Critical Education Articles Placed in the Teacher Staff Lounge While I Was a Teacher, Part Twelve: The Mondragon Educational System

This is a continuation of a series of posts on summaries of articles, mainly on education.

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

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

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

The attached article for the ESJ Ning is prefaced by the following:

The authors of the following article [Christopher Meek and Warner Woodworth], “Technical Training and Enterprise: Mondragon’s Educational System and its Implications for other Cooperatives,” outlines the importance of the educational system for the success of the Mondragon cooperative system in the Basque region of Northern Spain.

There are two key components to the Mondragon educational system: the Escuela Politecnica Profesional (EPP) and Alecoop (a student-owned manufacturing firm). The EPP has provided the basis for the development of highly advanced engineering skills, and Alecoop has provided the basis for students applying emerging engineering  and managerial skills to real-life problems in the context of running a company that aids them to finance their own education.

The ideal of an egalitarian social and economic system has not led to a sacrifice of concerns for efficiency. Both are possible.

The roots of the Mondragon cooperative system lie in the extreme class division characteristic of the town, with a wealthy minority and a poor majority. Despite the level of poverty, the production of quality steel characterized the town. So too did a common language (the Basque language of Euskera) and social solidarity.

Don José Maria Arizmendiarrieta, priest and founder of the Mondragon cooperatives, arrived in Mondragon in 1941, when the fascist dictator Franco was in power. Some considered Arizmendiarreta to be a communist.

Arizmendiarrieta was asked by the Union Cerrajera to teach religion at the only school available for working-class youth, the Escuela de Aprendices. However, Arizmendiarrieta soon realized the inadequacy of the school. On the one hand, access was limited to the sons of the employees of the capitalist firm (excluding about 85 percent of eligible youth) and, on the other and, on the other, no son from the working class ever attended university. Arizmendiarrieta attempted to persuade the Union Cerrajera to open up the school to more youth, but the capitalist firm refused.

Arizmendiarrieta then initiated the establishment of an alternative school, with a proposal to tie the establishment of such a school to the buidling of a soccer field—tying the school to community interest.

Arizmendiarrieta initiated a technical school rather than a traditional liberal arts school because he considered the impoverished parents and students would do better to learn practical skills that would aid them to overcome their poverty. He also considered manual labour could be a dignified practice in the context of a cooperative organization. Technical skills, the dignity of the practical arts and principles of democratic social cooperation (economic democracy) formed key elements of the Mondragon cooperative system; social justice was linked to all three elements.

Emphasis on technical skills involved investment in machinery rather than limiting production to labour-intensive processes typical of many workers’ cooperatives. To incorporate technical skills into the production process, education that respected the importance of the practical arts and theoretical considerations linked to those practical arts became necessary.

The Spanish technical system of education is organized into three levels: 1. “Oficialia,” leading to an equivalent of middle-years education; 2. “Maestria,” which consists of traditional academic courses with, however, the capacity to engage in skilled technical work linked to electricity, electronics and mechanics; 3. “Perritos Industriales,” the equivalent of a bachelors degree in engineering and mechanics. EPP expanded as the number of students increased. In 1953, the Escuela Politecnica Popular (EPP) was established.

By 1947, 11 of the original students started the advanced stage of technical education. Dissatified with the way Union Cerrajera contradicted the principles that they had learned, in 1956, Ulgo, a cooperative manufacturing company, was established by five of the 11 original graduates of “Perritos Industriales.” They obtained funding from the community through word-of-mouth. Several other manufacturing cooperatives were initiated and so was a consumer cooperative.

In 1959, the Caja Laboral Popular, the “Working Peoples’ Bank,” was founded, aiding workers to establish other cooperatives. By 1987, it had aided in funding almost 200 cooperative organizations throughout the Basque region of Norther Spain.

The EPP was reorganized as a student cooperative that functioned for the industrial cooperatives. The General Assembly of the EPP is composed of three sets of stakeholders: 1. Students and parents; 2. the teachers; and 3. the cooperative and capitalist firms that subsidize the EPP budget. Due to expansion, more modern facilities were built in 1966, with workshops and laboratories.

The teachers at EPP are responsible for the creation of their own curriculum and write their own textbooks. Graduates of the EPP are highly skilled and in high demand. In the 1978/1979 school year, it had over a thousand students enrolled in the three levels of technical education.

The other piece of Mondragon education is Alecoop. About half of those attending EPP apply their learning to an actual manufacturing environment owned by students—Alecoop. It permits a closer alignment of theory and practice (and practice and theory)—and enables students to fund at least partially their own education. It was established in 1966. Alecoop struggled to continue to exist as it faced many problems. By about 1987 it had 601 students and 33 teachers.

As the authors conclude, education has been a key element in the success and expansion of the Mondragon cooperative system. Such an education is integrated in numerous ways: technical, academic, financial and managerial education are closely linked to the principles of economic democracy and the dignity of workers. Unlike many other cooperative movements, managers in the Mondragon cooperatives share the same vision with the other workers and teachers—rather than imposing their own vision on the workers and teachers. The unity of an educational strategy, linked to technical education and financial education on the one hand, and a cooperative economic principle on the other enabled the Mondragon cooperative system not only to survive but to thrive.

Rather than relying on experts, a cooperative system would be more effective if it relied on an internal analysis of local needs and values and then develop an educational plan. Experts, government agencies and so forth could then be consulted on ways in which the educational plan could be realized. A cooperative monitoring system would ensure that objectives are being met (or modified as required, depending on unforseen circumstances), costs are controlled and the cooperatived system expanded.

Democratic control of the economy (social justice) and the respect for persons can be combined with technical and financial education and efficiency—in a cooperatively organized economic system.

 Fred

The Rate of Exploitation of Workers at WestJet Airlines Ltd.

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 by various employers, such as Magna International in an earlier post (see The Rate of Exploitation of Workers at Magna International Inc., One of the Largest Private Employers in Toronto, Part One); Magna International is one of the largest employers in Toronto.

I also calculated the rate of exploitation of Air Canada workers (see The Rate of Exploitation of Workers at Air Canada, One of the Largest Private Employers in Canada). This time I calculated the rate of exploitation of another airline: WestJet. 

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.

I took the data from the 2018 annual report–the most accessible annual report. 

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=232,658.7/997,313.3=23%. 

That means that for every hour worked that produces her/his wage, a worker at WestJet works around an additional 14 minutes for free for WestJet. 

In a 5.2 hour work day, the worker produces her/his wage in 4 hours 14 minutes (254 minutes) and works 58 minutes for free for WestJet.

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 unfree (see, for instance, Management Rights, Part Four: Private Sector Collective Agreement, Ontario  and   Employers as Dictators, Part One). The same applies to the following. 

In an 8-hour work day, the worker produces her/his wage in 6.5 hours and works for 1.5 hours free for WestJet.

In an 8.5-hour day, the worker produces her/his wage in  6 hours 55 minutes and works for free for 1 hour 35 minutes for WestJet.

In a 10-hour day, the worker produces her/his wage in 8 hours 8 minutes and works for free for 1 hour 42 minutes for WestJet. 

Given this rate of exploitation and oppression, what are we to make of the following management rights clause in the collective agreement between WestJet and the Canadian Union of Public Employees (CUPE) Local 4070 (or, in French, Syndicat canadien de la fonction publique (SCFP))? 

ARTICLE 3 – MANAGEMENT RIGHTS

3-1.01 Except to the extent expressly limited or modified by a specific provision of this Agreement, the Company reserves and retains, solely and exclusively, all of the inherent rights, powers and authority to manage the business and direct its workforce and all the matters relating thereto. These rights, powers and authority include, but are not limited to hiring, assigning, promoting, demoting, classifying, transferring, lay-off, recall, suspending, discharging or otherwise disciplining Cabin Personnel; establishing and enforcing rules of conduct; maintaining order and efficiency; requiring Cabin Personnel to observe reasonable rules and regulations which may be promulgated by the Company, introducing new equipment; determining the location(s) of the workforce, operations, and facilities; planning, scheduling, directing and controlling operations.

3-1.02 The Union shall be advised of any changes to policies governing Cabin Personnel at least five (5) Days before such policies become effective unless the Parties mutually agree to a shorter advance notification period. This five (5) Day requirement will not apply when the Company is required by law to make immediate changes or in the event of emergency circumstances that reasonably require immediate change.

Is this management rights clause an example of the nature of “fair contracts” according to the major Canadian unions (such as CUPE, Unifor and NUPGE)? See  Fair Contracts (or Fair Collective Agreements): The Ideological Rhetoric of Canadian Unions, Part One: The Canadian Union of Public Employees (CUPE)Fair Contracts or Collective Agreements: The Ideological Rhetoric of Canadian Unions, Part Three: Unifor (Largest Private Union in Canada)  and Fair Contracts or Collective Agreements: The Ideological Rhetoric of Canadian Unions, Part Four: The National Union of Public and General Employees (NUPGE)(The Second Largest Union in Canada).      

Should not unions, even in the public sector, be teaching the limitations of collective agreements and collective bargaining? In the private sector, should they not also be teaching the workers that no collective agreement and no collective-bargaining process can abolish the exploitation of the workers–without driving the company out of business?

Or are unions silent on such limitations? Moreover, do they try to sell the idea to their members that the collective agreement is fair? 

What do you think? Given what you think, what should you be doing? Are you doing it? Why or why not? 

Data on Which the Calculation Is Based

I will calculate the rate of exploitation or the rate of surplus value for each approximate variation of the length of the working day (a more detailed explanation of how to calculate the rate of exploitation is provided in the post The Rate of Exploitation of the Workers of the Canadian Imperial Bank of Commerce (CIBC), One of the Largest Private Employers in Toronto and in Canada).

(in thousands of Canadian dollars)

Revenue 4,733,462
Operating expenses 4,578,235
Earnings from operations 155,227
Earnings before income taxes (EBT) 135,882

There is a difference of 19,345 between the category “Earnings from operations” and “Earnings before income taxes” (155,227-135,882=19345).

This difference can be accounted for on the basis of the category “Non-operating income (expense)”. 

Non-operating income (expense):
Finance income 29,421
Finance cost (57,027)
Gain (loss) on foreign exchange 2,966
Gain on disposal of property and equipment 4,049
Gain (loss) on derivatives 1,246

When you add the numbers that are without parentheses (that is to say, considered to be income) and subtract the numbers that are in parentheses (that is to say, considered to be an expense), then the net result is an expense of (19,345). 

Operating expenses need to be broken down further since expenses for maintaining workers as wage workers form one of the two considerations for the calculation of the rate of exploitation.

Expenses ($ in thousands)
Aircraft fuel 1,231,632
Salaries and benefits 999,381
Rates and fees 691,293
Sales and marketing 440,292
Depreciation and amortization 429,906
Maintenance 232,053
Aircraft leasing 139,703
Other 398,038
Employee profit share 15,937
Total operating expenses 4,578,235

Adjustments

In Marxian theory, it is necessary to question whether some expenses are expenses for both the individual employer and for the class of employers (and fractions of their class, such as those who live on interest); where there is a coincidence of expenses for individual employers and the class of employers,  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. For example, interest is such a category. 

As I wrote in another post: 

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. 

In addition, there are some so-called expenses that are allegedly salaries and other forms of income that are likely derived from surplus value; they have the form or appearance of wages or salaries but are really surplus value in disguise (such as the “salary” of CEOs). They need to be subtracted from expenses and added to “Earnings before taxes.”  

Adjustments of Non-operating income (expense) and Surplus Value (s)

I will treat this subcategory and its amount “Finance cost (57,027)”  as part of the surplus value produced by WestJet workers but paid out as interest to loan capitalists (banks, for example). The same applies to the other amounts within this category. The result is an additional $94,709 thousands (29,421+57,027+2,966+4,049+1,246=94,709). This amount needs to be added to “Earnings before income taxes (EBT),” 135,882, with the result: 

Temporarily adjusted Earnings before income taxes (surplus value (s) $230,591 thousands. 

Adjustments of Salaries and Benefits: Variable Capital (v)

Salaries and benefit plans can be further broken down:

Salaries and benefits plans 880,701
Employee share purchase plan 102,692
Share-based payment plans 15,988
Total salaries and benefits 999,381

The category “Employee share purchase plan” does not need any adjustment since it does indeed form part of the benefits of WestJet workers.

A note provides additional information:

Employee share purchase plan (ESPP)

The ESPP encourages employees to become owners of WestJet and provides employees with the opportunity to significantly enhance their earnings. Under the terms of the ESPP, employees may, dependent on their employment agreement, contribute up to a maximum of 10 per cent, 15 per cent or 20 per cent of their gross salary to acquire voting shares of WestJet at the current fair market value. The contributions are matched by WestJet and are required to be held within the ESPP for a period of one year. For the year ended December 31, 2018, our matching expense was $102.7 million.

The above $102,692 million is thus WestJet’s contribution to the purchase of WestJet stock.

I will assume that the employee share purchase plan forms part of the total income of WestJet workers. This assumption is justified since such a plan is designed, apparently, to replace a pension plan (and I have treated pension plans when calculating the rate of exploitation as part of salaries and benefits). From The Globe and Mail (May 14, 2019):

The questions from employee groups on the call quickly focused on the employee share-purchase plan. Instead of a pension plan, workers can invest as much as 20 per cent of their pay in WestJet stock and the company will match it. 

The employee share purchase plan amount does not change the calculation of v, but it does clarify why it should be included in the category “Total salaries and benefits.”

If the $102,692 is added to the amount of salaries and benefits, we obtain $983,393. 

Adjustments for Share Based Payment Plans

The same could only partially be said of the other category “Share based payment plans.” 

The following note elaborates on the nature of “Share-based payment plans”:

Share-based payment plans
We have three equity-settled share-based payment plans whereby either stock options, restricted share units (RSUs) or performance share units (PSUs) may be awarded to pilots, senior executives and certain non-executive employees. For the year ended December 31, 2018, share-based payment expense totaled $16.0 million.

“Share-based payment plans” is further broken down as follows:

Stock option plan 10,428
Key employee plan 5,039
Executive share unit plan 521
Total share-based payment expense 15,988

With no further detailed information about “Stock option plan,” and since pilots undoubtedly produce surplus value (they are exploited), I will assume that only ten percent of 10,428 is surplus value appropriated by senior management; this is also justified since pilots are likely to form most of the personnel in this category (although it is impossible to determine this with precision). Consequently, 10 percent of 10,428 is 1042.8 and is subtracted from “Total share-based payment expense” and added to “Earnings before income taxes (EBT).” The remaining 9,385.2 million is added to the category “Salaries and benefits plans” and the added amount from “Employee Share

Adjustments for Stock Option Plan

Temporarily adjusted Earnings before income taxes (surplus value (s): $231,633.8 thousands. 
Temporarily adjusted salaries and benefits: variable capital (v): $992,778.2 

Adjustments for Key Employee Plan

A note indicates the nature of the “Key employee plan”:

(d) Key employee plan
The Corporation has a key employee plan (KEP), whereby restricted share units (RSU) are issued to senior management and pilots of the Corporation.

Since pilots form part of this group, I will follow the same logic as for the group who receive stock options–10 percent of 5,039 is 503.9 and is subtracted from “Total share-based payment expense” and added to “Earnings before income taxes (EBT).”  The remaining $4535.1 ]  is added to the category “Salaries and benefits plans.

Accordingly: 

Temporarily adjusted Earnings before income taxes (surplus value (s): $232,137.7 thousands. 
Temporarily adjusted salaries and benefits: variable capital (v): $997,313.3

Final Adjustments: Executive Share Unit Plan

The category “Executive share unit plan” is different from the other two share-based payment plans.

A note indicates the nature of “Executive share unit plan”: 

(e) Executive share unit plan
The Corporation has an equity-based executive share unit (ESU) plan, whereby RSUs [restricted share units] and performance share units (PSU) may be issued to senior executive officers.

“Executive share unit plan” is probably compensation, not mainly for the coordination of the work of others but for the exploitation of others–it is pure surplus value. Accordingly, 521 is therefore completely subtracted from “Total share-based payment expense” and added to “Earnings before income taxes (EBT).” 

With this, final adjustments are possible and the rate of surplus value or the rate of exploitation can be calculated. 

Final Calculation (Based on Adjustments) of Surplus Value, Variable Capital (Salaries or Wages and Benefits) and the Rate of Surplus Value 

The result of all of these adjustments is: 

Adjusted earnings before income taxes (surplus value (s): $232,658.7 thousands. 
Adjusted total salaries and benefits: variable capital (v): $997,313.3

To calculate the rate of surplus value, we need to divide “Adjusted earnings before income taxes” (s) by “Adjusted total salaries and benefits” (v).

So, with the adjustments in place, the rate of exploitation or the rate of surplus value=s/v=232,658.7/997313.3=23%. 

That means that for every hour worked that produces her/his wage, a worker at WestJet works around an additional 14 minutes for free for WestJet. 

In a 5.2 hour work day, the worker produces her/his wage in 4 hours 14 minutes (254 minutes) and works 58 minutes for free for WestJet. 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 unfree (see, for instance, Management Rights, Part Four: Private Sector Collective Agreement, Ontario  and   Employers as Dictators, Part One).

In an 8-hour work day, the worker produces her/his wage in 6.5 hours and works for 1.5 hours free for WestJet.

In an 8.5-hour day, the worker produces her/his wage in  6 hours 55 minutes and works for free for 1 hour 35 minutes for WestJet.

In a 10-hour day, the worker produces her/his wage in 8 hours 8 minutes and works for free for 1 hour 42 minutes for WestJet. 

I have used the lengths of the working day as 5.2, 8 8.5 and 10 because the length of the working day varies. According to one source:

They have a flexible schedule for part time. Full time is required 40 hours. They do permit shift trading.

In my last role 8.5hrs, in prior roles it depended on my shifts etc.

8 to 10 hours per day

26 hours a week. Everyone starts out a part time.

The above lengths of the working day, translated into hours per day (assuming a five-day work week) are:

  1. 5.2 hours per day or 312 minutes
  2. 8 hours per day or 480 minutes
  3. 8.5 hours per day or 510 minutes
  4. 10 hours per day or 600 minutes 

Comparison of the Rate of Exploitation of WestJet Workers with Other Workers

The rate of exploitation of WestJet workers is quite low relative to other workers. Below I organize the rates of exploitation that I have calculated so far, from lowest to highest: 

  1. WestJet workers: 23%
  2. Telus workers: 58% 
  3. Air Canada workers: 70%
  4. Magna International workers: 79% (2019); 43% (2020) 
  5. Bank of Montreal (BMO): 92% 
  6. Bell Canada Enterprises (BCE): 100% 
  7. Canadian Imperial Bank of Commerce (CIBC): 120%
  8. Toronto-Dominion Bank (TD Bank): 123% 
  9. Royal Bank of Canada (RBC): 124% 
  10. ScotiaBank (Bank of Nova Scotia): 147% 
  11. Suncor Energy workers: 148% 
  12. Rogers Communication: 209% 

The divergences in the rate of exploitation are substantial: the absolute percentage difference between the rate of exploitation of WestJet workers and the rate of exploitation of Rogers Communications workers is 186%. 

Factors That Determine the Rate of Exploitation in Relation to Divergences in the Rates of Exploitation 

The rate of surplus value has three main factors which determine its level: 

1. The real wage (basket of commodities consumed by workers at non-changing prices). In the short term, the real wage is undoubtedly influenced by the class struggle–the level of organization of workers, the aims of such organization, the extent of the elimination of competition among workers and so forth. Even in the long run, it may be influenced through the incorporation of more and qualitatively more diverse commodities (historical and moral influence)–but this should not be exaggerated since real wages ultimately are limited by the rate of accumulation.

2.  The absolute level of the production of surplus value, determined by such factors as

a. the length of the working day. For example, if workers work 7 hours a day, with a rate of exploitation of 100%, then the worker produces her/his wage in 3.5 hours and produces a surplus value of 3.5 hours. If the working day increases to 7.5 hours, then the rate of exploitation increases, from 100% to 114% (s=4; v=3.5; s/v=4/3.5=1.14=114%). 

b. the intensity of work (which itself can be a function of other factors, such as the level of managerial organization, the principles of managerial supervision and technological conditions that force workers to work at an intensified level). The same number of hours may contain, relative to before, more labour. With a constant real wage, more surplus value is produced and hence a higher rate of exploitation. 

3.  Relative surplus value, determined by changes in technology (which alter the value of the commodities consumed by workers, reducing the value of the commodities consumed by workers, thereby increasing the remaining value as surplus value. For example, at the brewery where I worked, when I first started to work there, we could produce a maximum of 550 bottles of beer per minute, and when I quit, we could produce a maximum of 1,400 bottles per minute. The value of the bottles of beer undoubtedly decreased (although the price did not reflect this proportionately–taxes form a substantial portion of price). With lower values–and prices–for commodities consumed by workers, the workers perform less time producing the equivalent value of their wage and hence more time producing a surplus value, which therefore raises the rate of exploitation, s/v. Thus, with the technological change in beer production, the value of beer decreased. With the same level of worker beer consumption as before (the same real wage), the value of the commodity the workers sell (labour power–the capacity to perform labour for a certain period of time) decreases, leading to more value remaining for the employer–hence more surplus value and a higher rate of exploitation.  

To explain the divergences in the rate of exploitation at this micro level according to the above three factors or variables would require much more empirical work (and probably theoretical work to make required connections). I lack the capacity for this. If others can in any way improve on the calculation of the rate of exploitation, feel free to do so.

In any case, other factors undoubtedly influence the perceived or empirical rate of exploitation (as calculated by me). Thus, one major factor that would need to be included is the difference between the surplus value initially produced (or received by commercial and banking institutions) and the final distribution of surplus value. The production of surplus value and its distribution are unlikely to be the same since the proportion of investment in constant capital (c) and variable capital (v) will vary according to the kind of industry and level of technological development. I explain this in a comment to the post The Rate of Exploitation of Workers at Air Canada, One of the Largest Private Employers in Canada.  

Static Versus Dynamic Considerations of the Rate of Exploitation

The above comparative analysis definitely has limitations since it provides only a snapshot picture of rates of exploitation for different employers. When we consider the mobility of workers within and between industries, however, there may be a tendency towards an equalization of the rate of exploitation. This would require further empirical research, of course, as well as further theoretical considerations.

One author argues that there is a tendency towards equal rates of exploitation via worker mobility (he sometimes calls it labour mobility). He refers to Adam Smith’s theory of worker mobility. Adam Smith was a political philosopher and political economist who published the book The Wealth of Nations in 1776.

From Jonathan Cogliano (2021), “Marx’s Equalized Rate of Exploitation,” Working Paper Series, University of Massachusetts, page 20: 

One implication of the view put forward in sections 4 and 5 is that Marx fully adopts [Adam] Smith’s theory of the turbulent equalization of the whole of the advantages and disadvantages and re-purposes it into a turbulently equalizing rate of exploitation is that workers then know the degree to which they are exploited and move between sectors accordingly. Marx discusses how workers understand that they are exploited in his discussion of the struggle over the length of the working day, but he does not state explicitly that workers know their rate of exploitation (Marx 1976, pp.342-344). However, the wholesale adoption of Smith’s balancing whole of the advantages and disadvantages of labor implies that workers do know the degree to which they are exploited and migrate across sectors in response to changes or differentials across sectors.

Workers making decisions of how to allocate their labor across industries in this way does not require that workers base the decision on magnitudes measured in labor values— i.e. basing the decision on surplus value and the value of labor power. Workers’ movement across sectors as informed by money prices still induces the EQRE. As Foley (2016, pp.378- 380) discusses, surplus value captures overall surplus labor effort in the money form and if workers base their mobility decisions on the effort they expend and the wage they are paid then these movement decisions will tendentially induce the EQRE. This rests on some notion of a connection between labor effort and money value added

It would be necessary to consider both theoretically and empirically the dynamics of worker mobility in relation to the rate of exploitation to determine whether such a tendency in fact holds. Unfortunately, there is little research here in Toronto or indeed in Canada, as far as I can tell, concerning anything having to do with the rate of exploitation at the micro level and its interface with tendencies at the macro level.


A Worker’s Resistance to the Capitalist Government or State and Its Representatives, Part Ten

Introduction

This is a continuation of previous posts.

I went on sick leave in February 2012 after having been a French teacher for Lakeshore School Division in Ashern, Manitoba, Canada, for three and a half years. (For details of my decision to go on sick leave, see A Worker’s Resistance to the Capitalist Government or State and Its Representatives, Part Eight  and  A Worker’s Resistance to the Capitalist Government or State and Its Representatives, Part Nine). 

In order to receive at first short-term disability benefits and then long-term disability benefits provided by the Manitoba Teachers’ Society (MTS), if the issue is not purely physical, it is presumably necessary to be subject to psychiatric evaluation and then psychological “care” (provided the psychiatrist furnishes an assessment, I assume, that justifies not being able to work for an employer). To receive such benefits, the worker must “agree” to both the evaluation and the care. 

But what is the Manitoba Teachers’ Society? Its Facebook page indicates the following:

About

 

 

 

The Manitoba Teachers’ Society is the collective bargaining and professional development organization for all of Manitoba’s 15,000 public school teachers.
 
Additional information

 

 

 

Founded in 1919, the Society provides assistance to local associations in collective bargaining, offers professional development workshops and lobbies government on legislation that affects education, students and teachers.

 

As well, MTS provides a range of wellness services including the Disability Benefits Plan and Educator Assistance Program.

 

It also provides publication services for teacher organizations such as Special Area Groups and publishes the teachers’ newsletter, the annual handbook, annual report and an extensive range of brochures and other handbooks
 

MTS is thus not a union as such, but it is more like a union of unions; it provides services to specific teachers’ associaitons and, through them, to the members of the specific teachers’ association. 

In my last post in this series (A Worker’s Resistance to the Capitalist Government or State and Its Representatives, Part Nine), I showed how I found that Ms. Morier, a psychiatrist, had oppressed me during her assessment of me–an assessment required by MTS. This time I will outline how I felt about how another psychologist, Alan Slusky, oppressed me; I was obliged by the protocols of the Disability Benefits Plan of MTS, to attend “psychological counselling.” Indirectly, then, MTS also oppressed me. 

The social-democratic or reformist left, in general, simply ignore the various forces and professions that reinforce the power of employers as a class and that lead to the oppression (and exploitation) of workers in various ways. It thereby often underestimates the difficulty of overcoming the power of the class of employers or overestimates its own reformist power. 

So far, in this series of posts, various professionals have been involved in oppression: 

  1. social workers
  2. Winnipeg Child and Family Services
  3. Manitoba Ombudsman
  4. Institute of Regiserted Social Workers of Manitoba
  5. Anishinaabe Child and Family Services
  6. the Royal Canadian Mounted Police (RCMP)
  7. A principal at a school
  8. A superintendent in a school division
  9. Probably the Minister of Education
  10. Probably the Minister of Justice
  11. Perhpas the New Democratic Premier of Manitoba, Greg Selinger
  12. Manitoba Teachers’ Society Disability Benefits Plan
  13. A psychiatrist, Gisele Morier

Given all these professionals and institutions who, directly or indirectly reinforce the class power of employers, it is hardly surprising that the social-democratic or reformist left run around in circles claiming to seek justice all the while failing to organize systematically and in a unified fashion to oppose such oppressive social structures and oppressive professionals. 

Let me add one more professional trade to the list: psychology. 

From a Helping Profession to an Oppressive Profession: The Real World of Psychology 

Initially, Mr. Slusky did help me. My heart was still racing every day, and he taught me, through breathing exercises, to reduce the intensity of my pounding heart. I could sleep better–although my heart still raced every day. There were limits to the efficacy of this technique.

I started to feel oppressed by Mr. Slusky, though, especially after I had been “assessed” by the psychiatrist, Ms. Morier, in November 2012 (see my critique of her assessment in the earlier post    A Worker’s Resistance to the Capitalist Government or State and Its Representatives, Part Nine). Mr. Slusky attempted to justify Ms. Morier’s assessment, and such a persistent justification led me to feel oppressed. Mr. Slusky persistently used such “post-modernist” phrases after that time as “It is a question of interpretation,” or “It depends on your point of view.” Mr. Slusky persistently tried to convince me–without success–of the accuracy of Ms. Morier’s assessment.

Ironically, Mr. Slusky did not, however, consider everything, at a practical level, to be just “a question of interpretation.” Either in late July or in August 2012, before the psychiatric assessment by Ms. Morier, he had sent me a stapled bill for July and August, 2012 (I still have the bills) since MTS had not yet paid him. When it comes to money, apparently, it is not a question of interpretation–but that is what Marxists say too. What is sauce for the goose is not, apparently, sauce for the gander.

Mr. Slusky had tried the usual psychological pablum called “cognitive behavioural therapy” (CBT) or mindfulness, which has as one of its roots the book by David Burns (1999): Feeling Good: The New Mood Therapy. In fact, I had started attending voluntarily counselling sessions under the MTS Employee Assistance Plan (EAP) while still working as a teacher, and Degen Gene, an EAP  counsellor, used the same approach.

This approach seems to be standard for many psychologists, without any concern for the underlying power structures and relations that give rise to stress when working for an employer.

As I indicated, the breathing exercises suggested by Mr. Slusky did help–but within limits. 

Ultimately, Mr. Slusky attempted to change my “approach” to people by getting me to be more “flexible”–a code word for not criticizing bourgeois ideology as expressed by various individuals in various areas of life.

Below, I quote Mr. Slusky’s “initial progress report,” dated September 24, 2012:

Please accept this as an initial progress report on my psychotherapy contacts with Mr. Harris. Since your referral of Mr. Harris to me, I have met with him on the following occasions: April 27, May 18, June 1, 14 & 28, Jluy 27, and August 16 & 24, 2012. Over the course of these 8 meetings Mr. Harris has attended for all of his sessions punctually and has presented in an open fashion. For the most part Mr. Harris presents in a farily serious, stoic manner, displaying little range in effect. No evidence of psychomotor agitation is demonstrated by Mr. Harris and despite his ongoing complaints of “a pounding heart” he displays no overt signs of anxiety. Mr. Harris has on occasion come to session with his computer, occasionally working in the waiting room, prior to our sessions. Mr. Harris has also brought research with him which speaks to his political and philosophical beliefs and their impact on his philosophy of education. I have thanked Mr. Harris for providing me with copies of this information, and at times this has formed the basis for some of our discussions. Mr. Harris’ attention and concentration over the course of our meetings has been good, his speech has been articulate and fluent, and at no time has he evaded or refused to answer any of my questions.

As you are aware Mr. Harris was referred to me for cognitive behavioural therapy to address his ongoing difficulties with anxiety. In this regard I have provided Mr. Harris with instruction in diaphragmatic breathing, relaxation exercises, and mindfulness meditation. The latter of these strategies has been presented to Mr. Harris both through psycho-education in session as well as through (at his request) copies of peer reviewed primary journal articles which speak to the efficacy of this approach in managing anxieties and preventing relapses of depression. I have never before had a client ask me for peer reviewed journal articles which speak to the efficacy of the treatments offered to them and while one certainly does admire Mr. Harris’ efforts to be a “wise consumer,” this is also in keeping with his critical approach to concepts and information delivered to him. I will speak more on this below, and the impact I believe that this style is having on Mr. Harris’ recovery. Mr. Harris has indicates that he has practiced the aforementioned strategies but found them to be only of limited value. The relaxation audio CD provided to him was described as helpful however and I commended Mr. Harris for his efforts in persisting with this approach. While this behavioural technique has been of assistance, Mr. Harris does acknowledge that “focusing on my heart doesn’t help.” As such, approaches to assisting Mr. Harris need to be more than behavioural, leading us to a discussion of the cognitive work that we have done together.

With respect to cognition, Mr. Harris is certainly a bright and articulate individual. In conversation he is able to reference articles and works that he has read many years prior, and weave them into cogent and coherent arguments for his positions on various issues. The concern that I have is the degree to which Mr. Harris adopts this “critical” or argumentative approach in his discussions. On the one hand one admires an individual who is true to their principles and beliefs. On the other hand when those beliefs and principles are misunderstood by others and create defensive attitudes on their part, a different approach/style may then be called for, to effectively communicate one’s beliefs and needs. It is my opinion that it is most likely in this realm that Mr. Harris struggles. Likely as a result of early experiences in his life as well as his considerable education, Mr. Harris has developed some very well thought out positions on issues of social policy and education. It is my understanding that both in the past and currently, Mr. Harris takes the initiative to inform others of his beliefs. While Mr. Harris may be engaging in criticism from an academic/intellectual perspective, others I suspect interpret this as argumentative and resistant behaviour, and it is here I believe that Mr. Harris has struggled with respect to his success in “getting along” in a variety of different situations.

On a positive note, Mr. Harris and I recently discussed the impact of his style on his comfort level in his volunteer position at the Social Planning Council. Mr. Harris again had some very strong beliefs about the research being undertaken by this organization and in session he and I have worked hard to reframe his participation there, such that he is able to tolerate the differences between his opinions and the approach that this organization is taking in its research and work. Mr. Harris has shown some growth here, principally in his approach to the organization’s Executive Director, adopting a “softer” style in expressing his beliefs to her. Whereas in the past I suspect that Mr. Harris would have led quite strongly on this, he has I believe, gained some appreciation for the need for balance in the ways in which he expresses his opinions. In part as well I suspect that the requirement for him to continue in a volunteer position has provided further impetus for his willingness to be flexible here. Whatever the case may be, Mr. Harris has here demonstrated an ability to be flexible in his approach/style and I am encouraged by this. [my emphases]

In addition to anxiety, Mr. Harris does at times present with significant anger. This is nowhere more evident than when he discusses his situation with his ex-wife and daughter, and both the allegations made against him in the past, as well as his daughter’s current situation and their relationship. Mr. Harris indicates quite clearly that it is only because of his daughter that he is remaining in Manitoba, indicating that he does not feel like he “fits in” here, expressing a strong desire to move to Toronto where there are others who are more “like minded.” As such, on many fronts, Mr. Harris I believe is experiencing of being pulled in several directions, and this too is likely contributing to his subjective sense of anxiety.

As Mr. Harris has reported that the strategies provided to him to date have not been as helpful as he had hoped, he has begun now to express a willingness to entertain medication as an adjunctive treatment. For my part I fully support Mr. Harris’ thoughts in this regard. Not only will the appropriate medication provide Mr. Harris with a more immediate reduction in his anxiety symptoms, it is my hope that this will come a “loosening” or “softening” in Mr. Harris’ thinking and willingness to be slightly more circumspect in his expression of his political beliefs [my emphasis]. I have no doubt that Mr. Harris can be an excellent teacher, as he is quite intelligent. It is his “emotional intelligence” (i.e., his ability to appreciate the impact of his actions on others) that I believe is more problematic and I am hopeful that with appropriate medication and ongoing psychotherapy, Mr. Harris can come to a fuller appreciation of this, and demonstrate additional flexibility, above and beyond that already noted.

It is also my understanding that you are contemplating a referral to a psychiatrist to assess Mr. Harris’ readiness to return to teaching. I would respectfully recommend that this assessment also incorporate an evaluation of Mr. Harris’ readiness to accept medication treatment, and recommendations for same. Without this additional therapeutic aide I believe that Mr. Harris will considerably struggle in becoming ready to return to gainful employment as a teacher [my emphasis].

Thank you for your support in my work with Mr. Harris to date. I trust the above is of assistance to you. In the interests of therapeutic openness and transparency, I will be providing Mr. Harris with a copy of this report. Please feel free to contact me should you have any further questions or concerns regarding my work with this claimant to date.

Sincerely,

Alan Slusky, Ph. D., C. Psych.’
Registered Psychologist

Mr. Slusky, indirectly, points out that his frequent repetition of the phrase “its a question of interpretation” is an ideological cloak for his own reformist views . He wrote above:

I suspect that the requirement for him to continue in a volunteer position has provided further impetus for his willingness to be flexible here. 

Indeed, the requirement that I volunteer in order to continue to receive disability benefits from the Manitoba Teachers’ Society was economic coercion [a phrase that John Clarke, a radical social democrat here in Toronto has used on a couple of occasions while ignoring its economic, political and social implications). Had I not “agreed” to “volunteer,” I could have been cut off from disability benefits. Mr. Slusky’s reference to ‘flexibility” in effect admits that economic coercion involves forcing a person to alter their will in order to receive money required to live. 

Mr. Slusky did not even recognize that my “flexibility” was involuntary–that I was “flexible” because I was obliged to be so in order to continue to receive disability benefits. This lack of consideration of the factual economic coercion that obliged me to “volunteer” in the first place and to be “flexible” in the second place is characteristic of all social reformers and social democrats. 

Like Mr. Clarke, though, he simply ignored the social, political, emotional and psychological implications of such economic coercion. 

I felt so oppressed by Dr. Slusky that it formed one of the reasons for my decision to leave Winnipeg in favour of Toronto, Ontario (it was not, however, the only reason). I dreaded going to his sessions. To have to attend such sessions from a person who tried to justify the Gisele Morier’s abuse when she was evaluating me (as well as her biased assessment) was oppressive, and my heart would race because of such oppression. 

I am glad that I left Winnipeg–despite leaving behind my daughter, Francesca; I would have likely had a heart-attack if I did not leave. 

I still had to attend sessions with a psychologist in Toronto, but at least I was free from Mr. Slusky’s oppressive practice and attempt to justify the abusive evaluation made by Ms. Morier. 

For further information about Mr. Slusky, see     or https://mps1.wildapricot.org/Sys/PublicProfile/25307229/1789964  or    https://www.jewishpostandnews.ca/local/1074-for-dr-alan-slusky-building-relationships-is-an-essential-part-of-psychology-practice

A follow-up post will continue with a description of my experiences with a psychologist here in Toronto. 

Anti-Neoliberalism Need Not Be Anti-Capitalist: The Case of the Toronto Radical John Clarke, Part Four: The Welfare State and Neoliberalism, or The Infinite Back and Forth Movement of Capitalism

Introduction

Perhaps it is me, but I am getting a sneaking suspicion that many who talk about being anti-capitalist are really referring to anti-neoliberalism. There is little if any talk about aiming to eliminate exploitation,  oppression and economic coercion or the creation of a socialist society (except in some vague, far-off future that has little relevance for their daily activity.

John Clarke’s Radical Social Democracy as a Case in Point 

John Clarke, a radical social-democratic reformist here in Toronto, is a case in point. We have already seen, in earlier posts, that Mr. Clarke’s aim is primarily an enhanced welfare capitalism and not the abolition of capitalism (see for example Critique of the Limited Aim (Solution)–Decent Wages–of a Radical Social Democrat: The Case of the Toronto Radical, John Clarke: Part One). Despite Mr. Clarke’s references to economic exploitation and economic coercions and his rhetoric of anti-capitalism, Mr. Clarke ultimately assumes that these features of modern social relations are fixed and cannot be abolished–and this despite his apparent recent radical turn due to the pandemic, calling for a radical change in capitalism (see a brief reference in An Inadequate Critique of a Radical Basic Income: The Case of the Toronto Radical John Clarke, Part Three).

Mr. Clarke tried to justify his critique of the proposal of a basic income by referring to the need to take into consideration the fact that economic coercion forms a vital part of a capitalist society–which indeed is the case. Unfortunately, Mr. Clarke failed to integrate this accurate observation with his proposal for an enhanced welfare state (and his belated call for the abolition of capitalist relations). In his daily activities, Mr. Clarke aims, practically, at reforming the class power of employers and not abolishing them; his aim is to abolish neoliberalism but not capitalism.

Mr. Clarke’s Recognition of the Double Movement in a Society Dominated by a Class of Employers (A.K.A. Capitalism)–and His Lack of Aiming for the Abolition of Such a Double Movement 

The nature of capitalism is such that it tends always to erode any temporary peace made between capitalists and workers but also provokes a countermovement (hence the double movement), as Streeck points out in note 14 in his book (2009) . Re-Forming Capitalism Institutional Change in the German Political Economy. Streeck quotes Karl Polanyi (a Hungarian economic historian, anthropologist and sociologist), before expressing his own view:  page 270:

“For a century the dynamics of modern society was governed by a double movement: the market expanded continuously but this movement was met by a countermovement checking the expansion in definite directions. Vital though such a countermovement was for the protection of society, in the last analysis it was incompatible with the self-regulation of the market, and thus with the market system itself” (Polanyi 1957 [1944], 130). In 1944 Polanyi believed that the double movement had come to an end, in line with similar expectations famously held by Schumpeter and others about the secular
 demise of modern capitalism. With the benefit of hindsight, I disregard this prediction and assume that movement and countermovement have continued and will continue until further notice.

Mr. Clarke recognizes that a pure capitalist market system would pose a threat for the existence of a market for workers because it would undermine even the life of workers and would undermine the legitimacy of a society dominated by a class of employers, so it is necessary that the capitalist state provide some limits on it by providing income supports–by preference at a minimal level from the point of view of employers.The following is a more or less partial verbatim report of what Mr. Clarke stated in his YouTube (see Mr. Clarke’s YouTube presentation  https://www.youtube.com/watch?v=r40D6fU760s&t=4s).

But such a system of brutal exploitation can become problematic. Firstly, it can compromise, on a large scale, the health–and hence the job-readiness–of the workforce. Secondly, it can contribute to massive organized protests and even rebellions. Consequently, the capitalist state steps in to save the capitalists from themselves by ensuring a certain level of services; these services form the basis for income-support systems.

The general rule of income-support systems within a capitalist system is that they will provide as much as is necessary but also as little as possible. There are two opposite factors working in that regard. The first is the needs of capital: the need to maximize profitability and to remove barriers to exploitation. For the capitalist class, the need is to minimize expenditures for income-support systems. Indeed, if profitability becomes more difficult, there will be intensified pressure to increase exploitation and to minimize expenditures on income-support systems. The second is the needs of the working class and its level of organized power within capitalist society as well as how resistant are poor and unemployed people.

Historically, there has been a class struggle over the amount and form of income support, with the levels and forms not really intended by the authorities but needed to quell working-class tendencies towards rebellion. On the other hand, with changes in the capitalist system, the capitalist class, via the capitalist state, has pushed back and changed the forms and levels of income support over the centuries. The working class, both during the Great Depression but especially after the Second World War, in turn fought back by organizing the unemployed and workers into mass unions, with the result that income supports and standards of living increased substantially. Gains were really made because of working-class resistance.

As a result, there is a need for the capitalist class to engage in a counter-offensive since increased working-class living standards had reduced capitalist profits. This counter-offensive, begun in the 1970s, is known as neoliberalism. In order to increase exploitation, it became essential to gut income-support systems. The adequacy of programs was reduced, and eligibility for the reduced level of income supports became more difficulty in various areas: for single parents, for injured workers, for disabled people, among others.

Mr. Clarke thus recognizes this to and fro movement of capitalism. However, does he aim to end this to and fro movemnt? Not at all. Such an aim at best is to be realized in the vague future rather than being aimed at via policy prescriptions for the present.  

Thus, Mr. Clarke’s immediate aims are, as I pointed out in a previous post: 

There’s a need to fight for increases in the adequacy of healthcare. The pandemic has made that absolutely clear. We need pharmacare, dental care, a unviersal childcare program that is not an empty perennial liberal promise. We need post-secondary education to be free; we need free public transport systems. On all of these fronts, we need to take up a fight.

We do indeed need to engage in fights on all these fronts–but we also need to link up such fights with the need to abolish the class power of employers (see Critique of the Limited Aim (Solution)–Decent Wages–of a Radical Social Democrat: The Case of the Toronto Radical, John Clarke: Part One); there is no evidence that Mr. Clarke sees improves wages, pharmacare, etc. as not only reforms but as also stepping stones to the abolition of the double movement.

If Mr. Clarke’s aims of achieving increases in wages, pharmacare, etc. were realized, some employers would, eventually, try to escape from such limitations as they did increasingly from the 1970s. The movement of seeking to enhance income support systems would, if not immediately then eventually, be met by a countermovement of employers seeking to avoid such restrictions. If they succeeded, then of course many workers, citizens, immigrants and migrants would seek to expand the income support system once again–and this process would have no end.

Aiming for a socialist society, without a class of employers, would seek to put an end to such class struggle–and not perpetuate it. Mr. Clarke’s position, by contrast, is the perpetuation of class struggle for eternity. It sounds radical, but it really is not; its aim is to achieve what cannot be achieved permanently–economic and social security in the context of economic coercion and the class power of employers.

Without any explicit aim for ending the power of the class of employers being used to organize present activities and critiques, this constant to and fro often leads to insecurity, turmoil and suffering among workers, citizens, immigrants and migrants. From Streeck, (2016), How Will Capitalism End: Essays on a Failing System:

The tensions and contradictions within the capitalist political-economic configuration make for an ever-present possibility of structural breakdown and social crisis. Economic and social stability under modern capitalism must be secured on a background of systemic restlessness4 produced by competition and expansion, a difficult balancing act with a constantly uncertain outcome. Its success is contingent on, among other things, the timely appearance of a new technological paradigm or the development of social needs and values complementing changing requirements of continued economic growth. For example, for the vast majority of its members, a capitalist society must manage to convert their ever-present fear of being cut out of the productive process, because of economic or technological restructuring, into acceptance of the highly unequal distribution of wealth
and power generated by the capitalist economy and a belief in the legitimacy of capitalism as a social order. For this, highly complicated and inevitably fragile institutional and ideological provisions are necessary. The same holds true for the conversion of insecure workers – kept insecure to make them obedient workers – into confident consumers happily discharging their consumerist social obligations even in the face of the fundamental uncertainty of labour markets and employment. In light of the inherent instability of modern societies founded upon and dynamically shaped by a capitalist economy, it is small wonder that theories of capitalism, from the time the concept was first used in the early 1800s in Germany and the mid-1800s in England, were always also theories of crisis. This holds not just for Marx and Engels but also for writers like Ricardo, Mill, Sombart, Keynes, Hilferding, Polanyi and Schumpeter, all of whom expected one way or other to see the end of capitalism during their lifetime.

Mr, Clarke’s political position, despite his rhetoric to the contrary of anti-capitalism this and anti-capitalism that, is not to end the power of the class of employers and the associated economic, social and political relations but their reform in order to leave behind, not class relations, but neoliberalism. Mr. Clarke recognizes that there is a “to and fro movement of capitalism” without taking it into consideration in formulating his anti-neoliberal but not anti-capitalist strategy.

Mr. Clarke’s Reformist Solution of an Enhanced Welfare State Fails to Abolish the Double Movement but Only Temporarily the Neoliberal Variety of Capitalism

Mr. Clarke’s solution of an enhanced welfare state is utopian in that such a solution has not and cannot address the fundamental features of a capitalist society. From George McCarthy (2018), Marx and Social Justice Ethics and Natural Law in the Critique of Political Economy, McCarthy, page 329:

Inquiring even further, Marx unearths the inherent logical flaw and historical tendency toward the overproduction and destruction of capital which makes the long-term prospects and continued viability of capitalist production highly questionable: rising organic composition of capital [rising value of machinery, raw materials, buildings, etc. relative to the amount of labour power employed], tendential falling rate of profit, intensification of labour exploitation, lengthening of the workday and expansion of labour time and constant capital (means of production), increased productivity of the machinery and technology of constant capital, growing disproportionality of capital development and rising surplus population, economic concentration and centralisation, growing disparity between capital accumulation and profit realisation, and, finally, functional stagnation and systems breakdown. Of course Marx … is aware that there is dialectic within the mode of production between logic and history, economic natural law and fundamental economic structures, and that these tendencies also encounter counteracting influences that may blunt for a time the necessary development of the logic of capital.

There is no indication in Mr. Clarke’s writings and presentations that he incorporates the aim of abolishing class relations characteristic of a society dominated by a class of employers into either his theory or his practice.

Mr. Clarke, by failing to address directly the exploitative nature of capitalist society, and by failing to integrate into his critique his recognition of economic coercion, in effect pushes into the far off future (never really ever to be attained) the creation of a movement for the abolition of capitalist relations of production, distribution, exchange and consumption. This is exactly what the social-democratic movements in the past did–and Mr. Clarke fails to recognize that his own solution does the same thing. 

Walter Streeck, by contrast, implies that there is a difference between an anti-neoliberal approach to capitalism and an anti-capitalist approach. An anti-neoliberal approach seeks to “embed” the capitalist economy in a network of social security structures that protect workers and citizens from the viciousness of a mainly capitalist market system. From Streeck (2009), Re-Forming Capitalism, pages 234-235: 

The socialization of capitalism, as it were, and its social-democratic organization were made possible not least by the enormous task of reconstruction after the devastations of the Second World War. For roughly two decades, capitalist accumulation could proceed without the “creative destruction” on which it normally depends, given the massive destructive destruction afflicted on the core capitalist regions by the war. Busy rebuilding the world, capitalism was able for a time to respect the desire of the period for predictably increasing prosperity for all, combined with security and stability. As early as the mid-1960s, however, open-ended demands for political protection and redistribution encouraged by progressive de-commodification of labor markets—in the form, above all, of a political guarantee of full employment—resulted in rising inflation (Fellner et al. 1961) hiding profound distributional conflicts (Hirsch and Goldthorpe 1978) and a widening mismatch between popular expectations and what a capitalist economy was able and willing to deliver. Temporarily strengthened by the worker revolts of the late 1960s, social democracy in the subsequent decade undertook to push to its limits and beyond a policy that regarded capitalism as a shared resource, a common pasture for society as a whole to be administered by expert technicians elected on a promise to provide for eternally growing prosperity-insecurity.

Today, we know that the problem of mainstream social democracy in the 1970s, with its strong belief in the power of democratic legitimacy and the efficacy of the modern state as an instrument of social control, was that it mistook capitalism for a neutral apparatus for the joint production of shared prosperity. Indeed, it did not take long for technocratic fantasies of capitalism as a politically governable “economy” to turn out to have been just that. Capitalist firms and those that own and run them can only for so long be treated as patient cogs in a collectively serviceable machine. Then, their true nature must come to the fore again, revealing them to be the live predators that they are, for which politically imposed social obligations are nothing but bars of a cage bound to become too small for them and for their insatiable desire for the hunt. In fact, by the end-1970s at the latest, capitalism had become determined to break out of the social-democratic stable into which it had been pressed after the war, being no longer willing and able to make do with the sensible but small servings of profit allowed to them by their political masters. Safe as life may have been under social-democratic tutelage, it also was boring, calling forth increasingly resolute efforts by capital to liberate itself and start a new cycle of accumulation, by expanding beyond the narrow confines of the neo-traditionalism of a social-democratic economy dedicated to the supply of fixed social needs.

Against all expectations, capitalism in the 1980s and 1990s recaptured its dynamic and once again became an unwieldy stochastic source of unplanned social and institutional change. As we have seen in the German case, the new dynamism, which for a variety of reasons soon gained the support of the very states and governments that only a short time before had aspired to be capitalism’s keepers, gradually began to undo the Durkheimian institutions that had been set up to tie capitalist accumulation to the discharge of social obligations. Capitalism redux began to absorb the slack that had been tolerated by the protected production regimes of the postwar period; migrated to new markets outside national control, pushed by domestic constraints and pulled by foreign opportunities; and did its utmost to empty the modern village of the welfare state, in its relentless search for new land to be subsumed under capitalist relations of production. Thus capitalism returned even though it had never really been gone.

Although the pandemic may have created some conditions that, to a certain extent parallel the devastating effects of the Second World War (such as the need for governments to intervene in the capitalist economy to a much greater extent–I will leave such an analysis to those more competent)–there are undoubtedly many differences, such as the organizational capacities of the working class immediately after the War and their organizational capacities in the current situation. Furthermore, having emerged from the War, the working class had military skills that could have posed a threat to the capitalist state. 

To expect that the working class could obtain the concessions from the capitalists that organized workers achieved in the aftermath of the Second World War to a certain extent achieved without threatening the foundations of capitalist society in the current situation is itself utopian; the class of employers have been on the offensive for several decades, as Mr. Clarke himself recognizes. From a post on Facebook (May 10, 2021), Mr. Clarke wrote: 

Matgyggatgatco S10p onsanoontetr 8elg:31d hlAM  ·    I spent more than three decades involved in anti-poverty struggles. During that whole time, the agenda of neoliberal austerity kept intensifying. Poverty and homelessness increased in scale. Social cutbacks deepened and had an ever more dreadful impact.

Let us assume, however, that Mr. Clarke and his social-democratic supporters achieve what they set out to achieve–an enhanced welfare state through struggle; let us assume for the moment that Mr. Clark’s aim of obtaining improved wages (not decent wages), improved social housing, pharmacare, dental care and so forth is realized. Employers may well, for a time, be satisfied with such a situation, but eventually they will likely, perhaps in a disorganized and individual fashion, attempt to bypass regulations associated with the welfare state–as they did when neoliberalism was just emerging. Would the welfare state be capable of withstanding such a move? Or perhaps Mr. Clarke believes that social movements and a renewed union movement could prevent such a move? Did they before the emergence of neoliberalism? What makes Mr. Clarke believe that they could do so now? Even if they could for the moment, would there not always be a threat of undermining previous gains?

Firstly, such a strategy has already been tried–during the post-Second World War period. It ended in the reversion to a more capitalist economy via neoliberalism. Unions and the social-democratic left, instead of constantly challenging the legitimacy of the class power of employers, accepted it. Mr. Clarke’s solution creates its own problems and its own negation–the double movement referred to above.

Furthermore, Mr. Clarke’s strategy fails to even address the dangers of a movement that only aims at reforming the class power of employers rather than abolishing that power. The emergence of more extreme far-right movements are always a threat as various classes and fractions of classes experience the ups and downs of the double movement.

Why not aim, from the very beginning, for a socialist society and hence the elimination of both the class of employers and classes in general? Or is that somehow utopian? If so, perhaps Mr. Clarke and his social-democratic brothers and sisters can explain how it is utopian.

Mr. Clarke’s Reformist Solution of an Enhanced Welfare State Fails to Address the Co-Optation of Radical Labour and Social Movements

Secondly, the Norwegian Marxist criminologist Thomas Mathiesen (1980) has this to say about the capacity of the present capitalist state to deal with radical leftist movements, Law, Society and Political Action: Towards a Strategy Under Late Capitalism, page 228 (what Mathiesen calls the “absorbent state” is a state that co-opts others):

The late capitalist social formation is, as we have seen, a distinctly absorbent social formation’. The question of contradiction therefore becomes especially difficult and especially important for revolutionary movements in this, our own social formation. The danger that the absorbent social ‘formation, through the process of defining in, will transform contradiction into accord, is especially great in this very absorbent social formation. The possibilities of yielding or deflecting are legion, and we have already given examples of how they become realities such as European social-democratic movements and eurocommunism. Maintaining contradiction, avoiding contradiction being transformed into accord, is the distinctive problem of the late capitalist social formation.

Frankly, it is naive to suppose that any movement whose aim is to challenge not just neoliberalism but capitalism must not deal with the capacity of the capitalist state to co-opt (absorb) such movements and transform contradiction into accord. Mr. Clarke does not even address this possibility.

I have shown the co-optation of part of the labour movement (especially the union movement) here in Canada, which often refers to “decent wages,” “decent work,” “fair contracts,” “fair wages” and the like (see for example Fair Contracts (or Fair Collective Agreements): The Ideological Rhetoric of Canadian Unions, Part One: The Canadian Union of Public Employees (CUPE)). Mr. Clarke does not address how we are to prevent such co-optation.

This failure itself contributed to the emergence of neoliberalism.

Mr. Clarke never really engages in any critical inquiry into how the union movement, by accepting collective bargaining as somehow fair, has contributed to defensive actions rather than offensive ones. The defensive status of the union movement was certainly a partial consequence of the acceptance of collective bargaining as fair. Part of the purpose of this blog has been to bring out such limitations of modern unions.

In addition, the union movement has also largely idealized public services, neglecting to engage critically with the often oppressive nature of such services (for an example, see The Expansion of Public Services Versus a Basic Income, Part Two: How the Social-democratic Left Ignore the Oppressive Nature of Public Services: Part One: Oppressive Educational Services). Mr. Clarke does not question the limitation of the labour movement in general and the union movement in particular.

Hence, Mr. Clarke’s own political position would likely feed into a neoliberal reaction since the “leftist” strategy would not directly and immediately begin to challenge the legitimacy of the existence of the class power of employers. Such reformist efforts, if cut off from efforts to abolish economic exploitation, economic coercion and economic oppression will likely be co-opted.

A proposed radical basic income, in conjunction with struggles on several fronts for improved and extended public services, could prevent such co-optation by maintaining an immediate or short-term contradiction or conflict between the interests of workers and employers (and not just a long-term contradiction or conflict of interests). Mr. Clarke’s strategy of an enhanced welfare state simply ignores the problem.

Conclusion

Mr. Clarke’s radicalism is a radicalism rooted in the continued existence of economic exploitation and economic coercion–despite appearances to the contrary. Mr. Clarke, although he recognizes the double movement characteristic of a society dominated by a class of employers, proposes a solution (an enhanced welfare state) that fails to solve the problems that arise from the persistence of such a double movement. Furthermore, his solution of an enhanced welfare state does not come to grips with the problem of how to prevent radical labour and social movements from being co-opted.

It would be better to propose radical solutions that, while incorporating any reforms that we can achieve in the near future (such as greater benefits from the capitalist government), point to a different kind of society, a society where human dignity is real. An enhanced welfare state is hardly an expression of such a kind of society. 

The Real World of the Rule of Law: Courts as Oppressive Organizations, Part Four: To Resist or Not to Resist the Police

Are You Arrested? The Ambiguity of Being Detained by the Police

When a police officer stops a citizen, an immigrant or a migrant worker, it may be understandably unclear whether s/he is arrested or not and what s/he can do or not do if stopped by the police. From McBarnet, page 36:

Arrest-that is, the detention of a person against his will-may be legally carried out only in relation to a specified offence. Otherwise attendance at the police station is purely voluntary. This is the spirit of the Judges’ Rules. Barry Cox ( I975) points out succinctly the gap between this ideology and practice:

Detention for questioning is therefore in theory impossible; in practice ‘helping the police with their inquiries’ is a daily event. (p. I72)

How is this possible? Partly because of the simple fact that if such arrest is impossible in theory it is nonetheless perfectly possible in law. Although they are much referred to as a symbol of legality, the Judges’ Rules are not law, only principles for administrative guidance. Authoritative law on arrest is rather different.

If a person is not arrested when stopped by the police, what can the person do? Can s/he just leave (apart from some exceptions–as when the police require a person to take a breathalyzer test)? Not really. They, of course, can try to leave, but the legal interpretation of such an act is rather tricky. From McBarnet, page 36:

For example, the voluntary nature of helping the police with their inquiries has been interpreted in law, to say the least, very widely. Consider the Scottish case of Swankie v. Milne in I973 which defines the current situation. This was deemed not only not to be an illegal arrest but not to be an arrest at all. The judges accepted that the police had stopped the accused in his car, taken his keys away, waited with him and would have prevented him from leaving if he had tried to. However, they concluded that the accused had remained voluntarily and had not therefore been arrested.

Furthermore, what if the police try to stop the person? What right does the person have in this case? Referring to the above case, From McBarnet comments, pages 36-37:

What their judgement would have been if he had tried to leave is unclear. But it is also an arrestable offence according to the 1964 Police Act to obstruct the police in the execution of their duty, and this has been interpreted as ‘the doing of any act which makes it more
difficult for the police to carry out their duty’ (Rice v. Connolly, I 966). What precisely that means remains an open question. Although Lord Justice Parker in the same case refuted the idea that refusing to answer questions, even allied with a generally obstructive and
sarcastic attitude, was not obstructing a policeman in his duty. Justice James made a point of noting that:

I would not go so far as to say there may not be circumstances in which the manner of a person together with his silence could amount to an obstruction within the section; whether it does remains to be decided in any case that happens hereafter, not in
this case, in which it has not been argued. (Rice v. Connolly, Ig66)

It becomes rather difficult to see how someone can avoid being arrested if the police have a mind to arrest him.

Doing anything that indicates resistance to the police can easily be interpreted as resistance of arrest–and guilt. From McBarnet, page 37:

Furthermore, refusing to co-operate is not a far cry from resistance, which is, of
course, an arrestable offence; nor is resistance far from another offence, assault.

Indeed, in court, resisting arrest tends to be presented by prosecutors as indicative of guilt and therefore a justification of the arrest on the first charge anyway. ‘Only the guilty take advantage of civil rights’ is the line taken.

A person stopped by the police, on the other hand, who does not resist arrest may be accused of being guilty for that very reason. From McBarnet, pages 37-38:

On the other hand, with the nice skill lawyers have of always holding the winning trick, failing to resist is also suspicious. Witness Case 8.

The prosecutor was suggesting that the accused must have been guilty or he would not have allowed himself to have been seized (uncharged) by two men (the police were in plain clothes) without resisting:

Prosecutor: You didn’t do anything?
Accused: I couldn’t.
Prosecutor: You didn’t say ‘What are you doing?’
Accused: No, it was all too quick.
Prosecutor: And no explanation was given at all?
Accused: No
Prosecutor: When did you gather they were policemen?
Accused: I asked them-they said they were taking me to the station.
Prosecutor: But why assume they were policemen? There are railway stations.

The same applies to friends who do not assist the accused. From McBarnet, page 37:

In his summing up the prosecutor considered it doubly suspicious that the accused’s companion had not fought off the two policemen if his friend was being innocently seized:

Prosecutor: According to his story, his companion made no protest while the accused was dragged out by two unknown men. This is quite incredible. He is clearly guilty of this charge.

The flip side of this catch-22 situation–damned if you do and damned if you don’t–is you may be accused of resisting arrest if you do aid someone detained by the police. From McBarnet, page 38:

The companion in question might, however, have been relieved that he had not intervened if he had heard the accused’s mother’s account of her night in jail charged with breach of the peace when she went to protest, or if he had witnessed Case 13:

Policeman: One youth ran towards us saying ‘What are you taking him in for? It’s a fucking liberty. He’s done fuck all!’ He was cautioned and charged with breach of the peace.

What if there is no ground for arrest, the police arrest the person and the person resists? The person can be charged and convicted of assault. From McBarnet, page 38:

In any case, the prosecutor’s argument was only about the credibility of the accused not the legality of the arrest. Indeed, in cases of resistance or assault, even if the arrest was unfounded and illegal it is still, in English law, ‘open to the jury to convict of common assault’ (Halsbury, 1g6g, vol. 25, p. 364) and the charge sticks even if the resister did not know the person seizing him was a policeman. In short, the law itself does not encourage standing on one’s right to freedom from arbitrary arrest.

The Social-Democratic Left and Criminal Law

What would the social-democratic or reformist-left say about this? They would likely repeat what the social democrat Herman Rosenfeld stated:

Shouldn’t that institution [the police] be thoroughly transformed, by political struggle, into a more humane, limited and less autonomous one?

Okay. How does Mr. Rosenfeld or other social democrats propose to do that? Frankly, I think that you should not hold your breath while waiting for a response. The article written by Mr. Rosenfeld from which this quote is drawn is dated May 4, 2020. I have searched on the Net to see if Mr. Rosenfeld has elaborated on this assertion since then; I have not been able to find anything at all written by him on the topic since his May 4 article.

This is just social-democratic rhetoric passing it off for something real; it is pretending to be something that it is not. It is fake social reform. Workers, citizen, immigrants and migrant workers hardly need such pretentious rhetoric. Mr. Rosenfeld has no real intention to lift a finger to formulate let alone implement a policy for police “reform.” I suspect that this applies to many other social-democratic or reformist arguments.

Indeed, when Mr. Rosenfeld, Jordan House and I were giving a course on union organizing and socialism for airport workers at Toronto Pearson airport, I mentioned that we workers at a brewery in Calgary had engaged in sabotage of the machines in order to have one foremen fired (he was pressing us constantly to produce more), I had the impression that Mr. Rosenfeld was uncomfortable in my stating this fact; he was probably afraid of challenging the beliefs of the workers. I could of course be wrong, but Mr. Rosenfeld’s lack of elaboration of how the police are to be transformed and reformed provides further evidence of my suspicion that he actually holds social-reformist views and that his socialist views take second place; this conclusion probably applies to many so-called socialists.

Furthermore, the title of his article from which the above quote is drawn expresses a hostility to the view that what is needed is the abolition of the police and not its reform:

Reform and transform: Police abolitionism and sloppy thinking

Such hostility to a politics of abolition by calling it “sloppy thinking” without engaging in any further inquiry also points to a social-reformist or social-democratic point of view.

Perhaps social democrats or social reformers can provide counterarguments to the above. I welcome such counterarguments–but I suspect that they will not provide any counterarguments.

If there are no counterarguments by the social-democratic or social-reformist left, does that not point to the need to abolish the police and the associated court system that is linked to it? Would not a people’s court and armed citizens be much more in the interests of workers than a separate police force and courts that engage, systematically, in oppressive measures against those who challenge social order? After all, as Mark Neocleous argues, the essential function of the police (and the courts by implication)–is to maintain social order of a society dominated by a class of employers–and not to administer social justice (see Reform Versus Abolition of the Police, Part 8: The Police and the Political Economy of Capitalism).

Conclusion

Workers, citizens, immigrants and migrant workers who are stopped by the police, even if they have not broken the law, could easily be arrested for refusing to comply with police officers’ instructions. On the other hand, complying with police officers’ instruction could also be used in a court of law against them. Such is the illogic of a system of justice within a society dominated by a class of employers.

You would not know it from the rhetoric of the social-democratic or social-reformist left, though. They provide little or no research to educate workers, citizens, immigrants and migrant workers on the real nature of the work of police officer and the real law as expressed in courts of law. Rather, they paper over the real nature of such social institutions with their empty phrases of transforming such institutions “into a more humane, limited and less autonomous” form.