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 paretheses).

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.

The Leap Manifesto as a Social-Democratic Document: Climate Change, Environmental Degradation, Indigenous Rights and the Perpetuation of the Dominance of a Class of Employers

Written before the coronavirus pandemic, The Leap Manifesto: A Call for Canada
Based on Caring for the Earth and One Another, produced by various authors in 2015, ranging from scientist David Suzuki to the former head of the Canadian Union of Public Employees (CUPE), Paul Moist, focuses on the need for the transition to a new kind of economy–a green economy. I will only address certain aspects of the Manifesto. If I should address further aspects in another post in the future, I will

It states:

We start from the premise that Canada is facing the deepest crisis in recent memory.

The Truth and Reconciliation Commission has acknowledged shocking details about
the violence of Canada’s near past. Deepening poverty and inequality are a scar on the country’s present. And our record on climate change is a crime against humanity’s future.

The Truth and Reconciliation Commission’s mandate was:

The TRC is a component of the Indian Residential Schools Settlement Agreement. Its mandate is to inform all Canadians about what happened in Indian Residential Schools (IRS). The Commission will document the truth of survivors, families, communities and anyone personally affected by the IRS experience.

Direct and Indirect Violence in Modern Society

The violence perpetrated by the Canadian government on Aboriginal peoples certainly needs to be addressed. However, violence has taken many forms in Canada’s past, such as the direct or indirect violence of the creation of a market for workers, who need to sell themselves to employers. The continued existence of a market for workers in Canada expresses the continued existence of such violence.

Direct violence in a society characterized by a class of workers who must sell their capacity to work on a market via a labour contract (whether individually or collectively) is reserved for a special institution: the modern government or the modern state. From Geoffrey Kay and James Mott (1982 ), Political Order and the Law of Labour, page 83:

One crucial presupposition of modern contract, which it then reproduces, is that both parties arc deprived of the right to act violently in defence of their own interests, or even to pardon those who harm them. In a society of equivalents relating to each other through contract, politics is abstracted out of the relations of production, and order becomes the task of a specialised body — the state.

The modern state or government ensures that the contractual relations of the workers and employers are met and that the property of each is respected. Since workers acquire property, generally, in means of consumption (food, clothing, rental of apartments or houses, buying of condos or houses, cars or other means of transport, entertainment, books, balls and games for their children, and so forth), they generally lack means for their own continued existence (such as business computers, buildings, machine and so forth. It is the employers who own these and not the workers.

Since workers in such a society (and Canada is such a society) are means to the ends defined by employers (see The Money Circuit of Capital), and treating human beings as a means rather than their own ends (think of children and what most people say about treating children’s development as an end in itself–and then apply the same idea to adults) is a violent act, then employers’ treatment of workers as means is a continuously violent act, and the modern government or state protects such violence and indeed monopolizes the use of direct violence and thereby perpetuates the violence of employers.

Does the Manifesto have anything to say on this score? Following the above citation from The Leap Manifesto, it says:

These facts are all the more jarring because they depart so dramatically from our stated values: respect for Indigenous rights, internationalism, human rights, diversity, and environmental stewardship.

These may be the stated values, but Canadian reality has consistently contradicted such stated values. In general, such stated values are hypocritical. Consider human rights. Human rights in Canada are consistent with treating workers as things by employers (see Employers as Dictators, Part One). I will address the issue of “environmental stewardship” briefly in the following section.

Goals of The Leap Manifesto

What is the goal of The Leap Manifesto?

Canada is not this place today — but it could be. We could live in a country powered entirely by truly just renewable energy, woven together by accessible public transit, in which the jobs and opportunities of this transition are designed to systematically eliminate racial and gender inequality. Caring for one another and caring for the planet could be the economy’s fastest growing sectors. Many more people could have higher wage jobs with fewer work hours, leaving us ample time to enjoy our loved ones and flourish in our communities.

There are several points here:
1. truly just renewable energy
2. accessible public transit
3. jobs that systematically eliminate
a. racial inequality
b. gender inequality
4. Caring for the planet
5. Caring for one another
6. Higher wage jobs
7. Work fewer hours
8. Time to enjoy our loved ones
9. Time to flourish in our communities.

Some of these demands seem reasonable. Who would not want higher wage jobs?  (I will come back to this.) Who would not want to work fewer hours while having the time (and money) to enjoy our lives with family, friends and flourish within a community? Who among the left at least would not want the elimination of racial and gender inequality?

Environmental Degradation a Necessary Feature of a Society Dominated by a Class of Employers

This is contradictory list. Even on the assumption that racial and gender inequality could be eliminated, as I have already indicated, a caring planet and a capitalist economy are mutually exclusive (see  The British Labour Party’s 2019 Manifesto: More Social Democracy and More Social Reformism, Part One). Of course, there is room for improving the current environmental situation through changes to more renewable resources, but the infinite nature of the capitalist economy contradicts any real solution to the problem of environmental degradation. The idea of “environmental stewardship” within a capitalist society is an illusion.

How urgent is the need for addressing climate change and environmental degradation, according to the Manifesto?

We know that the time for this great transition is short. Climate scientists have told us that this is the decade to take decisive action to prevent catastrophic global warming. That means small steps will no longer get us where we need to go.

This plea for rapid change, of course, will now be put on the back burner because of the coronavirus pandemic and the ensuing economic crisis that will flow from it.

The Manifesto outlines the following timeline:

…we want energy sources that will last for time immemorial and never run out or poison the land. Technological breakthroughs have brought this dream within reach. The latest research shows it is feasible for Canada to get 100% of its electricity from renewable resources within two decades: by 2050 we could have a 100% clean economy.

Even on the assumption that Canada can shift to 100% clean energy by the year 2050, as the Manifesto claims, environmental degradation will continue since it will always be necessary to expand the economy infinitely. Climate change may be addressed (although, in addition to the problems associated with the coronavirus pandemic, there are powerful capitalist interests in the fossil-fuel industry), but not environmental degradation due to the nature of the capitalist economy. The Manifesto simply ignores this problem.

Unless the social relations that characterize an economy that moves towards infinity is addressed, caring for the planet is simply a will-o’-the-wisp.

Indigenous Rights and the Modern Government or the Modern State

The Leap claims:

So we need to leap.

This leap must begin by respecting the inherent rights and title of the original caretakers of this land. Indigenous communities have been at the forefront of protecting rivers, coasts, forests and lands from out-of-control industrial activity. We can bolster this role, and reset our relationship, by fully implementing the United Nations Declaration on the Rights of Indigenous Peoples.

Moved by the treaties that form the legal basis of this country and bind us to share
the land “for as long as the sun shines, the grass grows and the rivers flow,”

Although, as Mark Franke (2007) argues, in “Self-determination Versus the Determination of Self: A Critical Reading of the Colonial Ethics Inherent to the United Nations Declaration on the Rights of Indigenous Peoples,” in Journal of Global Ethics, Volume 3, issue 3, pages 359-379, that the adoption of the Declaration undoubtedly aids in the recognition of indigenous grievances, he also argues that the definition of self permitted through the Declaration would limit indigenous peoples to definitions of self characteristic of liberal societies. Such enabling and constraining features are characteristic of many liberal capitalist states (Francesca Merlan (2009), “Indigeneity: Global and Local,” in the journal Current Anthropology, Volume 50, Number 3, pages 303-333). As Franke remarks (page 375):

The human rights discourse of the UN itself is based inmaking a division between, on the one hand, those peoples who are seen as peace-loving social units willing and capable of supporting a specific vision of human need and rights and willing and capable of supporting the state as the necessary mechanism through which these needs and rights may gain address and, on the other hand, those who are unwilling or incapable of either. The whole notion of self privileged in the UN’s vision of self-determination is predicated on its contrast to a class of groups who do not seek identity with the human self idealised within its ethic. As Farid Samir Benavides Vanegas contends, the globalisation of rights remains deeply trapped in a colonial outlook (Vanegas 2004). As a result, peoples in the world who seek to determine themselves in ways that do not accord with the UN vision of peace, security, and human rights are not even eligible for recognition as selves. They could not be seen to identify with the human self valorised within the UN project; they can be only different from the self.

If it is the case, then, that any indigenous peoples wish to engage in processes of self-determination that questions the validity of the state as the fundamental organising
principle for their lives and the lives of all other peoples on earth, on the basis of the Declaration, there is no room for them to be recognised as groups deserving of the rights set out in the document or as groups that may be recognised as selves in the world. Under the basis of this document and the ethic of self that propels it, indigenous peoples have no opportunity to be identified as peoples with genuine moral claims on the states and international organisations of this world, if they choose to express their interests in ways outside of the modern political vision of self, which is itself a product of colonialism.

The Manifesto assumes the legitimacy of the modern state or government, and such an acceptance often goes hand in hand with acceptance of the continued existence of a class of employers. (For a critique of the nature of the modern government or state, see for example, The Poverty of Academic Leftism, Part Seven: The Idealization of the Nation State or the National Government and Nationalization in the Wake of the Coronavirus Pandemic, Part Two, or  Socialism, Police and the Government or State, Part One).

The Leap’s Assumption of the Continued Existence of a Class of Employers

In addition to ignoring the direct and indirect violence of modern class society, the necessary degradation of the environment in a capitalist context, and the necessary limitations imposed on Aboriginal self-determination, the Leap Manifesto fails to criticize the essential nature of the economy in which we live. It states, as noted above:

Many more people could have higher wage jobs with fewer work hours….

Higher wages–rather than the abolition of a system based on wages, with the class of employers abolished in the process–this is one of the goals of the Manifesto.

It may seem that the Manifesto goes further. It says:

As an alternative to the profit-gouging of private companies and the remote
bureaucracy of some centralized state ones, we can create innovative ownership
structures: democratically run, paying living wages and keeping much-needed revenue in communities.

However, in another part of the Manifesto, it states:

We call for an end to all trade deals that interfere with our attempts to rebuild local
economies, regulate corporations [my emphasis] and stop damaging extractive projects.

Companies can only be regulated if they exist–and presumably such companies will still involve a class of employers. There is simply no direct expression of the need to eliminate the class of employers and the associated economic, political and social structures.

It may also appear that the Manifesto, by proposing a universal basic income, is advocating the abolition of classes:

Since so much of the labour of caretaking – whether of people or the planet – is currentlyunpaid, we call for a vigorous debate about the introduction of a universal basic annual income. Pioneered in Manitoba in the 1970’s, this sturdy safety net could help ensure that no one is forced to take work that threatens their children’s tomorrow, just to feed those children today.

I too have advocated for a universal basic income (see, for example,  A Radical Basic Income as a Radical Reform). However, it is not to be part of a “sturdy safety net” but to breach a hole in the need for working for an employer in general–a threat to the power of employers as a class; such a breach would require widespread class struggle–something which the Leap Manifesto simply ignores. Economic coercion is necessary in a capitalist society–as John Clarke, a former activist in the organization Ontario Coalition Against Poverty admitted (see  “Capitalism needs economic coercion for its job market to function” (Ontario Coalition Against Poverty: OCAP). 

The document is a hodge-podge of proposals, some of which may be attained within a system dominated by a class of employers (such as higher wages, self-determination by Aborginal peoples as defined by nation states and even, perhaps, “clean energy” (although that is debatable). Other proposals cannot be realized within the modern class system–abolition of the direct violence of the modern state and the indirect violence of the dictatorship of employers; environmental degradation; and the definition of self-determination that goes beyond the limits of the modern state.

The proposal of a basic income could be accommodated within the capitalist system, or it could be more radical, threatening the existence of a market for workers. Since the Manifesto nowhere explicitly opposes the class power of employers, it is likely that it proposes some form of basic income that is consistent with the continued existence of a market for workers, where workers are hired and fired by employers.

Another piece of evidence that the proposal of basic income is likely consistent with the continued existence of a market for workers is who signed it: Paul Moist. As I pointed out above, he was former national president of the Canadian Union of Public Employees (CUPE); he retired in 2015–the same year as the publication of the Manifesto.

I met, I believe, Mr. Moist in 1996, in Winnipeg, Manitoba, Canada. The issue of “fair collective bargaining” had come up. Susan Thompson, who was mayor of Calgary at the time, wanted to break the collective agreement between the city and CUPE local 500; she  tried to have Gary Filmon (premier of Manitoba, Canada) support her attempt to breach the collective agreement. Paul Moist, at the time head of CUPE local 500 outside workers in Winnipeg, called out the slogan “A contract is a contract,” in opposition to Susan Thompson’s underhanded attempt; it was a wise tactical move on Moist‘s part since people supported him in what they perceived was an unfair act by Susan Thompson.. At the time, I belonged to a leftist group called New Directions. Mr. Moist came to one of the meetings, and I asked him whether he considered the slogan to be a tactical move or whether he believed in it. His response was that the foundation of our society is contracts; he evidently believed in the slogan.

Furthermore, Mr. Moist is a supporter of the New Democratic Party–a social-democratic party whose aim is to reform capitalist society, making it more of a welfare state than the current neoliberal model.

All in all, then, the Leap Manifesto falls far short of any real call for change. Its “leap’ is indeed a leap–at a frog’s pace rather than at a human pace. It is a social-democratic or social-reformist document.

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

Introduction

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

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

The Nature of the Rate of Exploitation

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

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

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

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

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

Conclusions First

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

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

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

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

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

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

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

Data on Which the Calculation Is Based

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

Now, the calculation:

In millions of Canadian dollars:

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

Total revenue 15,073

Operating Expenses

Operating Costs

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

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

Total operating expenses 11,488
Finance costs 840

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

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

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

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

Adjustments

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

Adjustment of Stock-Based Compensation

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

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

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

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

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

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

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

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

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

Adjustment of Finance Costs

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

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

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

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

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

That leaves $22 million for Finance Costs so far. 

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

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

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

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

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

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

Accordingly, adjusted Finance Costs are:

Adjusted Finance Costs

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

Total finance costs 22

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

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

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

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

So, with the adjustments in place:

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

The Rate of Exploitation

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

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

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

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

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

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

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

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

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

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

Legislative and Administrative Processes as Inadequate to Protect Workers

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The Monster Pandemic

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

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

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

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

The final section outlines some immediate solutions:

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

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

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

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

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

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

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

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

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

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

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

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

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

Or do we deserve less than this?

 

The Rate of Exploitation of Workers at Air Canada, One of the Largest Private Employers in Canada

The following applies to Air Canada workers before the COVID-19. The situation undoubtedly has changed since then since the airline industry has suffered disproportionately an economic crisis relative to some other industries (such as food production).

In another post, I presented the twenty largest employers in Canada according to level of profit (see A Short List of the Largest Private Employers in Canada, According to Profit). One of those employers is Air Canada, a privatized airline company (that used to be under public ownership).

I have tried to calculate the rate of exploitation of workers of Magna International in an earlier post (see The Rate of Exploitation of Workers at Magna International Inc., One of the Largest Private Employers in Toronto, Part One); Magna International is one of the largest employers in Toronto.

I 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

I am going to begin with a conclusion, and then explain what it means and how it is calculated so that the reader understands where I am headed in the calculations:

For every hour worked that produces her/his wage, a worker at Air Canada works around an additional 42 minutes for free for Air Canada.

In a 6-hour work day, the worker produces her/his wage in about 3.5 hours and works 2.5 hours for free for Air Canada. 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 (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 about 5 hours 36 minutes and works for 2 hours and 24 minutes free for Air Canada.

In a 12-hour day, the worker produces her/his wage in about 8 hours 24 minutes and works for free for 3 hours 36 minutes for Air Canada.

Of course, social democrats refer to this situation, in one way or another, as “fair.” They do so by using such terms as “fair contract,” “free collective bargaining,” “fairness,” “economic justice,” “good contract,” “decent work,” “companies paying their fair share of taxes” and similar rhetoric. Such rhetoric, rather than enlightening workers about their situation, actually hide it. The working class deserves better than this ideology.

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.

How I Calculated the Rate of Exploitation of Air Canada Workers

I calculated the conclusion as follows:

The income statement is broken into the following categories for 2019 (in millions of Canadian  dollars) :

Total revenue: $19,131
Total operating expenses: $17,481

Wages, salaries and benefits: $3,184
Aircraft fuel: $3,862
Regional airlines expense:

Aircraft fuel: $485
Other: $1,95

Depreciation and amortization: $1,986

Aircraft maintenance: $1,004

Airport and navigation fees: $990

Sales and distribution costs: $874

Ground package costs: $627

Catering and onboard services: $445

Communications and information technology: $397

Other: $1,671

Operating income: $1,650
Non-operating income (expense) [if it is income according to standard accounting practices, it has no parentheses; if it is an expense, it is within parentheses and needs to be subtracted–but see below): $125

Foreign exchange gain (loss): $499
Interest income: $164
Interest expense: ($515)
Interest capitalized: $35
Net financing expense relating to employee benefits: ($39)
Gain (loss) on financial instruments recorded at fair value: $23
Gain on debt settlements and modifications: $6
Gain (loss) on disposal of assets: $13
Other: ($61)

Income before income taxes: $1,775 (adding operating income and non-operating income (expense) together)

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.

The adjusted “Income before income taxes” therefore is: ($1775 +$515)=$2,290 (interest capitalization has already been added to income so there is no need to add it here).

Another necessary adjustment relates to the category and amount “Net financing expense relating to employee benefits: ($39)”. Pension-related expenses should probably form part of wages and hence should be shifted to “operating expenses.” This shift does not change the surplus value produced nor the “Income before income taxes” category; it just changes the distribution of expenses, from “Non-operating income (expense) to “Total operating expenses” by way of increasing the category “Wages, salaries and benefits” by $39; the category “Wages, salaries and benefits” are therefore $3,223.

The final calculations with adjustments before determining the rate of surplus value are:

Total revenue: $19,131
Total operating expenses: $17,520
Operating income: $1611
Non-operating income: $640
Income before income taxes: $2251

To calculate the rate of surplus value, we need to relate “Income before income taxes” to “Wages, salaries and benefits.” So, with the adjustments in place:, s=2251; v=3223. The rate of exploitation or the rate of surplus value=s/v=2251/3223=70%.

That means that for every hour worked that produces her/his wage, a worker at Air Canada works around an additional 42 minutes for free for Air Canada.

In a 6-hour work day, the worker produces her/his wage in about 3.5 hours and works 2.5 hours for free for Air Canada. 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 about 5 hours 36 minutes and works for 2 hours and 24 minutes free for Air Canada.

In a 12-hour day, the worker produces her/his wage in about 8 hours 24 minutes and works for free for 3 hours 36 minutes for Air Canada.

I have used the lengths of the working day as 6, 8 and 12 because the length of the working day varies. According to one source:

As a customer service agent, you ll work from 3:00 am, 4:00 am and 5:00 am morning shifts, or 11:00 am, 12:00 pm, 2:00 pm. Afternoon shifts. Not sure about night shifts as I never work any of them. Part time is 6 hrs per day and full time can be 8-16 hrs. per day. You can exchange shifts, give away shifts, trade, pick or even parcial shifts. That part helps a lot when you need a day or 2 off.

Social-Democratic Rhetoric Neglects the Wider Context that Reveals the Exploitation of Workers

Of course, social democrats refer to this situation, in one way or another, as “fair.” They do so by using such terms as “fair contract,” “free collective bargaining,” “fairness,” “economic justice,” “good contract,” “decent work,” “companies paying their fair share of taxes” and similar rhetoric. Such rhetoric, rather than enlightening workers about their situation, actually hide it. The working class deserves better than this ideology.

By neglecting the fact of exploitation, other social democrats draw incorrect political conclusions. Thus, there are social democrats who try to claim that we need to reform the police rather than abolish it (see, for example, Reform versus Abolition of Police, Part Two) because workers have property. Some workers in the more developed capitalist countries do indeed have property (and fewer, of course, in the less developed capitalist countries), but they obtain that property by being exploited in the first place. If they understood that, would they support the police, whose main function is to protect the power of the employer to exploit them (and, only secondarily, to protect them and their own property)?

If the above calculations can be improved in any way, please comment on the above. I have been unable to find many guideposts about how to calculate the rate of exploitation or the rate of surplus value at the level of particular companies.

Working for an Employer May Be Dangerous to Your Health, Part Five

Injuries, disease and death are the common experiences of many Canadian workers–and undoubtedly workers in all countries dominated by the power of a class of employers. This is so since, on the one hand, profit is the driving force of human life in such societies (see  The Money Circuit of Capital for an explanation of this). On the other hand, workers in such a society are themselves costs, on the same level as the machinery, buildings, computers, raw material and other objects they use to produce commodities. The pandemic has shown this, unfortunately, to be the case, especially in the United States, as workers have been sacrifice in order to open up an economy dominated by a class of employers. 

Even apart from the pandemic, the fact that human beings are both living beings and self-conscious living beings is used by the class of employers in order to obtain as much profit as possible in the shortest possible time. To do so involves a reduction in the costs of production by reducing the number of workers or by reducing the costs of the means of production. By intensifying work through the reduction of the number of workers to the bare minimum, employers produce conditions that can easily result in injury, disease or death. By focusing on cutting costs to the maximum by, for example, not purchasing necessary safety equipment, employers also produce conditions that can easily result in injury, disease or death.

This situation is not generally recognized by capitalist governments or states. The sacrifice of workers for the benefit of the class of employers is often hidden–with the implicit or explicit collusion of the capitalist government or state. Thus, Bob Barnetson points out, in The Political Economy of Workplace Injury in Canada, page 173:

The purpose of this book was to examine how Canadian governments prevent and compensate workplace injury, who benefits from this approach, and how they benefit. The first four chapters suggest that governments do a poor job of preventing injury. The use of ineffective regulation appears to represent intentionally prioritizing profitability over safety. And the state has contained the ability of workers to resist this agenda by shaping the discourse around injury and the operation of these systems. Examining injury compensation reveals how seemingly neutral aspects of claims adjudication and management financially advantage employers and limit the ability of workers to resist unsafe work.

Together, this analysis suggests that the prevention and compensation of workplace injuries are not solely technical or legal undertakings, but intensely political ones that entail serious consequences — most often for workers. This conclusion is quite upsetting. But the facts are difficult to dispute. Whatever the drawbacks of Canadian injury statistics, they demonstrate that hundreds of thousands of workers are injured each year on the job. This raises two fundamental questions. First, why are so many seriously injured every year? And, second, why don’t governments do something about it?

Unions, of course, do seek to protect workers from the more vicious forms of health and safety violations. However, although the intentions of union reps may be praiseworthy, should we not wonder why they fail to question the basic source of injuries, disease and death in workplaces in modern society: the existence of a class of employers that uses human beings as means for purposes not defined by those who work?

All radicals should ask union reps the same questions: “First, why are so many seriously injured every year? And, second, why don’t governments do something about it?” They should also ask them: Why do union reps use such clichés as “decent work,” “fair contracts,” “economic justice,” “fairness,” “fair labour laws save lives” when the situation workers face, whether unionized or non-unionized, is indecent, unfair and unjust–a situation that leads to so many injuries, diseases and deaths?

 

 

Co-optation of Students at School Through We Day, Part Two: The Social-Democratic Left Share Some of We Day’s Assumptions

In a previous post, I outlined how We Day is a form of indoctrination and that schools form vehicles for such indoctrination. What is the social-democratic left’s position in relation to  this indoctrination and its incorporation into schools?

I already mentioned the Manitoba Teachers’ Society (MTS) decision not to promote We Day since some of the corporations that sponsor the event act in contradiction to some of We Day’s professed principles (perhaps, by way of example, Cadbury’s use of cocoa produced with child labour from Ghana). MTS writes:

MTS Bows Out of We Day

The Manitoba Teachers’ Society will no longer be involved in promoting or participating in We Day events.

Delegates to annual meeting agreed with a recommendation from the organization’s Equity and Social Justice Committee and provincial executive.

“The Manitoba Teachers’ Society model of social justice is not reflected in We Day,” the resolution said. “We Day doesn’t promote, support or include a model of social justice that the Society identifies as effective in advancing social change. We Day is more of a charity model that doesn’t address the roots for systemic inequity.”

We Day is a yearly concert and speaker series attended by tens of thousands of students in Canada, the U.S. and Britain.

In recent years it has attracted controversy because of the number of corporate sponsors involved in the events. Some of those sponsors have been accused of actions in other countries that run counter to the messages on which We Day is based.

The decision by delegates does not extend to the involvement of schools and students. In the past, both MTS staff and elected officials have promoted and been participants in We Day.

Would MTS, however, have decided to not support We Day if all the sponsors were consistent with the professed principles of the creators of We Charity, Craig and Marc Kielburger? It is difficult to say, but since they consider a charity model to be insufficient to address the problem of systemic inequity, they would presumably still oppose the model characteristic of We Day. When I searched for the meaning of “systemic inequity” on their website, the only hit that came up with that term was–the item on We Day. (Replacing “equity” by “equality” resulted in zero hits.) Hence, the reader of their site cannot determine why specifically they do not support We Day. This vagueness prevents a reader from determining whether MTS’s position is reasonable in diverse social contexts, such as systemic racism, systemic sexism, systemic ignoring of the power of employers as a class, and so forth.

When I searched The Elementary Teachers’ Federation of Ontario (ETFO) website for “We Day,” I found zero hits. Nonetheless, I did find some hits when I searched using “Kielburger”–the surname of the founders of WE Charity and organizers of We Day held annually at many schools throughout Canada, the United States and elsewhere. Some of the material refers to Craig Kielburger as a model “hero,” as an example of a person who has made a difference, and a “high” recommendation of the book Take Action! A Guide to Active Citizenship by Marc and Craig Kielburger for activism advocacy.

For the many students who attend We Day, the vague reference to “systemic inequity” and the idealization of the Kielburgers as persons and as activists will probably confuse more than enlighten.

Lisa Howell, in an article written in 2015 “A parent & teacher’s reflections on “WE DAY”
how can a social movement feel so meaningless,” expresses her contradictory experience of expecting an inspirational day while attending We Day in Ottawa and experiencing a consumerist and anti-environmental day.

This contradiction between rhetoric and reality should not, however, surprise anyone who understands the nature of capitalist relations at work. In The Money Circuit of Capital, the end of the process of obtaining more money (the goal of private employers) results in more money in relation to the initial process but in itself it is merely a sum of money. To become capital, both the principal and some of the profit must be invested if the employer is to continue to function as an employer (since otherwise competition from other employers will result in being undercut and eventually going bankrupt). This whole process is infinite and can never be reached–it is a goal that can never be satisfied–the infinite process of the accumulation of capital.  How much money is enough? Never enough.

To state it differently: the birth of capital is simultaneously its death; consequently, the being of capital is a process that is only through it always reaching beyond itself.

In a finite world characteristic of the environment, capital is contradictory. There must be a contradiction between the environment and the nature of capitalist social relations. To resolve this problem requires surpassing this infinite process of capital accumulation. It requires a socialist society.

The Kielburgers, as seen in the first part of this two-part series of posts, do not question the legitimacy of this infinite process. They revel in it when they refer to “corporate and social responsibility.” The solutions which they offer, at best, a slight reduction in the impact that this accumulation process has on human beings, on human life and on the environment. Since they fail to question the legitimacy of the process of the process of capital accumulation, their solution actually diverts attention away from the pressing need to go beyond this accumulation process if the problems of child labour, poverty and environmental destruction are to be resolved.

The social-democratic left do seem to object to We Day on occasion. Thus, Molly McCracken, Manitoba director of the social-democratic Canadian Centre for Policy Alternatives, wrote a short article published online at Rabble.ca (We Day Sidesteps the Real Issues of Child Poverty). She points out the bias of We Day of pandering to corporations, who get free publicity and appear to be socially responsible. The problem of child poverty, she points out, is not addressed in such a forum.

However, let us look at some of the Canadian Centre for Policy Alternatives’ own attitude towards corporations. I did a search, using the terms “fair share taxes.” Several hits came up, with such titles (and dates) as:

  • Demanding a Fair Share (July 20, 2017)
  • Replacing MSP with fair taxes would mean savings for most BC families: economist (July 6, 2016)
  • Change in direction on tax policy needed to escape budget crunch, ensure high-income British Columbians and corporations pay fair share: study (January 29, 2013)
  • A decade of eroding tax fairness in BC (June 30, 2011)
  • Fair Shares (April 27, 2011)
  • Canada’s rich not contributing fair share in taxes: study (November 8, 2007)

The criticism of corporations is restricted to the level of taxes that they pay. Neoliberal governments have reduced corporate taxes and taxes on the rich unfairly whereas the rest of the Canadian population has to pay a disproportionate (and unfair) level of taxes relative to the corporations and the rich.

The implication is that if progressive taxes are re-instituted, then fairness will be realized. This is a social-democratic  point of view, of course. One of the strategies of he social-democratic point of view is to focus on distribution after it has been produced and to disregard the process by which it has been produced (and, when it does focus on the process of production, it neglects the issue of the whether workers are free or not by using such cliches as “good jobs,” “decent work,” “fair contracts” and the like).

This does not mean that the left should not criticize skewed tax policies–but why do they simultaneously do so by implying that a change in tax policies will somehow magically convert the social world into a fair world? If corporations were to pay their “fair share,” then they should have the right to dictate to workers what to do, when to do it and how to do it, should they not? Would child labour, poverty and environmental destruction end if corporations paid their “fair share.”

This idea of “fair share” forms another cliche that the social-democratic left use to hide the reality of the social dictatorship that prevails when working for an employer.

What does the Canadian Centre for Policy Alternatives mean by “fair share” of taxes? Presumably the following (from the above 2007 article):

The study finds the top 1 percent of families in 2005 paid a lower total tax rate than the bottom 10 percent of families.

“Canada’s tax system now fails a basic test of fairness,” says Marc Lee, senior economist with the CCPA’s B.C. office and author of the study. “Tax cuts have contributed to a slow and steady shift to a less progressive tax system in Canada.”

Paying a fair share of taxes would then mean that the bottom 10 percent of families would pay a lower tax rate than the top 1 percent of families. As long as this is the case, then We Day promoters would then be justified in having corporate sponsors for the event. Of course, some may object that some sponsors may still contradict the principles of We day, but assuming that no corporation exploited child labour (for example), would the social democrats then criticize We Day? Presumably not. They believe, implicitly, that there can be such a thing as corporate fairness and corporate responsibility–just like the Kielburgers. Social democrats and neoliberals share certain assumptions together.

The social-democratic left cannot deal with the contradictory nature of the society in which we live; their inadequate way of dealing with We Day illustrate their inadequate capacity for dealing with this contradictory society.  They either vaguely refer to “systemic inequity,” or they find their expectation and reality contradictory, or they imply that as long as corporations pay their “fair share” of taxes, then We Day should be supported.

Since the social-democratic left cannot deal adequately with the nature of We Day, it is necessary to go beyond their point of view–to a socialist point of view, where the intent is to overcome the infinite process of the accumulation of capital and its corresponding conflicts, struggles and contradictions.

What of the radical left? As far as I can tell, they are, at least in Toronto (and probably elsewhere) oblivious to We Day and the extent to which students in schools are bombarded with employer ideology through such events. The radical left here in Toronto does not even bother to engage in ideological struggle; it accepts such ideologically loaded phrases as “decent work,” “a fair contract,” “fair labour laws,” and so forth.

What is the social-democratic left like where you live? The radical left?

 

Co-optation of Students at School Through We Day, Or School Indoctrination, Part One

I thought it appropriate to post a couple of comments on WE in light of the WE scandal. Justin Trudeau, prime minister of Canada, supported WE, and his wife personally participated in it–and his mother was paid by WE. However, rather than looking at the scandal, it is better to look at WE itself since, from my personal observations, school bureaucrats and many school employees, including teachers, accepted the hype from WE without any critical distancing or investigation of its nature.

We Day is an event promoted in many schools in the more developed capitalist world, organized by We Charity. It is supposed to be an effort to energize students in such countries to change the world and to make it a better place through performing acts of social justice.

The website for We day has the following to say (We Day Website):

WE Day is the manifestation of the WE movement: an unparalleled celebration of young people and educators who have made a difference. Held in over 15 cities across the United States, Canada, the UK and the Caribbean, the event series features an inspiring line-up of world-renowned speakers, award-winning performers and real-world stories of change. You can’t buy a ticket —you have to earn your way. All it takes is one local and one global action through WE Schools.

Wow. Does this not sound encouraging?

There is further information about We Day for Toronto in September, 2019:

 Click here to apply for media accreditation to attend WE Day 
 WE Day Toronto is free to thousands of students and teachers thanks to partners led by National Co-Title Sponsors RBC and TELUS 

TORONTOSept. 12, 2019 /CNW/ – Today, WE Day, the greatest celebration of social good, announces the initial dynamic lineup set to hit the stage at WE Day Toronto taking place at Scotiabank Arena on September 19, 2019. Held in 15 cities across North America, the U.K. and the Caribbean, WE Day Toronto will unite 20,000 extraordinary students and teachers who have made a difference in their local and global communities. Together they will enjoy a day of unforgettable performances and motivational speeches with WE Charity co-founders Craig Kielburger and Marc KielburgerEmilio EstevezRupi KaurSarah McLachlanNoah SchnappDavid SuzukiTegan and Sara and more to be announced in the coming days.

“We can achieve so much more together than we can alone and knowing that we’re a part of something bigger than ourselves is a great feeling,” said singer-songwriter, Sarah McLachlan. “Every student and teacher at WE Day is making a difference on their own, but when they come together under one roof, you can feel the massive impact of their collective efforts. I’m proud to be a part of such a powerful movement of change.”

More than a one-day event, WE Day is connected to the free, year-long service learning program WE Schools. Designed to enhance a school or community’s existing social initiatives or spark new ones, WE Schools provides teachers with educational resources and action campaigns to encourage students to further their curricular learning and develop life skills to succeed beyond the classroom. In the 2018/2019 school year, over 6,920 schools and youth groups along with 8,125 educators across Ontario improved the world through WE Schools, creating socially innovative solutions to some of today’s most pressing issues. Through WE Schools students and teachers volunteered over 1.7 million hours creating an estimated social impact value of more than $45 million in support of global and local causes including hunger, poverty, bullying, well-being, access to education and access to clean water in communities around the globe.

“The youth at WE Day are at the forefront of change. They are committed to tackling some of the largest issues the world has ever faced; including bullying, climate change, and mental well-being, to name a few,” said WE Charity co-founder, Craig Kielburger. “WE Day demonstrates how important it is to empower our youth to be leaders of change by providing them with the tools and resources they need to chase their dreams—both in the classroom and out in their communities. We are honoured to celebrate the efforts of the next generation and we can’t wait to once again commemorate their incredible achievements at WE Day Toronto.”

The initial list of WE Day Toronto speakers, presenters and performers in alphabetical orderannounced to date, include:

  • Appearances by: Nav Bhatia, Celebrity Marauders, Jessi CruickshankMaddy DimakosTyrone EdwardsEmilio EstevezMohammed FaizyJordan FisherSarain FoxConnor FrantaReina FosterJacob Grosberg, Jade’s Hip Hop Academy, Theland KicknoswayCraig KielburgerMarc KielburgerAiden LeePenny OleksiakJames OrbinskiJenna Ortega, Dr. Pamela Palmater, Marissa Papaconstatinou, David Patchell-Evans, Regent Park School of Music, Navia RobinsonNoah SchnappWali ShahDavid SuzukiMaddison ToryAlia YoussefSpencer WestChloe Wilde

  • PerformersScott HelmanRupi KaurSarah McLachlan, SonReal, Tegan and Sara

WE Day is free of charge to teachers and students across Canada thanks to the generous support of partners led by National Co-Title Sponsors RBC and TELUS. This means students can’t buy a ticket to WE Day Toronto— educators and youth from across the province earn their way by taking action on one local and one global issue of their choice.

WE Day magic continues beyond the day through WE Day Connect, a free 60-minute interactive online event taking place on October 8, 2019.

WE Day is supported in Toronto by Co-Chairs Kris Depencier, Regional President, Greater Toronto, & Vice President, Personal Lending and Client Strategies, RBC; Sarah Davis, President, Loblaws Companies Limited; and Jon Levy, Chief Executive Officer, Mastermind Toys. WE Day is supported nationally by Co-Chairs, Darren Entwistle, President & Chief Executive Officer, TELUS; Jennifer Tory, Chief Administrative Officer, RBC; Chief Perry Bellegarde, National Chief, Assembly of First Nations; Mark Dervishian, Chief Operating Officer, Ardene; Nelly Furtado, Canadian Singer/Songwriter; Jeffrey Latimer, President, Jeffrey Latimer Entertainment; Elio Luongo, Chief Executive Officer, KPMG Canada; The Honourable David C. Onley, Former Lieutenant Governor of OntarioBill Thomas, Chairman Elect, KPMG International & Chair, KPMG’s Americas Region, KPMG; James Villeneuve, Former Consul General of Canada to Los Angeles; and Andrew Williams, Chief Executive Officer, DHL Express Canada. WE Day is supported globally by Co-Chairs David Aisenstat, Chairman, Chief Executive Officer & President, Keg Restaurants Ltd.; Hartley Richardson, President & Chief Executive Officer, James Richardson & Sons Ltd.; Dave I. McKay, President & Chief Executive Officer, RBC; and Craig Burkinshaw, Co-Founder, Audley Travel.

School districts or divisions support We Day in various ways. For example, the Toronto District School Board (the largest school board in Canada), has the following on its website on Social Justice:

Social Justice

The TDSB is strongly committed to principles of fairness, equity and human rights. We believe we all have a shared responsibility to contribute to positive social change both locally and globally. Learning about and engaging in social justice issues (such as equity, diversity, abuse against women, poverty reduction and environmentalism) empowers everyone as 21st century global citizens.

The goal of our Social Justice Action Plan that every school will participate and report on one local action and one global action each as part of school plans.

Ways to get involved:

We Day

Unfortunately, We Day is really school rhetoric that fails to address the real issues facing students, employees and many others throughout the world. It is a controlled movement to indoctrinate students into believing that they really change the world through micro changes in the present social system.

Fortunately, some teachers’ organizations, such as the Manitoba Teachers’ Society (MTS) (in 2017) have seen through some of the rhetoric (though the inclusion of the last sentence weakens the criticism):

MTS Bows Out of We Day

The Manitoba Teachers’ Society will no longer be involved in promoting or participating in We Day events.

Delegates to annual meeting agreed with a recommendation from the organization’s Equity and Social Justice Committee and provincial executive.

“The Manitoba Teachers’ Society model of social justice is not reflected in We Day,” the resolution said. “We Day doesn’t promote, support or include a model of social justice that the Society identifies as effective in advancing social change. We Day is more of a charity model that doesn’t address the roots for systemic inequity.”

We Day is a yearly concert and speaker series attended by tens of thousands of students in Canada, the U.S. and Britain.

In recent years it has attracted controversy because of the number of corporate sponsors involved in the events. Some of those sponsors have been accused of actions in other countries that run counter to the messages on which We Day is based.

The decision by delegates does not extend to the involvement of schools and students. In the past, both MTS staff and elected officials have promoted and been participants in We Day.

The rhetoric of We Day can be seen in various ways. Consider the following statement by Craig Kielburger, one of the founders of We Day:

The urgent need for more stable funding eventually led to the creation of Me to We, a for-profit social enterprise that sells ethically produced goods and services, and funnels half its earnings to Free the Children.

What is “ethically produced goods?” In the book written by Craig Kielburger, entitled Free the Children, there are many references to child labour and opposition to it–and child labour usually takes the form of being an employee of some sort or other (including domestic servants)–but no opposition to the employment of adults. Opposition to children being employed by employers does not therefore go hand in hand with opposition to adults being employed by employers. Why the double standard? Why is it ethically unjust to employ children but ethically just to employ adults? Why is it ethically just to use adults as means for employers’ ends and ethically unjust to use children for the same end? (See The Money Circuit of Capital). Mr. Kielburger has no answer to this question since it does not even come up in his book. This silence reflects the typical silent indoctrination characteristic of schools concerning the power of employers to dictate to employees what to do, how to do it, when to do it, how fast to do it, and how much to produce (see, for example, A Case of Silent Indoctrination, Part One: The Manitoba History Curricula and Its Lack of History of Employers and Employees). For educators, such a lack of critical distancing from the social world is anything but educative.

Let us listen to the founders of We Day and Me to We, in their book Me to We: Finding Meaning in a Material World, Craig Kielburger and Marc Kielburger, page 128:

Today, employees want more than a paycheck—they’re looking for meaning. Many successful companies are empowering their employees to reach out to others and supporting their efforts in a host of different ways. Direct Energy bases its charitable giving on the number of volunteer hours put in by its employees. Xerox allows social service sabbaticals. Wells Fargo gives personal growth leaves. LensCrafters empowers its employees with challenging service projects all over the world. The list goes on. From Ben and Jerry’s ice cream to Paul Newman’s salad dressings to the Body Shop, businesses and social entrepreneurs are hearing the call of Me to We and are revolutionizing business practices in a colossal way.

This lack of critical distancing from the power of employers as a class is characteristic of these founders of such a hyped-up employer ideology:

Increasingly, companies are finding that corporate social responsibility has rewards that extend beyond employee morale. In recent studies, socially responsible and community-oriented companies have been shown to do better than their competitors. In 2001, Business Ethics Best Citizen companies did significantly better than the remaining companies in the S&P 500. The ranking was based on eight statistical criteria, including total return, sales growth, and profit growth over one-year and three-year periods, as well as net profit margins and return on equity.10

In other words, indoctrination via the concept of “corporate and social responsibility” leads to greater net profits. It pays for employers to link to the ideology of corporate social responsibility–an ideology that the founders of We Day and Me to We obviously promote.

“Ethically produced goods” includes, then, using adult workers as a means to obtain more and more money. This is indoctrination–not education.

Me to We also promotes “ethics” via consumer choices. On the Me to We website, we read (Welcome Me to We):

ME to WE is an innovative social enterprise that provides products that make an impact, empowering people to change the world with their everyday consumer choices.

One way in which indoctrination occurs is through shifting the focus from defining social problems and their solution in relation production to solutions relating to consumption. As David Jefferess writes, in his article, “The “Me to We” social enterprise: Global education as lifestyle brand,” page 18:

“Me to We” “transforms consumers into world changers, one transaction at a time” (Me to We 2011a); it promotes a way of being good in the world as a consumer identity: “Every trip, t-shirt, song, book, speech, thought and choice adds up to a fun, dynamic lifestyle that’s part of the worldwide movement of we,” (Me to We, 2011b).

We Day and its associated organizations (WE Charity, for example) also set up a dichotomy between the First World children and adolescents and those who live in the so-called Third World. First-World children and adolescents are supposed to be the fortunate ones who are to tend the hands of their fortunate lives to the unfortunate lives of children and adolescents in the Third World. As Jefferess writes (page 20):

Kielburger characterizes Canadians as “some of the luckiest people in the world” (2009). As global citizens, he asserts, Canadians need to “recognize what we have to share in this world” (2009): “As we learn to feel gratitude and act on our good feelings through reaching out to others, we begin to live the “Me to We” philosophy” (Kielburger & Kielburger 2006, p. 146). The solution to the problem of poverty is presented in terms of benevolent obligation: What can we, the fortunate, do to help the unfortunate?

For Kielburger and company, we Canadians are not exploited and oppressed by employers and the associated power structures (such as the police and the courts). We are not dictated to by employers at work; we are not treated as things while we are working. Students are not treated as “learning machines,” with grades (marks) as a weapon in keeping students in line–as well as the administrative structure of schools (the bureaucracy) and the Department of Education.

This exclusion of Canadians (and Americans,  British, French, German, Italian, Japanese and so forth) from the exploited and oppressed is characteristic of a particular kind of nationalism.

To be sure, workers, children and adolescents are relatively better off (with some exceptions, such as many indigenous children and adolescents) than their counterparts in the so-called Third World, but the We Day ideology ignores the forces in the more industrialized capitalist countries that have prevented the so-called Third World countries from resolving their social problems.

Thus, in from 1944 to 1954, in Guatemala (a country just south of Mexico), there were political, social and economic changes that were abolished when the CIA-supported military overthrew the elected president of Guatemala–Jacobo Arbenz. Land that was distributed to over 100,000 Guatemalan families for cultivation were taken back and returned to the powerful and rich land owners. Under such conditions, is there any wonder that many Guatemalan children remain poor, and child labour is common? (See Thomas Offit, Conquistadores de la Calle: Child Street Labor in Guatemala City).

Furthermore, many Guatemalans’ experiences of torture, disappearance, assassination and genocide since the installation of the 1954 military dictatorship also illustrate how the “fortunate” capitalists in the industrialized countries (especially the United States, but also other countries, such as Canada, which fail to oppose the foreign policy of the United States) have contributed to the continued exploitation and oppression of children, adolescents and adults in the so-called Third World.

In addition, it was the United States government that trained many of the Guatemalan military responsible for torture and other atrocities by training them in counterinsurgency techniques. The Guatemalan military  became an efficient killing machine (the extent to which the Guatemalan was organized into an effective killing machine is described, for example, in Guatemala: Nunca Mas).

We Day and its supporting organizations, far from educating youth on the realities of the world in which we live, hides such a reality. Problems that cannot be solved by the methods of its advocates are simply not addressed. The pseudo-solutions which it proposes reflects a world dominated by a class of employers.

The popularity of We Day among Canadian school administrators and school teachers and employees expresses the lack of critical thinking characteristic of such administrators, teachers and employees.

In a future post, I will address how the Left has addressed We Day and its supporting organizations.

 

 

A Critical Look at The Socialist Project’s Pamphlet on Green Jobs Oshawa

The Socialist Project, “based in Toronto [Ontario, Canada] … works to generate and promote Left activism education and organizing. Our membership includes activists, students, workers educators and others interested in Socialist politics in Canada,” recently published (February 2020) a pamphlet titled Take the Plant–Save the Planet: The Struggle for Community Control and Plant Conversion at GM Oshawa

The pamphlet has an introduction and the mission statement of Green Jobs Oshawa. It refers to the closing of most of the GM auto assembly plant in Oshawa, Ontario, Canada, in December 2019.

The rest consists of various articles written by seven authors. The first article, “Unifor Settlement with GM– Footprint or Toe Tag?,” is by Tony Leah, “a retired autoworker and founding member of Green Jobs Oshawa.” The second and third articles, titled respectively, “GM Oshawa: Lowered Expectations Unexplored Opportunities,” and “The GM Strike and the Historical Convergence of Possibilities,” are by Sam Gindin, “who served from 1974 to 2000 as research director of the Canadian Auto Workers (Unifor’s predecessor), now an adjunct professor at York University. The fourth article, titled “Bringing SNC-Lavalin to Mind During an Uninspiring Federal Election,” is by Leo Panitch, Professor Emeritus,  Canada Research Chair, York University. The fifth article, titled “Take It Over: The Struggle for Green Production in Oshawa,” is by  Linda McQuaig,  ” journalist, columnist, non-fiction author and social critic.” The sixth article, titled “Green Jobs Oshawa and a Just Transition,” is by Rebecca Keetch, who “was a GM worker and is an activist with Green Jobs Oshawa.” The seventh article, titled “Why GM’s Oshawa Assembly Line Shutdown is a Black Eye for Unifor’s Jerry Dias,” is by Jennifer Wells, “a former columnist and feature writer for the [Toronto] Star’s Business section.” An appendix, titled “Feasibility Study for the Green Conversion of the GM Oshawa Facility: Possibilities for Sustainable Community Wealth: Summary Overview,” is by
Russ Christianson, “started working with small businesses and co-operatives and now travels across Canada working as a consultant who’s a business start-up specialist.”

I am not going to review the entire pamphlet. I addressed some of Mr. Gindin’s views in a previous post (see The Contradictions of Social Democracy: Mr. Gindin’s Musings on the Closure of GM’s Oshawa Plant).

The Introduction provides the framework for the pamphlet (pages 4-5):

Toward an Alternative

A small group of rank and file Oshawa workers and retirees understood that far more was needed; both logic and history suggested that appealing to GM to rethink their cold calculations was naive. They joined with other community allies, including the Durham Labour Council and supporters from the Toronto-based Socialist Project, to establish ‘Green Jobs Oshawa’. Its mandate was to explore and organize around other possibilities for the Oshawa facility.

Before looking at the proposed solution, the extent of the problem needs to be specified. Mr. Gindin’s first article does this:

The Oshawa facility currently supports 5,700 – 6,000 jobs: GM directly employs 2,200 hourly workers and some 500 salaried workers, with other companies employing over 3,000 to supply components (some working right inside the Oshawa facility). The new proposal means cutting this total by upwards of 5,300 jobs.

The loss of jobs for many families undoubtedly will be devastating for many within the community. The alternative proposed is outlined below (page 5):

Green Jobs Oshawa called on the federal government – or the municipal government with substantial financial and technical support from the feds – to take over the land and equipment idled by GM. The Oshawa facility could then be converted to assembling fleets of electric vehicles. The sale of these vehicles was to depend not on market competition, but a social plan based on direct government purchases of the products the government had invested in. The fleet vehicles involved would range from electric post office vans (as recommended earlier by the Canadian Union of Postal Workers) to hydroelectric vans, newly designed school buses, ambulances and police cars. With that base, the plant could also produce electric cars for individual consumers and, depending on how much space remained available, add other environmentally related products.

The message was that jobs, the environment, and the industrial capacities for conversion and restructuring are inseparable. From that perspective, saving Oshawa was not an end point but a beginning and an example to build on.

The proposed takeover of the plant, however, is linked to reliance on governments, without really addressing how much organized power would be required to force governments realistically to provide support for such a proposal. On the one hand, without such organized power, it is mere wishful thinking. This is implicit in the silences of even so-called progressive forces over the proposal (from Mr. Panitch’s article, page 34):

This is of course par for the course. The $3-billion left unpaid by General Motors from the $12-billion public bailout provided to it a decade ago could have covered all the costs entailed in implementing the Oshawa worker-environmental alliance plan to save the GM plant by taking it into public ownership and converting it into producing battery electric powered vehicles for Canada Post and other public fleets. That not even Unifor, let alone the NDP or the Green Party, has championed this plan only goes to show how bereft of big ideas are the foremost institutions that pass for the left in Canada today.

To demand that the municipal or federal (or, for that matter, provincial) governments take over the plant when even the so-called left did not rally behind the idea expresses an over-reliance on governments that is often expressed in the document. For example, Ms. McQuaig argues the following (page 36):

Of course, Gindin’s idea for producing public utility vehicles would require co-operation from the federal and provincial governments, and it is hard to imagine such co-operation from our current political leaders.

If it is unrealistic to expect co-operation from “current political leaders,” then such co-operation would require force–organized power by worker and community members. No such force exists–as those who wrote the introduction implied (page 5):

Frustration and Persistence

Green Jobs Oshawa developed a website, distributed leaflets to workers, held educationals and public forums in Oshawa and Toronto, organized petitions, commissioned a widely respected professional feasibility study (see appendix) confirming its case, received sympathetic attention in the press and gave numerous media interviews. Yet the committee couldn’t generate the necessary level of support, starting with the workers themselves.

If the level of support for the proposal of Green Jobs Oshawa could not even generate major support from those most directly affected by the shutdown, why would anyone think that the governments, which support the class power of employers, would support their plan?

An alternative that undoubtedly was discussed by some at the factory and within Green Jobs Oshawa is not even mentioned: the workers taking over the factory and starting to produce without GM. That alternative may not have been realistic either under the circumstances, but at least it should have been discussed in the pamphlet. It is nowhere to be found.

Funding for retooling and the production of electric vehicles would require a substantial investment, and that is perhaps the reason why the mere take-over of the plant may not have been realistic. On the other hand, a takeover of the plant could have had a different purpose–to outline how unfair this particular situation was, how unfair the situation of GM not repaying

The $3-billion left unpaid by General Motors from the $12-billion public bailout provided to it a decade ago could have covered all the costs entailed in implementing the Oshawa worker-environmental alliance plan to save the GM plant by taking it into public ownership and converting it into producing battery electric powered vehicles for Canada Post and other public fleets. (Mr. Panitch, page 34),

and how unfair in general it is for employers to have the power to make decisions independently of those who are most directly affected by them. When people find a situation unfair, they are sometimes willing to go to extreme lengths to address the situation. As Barrington Moore remarks, in his Injustice   page 510, says:

Anger at the failure of authority to live up to its obligations, to keep its word and faith with the subjects, can be among the most potent of human emotions and topple thrones.

However, for such a tactic to have gained a foothold, it would have been necessary to have done the necessary preparatory work–negative work, if you like, by engaging workers in conversation and discussion over the fairness of various aspects of their lives, both in the workplace and outside the workplace. Indeed, Mr. Gindin, in a different context, recognizes the need for longer-term preparation: a tiered workplace, where some workers doing the same jobs received a lower wage and lower benefits despite belonging to the same union–Unifor (page 25):

The tiered structure GM was able to put in place in 2007 saved the corporation billions, and to boot, provided the company with a divided and weaker workforce. Only a union crusade, not a luke-warm demand among miscellaneous other demands, could have forced GM to give this up. It would, for example, have meant starting at least a year or two in advance to prepare the members for a war with the company, solidly win over the broad public in spite of a prolonged strike, and isolate General Motors. The absence of such preparations didn’t just make it harder to eventually win; it sent the message to the company that the union wasn’t all that serious in putting an end to tiered wages and would be satisfied with some face-saving tinkering. Which is what the workers in fact ended up with.

The issue of fairness is hardly a minor issue. Workers will unlikely engage in sustained efforts and sacrifices unless they find their situation and that of others to be unfair in some fashion or other. There is no evidence, though, that Mr. Gindin and other radicals engaged in such necessary negative work.

Returning to the issue of the government, the pamphlet, in addition to unrealistically relying on governments rather than on organizing the anger of those who have been treated unfairly in various ways in a society dominated by a class of employers, idealizes public ownership. For instance, Ms. McQuaig in particular idealizes public ownership (nationalization) (page 36):

In fact, as we’ve seen, Canadian public enterprise has an impressive history and has made its mark in fields that are at least as complicated as vehicle manufacturing. The creation of a public hydroelectric power system in Ontario – and later in other provinces – was a stunning achievement that served as a model for US president Franklin D. Roosevelt when he created highly successful public power systems, including the New York Power Authority, the Tennessee Valley Authority, the Rural Electrification Administration, and the Bonneville Power Administration. There was also Connaught Labs, the publicly owned Canadian drug company, which made remarkable contributions to the development of breakthrough vaccines and treatments for a wide range of deadly diseases. And the publicly owned CNR exhibited innovative business skills in creating a viable national rail network out of five bankrupt railway lines and in establishing, during the pioneering days of radio, a cross-country string of radio stations, which became the basis of the nationwide CBC broadcasting network.

Public ownership which undoubtedly has the potential advantage of providing services based on need, not on the amount of money you personally have (such as medicare here in Canada). However, working in a public corporation should not be idealized; workers are still things to be used by employers, whether public or private (see The Money Circuit of Capital). Nationalization in the context of an economy dominated by a class of employers, by autonomous economic structures (money, finance, commerce and production) and an alienated political structure is hardly radical (see The Poverty of Academic Leftism, Part Seven: The Idealization of the Nation State or the National Government and Nationalization in the Wake of the Coronavirus Pandemic, Part Two).

This idealization of public ownership is intensified when it is coupled with the war efforts of governments (page 37):

And, as we’ve seen, some of Canada’s most impressive public enterprises were created during the Second World War, when twenty-eight Crown corporations contributed enormously to Canada’s war effort, manufacturing airplanes, weapons, and communications equipment. Crown corporation Victory Aircraft provided the foundation for the postwar Canadian subsidiary that developed the Avro Arrow, a state-of the-art military fighter plane (discontinued by the Diefenbaker government for political, not technological, reasons). And Crown corporation Research Enterprises, teaming up during the war with Ottawa’s National Research Council, produced highly innovative optical and communications equipment, including radar devices, binoculars, and radio sets – equipment with countless applications that could have been successfully developed for the postwar market if our political leaders hadn’t succumbed to the notion that government shouldn’t be involved in
producing such things.

In the first place, the creation of public ownership under war conditions is hardly comparable to the situation which the GM Oshawa workers faced; during the Second World War, workers were much more organized–and armed, and many other capitalist states were willing to use direct physical force to achieve their goals at the expense of other capitalist states.

In the second place, as already indicated, Ms. McQuaig does not even ask what kind of lives those who worked in such Crown corporations lived. Their working conditions may have been better than in the privatized sector (though that requires research and should not be assumed), but better working conditions do not change the fact that workers are still things to be used by such corporations any more than the existence of a collective agreement does. Thus, Ms. McQuaig does not even address this issue.

This idealization of public ownership or nationalization continues in Ms. Keech’s article, page 41:

In November 2018, GM announced the closure of the Oshawa Assembly Plant. Workers in the community faced the crushing reality that their livelihood was being stolen. At a time of record profits, in the billions of dollars, GM showed a complete disregard for thousands of workers and their communities.

Out of this devastation Green Jobs Oshawa was born. Green Jobs Oshawa is a coalition of workers, environmentalists, academics, and community members. We recognized, in the midst of a climate crisis requiring immediate action and a community facing massive job loss and disruption, the need for a bold idea: bring the plant under democratic control through government ownership and build battery electric vehicles or other products that meet community need instead of corporate greed.

Ms. Keetch would need to elaborate on how her claim that “the plant would be under democratic control through government ownership” is possible given that the government is formally democratic but in practice is often anti-democratic (externally, through the use of police and, internally, through a hierarchic and undemocratic structure of an employer-employees relation). She does not do so.

She further idealizes the current political structure by having workers rely on it to transform the capitalist economy, which necessarily expands beyond any limits (see The British Labour Party’s 2019 Manifesto: More Social Democracy and More Social Reformism, Part One), to a society free of a conflict between the nature of capitalist relations and the natural world in which we live (page 42):

Not only do we need to move away from fossil fuels and wasteful consumption – from harm and devastation – but we must build healthy, resilient communities while creating a strong sustainable economy.

We must demand massive government investment in green energy, green technology, and electrification. The government must take action, such as the immediate electrification of government fleet vehicles and public transportation. This must include public ownership of key manufacturing and resource sectors.

The environmental movement and the labour movement must demand this transformation include just transitions for workers and communities.

Unlike the other articles, Jennifer Wells’ article takes aim at Jerry Dias’ leadership. Jerry Dias is the president of Unifor, which represented the workers in the 2016 round of bargaining. She criticizes Dias for caving in on, for example, defined benefit pensions for new hires, thereby effectively creating a two-tiered workforce–a concession that Dias considered necessary in order to save jobs. Such jobs, however, were obviously not safe since most have been lost.

Although Dias’ sacrifice of one set of workers in concession bargaining should be criticized, as Ms. Wells does, she never asks whether collective bargaining has its own limits when it comes to representing the interests of workers. Her criticism remains well within the limits of faith in the collective-bargaining process itself to produce a “fair contract.”

Mr. Christianson’s appendix provides a feasibility study for the green conversion of the plant. I will only note the following. Under the heading of “Democratic Public Ownership,” he has the following (page 53):

…we consider democratic, public ownership to include governments, auto workers and community members. The legal structure of the organization can take many forms, including a crown corporation. In any case, the organization will need to
use a board matrix to ensure representation from government, auto workers, community members, people with the experience and skills required for the business, and a diverse mix of people (gender and ethnicity).

How democratic such an organization can be should have been outlined by, for example, giving other examples, where modern government provides the funding. In the general context of a society characterized by the domination of a class of employers, it is unlikely that it would be very democratic. At least at Mondragon, in Spain, the funding is not primarily from government–and yet it is debatable just how democratic Mondragon really is (see  The Poverty of Academic Leftism, Part Four: The Myth of Creating Socialist Spaces). Real democracy requires much more than the rhetorical phrase “democratic public ownership.”

The Call for the Conversion of the GM Oshawa Plant to a Facility for the Production of Medical Equipment in the Wake of the Coronavirus Pandemic

On April 19, 2020, on the Socialist Project website–Retool Oshawa GM Complex to Combat Covid19–there is a press conference by five individuals–Tony Leah (facilitator), Michael Hurley, Rebecca Keetch, Patty Coates and James Hutt–calling on the Canadian government (and the Ontario provincial government) to take over the GM Oshawa plant, which closed on December 19, 2019, in order to facilitate the production of medical equipment, including masks, ventilators, gloves and tests–all of which are in short supply due to the international competition for such equipment as well as the Trump government’s ban on exporting medical equipment into Canada.

Some of the following is taken verbatim from the five presenters without quotes in order to facilitate reading whereas some of it is paraphrased. After a description of what they say, I make some critical comments in relation to the call for public ownership and other issues.

Mr. Hurley, president of the Hospital Division of the Canadian Union of Public Employees (CUPE), emphasizes the urgency of the need for medical equipment for front-line workers. Medical equipment is in short supply to deal with the coronavirus pandemic,  and such equipment is vital if front-line workers are not to succumb to the virus themselves, as many paramedics did in New York.

Ms. Keetch, a former autoworker at GM Oshawa, calls on the Canadian and provincial governments to convert the closed-down GM Oshawa assembly plant into a publicly-owned site in order to use it to produce much needed medical equipment. She points out that other countries and companies have converted car factories into plants for producing medical equipment: the Chinese capitalist company BYD producing masks and hand sanitizers; GM having its workers produce ventilators at its Kokomo Indiana plant; and Ford Canada having its workers produce face masks at its Windsor Ontario plant. She justifies taking over the plant on the basis of putting social need in general before the interest of profit and the particular health and safety needs of workers who have been declared essential, such as hospital workers and grocery workers. There already exists a skilled workforce available to produce the needed medical equipment–the workforce of the former GM plant and the workers of its former suppliers.

Ms. Coates, president of the Ontario Federation of Labour (representing 54 unions and a million workers) indicates her support for the initiative and points out how the Conservative government of Doug Ford had reduced the health-care budget before the pandemic. Health-care workers, patients and community members need vital medical equipment that are currently lacking. She also supports a proposal for workers having 21 paid sick days so that they can stay home if sick without financial hardship and free healthcare for all regardless of immigration status. Workers themselves are calling for such protective measures.

Mr. Hutt does climate and labour justice with the Leap. On the Leap website, it says:

Mission

The Leap’s mission is to advance a radically hopeful vision for how we can address climate change by building a more just world, while building movement power and popular support to transform it into a lived reality.

Since our launch, we’ve drawn heavily on the ideas and networks of our co-founders, Naomi Klein and Avi Lewis.

Mr. Hutt notes that Justin Trudeau, the Canadian prime minister, called for manufacturing companies to retool to produce medical equipment, but it is not enough to rely on the goodwill of CEOs and manufacturers to produce what is needed at this time. There is a textile manufacturer, Novo Textile Co, based in Coquitlam, British Columbia, that has ordered machinery from China in order to produce masks, but it has not yet received the equipment. What we need now is fast production of medical equipment.

This shows that we need the government to play a strong role in ensuring that we increase production of medical equipment in order to meet the demand for medical supplies in Canada. This is where GM Oshawa can play a role. The auto assembly plant is one of the largest plants in North America, and yet 90 percent of its capacity is currently going to waste. Furthermore, there are available 5,000 workers who lost their jobs directly through the closing of the factory and 10,000 more workers who, indirectly, became unemployed.

The workers should be hired back in good, well-paying unionized jobs. After all, it is they who produce the value and services needed  by society.

What we need is a people’s bailout, which includes both workers and the environment, instead of a bailout of corporations and banks. The people’s bailout contains three components. Firstly, it responds to the immediate life-and-death needs of front-line workers and by all those whose lives have been turned inside out by the pandemic. Secondly, it helps to recover our lives, but in a new way, through government stimulus in creating a zero-carbon and full employment economy. Thirdly, it helps to reimagine our society. The economy must be transformed to ensure that safety and stability are the priorities for all and not just the 1%.

Nationalizing the plant, or converting it into public ownership, would create 13,000 unionized, well-paying jobs to produce the things that we need, initially in the first component or phase of producing medical equipment and, in the second phase, the production of electric vehicles for, for example, Canada Post, the single largest user of vehicles in Canada, and electric buses across Canada.

The third component or phase would involve the creation of a more just society for all, which entails public ownership of the plant, the provision of production facilities in Canada that would involve internal production of medical equipment throughout Canada.

Mr. Leah then points out that there is a petition that viewers of the Conference can sign, which will be sent to Premier Ford of Ontario and Prime Minister Trudeau (Petition–Order GM to Make Needed PPE).

There was then a question and answer session, with Valerie McDonald (? unsure if this is the name) asking the question of how quickly could the Oshawa plant fully employ the former workforce, whether directly or indirectly, and use the plant to capacity. Another question by Kate (I could not make out her last name) was who would paid for the retooling, the federal or provincial governments, and how much would it cost and how long it would take. Mr. Hurley pointed out that China set up factories within two weeks for the production of fiber masks. Given that the Canadian governments have adopted emergency powers, they could start producing almost immediately. As for the cost, currently Canada is paying almost three times the normal price for medical supplies on the open market; consequently, there would actually be considerable savings by shifting to local production. Ms. Leetch added that in the United States, in Warren, it took about two weeks to be converted and a total of a month for thousands of masks to be produced. She also points that, in relation to costs, it would be necessary for the government to provide aid for retooling. Ms. Coates adds that we need to think about the future beyond this pandemic: we need to have the capacity to produce ventilators and other medical equipment. As for the cost, the issue of cost has little to do with the issue since lives are priceless, and the cost of retooling to save lives not just now but also for the foreseeable future–since there will still be demand for personal protective equipment for some time to come even in the case of the current pandemic. We need a permanent solution to the problem and not a temporary one.

Another couple of questions were: The federal government had no problem purchasing a U.S. owned pipeline company, but now that such a company will be idled, why would the federal government not step in and purchase the plant from GM and retool it? A follow-up question is: Is the plant too large, and can it be adapted to produce medical equipment and other things [unclear if this is the exact question]. Another question is whether the machinery already exists in the plant or must it be imported?

Mr. Hurley indicated that neither the provincial Ontario government nor the federal government has responded in an urgent fashion to the pandemic by forcing employers to retool to produce medical equipment despite hundreds and even thousands of Canadians dying due to the pandemic. It is time that the Trudeau government institute wartime measures to force employers to retool in order to save lives by producing tests, ventilators and other medical equipment that are fundamental to the protection of workers.

Ms. Coates added that not only healthcare workers do not have sufficient protection but also grocery workers, bus drivers and municipal workers are still working and need to be protected during this pandemic.

Ms. Keetch points out that what they are demanding is that the government order production because that will then allocate resources that permit things to happen. As for the plant being too big: not really. We can use whatever space is necessary at the plant right now to address immediate needs. In relation to parallels between the federal government purchasing a pipeline company and purchasing the GM Oshawa plant, but the issue now is to prioritize what needs to be done, and the priority should be to protect Canadian citizens, and both money and the political will need to be found to do that. She does not know whether the machinery is on site, but she does know that Ontarians are experts in manufacturing and have been for decades.

For closing remarks, Ms. Keetch pointed out that the pandemic is an interdependent phenomena, with both the public coming into contact with workers and workers coming into contact with the public, so that both need to protect each other through the use of protective equipment. The use of present resources to meet this need is a common-sense approach.

Tony Leah stated that what happened in the United States in Kokomo and other places in the United States, when the government ordered production, shows that medical equipment can be relatively quickly produced, within a week or two, depending on the complexity of the equipment. He judges GM’s inaction to be shameful, especially since GM took $11 billion in Canadian bailout money during the last economic crisis.

As an emergency measure, it makes sense to convert the idle GM Oshawa plant into a plant where workers could produce much needed medical equipment. As a longer-term measure, it also makes sense to convert the idle plant into a permanent facility for the production of medical equipment in order to prevent any future shortage of medical supplies. Alternatively, once the pandemic has past, it could make sense to convert the plant  into an electric-vehicle factory as originally planned.

From the point of view of the workers who lost their jobs when GM Oshawa closed the plant, it also makes sense to try to be employed again; they could resume the same kind of life that they used to live rather than joining the unemployed.

I did sign the petition, but mainly because it makes sense to pressure the governments to convert the plant into a factory to deal with the pandemic crisis. Given the urgency of the situation, however, there could at least have been reference to seizing the plant by the workers. Seizing the plant could easily have been justified as necessary in order to save lives.

Such seizure, it seems, is probably impractical for a number of reasons. Firstly, the workers themselves have probably been demobilized (moved on to other jobs if they can find them), or they may have abandoned any hope of working at the plant again; others may have accepted a retirement package. Secondly, even if they seized the plant, financing for retooling seems to be beyond their collective means–hence, the need to rely on the government for funding.

However, at least the possibility of seizing the plant and the legitimacy of doing so should have been raised in order to highlight the discrepancy between the real needs of people, the lack of action by the governments and the class power of employers. After all, in normal times, the needs of those who cannot pay are neglected, and the needs of workers for safe working conditions are often neglected as well. Focusing exclusively on what is practical in the situation resulted in another lost opportunity to open up a conversation about the legitimacy of the current economic and political structures.Rather than using the situation as an opportunity to at least point out the legitimacy of seizing the plant–they focus exclusively what is immediately practical. Such “realism” is hardly in the best interests of the working class and of the community.

Mr. Hurley is the person who comes closest to showing such discrepancy, but he limits his criticism to the present governments of Ontario and Canada rather than to the limits of an economy characterized by a dictatorial structure and a modern state characterized, on the one hand, by merely formal equality between “citizens” that often assumes a repressive form (by the police and the courts, for example) and, on the other, a hierarchical dictatorship characteristic of the employer and employee relation within government or the modern state.

The presenters did not use the situation as an opportunity to link the particular–and urgent–problem of a society capable of producing needed medical equipment–to the general problem of a society that excludes not only the needs of people for various goods and services–but also the needs of workers to control their own working lives.

It is true that Mr. Hutt does refer to a third component of a people’s bailout–a reimagined society–but it is more like a social-democratic reimagining more than anything else–and it is utopian. To call for a society that is safe would require the elimination of the power of employers as a class. After all, workers are means for the benefit of employers, and as means their safety is always in jeopardy (for the necessary treatment of workers as means for the benefit of the class of employers, see The Money Circuit of Capital; for the issue of safety, see for example Working for an Employer May Be Dangerous to Your Health, Part One).

As for Mr. Hutt’s call for stability, that too would require the elimination of the power of the class of employers since investment decisions are made for the purpose of accumulating more profitable capital, and such an accumulation process often leads to crises in production and exchange (through overproduction and hence unemployment. Employers also introduce machinery into workplaces, reducing the demand for workers. Since workers are the basis for profit, though, the situation is again ripe for an economic crisis since the production of such a profit requires increasing the exploitation of workers who do work while keeping down their wages through increasing unemployment–overwork for those who work and little work for the unemployed.

Furthermore, given the repressive nature of the employers (see, for example, Employers as Dictators, Part One) and the government (see for example Socialism, Police and the Government or State, Part Two), many peoples’ lives are hardly experienced as stable.  Mr. Hutt’s reference to stability rings hollow.

Does Mr. Hutt really believe in the elimination of a class of employers? The elimination of classes would be what is needed to live a safe and stable life within the limits of the natural world and the limits of our own created world, He nowhere says so. In fact, it is probable that Mr. Hutt believes in the reconstruction of a welfare state–capitalism with a human face. His reference to “good, well-paying unionized jobs” is what is probably the aim–“decent work,” “a fair contract,” and “free collective bargaining.” I have criticized these ideas in earlier posts, so readers can refer to them in order to see their limitations.

Mr. Hutt’s reference to a zero-carbon economy also fails to meet the problem of the infinite nature of the nature of the capitalist economy and the limited earth on which we live. Even if the capitalist economy moves to a zero-carbon economy (free of the use of fossil fuels), the infinite nature of capitalist accumulation would undoubtedly continue to rape the planet (see The British Labour Party’s 2019 Manifesto: More Social Democracy and More Social Reformism, Part One).

One final point to reinforce the previous post: nationalization and reliance on the modern government and state, typical of the social-democratic left, are hardly democratic. For real democracy and not just formal democracy to arise, it would be necessary to dismantle the repressive nature of the modern government or state. As George McCarthy (2018) remarks, in his book Marx and Social Justice Ethics and Natural Law in the Critique of Political Economy, page 279:

Following closely the military and political events surrounding the [Paris] Commune, Marx recognised very quickly that some of his earlier ideas about the socialist state contained in the Communist Manifesto (1848) were no longer relevant: ‘[T]he working class cannot simply lay hold of the ready-made state machinery, and wield it for its own purposes’.18 The state is not an independent and neutral political organisation capable of yielding power for one class and then another; it is not simply an issue of gaining control over the state and then implementing economic and social reforms. Rather, the republican state, utilising its political and legal apparatus, is an oppressive mechanism of social control preserving the class interests of the bourgeois economic system, and this, too, would also have to be restructured. Continuing arguments from On the Jewish Question (1843), Marx contends that the role of the French state was to maintain the economic and political power of the propertied class: ‘[T]he state power assumed more and more the character of the national power of capital over labour, of a public force organised for social enslavement, of an engine of class despotism’. Therefore, with this in mind, the Commune’s first actions were to dismantle the various component parts of the French state, including the army, police, bureaucracy, clergy, and the judiciary. Thus an entirely new form of government would have to be constructed that conformed to the socialist ideals of human emancipation and political freedom.

To talk of “democratic public ownership” in the context of a sea of economic dictatorship both within and outside the modern government or state stimulates high expectations that are bound to be dashed in the real world.

The earlier call by Green Jobs Oshawa was to nationalize the plant and to produce electric vehicles may seem also to make sense, but I will address this issue in another post in reference to the Socialist Project’s pamphlet Take the Plant–Save the Planet: The Struggle for Community Control and Plant Conversion at GM Oshawa. 

Addendum:

The above post was posted at 1:00 a.m., Friday, April 24. In the afternoon, it was announced that the GM Oshawa plant would indeed be retooled to produce a million masks a month for essential workers (see GM Oshawa plant will now produce millions of masks following worker mobilization: CUPE Ontario). The federal Trudeau government and GM signed a letter of intent to that effect. The response from one of the unions that represent front-line hospital workers–the Canadian Union of Public Employees (CUPE):

 “We mobilized our community through a petition and public events and it goes to show that collective action works. This unprecedented victory is now an opportunity to push the Ford Conservatives to also retool private companies to produce what Ontarians need.”

To produce what Ontario needs: What does that mean? They are probably  referring to the production of needed medical equipment:

“The Ford Conservatives need to learn from this example and order the private sector to ramp up production of these supplies – or retool factories if necessary,” said Fred Hahn, President of CUPE Ontario, highlighting feeder plants and other manufacturing facilities across the province. “They’ve had no problem unilaterally issuing orders that override the freely-negotiated collective agreements of front-line workers. They now need to use their power to order the immediate production of PPE for everyone who needs it.”

The use of the abandoned GM Oshawa plant for the production of medical equipment is indeed a victory–this is vital if frontline workers are to be protected from the coronavirus.

It should be noted, though, that this victory is probably a short-term victory. The urgent need for masks for frontline workers, as I pointed out above, could have been used to justify at least theoretically the seizure of the GM Oshawa plant by the workers who used to work there. Since the call for using the GM Oshawa plant and the retooling needed are separated from any reference to the legitimate right of the workers to seize the plant, when the need for the production of masks no longer exists, the plant will probably revert to its former status as an abandoned capitalist factory. The workers will have a difficult time justifying the continued maintenance of production at the plant given their short-term victory. Indeed, given that the form of the announcement is a letter of intent between the federal government and GM, shifting production to masks, in the eyes of many, will probably be viewed as a result of actions by government and employer rather than by workers and unions.

Another problem is that it is unclear who will be rehired to produce the masks, and how many will be rehired.

The urgency of the need for medical equipment is short-term–but it should have been used for long-term gains. Instead, an opportunity for shifting public opinion towards the legitimization of the seizure of workplaces by workers has been squandered.