpose of the construction of fixed assets (with a specific interest rate attached to it) is “capitalized,” or not considered part of interest expenses until the construction is finished and the fixed asset is ready to use. This accounting distinction, however, from the macro point of view, is irrelevant since both interest expenses and interest capitalized are derived from the surplus value produced by workers (or appropriated from them in another industry). Accordingly, both interest expenses and interest capitalized should be added to the amount of “Income before income taxes” category.

In the case of Air Canada, capitalized interest was positive (not in parentheses), and I therefore added it to the amount of surplus value produced by the workers. In the case of Rogers Communication, it is negative (since it is in parentheses). Accordingly, I have subtracted it from “Finance Costs” (as the accountants have done). Whether that it is legitimate I will leave for those who more adequately understand modern accounting principles and their relation to Marxian economics. I have found no guidance in the literature so far to aid me in dealing with such issues. 

The three categories, “Loss on repayment of long-term debt,” “(Gain) loss on foreign exchange,” and
“Change in fair value of derivative instruments” seem to have nothing directly to do with interest payments and therefore I leave them as part of “Finance Costs.”

Since the category “Other” remains unspecified, I also leave it as part of “Finance Costs.”

Accordingly, adjusted Finance Costs are:

Adjusted Finance Costs

Loss on repayment of long-term debt 19
(Gain) loss on foreign exchange (79)
Change in fair value of derivative instruments 80
Capitalized interest (19)
Other 21

Total finance costs 22

The category “Other income” is somewhat misleading since, in a note, the category is really “Other (income) expense.” The subcategories are as follows: 

Losses from associates and joint ventures 18 
Other investment income (35) 
Total other income (10)

The $10 million is actually additional investment income, but since it is placed in an expense category, it is put into parentheses. Normally, when an amount is placed in parentheses, it is subtracted, but since it is additional income rather than an expense, it is added. It therefore is already accounted for in the original “Income before income tax expense,” it is already accounted for. 

The remaining 818 in so-called finance costs (which are hidden surplus value) are transferred to the adjusted “Income before income tax expense” category, so that the adjustment for the total of the category is 2,955.5.+818=3773.5. 

So, with the adjustments in place:

Income before income tax expense s=$3.773 billion or $3773.5 million and
Employee salaries, benefits, and stock-based compensation v=$1.8045 billion or $1804.5 million

The Rate of Exploitation

The rate of exploitation or the rate of surplus value=s/v=3773.5/1804.5=209%.

That means that for every hour worked that produces her/his wage, a worker at Rogers Communications works around an additional 125 minutes or 2 hours 5 minutes for free for Rogers Communications. Alternatively, in terms of money, $1 of wage or salary of a regular Rogers Communications worker produces $2.09 surplus value or profit for free. 

The length of the working day at Rogers Communications, like most places, varies. Here are a sample of working days from the Internet:

  1. 7 days a week. 32 hours a week.
  2. Varying 8hr shifts depending on dept. two paid 15 minutes break and 30mins unpaid lunch
  3. 37.5 a week
  4. 7.5 to 8 hrs
  5. 8 – 10 hours per day depending on projects etc. There is a great deal of flexibility in how you work
  1. In a 4.5-hour work day (270 minutes), the worker produces her/his wage in about 87 minutes (1 hour 27 minutes) and works 183 minutes (3 hours 3 minutes) for free for Rogers Communication.
  2. In a 7.5-hour work day (450 minutes), the worker produces her/his wage in about 146 minutes (2 hours 26 minutes) and works 304 minutes (5 hours 4 minutes) for free for Rogers Communications.
  3. In an 8-hour work day (480 minutes). the worker produces her/his wage in about 155 minutes (2 hours 35 minutes) and works 325 minutes (5 hours 25 minutes) for free for Rogers Communications.
  4. In an 10-hour work day (600 minutes). the worker produces her/his wage in about 194 minutes (3 hours 14 minutes) and works 406 minutes (6 hours 46 minutes) for free for Rogers Communications.

Of course, during the time that the worker produces her/his own wage, s/he is subject to the power of management and hence is also unfree during that time (see The Rate of Exploitation of Magna International Inc., One of the Largest Private Employers in Toronto, Part Two, Or: Intensified Oppression and Exploitation and   Employers as Dictators, Part One).

Do you think that these facts contradict the talk by the left and unionists of “fair wages,” “fair contracts” (see  Fair Contracts (or Fair Collective Agreements): The Ideological Rhetoric of Canadian Unions, Part One for the rhetoric of the largest union in Canada, the Canadian Union of Public Employees (CUPE)) and “decent work?” Do they ignore the reality of life for workers, whether unionized or non-unionized? If exploitation and oppression of workers is a constant in their lives, even if they are only vaguely aware of it, should this situation not be frankly acknowledged by their representatives? Do such representatives do so? If not, why not?  Do workers deserve better than neglecting the social context within which they live and work? Should such problems be addressed head on rather than neglected? 

Fair Contracts (or Fair Collective Agreements): The Ideological Rhetoric of Canadian Unions, Part One

Since in this blog I have often referred to particular union reps referring to collective agreements as fair in some way, I thought it would be useful to provide further examples of this rhetoric to substantiate the view that unions function as ideologues for the continued existence of employers–even if the unions are independent of the power of particular employers and hence represent independently the workers in relation to the particular employer of the workers.

I will provide a series of examples from various unions in this series on their view of the fairness of collective agreements and collective bargaining, implied or expressed explicitly.

1. Canadian Union of Public Employees (CUPE)

  1. On February 20, 2020, the Canadian Union of Public Employees (CUPE) published the following on its website (https://cupe.ca/union-offers-better-contingency-plan-city-toronto-negotiate-fair-contract).

Following the City of Toronto’s announcement on contingency plans for a possible labour disruption, CUPE 416 offered their own plan, one that respects all parties: negotiate a fair contract and avoid a labour dispute.

Nowhere does the webpage indicate what is meant by ‘fair contract.” The complaint against the City of Toronto as employer in relation to collective bargaining seems to have to do with the implied bad faith in bargaining–hence the reference to ‘respects all parties.” It is implied that the City of Toronto’s bargaining team does not respect the other party–the negotiating team and, by implication, the city of Toronto’s unionized workers. If only the city’s negotiating team would engage in real negotiations rather than aiming for a labour dispute from the beginning, then a fair contract could arise, it is implied:

“How does the City Manager stand up there and say the City respects its workers and looks out for the best interests of residents when they have been driving these talks toward a deadline and a dispute from the beginning?” said Eddie Mariconda, president of CUPE 416.

It is never questioned how treating human beings as costs could indicate an unfair situation as such:

 “They say that they want a contract that is affordable and sustainable. 416 members are already affordable and sustainable, and we deliver great services too.

City of Toronto workers are affordable–their costs are “reasonable.” How treating workers as costs is reasonable is never explained–it is assumed. Treating workers as costs reduces human beings to mere means to ends defined by others (see The Money Circuit of Capital).

It should be noted that CUPE is the largest Canadian union (from https://cupe.ca/cupe-largest-union-canada-and-we-keep-growing):

Canada’s largest labour union keeps on growing as today we announce our membership has reached 680,000 workers nationwide.

2. In the Collective Bargaining section of the CUPE website (https://cupe.ca/collective-bargaining) , we read:

Negotiating strong contracts for our members is what we do best. The solidarity of our members is the heart of our bargaining power, and makes gains possible. Together, we’ve built strong communities and achieved better wages, benefits, pensions and fair treatment, for workers.

It is implied that it is possible to be treated fairly despite the existence of the employer-employee relation. If, however, the employer-employee relation is inherently unfair, then CUPE’s reference to fair treatment (by means of, probably, collective bargaining and collective agreements) in effect justifies the continued oppression and exploitation of workers. After all, if workers are indeed fairly treated by means of collective bargaining, collective agreements and the existence of unions, then there is no need to aim for the abolition of the class power of employers. Furthermore, workers who work in unionized environments who still consider their treatment by the employer to be unfair–despite such treatment not breaching the collective agreement–would logically be subject to criticism by union reps or at least indifference.

3. On CUPE Local 79, it reads http://cupelocal79.org/bargaining/ (of course, this link may no longer exist once a collective agreement has been signed):

CUPE Local 79 is entering into negotiations with the City of Toronto in late 2019 as the four collective agreements expire on December 31, 2019. Our union is seeking a fair deal for City of Toronto employees who work hard every day to take care of Toronto.

4. Another webpage (https://cupe.on.ca/marchingforfairness/ ) has the following (no date):

We are asking the March of Dimes to support us in the work that we do by negotiating a fair contract that respects the residents of March of Dimes Independent Living and the support workers who empower them to live independent lives. Help us by sending a message to the March of Dimes to ask them to negotiate a fair contract of support service attendants.

5. Dated November 16, 2020, the following post implies that unionized workers not only desire fair treatment but actually obtained it by means of collective bargaining and the collective agreement (https://cupe.ca/new-collective-agreement-garda-employees):

New collective agreement for Garda employees

This Monday, the Syndicat des employé.e.s du transport de valeurs et des salles de comptage de Garda (SNCF-SCFP 3812) signed a new six-year collective agreement, which calls for wage increases of 14% for the period between 2018 to 2024.

“The union achieved the objectives it wanted, particularly with respect to salaries and full retroactivity for all employees and major adjustments to schedules and statutory holidays. We have adjusted to the health crisis and have held virtual general meetings, including a vote. The agreement achieved 73.5% support, reflective of the excellent work done by the bargaining committee,” declared Jocelyn Tremblay, a CUPE union representative and trustee of SNCF-SCFP 3812.

In addition to maintaining and even improving their purchasing power, the union is particularly proud of regaining several things they had negotiated after rejecting an initial tentative agreement in April 2019. The employees subsequently voted more than 83% in favour of resorting to pressure tactics up to and including an unlimited general strike.

“This mobilization on the part of employees enabled us to be heard at the bargaining table. These people showed management that they wanted a fair agreement in line with the efforts made on a daily basis for the company,” added CUPE union representative Marcin Kazmierczak.

SNCF-SCFP 3812 represents slightly more than 1000 members.

6. On June 30, 2020, we read, from the National President’s Report (https://cupe.ca/national-presidents-report-june-2020):

The only sector presently bargaining with government is the health care sector. At that table, the government’s opening proposals included eliminating any retroactivity for wages beyond the April 1, 2020 effective date. This was rejected and CUPE will continue to fight for a fair collective agreement [my emphasis] and a strong pension plan.

7. On August 21, 2020, we read (https://cupe.on.ca/solidarity-with-port-of-montreal-longshore-workers-cupe-ontario-salutes-the-announcement-of-a-truce/):

CUPE Ontario’s 280,000 members salute the announcement of a truce agreed to today between striking longshore workers at the Port of Montreal, members of CUPE Local 375, and the Maritime Employers Association (MEA). Both parties announced during a joint press conference that they believe they can come to a negotiated collective agreement during the truce which will end on March 20, 2021.

On August 10th, the 1,125 longshore workers began strike action to defend their collective agreement after the employer, MEA, unilaterally changed working conditions.

The workers’ previous collective agreement expired on December 31, 2018 and, instead of negotiating a fair agreement [my emphasis], the employer had been attacking workers’ rights, threatening the use of replacement workers, and diverting ships to other ports, including those outside of Canada.

The MEA spent months attacking workers’ rights in the courts, making the case that all members of CUPE Local 375, working at the Port of Montreal, should not have the right to strike. But the longshore workers fought back, and the Canada Industrial Relations Board upheld their existing strike rights. This was an important victory, not only for longshore workers at the Port of Montreal, but for all working people in Canada.

Since the beginning of the strike, CUPE Local 375 members have offered to unload and move all cargo linked to fighting the COVID-19 pandemic to ensure community safety. Despite this, the employer has tried to use the pandemic as an excuse to threaten the use of replacement workers, otherwise known as scabs. This week, when it looked like the employer was going to enact the threat, the Local mobilized with other unions for mass solidarity picket which caused the employer to back down.

CUPE Ontario will act in steadfast solidarity with CUPE Local 375 until the parties reach a fair collective agreement that treats the Port of Montreal longshore workers with the respect they deserve. The members of CUPE Ontario will continue offering support and resources to defend Local 375 members’ rights and protect working conditions.

Fred Hahn, President

Candace Rennick, Secretary-Treasurer

It may seem inappropriate to criticize those who defend workers from attacks of employers. Attacks from particular employers or a group of employers do indeed need to be criticized, and to that extent Fred Hahn’s and Candace Resnick’s critique of the Maritime Employers Association should be praised. On the other hand, the reference to “fair agreement” needs to be criticized. 

8. On November 4, 2019, we read (http://cupe1764.ca/help-brampton-caledon-community-living-workers-get-a-fair-contract/): 

Help Brampton-Caledon Community Living workers get a fair contract

We are the members of CUPE 966. We work hard every day to provide the quality care at Brampton-Caledon Community Living (BCCL). It can be difficult work, but we do it because we care about the individuals we support, and we love to make a difference for them and their families.

BCCL is attempting to make our jobs even more difficult by keeping workers in precarious, part-time positions. We just want to negotiate a fair contract that respects our physically demanding work and protects the services we provide. We believe that no worker should see their working conditions reduced. We do not want a strike, but we are being pushed that way.

Help us continue to provide quality care to the individuals we support by telling BCCL to negotiate a fair contract now! [my emphasis]

It may seem even more inappropriate to criticize those workers who are experiencing an attack by an employer. However, where does their idea of a “fair contract” come from? Have they been indoctrinated by CUPE (and other unions)? Do they really consider it possible to obtain a fair contract? Even if they do, what is their view of management rights? 

9. On another CUPE webpage, we read (https://cupe.on.ca/somethingspecial/):

10. We read, on December 2, 2015 (https://cupe2544.ca/with-deadline-looming-warden-woods-needs-to-get-serious-about-negotiating-a-fair-contract/): 

With deadline looming, Warden Woods needs to ‘get serious’ about negotiating a fair contract

With a strike deadline of December 13 rapidly approaching, the union representing workers at Warden Woods Community Centre urged management to ‘get serious’ about negotiating a fair collective agreement. [my emphasis]

“For more than a year, our members have been trying to negotiate a fair first contract [my emphasis] with Warden Woods, but I am extremely concerned that management needs to get serious about finishing the job,” said Barbara Garcia, President of Local 5218 of the Canadian Union of Public Employees (CUPE 5218).

“The community depends on, and expects, the vital services our members provide. We’re committed to this community, but Warden Woods’ management needs to demonstrate their commitment to getting the job done.

CUPE 5218 has been in negotiations with Warden Woods for over a year. While some progress towards securing a first contract has taken place, several items remain outstanding. Additionally, staff have not had a wage increase in eight years.

The countdown to a lockout or strike began when Warden Woods’ management declared an impasse last month.

“We are prepared to bargain for as long as it takes to secure a fair contract, but the employer’s actions have set us on a fast track to a work stoppage, unless they get serious about finishing the job of negotiating with us,” said Garcia.

“We have been extremely reasonable in offering good faith solutions we believe are fair to our members [my emphasis], protect vital public services the community depends on, and ensure the long-term viability of Warden Woods,” she added.

Warden Woods is a multi-service community agency based in Scarborough providing supports to seniors, youth and children. The 44 members of CUPE 5218 provide a wide range of programming and services at the main office, several satellite locations, and in people’s homes.

For more information, please contact:

Barbara Garcia
CUPE 5218 President
416-725-4437

Kevin Wilson
CUPE Communications
416-821-6641

The use of the term “fair” in “fair contract,” “fair treatment,” and “fair deal” is not accidental. The implication is that the goal of collective bargaining must not just to achieve a contract or collective agreement–but a fair contract or agreement. The goal of reaching a collective agreement is qualified constantly by the adjective “fair.” The natural question would be: In what way is it fair? What is meant by a “fair contract,” etc.?

Nowhere does CUPE explain what it means by a fair collective agreement or how it is possible given the power of employers as a class. Why is that? Why is it that the union often qualifies the contract or collective agreement as “fair?” Is it by accident, or is it a means to “sell” the collective agreement to its members?

Would it be more in the interests of workers to point out that the collective agreement is unfair–but it is the best that can be obtained under the circumstances (the power structure that currently exists)? Or would it be better to merely express the rhetoric of fair contracts, etc. without discussing what is meant by that?

Which is a reformist tactic? A tactic in the best interests of workers?

A Basic Income Versus the Expansion of Public Services? Part One: Critique of the Social-democratic Idea that the Expansion of Public Services is Socialist

Introduction

Simran Dhunna and David Bush have written an article that criticizes moves towards a universal basic income (see https://springmag.ca/against-the-market-we-can-do-better-than-basic-income).

The Aim or Goal of Their Intervention

The first question to ask is: What is the aim or goal of their intervention? What are they seeking to achieve?

They write:

But those committed to principled class struggle should strive for the decommodification of public services. Compared with universal basic income, universal basic services cost less, meaningfully improve the material realities of working class and oppressed people, and affirm the power of publicly owned and operated infrastructure. That’s our bread and butter.

They seek to achieve three things, it seems:

  1. “meaningfully improve the material realities of working-class and oppressed people”
  2. affirm the power of publicly owned and operated infrastructure
  3. achieve points 1 ad 2 at minimal cost.

In this post, I will critically look at the first point.

In another post, I will look at the second point, and in a final post I will address the issue of costs–and how they create a strawman of a minimal basic income.

Meaningfully Improving the Material Realities of Working-Class and Oppressed People

Part of the title of their article claims that they are against the market–apparently against the market providing certain services; their alternative is having the government provide those services (hence the term “decommodification”–the conversion of services from services or commodities that are purchased on the market via money to the offering of such services without the direct mediation of money). This idea of supporting the working class by means of state services rather than through the capitalist market is supposed to “meaningfully improve the material realities of working-class and oppressed people.”

They write:

At the cost of $29 billion annually, we could have free transit in major cities ($10 billion), clean drinking water for every First Nation ($4.5 billion), eliminate tuition fees at all universities ($11 billion), and end homelessness ($4.5 billion). If we are spending $177 billion dollars a year (the cost of a negative income tax model to raise people to $21,810), we could have all of the above plus a universal pharmacare program, universal childcare, universal dental care, and begin to implement a robust public housing policy.  

It may not appear that they are social democrats since they evidently state that class struggle from below will be necessary to realize the provision of such services:

But those committed to principled class struggle should strive for the decommodification of public services.

The state is supposed to be forced to provide such services through class struggle (I will address the adequacy of the term “decommodification” later in this post). Now, I certainly agree with the need to engage in class struggle in order to provide as many services as possible without the direct mediation of the market. The realization of free tuition, for example, would have saved me the need to work for an employer in order to pay off students loans that I had needed three times in my adult life. Struggles to achieve such services furnished by the state rather than directly through the market should therefore be supported.

One of the questions to be asked is: What is the purpose or aim of shift from the provision of services provided by the market to the provision of services provided by the state or public services? Is it to move towards the elimination of the power of employers as a class? Towards the elimination of corresponding oppressive and exploitation structures at work in the private sector (see for example a general outline of such oppressive and exploitative structures in Employers as Dictators, Part One)? Towards the elimination of oppressive structures of the government as a public power (the oppressive structures of the government in relation to citizens and residents internally and military structures externally)? Towards the oppressive and exploitative relations of the government as an employer? (See the post referenced above as well as The Money Circuit of Capital). It would seem not.

Rather, the main aim is to “meaningfully improve the material realities of working-class and oppressed people” in order, ultimately, to eliminate “the level of poverty and inequality”–presumably measured according to the level of income. The focus is on the elimination of poverty and inequality (defined according to level of income):

Some of the appeal of UBI comes from the wishful idea that it can solve all of our problems at once, lifting people out of poverty and making education and public services accessible. But the basic costs show that UBI is, by any measure, a terrible use of resources to address inequality and poverty. As the CCPA’s David MacDonald noted in his study, the $29 billion spent on such a UBI scheme would achieve — at best — less than a 2 percent reduction in the poverty rate, which would “be quite wasteful” when considering the amount of money spent.

The first aim of the authors, then, is limited to an enhanced welfare state–something like what John Cartwright, president of Toronto and York Labour District Council, called for (see my critique in The Limitations of Social-Democracy in the Face of the Coronavirus). Mr. Cartwright wrote:

Reinvestment in our public services and social safety net is the right thing to do – not only now, during COVID-19, but permanently in Canadian society.

The Feasibility of Their Goal

Are such reforms feasible? There is evidence that their proposals could indeed be achievable within the existing social structure and social relations, and such reforms should be supported–all the while criticizing any attempt to limit the class struggle to such goals.

I have pointed out in another post how free transit has already been implemented in various capitalist countries (see What’s Left, Toronto? Part Four). Free tuition at the undergraduate level is available in Germany.

Homelessness has been addressed without changing the basic class structure by combining the aim of eliminating it with other measures that facilitate achieving that aim. In the northern Italian city of Trieste, for example, homelessness was reduced by providing supports for those with mental health problems since around half of those homeless have mental health issues (https://www.theguardian.com/cities/2019/dec/10/homelessness-is-not-inevitable-and-can-be-solved-these-cities-show-us-how). Helsinki, the capital of Finland, by contrast, addressed the issue of homelessness by providing access to housing while providing other social supports through the Housing First program. From https://borgenproject.org/homelessness-in-helsinki/:

In Helsinki, homelessness decreased to 35 percent, with 1,345 people now off the streets. Rough sleeping is almost non-existent, and there is only one 50-bed night shelter remaining. This is good news for street sleepers who have endured deadly winter temperatures as low as -7C° (19F°). “If you’re sleeping outside [in the middle of winter], you might die,” said Thomas Salmi, a tenant at a housing facility in Helsinki. Deputy Mayor Sanna Vesikansa, who witnessed a large number of homeless people in Helsinki as a child, said, “We hardly have that any more [sic]. Street sleeping is very rare now.”

Since 2008, Housing First has spent over 250 million euros in creating new homes and hiring staff. Meanwhile, Helsinki has seen savings upward of 15,000 euros a year in emergency healthcare, social services and the justice system. In 2018, some tenants moved out of Rukilla, able to live independent lives. The benefits outweigh the cost.

Eradicating homelessness in Helsinki is far from complete. However, the major reduction in long-term homelessness must be applauded. Helsinki has proven when authorities are fully committed, positive change can occur.

There is therefore room for reform in various social domains within societies dominated by the class of employers. Such reforms undoubtedly improve the lives of some of the workers and community members, and as a consequence they should be praised and fought for.

Limitations of Their Goal

I fail to see anything wrong with aiming to improve the material well being of workers and oppressed peoples. The problem arises when the advocates of such proposals simultaneously limit the goals of workers and oppressed peoples by ignoring their problems or by criticizing alternative proposals that address such problems.

It is my contention that their opposition to basic income does just that: it limits the aspirations of workers and oppressed peoples to a society that continues to be dominated by a class of employers despite calls for class struggle and material well-being. They oppose a policy of basic income in part because it might free workers from the need to work for an employer–which they implicitly identify falsely with the need to work:

Basic income would have the effect of distancing workers’ labour from their wages. Instead of being paid directly for their work, part of the wage of workers would come from their own tax dollars in the form of basic income. 

Dhunna and Bush object to aiming for the goal of “distancing workers labour from their wages.” There is, however, a tradition of aiming for the goal of separating or distancing labour from the needs of workers and others.

Distancing workers’ labour from their wages” is itself a worthy socialist goal. From Marx’s Critique of the Gotha Programme:

In a higher phase of communist society, after the enslaving subordination of the individual to the division of labor, and therewith also the antithesis between mental and physical labor, has vanished; after labor has become not only a means of life but life’s prime want; after the productive forces have also increased with the all-round development of the individual, and all the springs of cooperative wealth flow more abundantly- only then can the narrow horizon of bourgeois right be crossed in its entirety and society inscribe on its banners: From each according to his ability, to each according to his needs.

By focusing mainly on consumption, income level, the standard of living and poverty rates as defined by the level of income, Dhunnah’s and Bush’s goal, ultimately, is social democratic despite the reference to class struggle; many social democrats in the past have referred to class struggle without really aiming for the abolition of the power of the class of employer nor the abolition of classes–such as the German Social Democratic Party in the late nineteenth and early twentieth century (see Reform Versus Abolition of Police, Part Three).

From Moritz Muller (2019), “Of (Anti-)Capitalism, Countermovements, and Social-democratic Bedtime Stories. A Review of Recent Literature on Polanyi,” pages 135-148, Culture, Practice & Europeanization, Volume 4, Number 1, page 136:

… social democracy’s concept of socialism centers around the idea that private ownership should be replaced by public and/or cooperative ownership, together with the state’s acceptance of its role as the responsible institution for social welfare.

Dhunna and Bush, like Cartwright, only look, one-sidedly, at the problem since their focus is on poverty rates, standard of living (defined by consumption) and level of income. Their implied emphasis on distribution and consumption as opposed to production and employment fails to consider that production, distribution and consumption are interrelated since human beings produce their own social lives. Distribution and consumption are two aspects of this process, but they are part of a process of socially reproducing our live through the use of means of production (machines, buildings, tools, land, raw material, auxiliary material and so forth). There is no reference to employers and their power at work in their article at all, however.

Indeed, their focus is exclusively on issues of distribution of income and consumption; they neglect to include in the concept of “the Material Realities of Working-Class and Oppressed People” material interests of workers in controlling their own lives as they produce those lives over time. The “material realities” or workers include being oppressed and being exploited–which they never address (see for example The Rate of Exploitation of Workers at Magna International Inc., One of the Largest Private Employers in Toronto, Part One and The Rate of Exploitation of Magna International Inc., One of the Largest Private Employers in Toronto, Part Two, Or: Intensified Oppression and Exploitation).

Their article reflects Marx’s characterization of the liberal reformist John Stuart Mill. From Grundrisse: Foundations of the Critique of Political Economy, page 87:

The aim is, rather, to present production – see e.g. Mill – as distinct from distribution etc., as encased in eternal natural laws independent of history, at which opportunity bourgeois relations
are then quietly smuggled in as the inviolable natural laws on which society in the abstract is founded.

Here is what the reformist John Stuart Mill wrote (quoted from Judith Janoska, Martin Bondeli, Konrad Kindle and Marc Hofer, page 104, The Chapter on Method of Karl Marx: An Historical and Systematic Commentary (in German, but the quote is in English):

The laws and conditions of the production of wealth partake of the character of physical truths [they cannot be changed–they are natural and eternal]. There is nothing optional or arbitrary in them. … It is not so with the Distribution of wealth. That is a matter of human institutions solely.

I have criticized the definition of poverty mainly according to level of income (the poverty rate) (and the corresponding standard of living) in another post since the definition fails to capture the continuing lack of freedom characteristic of work relations characterized by a market for workers (see “Capitalism needs economic coercion for its job market to function” (Ontario Coalition Against Poverty: OCAP)). I also criticized, in two other posts, Mr Bush’s inconsistent views (see Basic Income: A Critique of the Social-Reformist Left’s Assumptions and Analysis: Part One and Basic Income: A Critique of the Social-Reformist Left’s Assumptions and Analysis: Part Two). At least in his earlier writing, he tried to link production to distribution (though inadequately). Now he has abandoned all pretense of being concerned about the working lives of worker–despite the rhetoric of “class struggle.”

The push for a shift of many services from the private sector to the public sector will meet substantial opposition when it begins to affect the market for workers since the market for workers is a basic condition for the continued power and existence of employers as a class. Of course, the fact that there will be determined resistance and violence by employers and the government to ensure a ready supply of workers does not mean that such a policy should not be pursued. The authors do indeed imply that class struggle will be necessary to achieve their limited aims, but their form of class struggle works well within the limits of the continued existence of the class power of employers. However ironic it may sound, their form of class struggle is a reformist class struggle. Its aim is not the abolition of classes and therefore the class struggle, but rather the permanence of class struggle.

Their aim, in other words, is to humanize the class power of employers through class struggle rather than abolishing that class power. Their concept of socialism is really an enhanced welfare state–not the abolition of the class power of employers.

Struggles for an Expansion of Public Services and Socialism

There is no necessary connection between struggles for the expansion of free public services (free in terms of the consumer of such services not having to pay personally for such services and everyone having access to such services) and socialism. Should socialists, though, ignore such struggles? Of course not. The expansion of free public services can indeed enhance the life of workers and oppressed peoples, and it can, perhaps, permit a great possibility for the creation of a socialist society (I say perhaps for all the reasons above–the expansion of free public services often becomes a substitute for the creation of a socialist society–a society without the existence of a class of employers).

Socialists should support the expansion of free public services while simultaneously criticizing the limitations of such proposals. As Daniel Ankarloo (2009) writes, “The Swedish Welfare Model: A Road Ahead? A Road to Socialism? Or a Dead End?,” Rethinking Marxism Conference:

the first presupposition for the Left of coming out of this impasse in welfare policies is the abandonment of ‘the social policy road to socialism’ [the kind of socialism advocated by Dhunna and Bush]. And in its place embrace the seeming paradox – that even if the welfare state model in Sweden is not socialism, not even a road to socialism, as a precondition for socialism, it is vital to fight for.

Socialists must strive to integrate the present and future rather than separating them–which is typical of both social democrats and the extreme left:

as regards the welfare state, the Left in Sweden has for the most part … been unable to deal adequately with the relation of ‘welfare’ to socialism. Some in the Left – having found out that ‘welfare’ is not socialism – have denounced previous welfare achievements and current popular welfare struggles in Sweden altogether. This has left the playing field open for social democrats to
lead the movement on issues of ‘welfare’ and subsequently ‘the social policy road to
socialism’ has largely remained unchallenged. More prevalent, however, has been to try to
overcome this impasse by balancing the ‘reformist’ policies of ‘welfare’ with the
‘revolutionary’ goal of ‘socialism’ as the overthrow of capitalist relations.

Unfortunately within the Swedish Left this has almost exclusively led to a de-habilitating
gap between theory and practice, between today and tomorrow. Just as historical social
democracy in Sweden in the 1940s tried to overcome its contradictions between the Marxian
vision of socialism and ‘Functional Socialism’, … by ‘pushing socialism ahead in time’, the Left in Sweden has inherited the same problematic. Hence, for this Left, socialism is always something that happens ‘in the future’ or ‘somewhere else’ – but it is never something existing in Sweden here and now. From this perspective, at best, all we can do is to support the ‘reformist’ Swedish welfare
model, in wait for socialism. In theory the Left has adhered to ‘revolutionary socialism’, but
since this is never an immediate presence, and only happens ‘tomorrow’, in practice one is at
best ‘reformist’ in welfare issues, i.e. exponents of ‘the social policy road to socialism’.

But, the challenge of the Left today is to break with ‘the social policy road to socialism’,
with the realization that although the Swedish welfare model is not socialism, not even a road
to socialism, there is indeed an alternative way to connect welfare struggles to socialism.

We have seen the issue of how the social-democratic or reformist left break the link between the present and future before (see Reform Versus Abolition of Police, Part Three and Reform Versus Abolition of the Police, Part Five: More Philosophical Considerations).

Fighting for welfare reforms that enhance the immediate lives of workers and oppressed peoples–the “bread and butter issues” to which Dhunna and Bush refer–while striving for socialism in the present–this is what is needed (and this is what this blog is for).

Returning to the issue of basic income–there is no reason for socialists to see welfare reforms that enhance the lives of workers and oppressed peoples and the proposal for a robust basic income as mutually exclusive; we should struggle for both. However, the struggle for a robust basic income is more fundamental since it has greater potentiality for questioning the power of employers as a class at work than the distributional struggles over what is produced.

Both a robust basic income and the expansion of public services, however, are means to the end of the creation of a socialist society and not ends in themselves.

Conclusion

Dhunna and Bush’s first aim–to “meaningfully improve the material realities of working class and oppressed people”–sounds both practical and radical. It is actually conservative since its focus is entirely on distributional struggles rather than struggles over control of working conditions at both the micro and macro levels. Indeed, since this is their primary goal, they practically define a socialist society as an enhanced welfare state–capitalism with a more human face.

By focusing on distributional struggles, they imply, without ever saying it, that wider struggles to control working conditions are impractical and utopian. They, the realists, know what “bread and butter issues” are relevant for the working class, and such “bread and butter issues” are purely distributional struggles. Such a stance is conservative–its aim is not to end class rule, but to perpetuate it–though in a more humanized form than at present.

So much for Dhunna’s and Bush’s first aim. In a second post, I will address the second aim, probably more briefly–the aim of affirming the power of publicly owned and operated infrastructure.

The issue of basic income and costs and how Dhunna and Bush present mainly a straw basic income model, however, will be addressed only in the last post of this series.

Working and Living in a Society Dominated by a Class of Employers May Be Dangerous to Your Health

In some previous posts, the title was “Working for an Employer May Be Dangerous to Your Health.” I have changed the title since this post is not just directly about working for an employer.

As has been implied in the previous post on this topic, the shift to legislative measures to address health and safety concerns removed workers’ definition of problems of health and safety in relation to social causes and transformed the definition into a technical issue over health and safety.

This shift in turn involved a shift from concerns for legislation to concerns for administrative measures. This shift to administrative measures protects employers better by limiting democratic pressure by means of legislative processes. Of course, such legislative processes should not be idealized. They, too, are subject to pressures of various kinds, such as economic pressures, political (power) pressures and ideological pressures.

Legislative and Administrative Processes as Inadequate to Protect Workers

As a result, legislative measures to protect workers from dangers at work often end up being watered down–as I pointed out in another post:

However, peeling back the veneer of the federal government’s so-called crackdown on violent crime reveals a much different story. To start, it took more than ten years to introduce a new law in response to a single and violent mass killing in which twenty-six Canadians died. What is more, despite widespread political support, many politicians – particularly those with an affinity for law-and-order policies – cautioned against going too far in terms of holding offenders criminally responsible for their harmful acts (Bittle and Snider 2006).

The implicit attitude of many legislators and administrators–that deaths at work are simply unintended and inevitable facts of the world that cannot be changed–points to the inadequacy of legislative and administrative measures for protecting life and limb of workers. From Steven Bittle, doctoral dissertation, Still Dying for a Living: Shaping Corporate Criminal Liability After the Westray Mine Disaster, pages 88-89:

… we argued that conservative conceptualizations of corporate crime dominated the process leading to the enactment of the Westray bill, thereby limiting the reform options that were given serious consideration. Three main arguments supported the analysis. First, legislators emphasized the importance of traditional legal language–particularly the doctrine of mens rea, or the legal need to establish the guilty mind of an individual – which downplayed alternative approaches to combating corporate criminal liability (also see Wells 1993: 1). Second, neo-liberal discourses helped ensure that the legislative framework conceptualized workplace safety as a shared responsibility amongst workers, managers and employers, despite the fact that few employees, namely those who carry out day-to-day production processes, have control over their working conditions (even though they bear the costs of unsafe working environments). Third, dominant conceptualizations of corporate capitalism, the idea that corporations are vital for the effective functioning of the Canadian economy, helped protect against the enactment of overly stringent legislation. Overall, given the convergence of various conservative discourses that dominated the reform process, we questioned the ability of the Westray bill to hold corporations to account for their harmful actions.

Why is it that the social-democratic left and unions do not discuss openly and thoroughly the issue of the systemic inadequacy of legislative and administrative efforts to protect workers? There is a definite need to enter into debate over such an issue, but there is an equally definite lack of discussion of such an issue. The current pandemic should have been an occasion to reassess the whole issue of the health and safety of workers–and indeed of the general population–in the context of a society dominated by a class of workers.

There has not been much real discussion about the need to overcome the power of the class of employers if we are to address adequately the health and safety of workers and the general population.

Indeed, the Trump’s administration’s efforts to downplay the tragedy of the pandemic has antecedents in the downplaying of the real cost of life, health and limb of workers and the general population in the context of a society dominated by a class of employers.

Reported Statistics on Health and Safety Versus the Probable Real Situation of Workers and the General Population

In a previous post, I indicated that official statistics show that around 1,000 workers die at work yearly when compared to around 550 murders years (see The Issue of Health and Safety in the Workplace Dominated by a Class of Employers). Official statistics are, however, just that, official. They are produced through administrative processes that define what constitutes an “official death.” By contrast, there have been estimates that express a much larger number of deaths in Canada due to work-related incidents. Thus, Steven Bittle, Ashley Chen and Jasmine Hébert report a much higher figure in their article (Fall 2018), ““Work-Related Deaths in Canada,”, pages 159-187, in Labour/Le Travail, Volume 82, page 186:

Relying on a range of data sources, and adopting a broad definition of what constitutes a work-related fatality, we generated a revised estimate of the number of annual work-related fatalities. Based on our analysis, we estimate that the number of annual work-related fatalities in Canada is at least ten to thirteen times higher than the approximately 900 to 1,000 annual average fatalities reported by the AWBC [The Canadian Association of Workers’ Compensation Boards of Canada]. This makes work-related fatalities one of the leading causes of death in this country

Undoubtedly the 554 murders reported in Canada are also an underestimate–probably due to racist and sexist attitudes and organizations (the underreporting of, for example, murdered Aboriginal women). However, it is highly unlikely that the number of unreported murders even approaches half the number of estimated work-related deaths.

The authors provide the following table to substantiate their claims (slightly modified to accommodate the formatting of this post), page 169:

Work-related cause of deathEstimated fatalitiesEstimated fatalities
Injury fatalitiesOccupational-disease fatalities
AWCB’s average from 2014–16 (see note a below)332
Commuting/Driving to and from work466
Agricultural64
Non-reporting/reporting errors20
Non-working victims90 (see note b below)
Work-related suicides400–789
Mesothelioma485
Other cancers5,959–8,939
copd (see note c below)2,062
Estimated injury total972
Estimated disease total8,906–12,275
ESTIMATED TOTAL: 9,878–13,246

Note a: The AWCB’s statistics include only deaths from a traumatic incident or “accident.” We exclude occupational diseases and cancers to avoid duplication with our revised numbers concerning these fatalities.
Note b: This figure is based on TSB (Transportation Safety Board of Canada) information and is thus a conservative estimate. There are a significant number of unknown cases that could also be included in this category.
Note c: copd (chronic obstructive pulmonary disease) refers to progressive and incurable lung diseases, including emphysema, chronic bronchitis, and refractory asthma.

Given the threat to their health of many workers and citizens, there should be persistent discussions of how legislation (and administration procedures) fail to protect workers–systematically, and not accidentally–in the context of a society dominated by a class of employers.

Accidents there will always be–but it is necessary to create a society that minimizes the probability of such accidents. Where is the movement or organization that is consciously aiming to abolish this carnage?

Is there fear among the social-democratic left and union reps to do so? What else would explain such silence over an issue that is of vital concern for workers? Union reps and the social-democratic left may complain about such facts and try to reduce the number of deaths, but unless the root cause of such deaths–the lack of control by workers and citizens over their own lives–is addressed, all complaints and proposed solutions will be measures that may reduce but not eliminate unnecessary deaths.

I have quoted this before, but it is often appropriate when addressing the inadequacies of social-democratic deficiencies. From Capital: A Critique of Political Economy. Volume 1: The Process of Production of Capital (page 91):

Perseus wore a magic cap so that the monsters he hunted down might not see him. We draw the magic cap down over our own eyes and ears so as to deny that there are any monsters.

The Monster Pandemic

The monster called the COVID-19 pandemic still exists, but there is little direct questioning of the kind of society that permits millions to die–while the stock market rises.

For example, it is implied that there is a crisis in Ontario health care, especially in long-term care homes, due to the Covid pandemic in a post on the Socialist Project’s website on January 8 (see https://socialistproject.ca/2021/01/covid19-crisis-situation-ontario/). The title of the post is “COVID-19 Crisis Situation In Ontario: Deadliest Day of the Pandemic,” produced by the Ontario Health Coalition. It is divided into four sections: a short introduction, a section titled “Hospitals,” another titled “Long-Term Care,” and a final section titled “Stronger Public Health Measures Needed Now.”

The introduction points out that January 7, 2021 constituted the highest number of deaths in Ontario (a province in Canada) since the pandemic became official. It argues that stronger measures are required and greater supports are required for the most vulnerable. In other words, it outlines some of the problems and offers some solutions.

The sections on hospitals and long-term care outline the dire situation of hospitals and long-term care homes–such as hospitals filled to capacity, morgues in some cities full, a dramatic rise in the number of deaths in long-term care homes.

The final section outlines some immediate solutions:

  1. “stronger safety and infection control measures in open businesses, full public reporting of outbreaks, more effective and coherent shutdowns.”
  2. “individuals whose employment has been or will be impacted need full support for income and housing, and local businesses need full supports to survive the pandemic.”
  3. “Our government can do a much better job of providing coordination and supports for these protections.” Including:
  • “Stronger, more coherent public health measures, including a fast ramp up of testing, contact tracing and quarantine capacity in public health and labs must be undertaken now so that the province can get the spread of the virus under control.
  • There must be fewer contacts among people to reduce community and workplace transmission and stronger public health measures across the board, including shutdowns and stronger safety measures in open businesses, must be undertaken.
  • The crisis in staffing capacity in long-term care must be addressed without any further delay.
  • The vaccine roll-out needs to be coherent, competent and much faster.
  • Community care, which is taking more of the burden of COVID-19 cases as hospitals are full, must be provided with clear directives to ensure staff have proper PPE including N95 masks.”

Given the emergency situation, certainly the identification of such immediate problems and proposed solutions to such problems is warranted. They are necessary and urgent. We need, as the post does, guidelines about what needs to be done immediately to address the inadequate responses by the Doug Ford government to the crisis in health care in the context of the pandemic.

However, this short-term could at least have been linked to both the specification of the longer-term problems that led to the pandemic and to longer-term goals that address the problem of overcoming economic, political and social structures that treat human beings as expendable costs in the production and exchange of commodities or as costs in long-term home care.

Some of the longer-term conditions for the emergence of Covid-19 are outlined by Mike Davis in his work (2020) The Monster Enters: COVID-19, Avian Flu and the Plagues of Capitalism:

But this time around there was little mystery about the identity of the microbe—SARS-CoV-2 was sequenced almost overnight in January—or the steps necessary to fight it. Since the discovery of the HIV virus in 1983 and the recognition that it had jumped from apes to humans, science has
been on high alert against the appearance of deadly new diseases with pandemic potential that have crossed over from wild fauna. This new age of plagues, like previous pandemic epochs, is directly the result of economic globalization. … Today, as was the case when I wrote Monster fifteen years ago, multinational capital has been the driver of disease evolution through the burning or logging out of tropical forests, the proliferation of factory farming, the explosive growth of slums and
concomitantly of “informal employment,” and the failure of the pharmaceutical industry to find profit in mass producing lifeline antivirals, new-generation antibiotics, and universal vaccines.

Forest destruction, whether by multinationals or desperate subsistence farmers, eliminates the barrier between human populations and the reclusive wild viruses endemic to birds, bats, and mammals. Factory farms and giant feedlots act as huge incubators of novel viruses while appalling
sanitary conditions in slums produce populations that are both densely packed and immune compromised. The inability of global capitalism to create jobs in the so-called “developing world” means that a billion or more subsistence workers (the “informal proletariat”) lack an employer link to healthcare or the income to purchase treatment from the private sector, leaving them dependent upon collapsing public hospitals systems, if they even exist. Permanent bio-protection against new plagues, accordingly, would require more than vaccines. It would need the suppression of these
“structures of disease emergence” through revolutionary reforms in agriculture and urban living that no large capitalist or state-capitalist country would ever willingly undertake.

Does the Ontario Health Coalition look at not only the immediate threat and its solutions but also the wider social context? The indirect criticism of neoliberal cuts in health care are implied: “The crisis in staffing capacity in long-term care must be addressed without any further delay.” The longer-term problems associated with the kind of society that is dominated by a class of employers is shuffled off into outer space, where it will be addressed who knows when or how.

Surely, the issue of health and safety in a society dominated by a class of employers should be a center-point for discussion and what can be done about it. Short-term problems and appropriate measures to be taken do indeed need to be discussed, but this pandemic is no longer something a few weeks or months old. We are now in 2021. Why are not the longer-term problems associated with an economic, political and social structure that has not only fostered conditions for the emergence of deadly viruses and their spread not discussed? Why are there not deep discussions about possible solutions to this large-scale problem?

The Ontario Health Coalition, in its article, instead of providing such a discussion and a vision of how we can prevent this situation from ever happening again, mainly focuses on immediate problems. These are indeed necessary–but they are hardly sufficient.

One last point. The Ontario Health Coalition is just that, a coalition. The interests of the working class do indeed require entering into coalitions, but first workers need to create their own independent position so that their interests are not absorbed into high-sounding phrases that lead nowhere. For example, this is what we find on the Ontario Health Coalition website in its section on “About Us” ( https://www.ontariohealthcoalition.ca/index.php/about-us/mission-mandate/):

Our primary goal is to protect and improve our public health care system. We work to honour and strengthen the principles of the Canada Health Act. We are led by our shared commitment to core values of equality, democracy, social inclusion and social justice; and by the five principles of the Act: universality; comprehensiveness; portability; accessibility and public administration. We are a non-profit, non-partisan public interest activist coalition and network.

What is meant by “equality, democracy and social justice?” Can such goals ever be achieved in a society dominated by a society characterized by the dominance of a class of employers? How is that possible, given that workers are means to be used by employers and costs to the employers (see The Money Circuit of Capital)? Is it possible where workers are dictated to by management as the representative of employers in various ways (see, for example, Management Rights, Part One: Private Sector Collective Agreement, British Columbia and, more generally, Employers as Dictators, Part One)?

We do not need rhetoric. We need an accurate assessment of what threatens us in the world and what we can do about it.

Or do we deserve less than this?