Exposing the Intolerance and Censorship of Social Democracy, Part One: The Working Class, Housing and the Police

Introduction

From around February 20 until May 23, 2021 I belonged to an organization in Toronto called Social Housing Green Deal. The organization came to my attention when one of my friends on Facebook invited me to join.

The reason why I joined is that it is involved in a movement for defunding (if not abolishing) the police. I thought that perhaps I could participate in such an organization and contribute by expressing my own point of view. I was wrong.

The following outlines how I actually started participating in the organization and how such participation led to the practical censorship of my views through both actual censorship and the possible manipulation of protocols used for general meetings.

My conclusions about the efforts of this group, at least in relation to defunding the police (and abolishing it) is: it will not be very effective. Its characteristic lack of critical spirit will result in an incapacity to determine what really is required to defund and abolish the police. Its lack of willingness to critically analyze other organizations’ statements will undoubtedly contribute to that incapacity. Finally, its probable use of control over protocols to silence others expresses as well an incapacity to engage in self-criticism–a basic condition for any political advance.

I wish I were wrong, but given their collapse of strategy into tactics and their lack of a critical spirit–my prediction will probably come true. In May 2022, it will be interesting to see whether the social-democratic left has managed to defund the police to any great extent in Toronto. I doubt it.

I believe that Meursault, the protagonist of the existential writer Albert Camus, in his book “L’Etranger (The Outsider in English) sums up my conclusions concerning this organization:

 J’avais eu raison, j’avais encore raison, j’avais toujours raison. [I had been right, I will still right, I was always right.

It is necessary to critique the social-democratic left from the outside since they will try to take measures to stifle dissent from their dogmas. I will elaborate on this assertion in a future post. 

Joining the Group

To join the group, it was necessary to answer why you wanted to join. Anna Jessup is the moderator and administrator. Ms. Jessup asked the following question on February 17, 2021:

Hi Frederick.  Before I add you to our group tell me a bit about yourself.  What made you want to join?
 
Anna

Here is how I responded on February 18, 2021:

Hello Anna,
 
  1. We have met before–at ETTO, I believe, and at Black Creek Community Farm, where, unfortunately, a list of things to be done were itemized but, as far as I know, nothing came of it.
  2. The question, perhaps, is meant to ensure that right-wing people do not attend.
  3. To answer the question properly would involve much personal information and history, and I am uninclined to share that at this time.
  4. I could, as well, ask what the purpose of the group is; I am somewhat reluctant to get involved in organizations that are purely reformist in nature.
  5. To be more specific: Why do I want to “participate?” Because the police are a central feature of a society dominated by a class of employers. They are central to the reproduction of a social order that treats human beings as things to be used by employers.
  6. I have a blog (the abolitonary.ca–although I do not think it is accessible only via that URL, but you made try if interested.) I have posted five posts with the title “Reform versus the Abolition of Police,” and I argue for the abolition of police.
  7. I will be posting a sixth post on Friday concerning the relation between police and unions (not police unions), where I use an article that tries to show that unions function to protect workers by limiting their exploitation (defensive mechanism) but simultaneously function as ideological organizations to integrate workers into the class system of employers.
  8. James Wilt, in Canadian Dimension, argued for the abolition of police whereas Herman Rosenfeld argued for their “transformation.” I criticize severely Mr. Rosenfeld’s view, arguing that his claim that Mr. Wilt engages in sloppy thinking in fact applies to him.
  9. I will be drafting a critique of Harry Kopyto’s critique of Mr. Rosenfeld’s claim that the police can somehow be reformed–and then concedes way too much by claiming that Mr. Rosenfeld is however correct to argue for “reforms” “in the meantime.” This is a social-democratic trick of putting off forever the aim of abolishing the police. Of course, the police cannot be abolished all at once, but the aim of such abolition should always be present–and accepting reforms for the moment when there is insufficient power but always pressing for the abolition of the police. 
  10. My purpose of “participating” in the zoom conference is really to listen–nothing more, for now (perhaps I can learn some things). I have experienced insults from “the left” here in Toronto–“condescending prick” from Wayne Dealy, executive director of CUPE 3902, and “insane” from Errol Young, of JFAAP. I am undoubtedly considered by some among the left as “sectarian”–but they do not seem to want to engage in any kind of debate on my blog concerning issues that I have raised. 
  11. I self-identify as a Marxist.

    Fred Harris

Ms. Jessup responded as follows, on February 20, 2021:

Yes Fred, I remember you.  I respect your Marxist analysis and certainly wish to apply such an analysis to on-the-ground work. 
 
One complication I ran into with our previous work, was that your posts ignited more discussion than I had the time or resources to moderate.  
 
Are you willing to avoid debate on this google group, and simply use it as a way to receive information about upcoming meetings and events?
 
Anna

I responded on the same day as follows:

Hello Anna,
 
I was going to participate at least to a  minimum degree at first, but given the email, I will not even do that. I will limit myself to listening and taking notes.
 
Fred

Being Drawn into Participation 

 
The same day I received the following message: 
 
The link to the meeting will come to you by email a few minutes before 3PM today.
Hope to see you all there.
 
Anna
The important point in the above message is that the zoom “link to the meeting will come to you by email before 3PM.” This is relevant for what happened on May 23, 2021.
 
On February 21, 2021, I wrote the following: 
 
Hello Anna,
 
I am copying below part of a post from my blog that may be relevant to the discussion yesterday–namely, the creation of protective teams, which I believe is a better approach than relying on pressuring council members to vote for defunding the police (until there is sufficient power on the ground).
 
Feel free to use part or all of it–or not.
 
Fred
What I sent Anna was a large part of the post on alternatives to policing (see  Reform versus Abolition of Police, Part Four: Possible Alternatives). 
 
Ms. Jessup’s response was: 
 
Wow, what a great read.
 
I will post it if that’s alright.  I’ll cut out the criticism of Herman as I don’t want to make my friends defensive. 
 
I will post it on our Facebook group. 
 
Very glad I read this.  Thank you.
Ms. Jessup then sent a quest to have what I wrote put up on the organization’s website–which it was.
 
Being drawn into the organization, I started sending recommendations for reading, and in the process expressed some of my own views. On March 10, 2021, for example, I sent the following:
Hello Anna,
 
Attached is another open text document file, this time relating the police to the emergence and maintenance of capitalism. It is, as I indicate in the text, a series of short comments followed by many quotes from the book by Mark Neocleous (2000), The Fabrication of Social Order: A Critical Theory of Police Power.  I will be posting this in the future on my blog. Again, feel free to do anything you want with part or all of it or anything at all.
 
Fred

Ms. Jessup’s response on March 11, 2021:

Thank you!

On April 3, 2021, I sent the following, along with the documents:

Hello Ana,
 
I am attaching two items. The first is a document recommended by SURJ  [Showing Up for Racial Justice] that I received recently, “Building the World We Want: A Roadmap to Police Free Futures,” assembled by Robyn Maynard, graphics by Sahra Soudi. In the document, there is much about defunding the police (much less about its abolition), and very little about the kind of society that the police protect. It is my view that unless the two are connected, it is highly unlikely that the police will be defunded/abolished on a permanent basis since, as I tried to show in the quotes from the book by Mark Neocleus (The Fabrication of Social Order: A Critical Theory of Police Power) and my short comments, the emergence of the modern police and the emergence of a society dominated by a class of employers went hand in hand. 

Hence, the second document is from my blog, quoting from Elizabeth Anderson’s book on the nature of employment relationship: what, in effect, the police protect, is a dictatorship.

Feel free to edit it any way you want.
 
Fred
Ms. Jessup, on April 5, 2021, responded (edited to omit personal information that I should respect): 
Thank you so much.  I’ll need time before I can get to it … But it is very nice to get an email about something positive!
The second document is from my blog:  Employers as Dictators, Part One.
 
On April 6, 2021, Ms. Jessup added: 
 
Good reading.  Thank you.  I have added the Maynard piece to our group’s resource folder.
 
Out of curiosity, in your piece, which I enjoyed, why did you characterize totalitarian aspects of our society as communist rather than simply as totalitarian?
To which I responded on the same day:
 
Hello Anna,
 
To answer your question concerning communist vs. totalitarian: It was not I but Elizabeth Anderson who made a parallel between the dictatorship at work and a communist dictatorship.
 
I believe it was an astute tactic on her part. Many Americans undoubtedly still equate the former Soviet dictatorship with communism. To make a parallel with this former dictatorship may shock many Americans (and undoubtedly many Canadians and Europeans), but it also resonates with their experiences at work. It may thereby create an opening–by creating a contradiction in the readers’ point of view–for discussing the issue of just how democratic the U.S., Canada, Europe, Australia, New Zealand, England, etc. are. Such discussions are sadly lacking in the labour movement in general and the union movement in particular.

 On my blog, I have systematically tried to exhibit the dictatorial nature of employers even in unionized settings via the implicit or explicit management rights that employers have. I have also tried to expose how unions not only fail to address the dictatorial power of employers but serve, through their rhetoric of “fair contracts” and the like, as ideologues of employers. For example, I searched for the expression “fair contract,” “fair deal,” and similar expressions on the Net for CUPE–the largest union in Canada. I quoted 10 different CUPE sources using such ideological rhetoric.

I will be posting, in the future, a similar post on the second largest union in Canada, this time in the private sector, Unifor. 
On April 6, 2021, I received an email indicating that we would have a zoom meeting the following day (April 7), with a zoom link (so that we could video conference). It was to be at 7:30 p.m. rather than the usual 3:00 p.m.: 
 
At that meeting, the eviction of a father with his children was discussed, with twenty-three police cars showing up in Toronto.  I suggested that we need to try to connect this incident with larger issues (the micro with the macro). Ms. Jessup suggested that I do that. I stated that I would do that if someone else would jointly work on it since I lacked the specific details. There was silence.
 
As a consequence, I decided to draft something on my own that would connect up the micro with the macro, starting with the micro and linking it up with wider and wider issues. I did some research to familiarize myself with some writings on the subject of housing as well as to gain a more concrete understanding of the specific incident.
 
As a result, I wrote to Ms. Jessup, on April 15, 2021, I sent the following to her, with the subject heading “Write up: A Critical Analysis of the Life Situation of the Working Class in Relation to Housing and the Police—and What To Do About It.” 
 
Hello Anna,
 
Attached is a draft on some thoughts about the relationship between left-wing activism and the situation of the working class and what can be done about it–by linking short-term problems with long-term goals. 
 
If you or anyone else has any criticisms or suggestions, feel free to make them. I am all ears.
 
Fred
The draft follows. It is quite long (13 pages in draft form). The last part I copied from the page from this blog The Money Circuit of Capital, so I will omit that part. 
 

A Critical Analysis of the Life Situation of the Working Class in Relation to Housing and the Police—and What To Do About It

Introduction

I have been accused, among union circles, of being condescending. However, if by condescending is meant questioning actions that do not lead to goals that I believe are worth pursuing, then I admit to be condescending.

Some may consider the following to be academic. However, I have had some experience with activism. For example, in the early 1980s, when I worked at a brewery in Calgary, I refused an order by supervisors and justified my refusal by stating that I had nothing but contempt for capitalists and their representatives. I was sent home on two consecutive nights. When the union president and the bottling manager met to discuss the issue, the bottling manager stated: “Do you know what that Marxist son of a bitch said?” We workers won this particular battle—the order was cancelled. That, of course, did not mean that we had won the war.

I would appreciate criticisms and suggestions for improvement in what follows, both in terms of accuracy and in terms of arguments.

Immediate Incident as an Occasion for Grassroots Activism

On Good Friday, April 2, 2021, 23 police cruisers showed up at 33 Gabian Way, which is a 19-story building owned by Vila Gaspar Corte Real Inc., or Villa Gaspar Corte Real Non-Profit Housing Inc. (there is some inconsistency in spelling the company).

The building is a combination of rental and social housing, built in 1993. There are 248 residential units. Apparently, the building is linked to Project Esperance, which is a non-profit registered charity. It services 111 units of from one- to three-bedroom units. Rents are geared to income.

According to the police, there were so many police present in order to remove a large number of protesters. The facts speak otherwise.

There were indeed protesters; they were protesting the eviction of Alex, a father of a one-year old and a six-year child. Alex had made arrangements with the landlord to pay rent arrears by March 29. Alex had managed to obtain the money to pay the rent, but a sheriff’s officer showed up to evict him on April 2, without warning. He left the apartment with his two children, but he returned to obtain his possessions. The police showed up and forced their way into the apartment.

The police denied that they were there to enforce the eviction—but if that were the case, why did they force their way into the apartment? Furthermore, one police officer claimed that the police had a court order for eviction and that they were there to evict Alex.

Due to the resistance of neighbours and supporters, Alex was not evicted.

This incident has several aspects to it. Firstly, immediate organized resistance to those with power and wealth can be effective in the short-term. Secondly, when there are supporters for those who are to be evicted, it is likely that the police will show up—in force.

Thirdly, and something that was not emphasized in references to the incident, it is sheriff’s who have the legal right to evict a tenant (with the assistance of police if the sheriff believes there will be trouble), and they need not inform the tenant when they are coming, as the website Steps to Justice: Your Guide to Law In Ontario points out (https://stepstojustice.ca/questions/housing-law/what-happens-if-theres-eviction-order-and-i-dont-move):

After the Landlord and Tenant Board makes an order to evict a tenant, a court official called the Sheriff is in charge of enforcing or carrying out the order.

If you have not moved out by the date the eviction order says you must move, the Sheriff can make you leave and let your landlord change the locks.

Only the Sheriff is allowed to physically evict you

The law does not let your landlord, a private bailiff, or a security guard physically evict you or lock you out. Only the Sheriff can do this. The police can’t evict you either but the Sheriff can ask the police for help if the Sheriff thinks there might be violence.

You can get evicted at any time of year

Many tenants believe that the law does not allow evictions in the winter. That is not true. The Sheriff can enforce eviction orders at any time of year.

The Sheriff does not have to tell you when they are coming to evict you

If you have an eviction order against you, the Sheriff could come to change your locks on any weekday after the date the Board ordered you to move out.”

The issue of the power of sheriffs to evict links up to the more general issue of the modern property system and the aims of those who engage in resistance to evictions (and other forms of resistance involving law-enforcement officers).

Fourthly: What was the aim of the supporters and neighbours? To prevent the eviction, evidently. It worked. It is a short-term victory, however. There will be other evictions, and other evictions, and other evictions. This issue can be looked at from a number of angles.

Strategy and Tactics

The left here in Toronto and elsewhere frequently collapse strategy and tactics, in effect advocating only tactics. This leads nowhere except the perpetuation of the problems and the constant need to resist and to struggle—without any realistic hope of resolving the conditions which constantly generate the problem. This does not mean that reforms should be thrown out of the window. It does mean, however, that activism that stays at the level of tactics will never address the more profound causes of the immediate problems. Robert Knox (2012) addresses this problem in his article titled “Strategy and Tactics.” in pages 193-229, The Finnish Yearbook of International Law, Volume 21, writes, p. 205:

only tactical interventions occur, which are then branded as strategic interventions, foreclosing the possibility of an actual strategic intervention.”

What is the difference between strategic interventions and tactical interventions? The difference has been specified in terms of war as follows (pages 197-198):

Carl von Clausewitz, one of the most influential exponents of modern military theory, defined strategy as:

[T]he use of the engagement to attain the object of the war … It must therefore give an aim to the whole military action. Its aim must be in accord with the object of the war. In other words, strategy develops the plan of the war, and to the aforesaid aim links the series of acts which are to lead to it; that is, it plans the separate campaigns and arranges the engagements to be fought in each of them.

Strategy is – in essence – how it is that one would fight and win a war: connecting the various individual battles together so as to achieve this broader objective. In contradistinction to this is tactics, which is concerned with smaller and shorter term matters. Tactics are concerned with how to win the individual battles and engagements of which the war is composed.

If we wish to translate this metaphor into more general terms, we might say that strategy concerns the manner in which we achieve and eventually fulfil our long term aims or objectives, whereas tactics concerns the methods through which we achieve our shorter term aims or objectives. The obvious conclusion here, and one that will be important to bear in mind throughout this article, is that when we talk of ‘pragmatism’ or ‘effectiveness’ it need not be referring to only the immediate situation. As will be explored more fully below, any tactical intervention will also have strategic consequences. This means that when thinking about effectiveness, it is necessary to understand the inherent relation between strategy and tactics. In so doing, the distinction allows us to consider how effective particular (seemingly ‘short term’) interventions might be in the longer term.

If evictions are going to be stopped permanently, then immediate forms of resistance and immediate actions need to be linked to that goal—not just to incidents of crisis as they arise.

Nothing Fails Like Success

This is a take on the title of chapter one of Jeremy Reiman’s and Paul Leighton (2017), in The Rich Get Richer and the Poor Get Prison: Ideology, Class, and Criminal Justice; that title is “Nothing Succeeds Like Failure.” They argue that the police and prisons fail to reduce crime rates and, in their failure, perpetuate their own need or existence. Page 45:

“Failure is, after all, in the eye of the beholder. Here lies the key to understanding our failing criminal justices ystem: The failure of policies and institutions can serve vested interests and thus amount to success for them!

If we look at the system as “wanting” to reduce crime, it is an abysmal failure that we cannot understand. If we look at it as not wanting to reduce crime, it’s a howling success, and all we need to understand is why the goal of the criminal justice system is to fail to reduce crime. If we can understand this, then the system’s “failure,” as well as its obstinate refusal to implement the policies that could remedy that “failure,” becomes perfectly understandable. In other words, we can make more sense out of criminal justice policy by assuming that its goal is to maintain crime than by assuming that its goal is to reduce crime!”

Leftist activism, similarly, but from the opposite end, by succeeding in short-term tactics, perpetuates its own constant need to engage in activism—activism for activism’s sake. It may make those who engage in such activism feel useful, but it fails to address the need to incorporate a strategic approach into activism. If activism succeeded in eliminating the need for activism, it would eliminate itself. This is one reason why strategy is collapsed into tactics—it permanently perpetuates the need for activism. Its short-term successes guarantee the continued need to engage in—short-term tactics.

The Bad Infinite

We can give this problem a philosophical turn. G.W.F. Hegel, a German philosopher, criticized the theoretical equivalent of this view in the following terms of the “bad infinite”–an infinite that never reaches an end (from The Encyclopaedia Logic, page 150:

“A limit is set, it is exceeded, then there is another limit, and so on without end. So we have nothing here but a superficial alternation, which stays forever within the sphere of the finite. If we suppose that we can liberate ourselves from the finite by stepping out into that infinitude, this is in fact only a liberation through flight. And the person who flees is not yet free, for in fleeing, he is still determined by the very thing from which he is fleeing. So if people then add that the infinite cannot be attained, what they say is quite correct….”

The bad infinite never reaches any end since it presupposes the general context that generates the particular or specific problems will continue to exist. To go beyond the bad infinite requires questioning that context—and hence developing a strategy designed to specify the problem at the general level while simultaneously addressing more immediate problems in such a way that successes feed into the resolution of the problem at the more general level.

Housing and Capitalism

Houses and housing form a central aspect of capitalist society. This has been noticed since the World Economic Crisis of 2007-2008. Wolfgang Streeck (2016), in his book How Will Capitalism End? Essays on a Failing System, argues that there have been four crises of democratic capitalism since the last world war:

“With the crash of privatized Keynesianism in 2008, the crisis of postwar democratic capitalism entered its fourth and latest stage, after the successive eras of inflation, public deficits and private indebtedness (Figure 2.5). With the global financial system poised to disintegrate, nation states sought to restore economic confidence by socializing the bad loans licensed in compensation for fiscal consolidation. Together with the fiscal expansion necessary to prevent a breakdown of the ‘real economy’, this resulted in a dramatic new increase in public deficits and public debt – a development that, it may be noted, was not at all due to frivolous overspending by opportunistic politicians or misconceived public institutions….”

Monetary instability (inflation), unemployment, public deficit spending and indebtedness followed by a shift to private indebtedness and deregulation of credit (and austerity measures) led to a bubble in housing prices and to speculative credit extended to those unlikely to be able to pay for mortgages once interest rates rose or they became unemployed. Of course, the crash of 2007-2008 increased public debt several fold and the pandemic has done the same.

Housing, Capitalism and the Police

Brendan Beck and Adam Goldstein (2017), in their article “Governing Through Police? Housing Market Reliance, Welfare Retrenchment, and Police Budgeting in an Era of Declining Crime, argue somewhat differently from Reiman and Leighton—though both arguments may complement each other.

They note, like Reiman and Leighton do, that crime rates have generally declined since the 1990s. On the other hand, police budgets have generally blossomed. They explain this general increase in municipal police budgets because of the increased centrality of real estate in the city economy. Page 1183:

“One key puzzle is why penal state growth continued unabated long after crime levels peaked in the early 1990s. We focus on local policing and consider the relationship between growing city-level law enforcement expenditures and two shifts: first, the move toward an economy increasingly organized around residential real estate; and second, city-level welfare retrenchment. We argue that increasing economic reliance on housing price appreciation during the late 1990s and the 2000s heightened demand for expanded law enforcement even as actual risks of crime victimization fell. At the same time, cities increasingly addressed social problems through criminal justice—rather than social service—capacities.

As homes became a vehicle for workers to not only live but also to obtain some security with rising house prices, their interests in maintaining the price of the house increased. This interest has spilled over into support for policing efforts (however ineffective) that contribute to the maintenance of the prices of housing and land. This spillover, in turn, has racist implications since concentrations of coloured and minorities are perceived by homeowners as threats to property prices—but there is counterevidence that in the case of the Latino population there is no such perceived threat. Page 1186:

Thus, the threat theory hypothesizes that investment in police forces (per capita force size and/or expenditure) will be positively associated with racial minorities’ share of the local population, net of crime rates. Studies have consistently found support for this hypothesis (e.g., Carmichael and Kent 2014; Jacobs and Carmichael 2001; Kent and Jacobs 2005; McCarty, Ren, and Zhao 2012; Sever 2003; Vargas and McHarris 2017). In fact, the percentage of black residents typically appears as one of the single most significant predictors in models of city police strength. However, recent studies find no evidence of a similar positive association between the percentage of Latino residents and police strength, neither cross-sectionally nor longitudinally (Holmes et al. 2008; Zhao, Ren, and Lovrich 2010).”

On the other hand, it is necessary also to consider competition between workers in working for an employer:

Two different studies, King and Wheelock (2007) and Stults and Baumer (2007), use geocoded survey data to probe the mechanisms underlying racial threat effects. Both found that the observed association between the percent of black residents and police size is driven substantially by whites’ perceived economicthreats in the labor market and in social service provision. Racial threat is driven to a lesser extent by whites’ fears of crime victimization (Stults and Baumer 2007).”

However, their study seems to use the threat of falling residential prices as a proxy or for economic threat. Page 1187:

In examining the use of police as a means of governing housing markets, we also consider how the ethno-racial makeup of cities might have interacted with shifting forms of economic threat. As we elaborate below, as urban economies came to be based more and more around real estate, perceived economic threats (and the racialized fears on which they draw) increasingly took the form of concerns about protecting housing prices. Previous research, using the Gini coefficient to measure economic threat, finds a positive effect on police department size (Carmichael and Kent 2014). We use measures of more specific economic threats: those around housing.

They mention other factors that influence the growth of police budgets, such as the structure of municipal politics (the degree to which it is subject to partisan politics), whether it is a mayoral election year and the previous year’s budget.

The Financialization of the Housing Market

Beck and Goldstein argue that, as crime rates declined in the 1990s, there was a simultaneous financialization of the housing industry. This compensated, at least in part, for the stagnation in wages and salaries. Page 1188:

Between 1992 and 2005, the median home price doubled and the amount of outstanding mortgage debt tripled (Census Bureau 2012; Federal Reserve Board 2016). Wages were stagnant during this time, but the proliferation of home equity loan instruments allowed homeowners to utilize their houses as income streams, making homeownerseconomic livelihoods predicated increasingly on continual housing price growth (Davis 2010). Home equity extraction made up 10 percent of householdsincome nationally and as much as 15 percent in places like California and Florida (Greenspan and Kennedy 2007; Irwin 2006). Home value was important for homeowners and for regional economies.

Homeowners, especially in the present, where heightened prices for homes takes up some of the slack for limited wage and salary increases, tend to support the police more than renters:

“Given linkages in popular narratives between crime rates and residential property values, we suspect that part of the explanation for continual expansion of policing can be found in the increasingly central role of housing markets in the economy, and politicians’ responsiveness to homeowners’ concerns about protecting property prices. As Simon has theorized, “the more a person’s future economic security depends on the value of his or her home, rather than earning capacity, the more we might expect this person to focus on factors like crime that could damage the value of the home” (2010, 195). Past research has shown that homeowners are more satisfied with and supportive of police than are renters (Reisig and Parks 2000; Schuck, Rosenbaum, and Hawkins 2008).

The shift from homes being a place primarily to live in and have a private life to a form of equity involves not just support for measures to reduce crime but other measures to ensure that the “public area” of the surrounding neighbourhood be protected from potential threats of disorder and not just crime:

Economists have long documented the negative effects of reported crime levels on housing prices, and this effect was especially pronounced during the 1990s (Hellman and Naroff 1979; Pope and Pope 2012; Schwartz, Susin, and Voicu 2003). The deleterious impact of crime on property values represents a salient social fact within the residential real estate field, one that is ubiquitously repeated in popular media and on real estate websites. Indeed, the reorientation toward real estate heightened the importance of guarding against not only crime, but also disorder, lifestyle nuisances, loitering, and anything else that might threaten property values. The salience of such economic fears may help explain the fact that the same exact majority of GSS respondents (57 percent) supported spending more public money on law enforcement in 2006 as they did in 1990, when crime rates were 50 percent higher.3 Even safe-feeling homeowners might have supported expanded policing to protect home values.”

It was no longer actual crime (however defined by the status quo) but the threat or possibility of disorder and crime that became a concern. Pages 1188-1189:

“…policing strategies that had police respond to perceived disorder, the expanded role for police went hand in hand with an expansion in the justificatory logics and motives to rationalize continued growth. For instance, a 2010 Department of Justice Community Oriented Policing Services report aimed at the law enforcement community argues that police agencies should reconceptualize their role and refocus their energies on combating fear of crime (rather than crime) because—among other things—it undermines residential property values (Cordner 2010).

At the same time, as governments retrenched on welfare services, the police were called upon to address problems normally handled by such services. The expansion of police services and the retrenchment of welfare services, however, should not lead the left to idealize welfare services. Welfare services have been oppressive in various ways such as supervising personal lives to ensuring that those who receive assistance are the “deserving poor.”

Furthermore, as the incident at 33 Gabian Way demonstrates, public housing can be quite oppressive. Evictions can occur in just as brutal fashion as in private housing. The left should not idealize the public sector—which they often do.

Housing, Police and the Working Class

The use of houses as equity among the working class has led to a split within the class in terms of immediate material interests. From Michael Berry, Housing Provision and Class Relations under Capitalism: Some Implications of Recent Marxist Class Analysis, pages 109-121, Housing Studies, Volume 1, Issue 2, pages 115-116:

Income differences are, as has been argued, also internalised within classes. In the case of the working class, for example, higher paid workers in primary jobs are doubly advantaged; they enjoy both higher and more secure wages and a higher probability of: (a) gaining access to owner-occupation; and (b) securing high capital gains from domestic property ownership. Conversely, workers in the secondary job market and those relegated to the reserve army of unemployed are more likely to be denied access to home ownership, or, if allowed access, concentrated in housing submarkets where property values remain relatively stable. Tenancy therefore evolves as a residual tenure category in a dual sense; not only can land supporting rental housing often be converted to more profitable non-residential uses, it evolves as ‘housing of last resort’ for less privileged sections of the working and nonworking population whose low incomes place strict limits on the rental returns to landlords, both factors leading to a degree of underprovision and homelessness.

In summary, working class disunity, associated with unequal access to and benefits from home ownership, and its political expression through various forms of struggle, is part of a wider system of inequality and exploitation. Both forms of advantage to higher paid workers privileged position in the workplace, over and against the immediate interests of other workers. depend on their being able to maintain their privileged position in the workplace, over and against the immediate interests of other workers.

Bad Infinity Again, or the Labour of Sisyphus—Unless We Begin to Link Strategy and Tactics

The upshot of all this is that unless activists begin to linking the immediate issues to larger issues, it is highly likely that they will achieve only fleeting success. The split in the working class means that there will be substantial resistance by a substantial section of the population to efforts to defund the police or to abolish it unless measures are taken to address the wider concerns and issues.

How to Link Strategy and Tactics

How can this be done? One possibility is to divide those who do have relatively secure positions, with relatively well-paid jobs (frequently the unionized sector) into two or three age groups as well as dividing each group into homeowners and those who do not own homes (condos, townshomes, houses, life leases or other forms of home ownership).

Those who are nearing retirement are unlikely to want to threaten their own security, both in terms of their pensions and in terms of their home ownership (for the importance of security for identifying working-class consciousness, see Marc Mulholland (2010), ‘Its Patrimony, its Unique Wealth!’ Labour-Power, Working Class Consciousness and Crises: An Outline Consideration. Pages 375-417, In Critique: Journal of Socialist Theory, Volume 38, Issue 3—although I believe he fails to include other aspects that motivate workers, such as the fight for their freedom and justice). Older workers also do not also have a whole life ahead of them to work for an employer. It is likely that only if their livelihood were threatened in some way (such as redefining the age of retirement) would they be prone to engage in serious battles with the aim of changing the economic and political structure. Older unionized workers would more likely support the police and less likely support a movement for defunding the police or in abolishing the police (empirical studies are needed here. Are there any?)

Some middle-aged workers, on the other hand, may still have to pay off their mortgage and still have to subordinate their will to the power of an employer for some time; others, of course, may approach older unionized workers in having a secure life. Some middle-aged workers may thus be more prone to oppose the police whereas others may be more prone to support them. It all depends on their life circumstances.

Younger unionized workers may have inherited housing from their parents, so they may be more prone to support the police. On the other hand, they more likely have a lifetime of having to work for an employer (although some may aspire to owning their own businesses, of course). These workers may be more susceptible to opposing police funding and the existence of the police because of their life situation.

To combat some of the unionized workers’ tendency to support the police, it would be necessary to show them the nature of their situation for the foreseeable future and to criticize alternative views that present their lives as somehow being fair. On the one hand, it would be necessary to show that their life working for an employer in hopes of owning a home entails a substantial part of their lives being used as means for employers’ ends over which they have little control. On the other hand, it would be necessary to criticize union rhetoric that presents collective bargaining and collective agreements as somehow fair.

To provide such criticisms, it is necessary to show that workers are used as means for other person’s ends. To that end, I reproduce the page on my blog on the money circuit of capital (it is fairly detailed, but it is necessary in order to oppose the rosy picture presented by union and business rhetoric about the future life of workers—especially younger workers) (if anyone has alternative means for exposing the limitations of union rhetoric, feel free to criticize this writing, including what follows, or if they can simplify it in any way).

… 

Conclusion: Using All Opportunities for Criticizing the Treatment of Human Beings as Means for Other People’s Ends

If a movement for defunding the police is to gain ground, it is necessary to use every opportunity that arises to criticize the economic and political structure in the wider sense and not just engage in activist actions at the micro level. The micro (where tactical decisions must be made) and the macro (where strategic decisions must be made) need to be linked constantly. How to do that is the central question.

In the movement for a fight for $15, for example, for whatever reason, the fight in Canada (not in the United States) has been paired with the concept of “fairness.” This provides the more radical left with an opportunity to challenge such rhetoric.

The same could be same with union rhetoric. For example, I compiled a list of 10 statements by CUPE on the fairness of collective agreements, put them up on my blog and queried how collective agreements, which limit the power of employers (and hence are, generally, better than no collective agreements) are somehow fair.

I would like to hear from others on how to link strategy and tactics together in the case of defunding the police and abolishing the police. Alternatively, I would be interested in reading arguments that short-term tactics can solve long-term problems.

The Silence of the Social-Democratic Left 

On April 18, 2021, I received an email indicating another meeting was to take place on April 24 at 3:00 p.m.  However, on April 24 the meeting was postponed until the following week. I received an email on April 29, which contained a zoom link for the Sunday, May 2 meeting. 
 
I was already feeling frustrated by any lack of response to what I considered to be a request by Ms. Jessup as administrator and monitor of the organization for a linking of micro and macro issues. Ms. Jessup’s silence–and the possible lack of circulation of the draft that I had written to other members of the previous zoom meetings–seemed to indicate that my draft work may have been censored. I had agreed at the beginning of joining this organization not to participate in its meetings, and then I was invited to participate, which I did by drafting something that tried to link up issues on the ground with more general issues–only to be met with–silence and possible censorship. 
 
I wanted to place the issue on the agenda (it was not on the agenda), but I also wanted to avoid clashing with Ms. Jessup, so I did not say anything about it at the May 2 meeting. However, I did draft something else that was more immediately relevant to the meeting: On the agenda, there were two motions for support of statements made by other organizations; I made some comments on these statements. One was a statement made by an organization in Toronto called Justice for Immigrant Workers (J4MW). I sent it to Ms. Jessup on May 1, 2021. 
 
Ms. Jessup’s reply:
Great.  Looking forward to seeing you Sunday
I also sent her some comments on another motion for support of the statement made by “Suppress the Virus Now Coalition.” 
 
Since this post is already quite long, I will post the two drafts  in future posts and conclude this series by including my final writing to this group, on the People’s Pandemic Shutdown.
 
I will merely repeat what I wrote near the beginning of this post: The reason why I joined is that it is involved in a movement for defunding (if not abolishing) the police. I thought that perhaps I could participate in such an organization and contribute by expressing my own point of view. I was wrong.
 
My conclusions about the efforts of this group, at least in relation to defunding the police (and abolishing it) is: it will not be very effective. Its characteristic lack of critical spirit will result in an incapacity to determine what really is required to defund and abolish the police. Its lack of willingness to critically analyze other organizations’ statements will undoubtedly contribute to that incapacity. Finally, its probable use of control over protocols to silence others expresses as well an incapacity to engage in self-criticism–a basic condition for any political advance.
 
I wish I were wrong–even partial defunding of the police would improve our lives, but given the dogmatism of the social-democratic left and their lack of a critical spirit–my prediction will probably come true. In May 2022, it will be interesting to see whether the social-democratic left has managed to defund the police to any great extent in Toronto.
 
I believe that Meursault, the protagonist of the existential writer Albert Camus, in his book “L’Etranger (The Outsider in English) sums up my conclusions concerning this organization: 

J’avais eu raison, j’avais encore raison, j’avais toujours raison. [I had been right, I will still right, I was always right.

It is necessary to critique the social-democratic left from the outside since they will try to take measures to stifle dissent from their dogmas. 

Reform Versus Abolition of the Police, Part Seven: Giving to Abolitionists with One Hand While Taking Back with the Other and Giving to Social Democrats

In his article published in the social-democratic journal Canadian Dimension on May 28, 2020, “Can We Ever Truly Transform or Democratize the Police? Measures Are Needed to Restrain and Neutralize Police Brutality to Whatever Extent Possible,” Harry Kopyto, ( https://canadiandimension.com/articles/view/can-we-truly-transform-or-democratize-the-police) seems to agree much more with James Wilt in the debate between Mr. Wilt and Herman Rosenfeld in the same journal (see my posts, such as Reform or Abolition of the Police, Part One). He argues, in effect, that it is, in practice, impossible to reform the police:

Rosenfeld is correct in promoting legislative and other changes similar to the ones identified above in response to the litany of police violence described by Wilt, but he is wrong in sowing illusions that these measures will change the fundamental nature of the police and “transform” them.

On the other hand, he claims that both Mr. Wilt and Mr. Rosenfeld have something to learn from each other: 

In my view, based on a career working as a criminal lawyer and a legal advocate against police abuse for 47 years before retirement, they should both learn to listen to each other because they both have something insightful to say.

I deny that Mr. Rosenfeld has much to teach us about how we are to address the problem of the police in relation to the working class. Mr. Kopyto concedes too much to Mr. Rosenfeld. Indeed, Mr. Kopyto falls into the same position, ultimately, as Mr. Rosenfeld, when answering the question: What is to be done? 

For example, Mr. Kopyto concludes his article with the following (despite showing the oppressive nature of the police historically): 

On the other hand, Wilt is right to point out that as enforcers of capitalist laws, police forces are inherently violent instruments of class oppression and must be abolished along with the capitalist system they serve. However, in the meantime, until that happens, measures are needed to restrain and neutralize police brutality to whatever extent may be possible [my emphasis].

This is a defensive position. Of course, we need to restrict the powers of the police at every opportunity (but this contradicts Mr. Rosenfeld’s view that we need the police because they protect workers from the theft of their property and from murder–see my critique. Mr. Kopyto does not mention Mr. Roesenfeld’s defense of the police in terms of these two functions).

In martial arts, if you can attack and defend at the same time, all the better. From Alan Gibson (2000), Why Wing Chun Works, pages 39-40 (Wing Chun is a form of Chinese kung fu): 

Simultaneous attack and defence.

Simultaneous attack and defence does not only mean doing one thing with one hand, (defending) and something different with the other (attacking). In Wing Chun this happens most of the time. Simultaneous attack and defence also refers to one hand serving two purposes at once.

Defensive measures may, on occasion, be necessary under special circumstances, but it is much more preferable to engage in simultaneous attack and defence in order to win a battle. To engage in purely defensive actions constantly often leads to defeat or at least to a weakening of one’s actions–as has indeed occurred with the rise of neoliberalism and the weak, defensive response of unions in many parts of the world. 

Mr. Rosenfeld, with his reformist suggestion of “transforming and reforming the police,” puts off forever the need to take back the protection of our lives from threats to it from others–and that means the major threat that employers mean to working-class lives (something which Mr. Rosenfeld does not even consider) (see Working and Living in a Society Dominated by a Class of Employers May Be Dangerous to Your Health). 

But let us return to Mr. Kopyto’s “In the meantime.” This “in the meantime” provides an opening to the social-democratic left to put off forever the abolition of the police. Their position, practically, is to perpetuate the existence of the police. They do not aim to abolish the police as a separate institution until some vague, distant future (Mr. Rosenfeld mentioned 100 years in his article–but it could well have been 1,000 years or 10,000 years–100 years is an arbitrary number chosen by Mr. Rosenfeld in order to postpone aiming to begin the process of abolition today). 

I will repeat (and quote) what I wrote in other posts about the difference between the abolitionist stance, which argues that it is necessary to incorporate the goal of abolishing the police in the present if that goal is to be realized. 

In a previous post (see How to Aim for Socialism Without Aiming for It, or The Nature of the Social-Democratic or Social-Reformist Left) , I wrote: 

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. 

Mr. Kopyto’s “In the meantime” provides an opening for social democrats to separate the future from the present and put off aiming for socialism in the present.

Let me repeat from still another post what a real or good aim means (not the pseudo-aim of social democrats who claim they are aiming for socialism). From Democracy and Education (2004):

The aim must always represent a freeing of activities. The term end in view is suggestive, for it puts before the mind the termination or conclusion of some process. The only way in which we can define an activity is by putting before ourselves the objects in which it terminates—as one’s aim in shooting is the target. But we must remember that the object is only a mark or sign by which the mind specifies the activity one desires to carry out. Strictly speaking, not the target but hitting the target is the end in view; one takes aim by means of the target, but also by the sight on the gun. The different objects which are thought of are means of directing the activity. Thus one aims at, say, a rabbit; what he wants is to shoot straight; a certain kind of activity. Or, if it is the rabbit he wants, it is not rabbit apart from his activity, but as a factor in activity; he wants to eat the rabbit, or to show it as evidence of his marksmanship—he wants to do something with it. The doing with the thing, not the thing in isolation, is his end. The object is but a phase of the active end,—continuing the activity successfully. This is what is meant by the phrase, used above, “freeing activity”

By contrast, the idea of “in the meantime” that is purely defensive involves an external aim or a pseudo-aim or not really even an aim since it fails to link up the present with the future and the future with the present:

In contrast with fulfilling some process in order that activity may go on, stands the static character of an end which is imposed from without the activity. It is always conceived of as fixed; it is something to be attained and possessed. When one has such a notion, activity is a mere unavoidable means to something else; it is not significant or important on its own account. As compared with the end it is but a necessary evil; something which must be gone through before one can reach the object which is alone worth while. In other words, the external idea of the aim leads to a separation of means from end, while an end which grows up within an activity as plan for its direction is always both ends and means, the distinction being only one of convenience. Every means is a temporary end until we have attained it. Every end becomes a means of carrying activity further as soon as it is achieved. We call it
end when it marks off the future direction of the activity in which we are engaged; means when it marks off the present direction.

Mr. Kopyto certainly does not intend to be a reformist, but his “in the meantime” leads directly and practically to such conclusions. His insights, such as the following, then can be dismissed by the social-democratic left:

The police, in Canada and elsewhere, were created to protect property rights and enforce repressive laws that were created and interpreted in the interests of the status quo. Even decades before it became the norm for police to break up demonstrations or target minorities, they were used to enforce criminal conspiracy charges against trade union “combines”. Police forces are not neutral or reformable—they are quasi-militarized with all emphasis on a culture of obedience and none on training to be able to exercise independent and critical judgment. Hence, sexism, racism, xenophobia and a “we-they” mentality run rampant in these institutions of repression. In many cases, as we know, police have been used to deny democratic rights and attack or restrict labour actions.

Why is it not possible to engage in defensive measures while simultaneously engaging in actions that serve to protect workers and other community members? I have already provided some examples of such efforts in the past (see Reform versus Abolition of Police, Part Four: Possible Alternatives)? 

There has been a call for defunding the police and using some of the funds to hire mental health workers, social workers and others to investigate violent crimes and to deal with gender- and race-based violence, civil services to engage in traffic services, the enforcement of bylaws and minor offences, and a specialized unit for immediate intervention in violent crimes, with such a unit having all other present functions performed by police allocated to other kinds of people as outlined above, and therefore with a much reduced budget and area for intervening in citizens’ lives (see https://defundthepolice.org/alternatives-to-police-services/). 

Furthermore, why not use some funds to create protective organizations for workers and others outside work? For hiring or training workers in health and safety inspections since workers often face many more dangers from working for an employer than threats at being murdered (see Working and Living in a Society Dominated by a Class of Employers May Be Dangerous to Your Health). 

Such abolitionist initiatives need to be sought in the present and not in some distant future. From Ray Acheson,  (page 25): 

The imperative of now

Abolition is inevitably a long-term, ongoing project of change. But abolition is not just
about the future: it needs to start now.

In this moment that we are currently experiencing, this moment of profound shifts in
thinking and in action happening across the United States and around the world, it
is important to recognise that we are already doing abolitionist work. Throughout the
COVID-19 pandemic and during the recent protests, we have built and enriched mutual
aid networks—models of community support learned from, among others, Indigenous,
Black, and queer communities. People from all walks of life are coming together to care
for each other physically and emotionally. Many of these acts of solidarity and support are
being documented through independent media like Unicorn Riot; many of them will never
be recorded. But it is happening, and it shows what more we can do.

Mr. Kopyto may not have intended to argue that the police should be perpetuated, but his use of the phrase “in the meantime,” coupled with merely defensive measures that regulate the police in effect defend the perpetuation of the police. 

Socialists need to aim for abolition by bringing such an aim into the present–into actions and engagements that institute policies that link the present to the future aim, and the future aim to present actions and engagements. 

That is our task at the present as socialists. 

Academic Narrow-mindedness, or the Idealization of Collective Bargaining: A Reason for Starting a Blog, Part One

It has been slightly more than three years since I started this blog. I thought it appropriate to begin a series of posts on what, partly, inspired me to start this blog. 

Before I started this blog, I had sent an article critical of the implied concept of “free collective bargaining.” The article was rejected for publication. Given that the reasons for rejecting the article seemed absurd, I decided to skip the academic process and post directly my views. This seemed all the more necessary since the journal that rejected my article is called Critical Education.

Since I believe in the politics of exposure (exposing the real nature of social processes and not the rhetoric of such processes), I thought it would be appropriate to post my proposed article, the criticisms of my article by the reviewers and my commentary on their criticisms.

The proposed article is found in the Publications and Writings link on my blog, entitled “Critique of Collective Bargaining Models in Canada.” (There is a slight difference between the article submitted to Critical Education and the one found at the link: the article submitted to Critical Education contains an abstract, which I include below, and the title of the proposed article was changed to: “A Critique of an Implicit Model of Collective Bargaining: The Nova Scotia Teachers’ Strike and a Fair Contract.”

Abstract

This paper looks at Brian Forbes’ presentation of the recent Nova Scotia teachers’ strike in order to analyze critically the nature of collective bargaining in a capitalist context. Forbes shows the underhanded nature of the McNeil government’s supposed negotiations, but he implies (like many trade unionists) that collective bargaining, in its normal form, results in a fair contract. The paper argues against this view. It does so in two ways. Firstly, it looks at Jane McAlevey’s alternative method of collective bargaining. Secondly, it looks at the limitations of her method in terms of the capitalist economic structure—especially as am exploitative and oppressive structure that transforms workers into means for others’ ends. A humanist view, by contrast, requires that human beings need to be treated as ends in themselves in a democratic fashion at work. Such a view, however, is rarely discussed precisely because the rhetoric of a fair (collective) contract in the context of the collective power of employers prevents such discussion from occurring.

Key words: teachers, collective bargaining, capitalism, exploitation, oppression, strikes, justice, fairness, Nova Scotia, Jane McAlevey

The decision to reject the article as is, as well as the first review are given below along with my comments on the first review. I put the reviewer’s evaluation in quotation marks:

We have reached a decision regarding your submission to Critical Education, “A Critique of an implicit model of collective bargaining: The Nova Scotia teachers’ strike and a fair contract”.
Our decision is to: Decline submission.

Three external reviewers supplied reports (see below); I have also attached the file with the marginal comments of Reviewer C.

All three reviewers see potential in the manuscript and each recommends major revisions are necessary before the manuscript is ready for publication. The comments are the reviewers are quite detailed, but in short I believe it’s fair to say they all agreed that further theorizing and deepened/more sustained analysis of events are necessary.

I hope you find the feedback from the readers helpful as continue to work on this project.

Yours truly,

E Wayne Ross
Co-Editor, Critical Education
University of British Columbia
wayne.ross@ubc.ca
——————————————————
Reviewer A:

“The author identifies his/her aim as using the  Nova Scotia teachers’ strike “in order to analyze critically the nature of collective bargaining in a capitalist context.” The author disputes the assumption that workers under capitalism can use collective bargaining (hereafter CB) to create human workplaces, using Jane McAlevey’s book with a new paradigm for collective bargaining as an example of why even reformed CB will not succeed in transcending what are  CB’s inherent limitations as a strategy for creating a humane workplace.

I think this submission could be a useful addition to research and thinking about the limitations of  CB in altering teachers’ work, however for it to be so it requires significant revision.

 • The Nova Scotia strike becomes lost in the paper’s analysis. If the author wants to retain this focus, the critique of McAlevey’s book should be applied to the Nova Scotia strike.”

This reviewer at least appears to capture my intent—although s/he subsequently fails to show such understanding. I do indeed aim at showing the limitations of collective bargaining even in the improved form of Jane McAlevey’s approach to collective bargaining.

However, given this focus, the Nova Scotia strike and Brian Forbes’ implicit contrast of what “good collective bargaining” should be when compared to what transpired during the Nova Scotia teachers’ strike (Brian Forbes’ implicit attitude is an example of what the typical trade-union leaders’ attitude is towards collective bargaining), serve as an exemplar of the implicit attitude of union representatives towards collective bargaining as a process and product (the collective agreement). In other words, I use the case of the NTSU and Brian Forbes’ implicit use of the run-of-the bill bargaining process (and the resulting run-of-the-mill collective agreement) as a representative of what is typical among union representatives in their practical dealings with workers, managers and employers: As John Dewey argued, in his Logic: The Theory of Inquiry, pages 436-437):

We arrive again at the conclusion that “induction” is a name for the complex of methods by which a given case is determined to be representative, a function that is expressed in its being a specimen or sample case.’ The problem of inductive inquiry, and the precautions that have to be observed in conducting it, all have to do with ascertaining that the given case is representative, or is a sample or specimen. There is no doubt that some cases, several or many, have to be examined in the course of inquiry: this is necessarily involved in the function of comparison-contrast within inquiry. But the validity of the inferred conclusion does not depend upon their number. On the contrary, the survey and operational comparison of several cases is strictiy instrumental to determination of what actually takes place in anyone case. The moment anyone case is determined to be such that it is an exemplary representative, the problem in hand is solved. It is customary to infer from examples and illustrations; from what Peirce calls diagrams or “icons.” That course has been frequently followed in the course of previous discussions. But it should be clear without argument that the entire value of such a mode of inference depends upon whether or not the case is genuinely exemplary and illustrative.

I used the NSTU [Nova Scotia Teachers’ Union] strike and Brian Forbes’ attitude towards an obvious breach in collective-bargaining protocol as an exemplar or representative  of the limitations of traditional collective bargaining.

I used Jane McAlevey’s book as an illustration (exemplar) of a changed collective-bargaining practice that, though it breaks new ground in some areas of collective bargaining, nonetheless shares many of the assumptions of the traditional collective-bargaining model. Ms. McAlevey persistently refers to the contract that she negotiated as a “good contract.”

In addition, when Ms. McAlevey presented her model in Toronto, I specifically pointed out that I had tried to expose the limitations of the collective-bargaining process by indicating what we had demanded and what we had obtained. Her response was that she did not know whether that was such a good idea. That is the point—her model, like the traditional collective-bargaining model, does not enable workers to see the limitations of the model. Ultimately, despite the innovations in her model, Ms. McAlevey idealizes collective bargaining in a modified form—her own model. The point is not to idealize it but to expose its inadequacies.

“• The language is often polemical in a way that undercuts the author’s credibility as a passionate and also objective analyst. Describing an action as “underhanded” isn’t useful or necessary. Present instead empirical evidence.  One way this can be done is to identify who besides the author understood the action as “underhanded”? Others present? Leaflets? This becomes the source of the description.”

The suggestion of providing further evidence is useful in order to bolster the argument. However, to claim that polemics undercuts credibility is an academic point of view. The audience to whom I aim are workers—not academics. What would be an “objective” analysis in the context of a society dominated by a class of employers?

“• Often the article is not clear in its focus. Is this a critique of the limitations of CB or of the limitations of trade unionism under capitalism?”

It is both; they are not mutually exclusive. In fact, they are tied together during this time. Some trade unions may not engage in the rhetoric of fair contracts and so forth, but where are they? Certainly in Canada the trade-union leaders idealize both the collective-bargaining process and the resulting collective agreement. See two previous posts that illustrate the rhetoric of fair contracts by the two largest unions in Canada (  Fair Contracts (or Fair Collective Agreements): The Ideological Rhetoric of Canadian Unions, Part One  and ???     ). 

“If it’s the former, what would unions do to protect workers’ rights if they didn’t negotiate contracts in a capitalist society?  What might workers’ struggles look like?”

It is not a question of not negotiating contracts; it is a question of not idealizing such contracts and bullshitting workers by claiming that such contracts are somehow “fair” or that they somehow are “livable”–a typically apologist point of view of management and union alike.

“A provocative example of this is how teachers and school employees in West Virginia who do
not have the right to bargain collectively or the right to strike have closed down the schools in the entire state for a week, outside of the union’s control or leadership.”

This is beside the point. The strike was a wildcat strike; wildcat strikes have occurred in other contexts. Such strikes have not aimed at challenging the inadequacy of collective bargaining in principle but the inadequacy in particular circumstances. They may or may not challenge such inadequacy—but the point is to do just that.

In addition, did the West Virginia strike actually challenge the idealization of collective bargaining? It could have the potential to do so—but whether such potential was realized would require evidence that the potential was realized in practice.

Unless there is evidence to the contrary, it can be concluded that since collective bargaining is illegal in West Virginia, the strike did not challenge the principle of collective bargaining. It was an effort to achieve results without collective bargaining by going on an illegal strike. Workers have gone on illegal (wildcat) strikes before (even when collective bargaining is legal) without challenging the inadequacy of collective-bargaining in principle. Such strikes do indeed challenge the inadequacy of particular collective agreements (and the concomitant collective-bargaining process), but they often do not often do so explicitly and need not be a general criticism of the collective-bargaining process or a general criticism of collective agreements. That is what is needed now.

[For an analysis of the West Virginia teachers’ strike, see the post The West-Virginia Teachers’ Strike and a Socialist Movement).

“• I think the piece will be more focused without the author’s anecdotes about his/her work experiences as a teacher and union representative.”

In other words, forget about a worker’s own experiences “as a teacher” (that is to say, as a worker of a particular kind) “and union representative” (that is to say, as a radical union representative who questioned the legitimacy of the power of employers to dictate to workers what to do, when to do it and how to do it)). Linked to the claim that the polemical style lacks objectivity, the idea that a radical worker’s personal experiences should be excluded is meant to “academize” the writing—making it more conform to the typical form and content of academic writing.

Is there really any wonder why I stopped trying to have any further writings published by means of formal academic journals?

“But if these are included, they should be more closely tied to analysis about the Nova Scotia strike.”

The Nova Scotia strike is an occasion for illustrating the inadequacy of collective bargaining and the inadequacy of present unions—and my experiences as a teacher (and as an employee) and as a radical union representative were also to be illustrative of this. The focus is hardly the Nova Scotia strike; the issues are much wider.

“• The author briefly discusses education, teachers’ work and CB. If this material is retained, it should make note of some of the considerable research on teachers’ work.”

Teachers are employees; the specificity of their work as teachers is irrelevant in relation to the issue of their existence as employees and their relationship to the typical process of collective bargaining and to the collective agreement (although the specific nature of their work may have an impact in other circumstances). To discuss that specificity would detract from the focus on the inadequacy of collective bargaining and the collective agreement.

“I suggest this manuscript be taken through a significant revision, moderating its language, supporting its claims with evidence,  to do what it states is its focus: A critical examination of the limits of CB in the strike in Nova Scotia.”

The academic contradicts her/himself. S/he accurately characterizes, initially, the manuscript as using the Nova Scotia teachers’ strike as a means of criticizing collective bargaining. Now, s/he claims that I claim that my focus is a critical examination of collective bargaining in the strike in Nova Scotia. They are not the same thing by any means. S/he aims to narrow my aim, but such narrowness is exactly what I am criticizing.

“The questions it is addressing seem to me  “What was needed to improve teachers’ working conditions?” “How did ideology about the role of unions in capitalism and within that, the importance of CB, affect the outcome?”  The latter question will involve application of Jane McAlevey’s book.”

Again, it is the reviewer who is confused—s/he at first accurately characterizes my intent in the article and then inaccurately characterizes it.

“If the author wants to discuss a framework for labor that transcends CB, I suggest looking at Stanley Aronowitz’s “The death and life of American labor: Toward a new workers’ movement.” Although it focuses on US labor its arguments seem quite relevant to the Canadian context. “The future of our schools,” by Lois Weiner might also be useful as it discusses the limitations of CB.”

I subsequently looked at Aronowitz’s book and included a reference to it in this blog (see The Educational Needs of the Labour Movement: A Radical Imagination). Aronowitz does provide an interesting point of view that is consistent with this blog. Thus, Aronowitz argues that we need to have a new labour movement with a social vision of the good life. However, my emphasis in the article that I sent was on the implicit inadequacy of the collective-bargaining model that Brian Forbes implicitly uses to criticize what happened during the Nova Scotia teachers’ strike. A new social vision requires a break, at least in Canada, with the typical idealization of the collective-bargaining process and the idealization of the collective agreement.

Although there were a few useful suggestions in the above review, in general the reviewer failed to adequately capture how I carried out of my intent to expose the limitations of collective bargaining and collective agreements. Along with the comments of the other reviewers, I decided that it was a waste of time to attempt to have my views formally published in academic journals. Starting a blog would carry out more effectively my intent.

A future post will look, critically, at the second reviewer’s assessment.

The Rate of Exploitation of Workers of Suncor Energy, One of the Largest Private Employers in Canada

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). The largest employer, in terms of employment, is the Canadian Imperial Bank of Commerce.

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.

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. We have the following:

The rate of exploitation or the rate of surplus value=s/v=5,396/3,641=148%.

That means that for every hour worked that produces her/his wage, a worker at works around an additional 89 minutes or 1 hour 29 minutes for free for Suncor Energy. Alternatively, in terms of money, a regular Suncor Energy worker who receives $1 of wage or salary produces $1.48 surplus value or profit for free. 

Assuming either an 8-hour shift or a 12-hour shift:

  1. In an 8- hour work day (480 minutes), a Suncor worker produces her/his wage in about 194 minutes (3 hours 14 minutes) and works 286 minutes (4 hours 46 minutes) for free for Suncor Energy.
  2. In a 12-hour work day (720 minutes), a Suncor worker produces her/his wage in about 290 minutes (4 hours 50 minutes) and works 430 minutes (7 hours 10 minutes) for free for Suncor Energy.

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?

Let us look at the management rights clause of the collective agreement between Suncor Energy Products Partnership and Unifor Local 27, for the period between april 1, 2016 and March 31, 2019.

From pages 4-5 of the collective agreement:

ARTICLE FIVE – MANAGEMENT RIGHTS

5.01 The Union recognizes and acknowledges that management of the operations and direction of the working force are fixed exclusively in the Employer and without restricting the generality of the  foregoing, the Union agrees and acknowledges:

(a) The Employer has, retains and shall possess and exercise all rights and functions, powers, privileges and authority that the Employer possessed prior to the signing of a contract with the Union, excepting only those that are clearly and specifically relinquished or restricted in this Agreement.

(b) That it is the exclusive function of the Employer to maintain order, discipline and efficiency and in connection therewith to make, alter and enforce from time to time reasonable rules and regulations, policies and practices to be observed by its employees.

(c) The Employer’s right to determine the number of employees to be  employed and the right to hire, transfer, assign, promote, demote, retire at age 65, schedule and classify, layoff or recall employees, discipline, suspend or discharge employees for just cause, and the right to plan, direct and control its operations;

(d) The Employer’s right to determine the location and extent of its operations and their commencement, expansion, curtailment or discontinuance; the work to be done; the services to be rendered; to subcontract or transfer work; to establish, change or abolish job classification; to shut down permanently or by day or week or for any other periods; to determine

Not only does the collective agreement give management the right to direct workers’ lives in many, many ways in such a fashion that they produce more value than they themselves cost, leading to the workers working for free for a certain period of time, but even during the time when they produce the value of their own wage, they are subject to the dictates of management (see The Rate of Exploitation of Magna International Inc., One of the Largest Private Employers in Toronto, Part Two, Or: Intensified Oppression and Exploitation).

Ideologues of unions and social democrats or social reformers simply ignore this double situation of workers–of having to work for free and having to work throughout the day under the power of unelected managers (see Employers as Dictators, Part One).

Given this conclusion, how can any collective agreement express in any way the cliches used by many ideologues of unions–such as “fair contracts,” or “decent work?” Is it possible for a collective agreement to be fair from the workers’ point of view? It is certainly possible to be fairer, of course, but no collective agreement questions the right of employers and their representatives (management) to exploit workers and to use them for purposes foreign to their own lives.

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.

I first give revenue and expenses figures according to the Suncor Annual Report (2019), and then indicate some needed adjustments so that they accord more with Marxian economics. Amounts are in millions of Canadian dollars, unless otherwise indicated.

Revenues and Other Income (millions of $)

Gross revenues 39 866
Less: Royalties (1 522)
Operating revenues, net of royalties 38 344 [subtracting 1522 from 39 866 gives: 38 344]
Other income (loss) 645
Total revenues 38 989

Expenses
Purchases of crude oil and products 12 562
Operating, selling and general 11 244
Transportation 1 442
Depreciation, depletion, amortization and impairment 10 572
Exploration 256
(Gain) loss on asset exchange and disposal of assets (253)
Financing expenses 633

Total expenses 36 456 [sums up to this when adding all expenses]

(Loss) earnings before Income Taxes 2 533 [add this to 36 456 gives you 38 989, which is unadjusted total revenues]

At the level of expenses, it is necessary to further break down expenses. The second category in Total Expenses, “Operating, selling and general,” needs to be broken down further:

Operating, Selling and General OperatingExpenses

Contract services 4 380
Employee costs 3 641
Materials 869
Energy 1 129
Equipment rentals and leases 345
Travel, marketing and other 880
Total Operating, Selling and General Operating Expenses 11 244

The category “Contract services,” without further information, will be accepted as is–an expense different from “Employee costs.”

On the Suncor website, it does indicate the following: https://www.suncor.com/en-ca/contractors-suppliers-carriers

At Suncor, the term “contractor,” “supplier” and “carrier” refer to any organization, company or individual who provides goods and/or services to Suncor. We use the term “contractor” to indicate a supplier that provides services at one of our sites.

Contractors, suppliers and carriers play a critical role in helping us achieve our business objectives. To work with us, you must pre-qualify prior to performing work or providing services to Suncor.

Some contract services may in fact be a form of employment contract. For example, I worked temporarily for an oil company in Calgary in the late 1980s, labeling and organizing files–and was categorized as an independent contractor , undoubtedly, in order to reduce the costs to the employer since employers do not have to pay unemployment insurance premiums, etc. for independent contractors. However, without further, more detailed information, it is impossible to determine who is a real contractor and who is an employee.

The category of “Employee costs” is key since it represents, on the one hand, the wage costs to the employer and, on the other hand, the value added by Suncor workers to the commodities they produce that is equivalent to their wage. It also represents variable capital, which is used to calculate the rate of exploitation of workers and is related to total surplus value, thereby enabling us to calculate the rate of exploitation.

The category “marketing” cannot be practically separated from “travel” and “other” and therefore is not used to make any adjustments. If “marketing” were a completely separate category, though, both the wages paid for marketing and the constant capital used in marketing would be added to the surplus value produced by Suncor workers. Work performed in the sector that transforms already produced commodities into money (and money into capital) does not produce surplus value (though it may well involve the performance of surplus labour). Since, for the purpose of the particular calculation of the rate of exploitation of Suncor the issue of how to treat marketing is irrelevant since there is insufficient information, I place a short discussion of a possible way to treat marketing in Marxian terms as an appendix for those who are interested in such matters (and such matters may be relevant for other firms with data with more refined categories, such as a separate marketing account).

So far, we have:

(Loss) earnings before Income Taxes 2 533
Employee costs 3 641

Adjustments

Adjustments must be made both at the level of total revenue and at the level of total expenses.

n 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.

Total Revenue Adjustments

At the level of total revenue, the payment of royalties, from the point of view of the individual employer, is an expense (like taxes), but the source for payment of such royalties is the workers directly exploited. It says in the annual report:

Suncor is subject to royalties and taxes imposed by governments in numerous jurisdictions

Consequently, I use the initial “Gross revenues.”

Adjusted total revenue $40,511, or

Gross revenues 39,866 +
Other income (loss) 645.

Accordingly,

Adjusted Earnings before Income Taxes $4,055 (=2,533+1522)

I have accepted “Other income (loss)” as is since there is nothing explicitly obvious that would require adjustments. If someone has further information that would justify making adjustments on the basis of this category (or any category) for that matter, feel free to make suggestions or comments.

Other income (loss)
Risk management and trading activities 155
(Losses) gains on valuation of inventory held for trading purposes (7)
Investment and interest income 89
Insurance proceeds 431
Other (23)
645 [this is the sum of the above.]

The adjusted earnings constitute surplus value, or the value produced by Suncor workers without any equivalent in return. It represents the additional value the workers produce for free.

“Earnings before Income Taxes” will still undergo an adjustment, but to do so, it will be necessary to consider expenses. The amount of calculated surplus value is often not just specified from the adjusted total revenue side; the calculation of total surplus value is also often a function of making adjustments to the calculation of total expenses.

Total Expenses Adjustments

Some adjustments still need to made, based on the subcategory “Financing expenses” under the category “Expenses” (see above).

The category “Financing expenses” is broken down as follows:

Financing expenses
Interest on debt 825
Interest on lease liabilities 172
Capitalized interest at 5.3% (122)
Interest expense 875 [this is calculated by summing first two and subtracting the last one: 825+172-122]
Interest on partnership liability 55
Interest on pension and other post-retirement benefits 59
Accretion 270
Foreign exchange (gain) loss on U.S. dollar denominated debt (624)
Operational foreign exchange and other (2)
633 [=875+55+59+270-624+2]

As explained in another post, interest in many instances can be treated as part of the surplus value produced and therefore added to net income since, although from the point of view of the individual capitalist it is an expense, from the capitalist economy as a whole it is derived from the production of surplus value. The same could be said of all the other categories of interest, with the exception of “capitalized interest,” which I subtract (and which I will explain below).

If we add up the interest considered to be an expense but derived from the surplus value produced by Suncor workers, we have the following:

Interest Charges
Interest on debt 825
Interest on lease liabilities 172
Interest on partnership liability 55
Interest on pension and other post-retirement benefits 59
Total interest charges 1,111

These interest expenses, since they are only expenses from the point of view of Suncor Energy but in reality are paid out from the surplus value produced by Suncor workers, must be added to “Adjusted Earnings before Income Taxes.”

Despite the use of the term “interest” in the term “Capitalized interest,” this category needs to be considered in more detail.

In relation to the category “Capitalized interest,” as I explained in my post on the rate of exploitation of Air Canada workers and Rogers Communications 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.  

Accordingly, like Rogers Communication, I treat “Capitalized interest” (as the accountants have done) as an expense for the purposes of calculation because it is negative (in parentheses).

As for the category “Accretion,” I treat it also as a real expense. Accretion is defined (from Wikipedia):

In accounting, an accretion expense is a periodic expense recognized when updating the present value of a balance sheet liability, which has arisen from a company’s obligation to perform a duty in the future, and is being measured by using a discounted cash flows (“DCF”) approach.

I treat the remaining categories as real expenses, but I leave it to others to criticize this (and any other calculation) if it is incorrect.

A word should also be said about the category “Foreign exchange (gain) loss on US dollar denominated debt.” There is no explanation in the annual report for this category.

Searching the Web, I found the following general explanation:

What is a Foreign Exchange Gain/Loss?

A foreign exchange gain/loss occurs when a company buys and/or sells goods and services in a foreign currency, and that currency fluctuates relative to their home currency. It can create differences in value in the monetary assets and liabilities, which must be recognized periodically until they are ultimately settled.

The basic idea seems to be that, due to the changes in exchange rates between the Canadian dollar and the US dollar, there was actually a gain for 2019 (it is in parentheses–if it were a loss, it would not be).

Accordingly, the adjusted “Financing expenses” is:

Capitalized interest (122) (to be treated as an expense)
Accretion 270
Foreign exchange (gain) loss on U.S. dollar denominated debt (624) (to be treated as a gain this is a gain since it is in parentheses and hence a “negative expense”)
Operational foreign exchange and other (2)
Total Adjusted Financing Expenses: -230 (122+270-624+2)

Yes–a negative $230 million. That means that the indicated expenses are actually a gain. It is easier to understand this by personalizing it (when possible). Imagine you have various expenses and a bank account in US dollars. Let us say you are calculating your expenses. Let us say that you have $500 US dollars and $600 in Canadian expenses. If the US dollar increases in value by one half (exaggerating, of course, to make the calculation easier), then you have a net expense of negative $150 Canadian since $500 US dollars=$750 Canadian dollars (500×1.5=750). $600-750=-150.

This result means that there were not, in fact, any real financing expenses in 2019 after interest is treated as surplus value and after taking into account the gain in foreign exchange dominated in US dollar denominated debt. The $230 million, in addition to the $1,111 million in interest, need to be subtracted from “Total expenses” $36 456 million. and added to “Adjusted Earnings before Income Taxes” $4,055 million.

Accordingly,

Adjusted Total Revenue $40,511
Adjusted Total Expenses $35,115 (=36,456-1111-230)

So, with the adjustments in place:

Final Adjusted Earnings before Income Taxes: s=$5,396 million or $5.396 billion
Employee costs: v=$3, 641 million or $3.641 million

The Rate of Exploitation

The rate of exploitation or the rate of surplus value=s/v=5,396/3,641=148%.

That means that for every hour worked that produces her/his wage, a worker at works around an additional 89 minutes or 1 hour 29 minutes for free for Suncor Energy. Alternatively, in terms of money, a regular Suncor Energy worker who receives $1 of wage or salary produces $1.48 surplus value or profit for free. 

The length of the working day at Suncor Energy varies somewhat, but probably less so than for some other employers. According to one collective agreement. the average work week is 40 hours, but it does not specify how that is distributed over the week. From COLLECTIVE AGREEMENT
BETWEEN: SUNCOR ENERGY PRODUCTS PARTNERSHIP and Unifor Local 27. APRIL 1, 2016 TO MARCH 31, 2019, page 15:

ARTICLE FIFTEEN- HOURS OF WORK/OVERTIME/PREMIUM PAY
15.01 The regular work week shall not consist of more than forty-hours (40) per week.

Another collective agreement implies 8-hour and 12-hour work days. From Collective Agreement
Between Suncor Energy Products Partnership, Sarnia Refinery and Sunoco Employees’ Bargaining Association, March 1, 2017 to February 28, 2021, page 22:

Permanent shift changes will not be made which will result in an employee working more than ten (10) consecutive calendar days while on 8-hour shifts or more than six (6) consecutive calendar days while on 12-hour shifts.

According to the Suncor Energy website:

Most unionized jobs at Suncor also result in shift work. The most common shift pattern is a 12-hour shift, working three days and three nights, followed by six days off.

Assuming either an 8-hour shift or a 12-hour shift:

  1. In an 8- hour work day (480 minutes), a Suncor worker produces her/his wage in about 194 minutes (3 hours 14 minutes) and works 286 minutes (4 hours 46 minutes) for free for Suncor Energy.
  2. In a 12-hour work day (720 minutes), a Suncor worker produces her/his wage in about 290 minutes (4 hours 50 minutes) and works 430 minutes (7 hours 10 minutes) for free for Suncor Energy.

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?

Let us look at the management rights clause of the collective agreement between Suncor Energy Products Partnership and Unifor Local 27, for the period between april 1, 2016 and March 31, 2019.

From pages 4-5 of the collective agreement:

ARTICLE FIVE – MANAGEMENT RIGHTS

5.01 The Union recognizes and acknowledges that management of the operations and direction of the working force are fixed exclusively in the Employer and without restricting the generality of the  foregoing, the Union agrees and acknowledges:

(a) The Employer has, retains and shall possess and exercise all rights and functions, powers, privileges and authority that the Employer possessed prior to the signing of a contract with the Union, excepting only those that are clearly and specifically relinquished or restricted in this Agreement.

(b) That it is the exclusive function of the Employer to maintain order, discipline and efficiency and in connection therewith to make, alter and enforce from time to time reasonable rules and regulations, policies and practices to be observed by its employees.

(c) The Employer’s right to determine the number of employees to be  employed and the right to hire, transfer, assign, promote, demote, retire at age 65, schedule and classify, layoff or recall employees, discipline, suspend or discharge employees for just cause, and the right to plan, direct and control its operations;

(d) The Employer’s right to determine the location and extent of its operations and their commencement, expansion, curtailment or discontinuance; the work to be done; the services to be rendered; to subcontract or transfer work; to establish, change or abolish job classification; to shut down permanently or by day or week or for any other periods; to determine

Not only does the collective agreement give management the right to direct workers’ lives in many, many ways in such a fashion that they produce more value than they themselves cost, leading to the workers working for free for a certain period of time, but even during the time when they produce the value of their own wage, they are subject to the dictates of management (see The Rate of Exploitation of Magna International Inc., One of the Largest Private Employers in Toronto, Part Two, Or: Intensified Oppression and Exploitation).

Ideologues of unions and social democrats or social reformers simply ignore this double situation of workers–of having to work for free and having to work throughout the day under the power of unelected managers (see Employers as Dictators, Part One).

Given this conclusion, how can any collective agreement express in any way the cliches used by many ideologues of unions–such as “fair contracts,” or “decent work?” Is it possible for a collective agreement to be fair from the workers’ point of view? It is certainly possible to be fairer, of course, but no collective agreement questions the right of employers and their representatives (management) to exploit workers and to use them for purposes foreign to their own lives.

Appendix

The issue of how to treat marketing workers (sales work in wholesale and retail trade) and the machines, buildings and equipment they use is relevant to calculating the rate of exploitation of workers who produce surplus value (such as Suncor workers), because it complicates the calculation.

From Fred Moseley (1997), “The Rate of Profit and the Future of Capitalism,” pages 23-41, in Review of Radical Political Economics, Volume 29, Number 4, pages 26-27:

Circulation labor is labor related to the exchange of commodities and money, including such functions as buying and selling, accounting, check processing, advertising, debt-credit relations, insurance, legal counsel, and securities exchange. Marx argued that circulation labor does not produce value and surplus-value because exchange is essentially the exchange of equivalent values. Circulation labor only transforms a given amount of value from commodities to money, or vice versa. …

Capitalist enterprises must of course pay unproductive labor to carry out these necessary functions, even though, according to Marx’s theory, these functions do not produce value and surplus-value. Therefore, the costs of this unproductive labor cannot be recovered out of value which it produces. Instead, these unproductive costs are recovered out of the surplus-value produced by productive labor employed in capitalist production.

This means that the source of the money to pay for the workers in marketing is, ultimately, the surplus value produced by Suncor workers (and other workers who produce surplus value). This does not mean that workers in marketing are not exploited; they too undoubtedly perform surplus labour as well–but they do not produce surplus value, which is the surplus performed and transformed into money form by means of the process of buying and selling (whether that occurs simultaneously with the activity as in the case of services or subsequently as, for example, in the production of beer).

The means of trade or selling and buying used in marketing also would probably be calculated as part of surplus value since, although they are a cost from the point of view of the individual capitalist, they are paid out of value produced by Suncor workers and other workers who produce surplus value. From Moseley (1997), page 27:

The rate of profit being analyzed here is by definition equal to the ratio of the amount of profit (P) to the total stock of capital invested (K). According to Marx’ theory, profit, the numerator in the rate of profit, is the difference between the annual flow of surplus-value (S) and the annual flow of unproductive costs (Uf) (almost entirely the wages of unproductive labor, but also includes a small part (about 5%) of the costs of materials and the depreciation costs of buildings, machinery, etc. used in unproductive functions): (1) P = S – Uf.

Or again, in the work by Anwar Shaikh and E. Ahmet Tonak (1994), Measuring the Wealth of Nations: The Political Economy of National Accounts, pages 45-46, when discussing a hypothetical total production of value of $2000, with c=$400, v=$200 and s=$1400, they assume that the total value of $2000 is sold to wholesalers for a price of $1000, and the wholesalers (and, eventually, retailers), mark up the price to consumers to the level of total value of $2000:

From the Marxian point of view, nothing has changed in the production process, so that constant capital C*, variable capital V*, and surplus value S* are unchanged. But whereas the total surplus value S* = $1400 previously accrued entirely to the production sector as profits, it is now divided between the profits of the production sector (Pp = $400) and the trading margin of the trade sector
(TM = Mt + Wt + Pt = $1000).

where TM=trade margin, Mt=intermediate inputs (c for trade, such as building rentals or purchases, sales counters, registers, forklifts, storage facilities, etc.), Wt=wages for trading activities and Pt=profit for trading activities. The value of inputs (c+v) for the sector that produces value is 600, with the distribution between c and v and s as follows: c=400, v=200, s=1400. However, since it is sold only for 1000, the actual s received for the sector that produces surplus value is 400. For the trade sector (indicated by t in parentheses), the distribution of the $1000 in s is c(t)=200, v(t)=400 and s(t)=400.

Note, however, that c(t) and v(t), though expenses from the point of view of the individual trading employer, is paid from the surplus value produced by workers in the production sector.