The Contradictions of Social Democracy: Mr. Gindin’s Musings on the Closure of GM’s Oshawa Plant

The following is a critique of an article written by Sam Gindin before the coronavirus pandemic emerged. It is relevant to the current situation because of the current call for public ownership as a solution to the problems that we face.

 

Mr. Gindin published an article on February 3, 2020, titled Realizing ‘Just Transitions’: The Struggle for Plant Conversion at GM Oshawa. Here Mr. Gindin attempts to criticize, on the one hand, what happened at GM Oshawa (elimination of around 2200 direct jobs when GM closed the auto plant), and on the other to suggest what should be done to prevent such a situation to arise in the future. However, his own social-democratic position, with its implicit assumption of not challenging the power of the class of employers, shines through in the article.

Mr. Gindin claims that GM’s decision to close, among other plants, the GM Oshawa plant left the recently elected Conservative government of Doug Ford “red-faced”:

The response of the federal government, which had used the preservation of jobs to justify giving GM billions in public funds during the financial crisis, was a tepid ‘disappointment’. The provincial government, which had been plastering the province with the slogan ‘Ontario is open for business’ was left red-faced when, as its billboards were going up, GM announced the closing of one of the largest workplaces in the province.

Where is there evidence that the Ford government was embarrassed at all? The idea of “open for business” includes the idea that, in the competitive struggle for survival, corporations will sometimes close down. The obverse side of “open for business” is–“closed for business.” Corporations are free to decide to open and close doors as they see fit–such is the nature of neoliberalism. Or is that not so?

Mr. Gindin then criticizes Ms. Dias, head of Unifor (which represented the workers at GM Oshawa):

Nor did the autoworkers’ union, Unifor, escape its own share of discomfort. Less than two years earlier, its leadership had negotiated lower wages and pensions at GM for new (essentially younger) workers in spite of those workers doing exactly the same job as those beside them. This betrayal of union solidarity was sold to the members as a victory because of its promised retention of jobs. When the closure exposed the job ‘guarantees’ as a sham, the national president reacted with predictable bluster and launched a public relations campaign to shame the corporation into reversing its decision.

Undoubtedly, Mr. Dias would have preferred for the plant not to close. To prevent such an action, Mr. Dias negotiated a collective agreement that involved “lower wages and pensions at GM for new (essentially younger) workers in spite of those workers doing exactly the same job as those beside them.” Mr. Gindin objects to such a negotiated agreement on the basis of “union solidarity.” The principle of union solidarity, it would seem, involves attempting to have all union members who are doing the same job to be treated in the same way. (Note that Mr. Gindin does not refer to “labour solidarity” or “worker solidarity” but “union solidarity.” Mr. Gindin is a friend of–unions. As I argued in another post, he is too close to unions to adequately criticize them. But that just as an aside).

Mr. Gindin then refers to how this “betrayal to union solidarity was sold to the members of a victory because of its promised retention of jobs.” It is of course possible to criticize Mr. Dias and others for sacrificing some workers in exchange for an impossibly guaranteed retention of jobs. However, Mr. Gindin does not explicitly question the power of employers to make decisions that involve closing down plants. Such power forms part of management rights and is often embodied in a management rights clause, implicitly if not explicitly. Why does Mr. Gindin not criticize this fundamental right?

And why does he not criticize the attempt by many unions to “sell” negotiated collective agreements on the basis of “fairness,” “decent work” and so forth? He certainly criticizes Mr. Dias’ attempt to “sell” the betrayal to union solidarity” in relation to the creation of a two-tiered collective agreement–but he nowhere criticizes the implicit or explicit acceptance of unions and negotiating committees to the legitimacy of collective agreements. Union reps often “sell” negotiated collective agreements that need to be ratified to their members by referring to them as “fair contracts”

“We have been trying to negotiate a fair contract for seven months,” said James Nugent, the bargaining team’s chief spokesperson [for CUPE Local 3902, or the Canadian Union of Public Employees Local 3902]. “We’ve been fighting for better learning conditions for our students and better working conditions for our members. Last night, our members sent us back to the bargaining table to keep fighting for those things, and that’s what we intend to do.”

Union reps often try to “sell” this ideology of “fair contracts” to their members. Why does not Mr. Gindin criticize this ideology and not just the ideology of two-tiered contracts? What happens if a collective agreement does not have a two-tiered provision? Does that then make it a “fair contract?” Mr. Gindin is silent over the issue–as are union reps. Why this silence?

Mr. Gindin then has a section that outlines an alternative:

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 naïve. 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.

A problem already arises. I am ignorant of the specific nature of the Durham Labour Council, but the Toronto and York Region Labour Council does not call into question the legitimacy of the power of employers as a class; rather, it presupposes such legitimacy (John CartWright, president of the Council, refers to “economic justice”–implicitly referring to collective agreements. See my post  Ontario Looks Right–With Some Help From the “Left” ). I have criticized  as well some of the views expressed by the Steering Committee of the Socialist Project (see The Socialist Project’s Critique of Doug Ford’s Attack on Local Democracy Falls Short).

But let us proceed:

Four perspectives drove their ambitious proposal. First, GM was the problem, not the solution.

Yes, GM is a problem and not the solution–but it is not just GM that is the problem but the power of employers as a class, of which GM is only one example. Defining the problem only in terms of a particular employer is a typical social-democratic trick of focusing on one “bad” employer rather than the class of employers. Already, looking at alternatives seems limited.

Let us continue:

Second, expecting to compete in the market with China, Mexico or plants in the American south was no answer. It would only reproduce past pressures on wages and working conditions, past insecurities and past failures. Third, any alternative would need to introduce a product with special social significance. And fourth, the issue was not just jobs but retaining Canada’s manufacturing capacities.

Seeking an alternative product that would prevent competition with other workers in the same kind of market is certainly to be preferred. As for “a product with special social significance,” this issue is connected to the following:

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 hydro-electric 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 government would provide the bulk of demand for the output, with individual consumers making up any needed demand so that the Oshawa facility could be fully utilized (GM had identified under-utilization of the capacity of the plant as a major reason for its closing).

The government as the major consumer would also be the major owner:

In line with this outlook, 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 government would then become both the employer and the major consumer. This solution may certainly have retained the jobs–but would not have changed the use of workers as things by government. Merely because the government is the employer does not prevent workers from being exploited and oppressed (see The Money Circuit of Capital).

Why did Green Jobs Oshawa not call on the government to take over the plant while concentrating decision-making power over the plant with the workers who worked there? Why did it not call into question the power of employers to make decisions at all that can affect the lives of many workers and the community–investment decisions? Why not use the GM shut down as an example of the dictatorial power of employers? Why this focus on the government as the saviour rather than the workers and the community?

Green Jobs Oshawa, rather, tried to evade this central issue:

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.

Jobs, the environment and the industrial capacities for conversion are not just inseparable. To adequately address them, it is necessary to address the power of employers as a class, the infinite movement of capital (see  The British Labour Party’s 2019 Manifesto: More Social Democracy and More Social Reformism, Part One) and the social and political structures that go with them.

The next section of the article is titled “Frustration and Persistence.” Mr. Gindin outlines what he believes is the cause of workers’ skepticism concerning such an alternative:

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 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.

The workers in Oshawa were frustrated and angry, but anger doesn’t necessarily translate into activism. Having experienced the steady drip-drip decline of the Oshawa complex, having recently suffered demoralizing defeats after defeats in bargaining, and now seeing the final end of vehicle assembly in the city, workers had shifted to survival mode. In that state of mind, most workers, it seemed, had simply stopped even thinking about possibilities. Nor was it unusual for workers to guard against hope creeping into their consciousness; risking the pain of once more seeing hopes dashed made even hope something to willfully avoid.

Though workers contacted by Green Jobs Oshawa generally considered the proposals on conversion as sensible, this was trumped by their skepticism of ‘sensible’ driving economic and political decisions. Critical here was the role of the union. As frustrated as workers were with the union, they still looked to its structures and resources for leadership, especially given the radical nature of the alternative proposed. But with both the national and local leadership not interested in and even hostile to an alternative, it was no surprise that workers were lukewarm to committing to a fight for a long-shot alternative.

Important here, as well, were the limits of the environmental movement. Environmentalists have most impressively raised public awareness of the looming environmental catastrophe. Yet they have been far less successful in getting the mass of working people on side. Two inter-related problems stand out. First, the promise of a ‘just transition’ is well-meaning but unconvincing to workers; workers rightly ask how such a commitment could be met in a society driven by competition and private profits. Second, with the environmental movement generally absent from workers struggles, developing ‘awareness’ could only go so far.

Workers have been indoctrinated from school to accept the power of employers to make decisions over their lives (as I show in a series of posts on indoctrination in schools via the silence of the Canadian history curriculum over the historical emergence of employers and employees. See, for example,     ). Various organizations and activities reinforce such indoctrination (union ideology of “fair contracts,” “decent work,” social organizations that deal with oppressing people in various ways (child and family services, social assistance, collection agencies, courts and the like). To counteract such indoctrination, it would be necessary to engage systematically in a critique of such indoctrination–but Mr. Gindin does not believe that such a systematic and engaged critique is necessary (otherwise, he would have engaged in such criticism when the opportunity presented itself in relation to pairing the fight for a minimum wage of $15 an hour with the idea of “fairness”).

The skeptical attitude of workers in relation to their own capacities for controlling their lives in the face of multiple forms of indoctrination and oppression is understandable, but Mr. Gindin ignores such indoctrination and oppression in practice.

The final section is called “Green Jobs Oshawa Lives On.” Mr. Gindin states what he thinks has and has not been accomplished in the Green Jobs Oshawa” campaign and what should be done:

Green Jobs Oshawa Lives On

Measured by its ability to keep the Oshawa facility humming, Green Jobs Oshawa was not successful; today, no more vehicles are being assembled in Oshawa. But measured by their work in placing a vital but largely ignored issue on the agenda – the steady loss of the productive capacity we will need to reconstitute the environment – brings a more encouraging conclusion.

 

Though the Oshawa facility is now quiet, the battle to revive it, with all its noise and productive bustle, continues. The facility still has waiting assembly lines, a body shop, a paint shop, and 10 million square feet of space. In Oshawa and nearby, there is no shortage of workers anxious to apply their too often underestimated skills, suppliers with flexible tooling capacities, and young engineers leaving university anxious to apply their knowledge to developing socially useful products. Green Jobs Oshawa continues to send out material and speak at events, making connections and spreading the urgent discussion of possibilities.

Workers – with the support of their union leadership where possible, on their own if that leadership is not sympathetic – should be setting up committees to consider the future of their workplaces and holding meetings to discuss the plant occupations, nationalizations and conversions in other cities facing major manufacturing shutdowns.

The Canadian Labour Congress should be supporting and coordinating such initiatives with its own research and also joining with the environmental movement to take the initiatives further. A significant step would be to lobby for a National Conversion Agency with the authority and financial and technical resources to intervene when plant closures occur or seem imminent.

Provincial federations of labour could focus on the environmental particularities of their own regions as, for example, the Alberta Federation of Labour has started to do in addressing how the inevitable transition away from oil could be economically and socially managed. This could include lobbying to establish local tech-enviro centers populated by the hundreds of young engineers mentioned above. Alongside coming up with possibilities for local conversion and development, they could contribute to spreading understanding to the community of what we face and what needs to be done.

For private sector workers, the crucial fact is that environmental pressures will require transforming everything about how we live, work, travel, and use our leisure time. Such a massive and unprecedented undertaking (the conversions entering and exiting World War II come closest) can, if done right, mean not a loss of jobs but a shortage of workers trying to meet society’s ‘regular’ needs and the demands of environmental reconstruction.

As for the public sector, the growing acceptance that environmental limits translate into limiting individual consumption in the developed countries leads to a greater emphasis on collective consumption. We are on the cusp of having to urgently redefine what we mean by ‘abundance’ and to place greater value on retrieving our time, leisure, social services (health, education), collective goods (public transit, libraries), and public spaces (sports, music, arts, parks) – a reorientation, that is, to the expansion of the public sector and public sector jobs.

Finally, for environmentalists, truly addressing the scale of what must be done means moving from a vague anti-capitalism to an aggressive – and confident – call for democratic planning and its corollary of fundamentally challenging corporate property rights. And addressing how to implement such policies, requires bringing the mass of workers on side to both the environmental necessities and to the overcoming of capitalism. This can only begin with actively supporting the defensive struggles of workers with the goal of linking them, as Green Jobs Oshawa has tried to do, to those larger issues of conversion and democratic planning in the shaping of the world to come.

In short, the issue is not simply a matter of bringing the environmental movement and the labour movement together; each must be transformed if the sum is to be more than the currently limited parts. The environmental movement must raise itself to a new level by concretely engaging the working class, and the labour movement must escape what, for it, has become an existential crisis. The threats and opportunities of the environmental crisis offer a chance for labour revival, but only if this incorporates a renewed approach to organizing, struggle, radical politics, and the maximization of informed membership participation. •

Mr. Gindin follows the British Labour Party, in its Manifesto, by jumping on the bandwagon of environmentalism–rather than focusing on criticizing the power of employers as a class (which would involve criticizing union ideology of “fair contracts,” “decent work,” “fair collective bargaining,” and the like) , first, and then linking that issue to environmental issues (see my post  The British Labour Party’s 2019 Manifesto: More Social Democracy and More Social Reformism, Part One). Mr. Gindin only near the end of this section does Mr. Gindin address this issue:

Finally, for environmentalists, truly addressing the scale of what must be done means moving from a vague anti-capitalism to an aggressive – and confident – call for democratic planning and its corollary of fundamentally challenging corporate property rights.

But earlier, Mr. Gindin claims the following is the key issue:

But measured by their work in placing a vital but largely ignored issue on the agenda – the steady loss of the productive capacity we will need to reconstitute the environment

The deindustrialization of the advanced capitalist countries–is that really more important than another issue that has been “largely ignored”–the power of employers as a class? Which should the left focus on? And if we focus on the power of employers as a class, should we not criticize the ideology of many unions, which often try to sell the results of collective bargaining as a “fair contract?”

Frankly, Mr. Gindin’s approach fails to see the need for a rigorous and persistent struggle against those who justify collective agreements with such phrases. The same applies to other social movements who refer to “fairness” and the like. We need to use every opportunity to oppose such indoctrination.

Mr.Gindin, however, argues only for the positive side in the following:

Workers – with the support of their union leadership where possible, on their own if that leadership is not sympathetic – should be setting up committees to consider the future of their workplaces and holding meetings to discuss the plant occupations, nationalizations and conversions in other cities facing major manufacturing shutdowns.

To set up committees that are more than paper committees, it would be necessary to deal with the limitations of unions, collective bargaining and collective agreements while recognizing that collective agreements do provide some real protection for workers. If workers merely set up committees without engaging seriously in debate over the pros and cons of collective bargaining and collective agreements, then such committees will likely be isolated from the needs and interests of workers.

It is interesting that Mr. Gindin engages in abstract moralizing when referring to what the Canadian Labour Congress (an organization of affiliated unions that represent over three million Canadian workers) ‘ought or should do’:

The Canadian Labour Congress should be supporting and coordinating such initiatives with its own research and also joining with the environmental movement to take the initiatives further.

Another inadequacy of Mr. Gindin’s approach can also be seen from the above quote. Hegel, a German philosopher, saw through such empty phrases as “ought to” or “should” long ago (from the Encyclopedia Logic, page 30):

… the understanding, which regards its dreams (L e., its abstractions) as something genuine, and is puffed up about the “ought” that it likes to prescribe, especially in the political field-as if the world had had to wait for it, in order to learn how it ought to be, but is not. If the world were the way it ought to be, what then would become of the pedantic wisdom of the understanding’s “ought to be”?

This does not mean that we should not engage in wishing for what ought to be, but that what ought to be should be grounded in what is the case. What is the nature of the Canadian Labour Congress (CLC)? Is it realistic to believe that the CLC would ‘support and coordinate’ such initiatives? See my criticism of the position of the president of the CLC, Hassan Yussuff, in The Canadian Labour Congress’s Idealization of the Collective-Bargaining Process.  Would it not be better to engage in criticism of the CLC–what it is, how it operates and so forth?

There are other problems with this last section. Reference to “democratic planning” clashes with the call for the government (a capitalist government) to operate as employer. How is there democratic planning when the government is the employer? This is to idealize the government and the public sector. This idealization also is expressed in the following:

As for the public sector, the growing acceptance that environmental limits translate into limiting individual consumption in the developed countries leads to a greater emphasis on collective consumption. We are on the cusp of having to urgently redefine what we mean by ‘abundance’ and to place greater value on retrieving our time, leisure, social services (health, education), collective goods (public transit, libraries), and public spaces (sports, music, arts, parks) – a reorientation, that is, to the expansion of the public sector and public sector jobs.

This uncritical reference to the “public sector”–as if working for the government were somehow not subject to exploitation and oppression–is typical of social democrats. So too is Mr. Gindin’s one-sided reference to challenging “corporate property rights” without challenging the power of the state as a capitalist state, on the one hand, and as an employer, on the other. Again, see the money circuit of capital link above for a critique of this view.

 

 

 

 

The Limitations of Social-Democracy in the Face of the Coronavirus

John Cartwright is the president of Toronto and York Labour District Council. According to the website of this Council:

The core belief of unions is in solidarity. We want every one of our members to feel they belong, to appreciate the gains that unions have made for working people, and to have a sense of our common purpose. For all of us, fairness matters. Winning union members to embrace those common values is one of the most important tasks we have.

It is in that context that we address the challenge of tackling systemic racism and building stronger unions.

By working together, we can nurture inclusive workplaces and strengthen our shared commitment to our union’s shared values of equality, respect, justice and dignity for all.

This sounds very radical. However, the claim that “fairness matters” and similar statements do not address the issue of whether Mr. Cartwright opposes the power of employers as a class or whether he accepts such power and merely aims to modify such power to the advantage of workers and the community.

To answer this question, we need to look at another statement made by Mr. Cartwright:

Speaking notes for CAW-CEP – A Moment of Truth Workshop

By John Cartwright, President Toronto and York Regional Labour Council

February 25, 2012

COMMUNITY POWER AND POLITICAL BARGAINING

  • Since its start, our movement has undertaken two kinds of bargaining – collective bargaining to determine terms and conditions in the workplace; and political bargaining to determine the conditions of life both inside and outside the workplace
  • The Canadian labour movement has fundamentally defined itself as a social union movement, guided by the slogan “What we wish for ourselves, we also wish for others”.
  • That has led to us taking a stance from the earliest days to speak out for public education, universal healthcare, public pensions, unemployment insurance, public transit, affordable housing and wide variety of social services
  • Those have been achieved through a combination of building mass popular movements and formal political action – the US experience serves as a sobering reminder of how narrow the political window can be without the existence of a social democratic party with labour roots, as we have with the NDP and PQ, despite their shortcomings

What are the shortcomings of the NDP (and PQ)? There is no elaboration, but at least we get a clearer idea of what Mr. Cartwright means by fairness–capitalism with a human face, or the welfare state of old.

This view is also expressed in the following:

JUST LABOUR vol. 8 (Spring 2006) [page) 92

EQUITY BARGAINING IN THE NEW ECONOMY

John Cartwright, President, Toronto and York Region Labour Council,
Toronto, Ontario, Canada

When thinking about equity bargaining in the new economy we need to think about
both collective bargaining and political bargaining strategies. The gains of the union movement have been built on pursuing both of these strategies.In greater Toronto, out of the 2.3 million paid work force, over 1 million workers earn less than the
official poverty level. The vast majority of those workers are women and workers of colour. If we are going to talk about bargaining for equity, we need to address how to build power to bargain gains for these workers and how to transform
ourselves to build power.

The Labour Council is launching a major initiative – a framework for dozens of campaigns called A Million Reasons, because there are a million workers in this city below the poverty line and therefore a million reasons to raise wages, to improve labour law, and to improve standards and social programs.

In this framework we see four pieces crucial to building trade union power in today’s economy:

1. Protect good jobs in the public sector and private sector. That means that every
union needs to get involved in supporting each other’s struggles.

2. Bargain to raise standards sector by sector by establishing common bargaining. For example, we need to bargain standards for the hotel industry in the city, not just bargain with each hotel separately.

3. Mass organizing, especially with workers of colour. We need to forge ties and be
involved in the community organizing that is going on in local, ethnic communities,
asking them to tell us how to best support their struggles.

4. Use our power to protect and strengthen the social wage –all of those programs people think of as government programs. We need to reclaim these as the
programs we fought for and won politically – including workers’ compensation, health care, public education, child care, etc. The social wage is crucial, especially for low-wage workers of colour to achieve equity.

We certainly should try to increase standards for a whole industry and not just for a particular employer, and we should fight for improved community conditions, increases in the minimum wage and more social supports (the social wage).

Mr. Cartwright’s implicit standard, though, is “good jobs”–both in the private and public sectors. Good or decent jobs will not only lift those below the poverty out of poverty but will ensure that a social wage will be protected: “public education, public education, universal healthcare, public pensions, unemployment insurance, public transit, affordable housing and wide variety of social services.”

I have criticized Mr. Cartwright’s views before (Ontario Looks Right–With Some Help From the “Left”), but what inspired me to look a little closer at Mr. Cartwright’s views was an email I received from him today, March 24, 2020, related to the coronavirus crisis:

Dear Fred,

Every day, political leaders at all levels of government are making new announcements to respond to COVID-19 impacts, on both people and the economy. These have been crucial steps to ensure public safety and financial stabilization. Nobody knows how long this crisis will last, but we do know that when it finally recedes our world will look very different.

We cannot truly address the COVID-19 crisis if the responses entrench the social and economic dynamics that made us so vulnerable in the first place. Now is the time to remind our decision makers that their policies must not only seem fair for today but must also correct the growing imbalances in our society that are leaving too many of our neighbours behind.

Perhaps now more than ever, we see clearly that divestment in our public services and safety net has always been, in reality, divestment in ourselves. When any one person in Canada can’t access basic water and sanitation, medicines that they need or a fair wage, then we are all vulnerable.

This crisis hasn’t just created new disasters, it has taken root within the flaws of our existing system. Inequality in Canada has meant that now, in this time of deep need, we risk sacrificing the health and safety of vulnerable people for whom the social safety net has been weakened.

This inequality has been with us for generations, whether we consider the long-standing boil water advisories for First Nations communities or the ongoing austerity measures in our health care systems. The impact of social and political disparity puts many Canadians at increased risk because not everyone has access to basic lines of first defence such as secure housing or access to a doctor.

Governments across the country have taken quick steps to expand programs like Employment Insurance and Emergency Benefits, granting sick time, and pausing evictions or water shut-offs. Health care workers have again become heroes instead of targets for conservative politicians. Most importantly, people are re-discovering the reason why past generations decided to create strong public services that reach every community. Reinvestment in our public services and social safety net is the right thing to do – not only now, during COVID-19, but permanently in Canadian society.

Our economic system has allowed a small portion of society to gain the vast majority of benefits. Too many politicians have divested in public services and increased corporate loopholes, resulting in a reduced social safety net that sacrifices more and more people to the very real risks of unaffordable housing, lower access to health care, precarious work or, of course, to COVID-19. The climate crisis means that we will see an increase in health and extreme weather emergencies, making a just transition into jobs that bolster our environmental and social health even more pressing.

The expected bailout for the oil and gas industry is the exact opposite of this approach. That industry suffers from an unrelated and untreatable crisis of global price wars and a world that is leaving it behind for greener solutions. Instead of pouring good money after bad, our governments should create green jobs programs that reclaim land, support public health and reinvest in local communities. The loopholes that allowed these giant corporations to pay a pittance into the public sphere must be closed, along with those for the new digital commerce giants and others hiding fortunes in tax havens.

Nobody wants to see a repeat of the last financial crisis – when CEOs rewarded themselves with huge bonuses while people were losing their jobs and their homes. If any company is to be supported with public funds, ownership shares must be taken, or strong rules imposed to benefit ordinary people instead of billionaires. Why should banks be allowed to charge interest rates of over 20 per cent on credit card charges that many Canadians will have to rely on to survive? In exchange for billions in liquidity from the federal government, there should be strict limitations on gouging the public, during this time of crisis and beyond.

Government must show leadership in transforming our economy to one that works toward well-being for all of us rather than for the few. We have the momentum and opportunity to shift our systems to prioritize our care and wellbeing for the long run. While this crisis is unlike any in our lifetime, the Council of Canadian will organize to hold elected officials accountable, challenge corporate greed and fight for the common good – as we work together for a renewed vision of a better world for all.

In solidarity,

John
John Cartwright
Chairperson

Again, expansion of public provisions in health care, education, pensions and the like is better than their contraction. However, Mr. Cartwright still implies that employers are somehow necessary. In referencing “increased corporate loopholes,” he implies that if such loopholes were eliminated, then corporations would be legitimate. In other words, it is the old repetition of corporations paying their “fair share” of taxes.

/Furthermore, Mr. Cartwright’s demand for an expansion of public services and an increase in the safety net through education and health care does not even address the issue of the quality of such public education or health care. I have already criticized the Chicago Teachers Union’s assumption of the need to only expand educational “services” rather than a radical restructuring of the public education system (see, in the section Publications and Writings on the main page of this blog, “A Deweyan Review of the the Chicago Teachers’ Union Publication The Schools Chicago Students Deserve: Research-Based Proposals to Strengthen Elementary and Secondary Education in the Chicago Public Schools (2012). 

As for health care, in the first place, I have already addressed the inadequate nature of health and safety at the workplace in a series of posts (see, for example, Working for an Employer May Be Dangerous to Your Health, Part One). In the second place, see the last post for the beginnings of a critique of health care.

It is hardly sufficient to reinvest “in our public services and social safety net.” Like the private sector, such public services have been characterized by the dictatorship of employers (see The Money Circuit of Capital  and the series of posts  Employers as Dictators, Part One etc.).

Mr. Cartwright, as part of the social-democratic left, uses the period before neoliberalism as his standard. He wants to return to the ideal world of welfare capitalism. This standard is wholly inadequate for the creation of a fair society. Before neoliberalism, there was still the treatment of human beings at work as things to be used for the benefit of employers. There was, certainly, a more robust safety net than now, but even then such a robust safety net was always under threat by sections of the class of employers.

Even if we assumed that there existed a robust safety net, as long as a class of employers exists, such a safety net will always be threatened.

It is better to think about starting a movement towards the abolition of the power of the class of employers in order to create a society that can respond in a humane and timely fashion to threats to our common lives on this planet. Trying to recreate the social-democratic ideal of the past (the 1950s-1970s)–the social-democratic ideal of welfare capitalism– is utopian; if we are to meet adequately our common problems, we need to go beyond the rhetoric of improvements in the safety net. Such solutions are band-aid solutions that do not meet the challenges to our lives that we face in the 21st century. What we do not need is more social-democratic rhetoric.

It is better to think about how to create a movement towards a socialist society–a society without a class of employers.

 

What Kind of Organization or Structure does an Anti-Capitalist Struggle Require?

The following is a critical look at a leftist conference held on April 26, 2014 in Toronto, Ontario, Canada, entitled Building Solidarity Against Austerity. Session 3. Fighting Austerity Today. Specifically, it looks critically at the presentation by Dave Bush, a leftist activist in Toronto, who argues that it is necessary to create an organization for the long-term struggle.

Mr. Bush implies that we need something beyond the New Democratic Party (NDP), which is a social-reformist political party, but he does not explicitly explain why we need something beyond it. Implicitly, though, he argues that a new organization is needed to fight against the neoliberal austerity program.

The new organization required seems to be a purely negative organization since its main purpose is to fight against austerity. Fighting against austerity, however, is not necessarily the same as abolishing the class relation between employers and employees.
Indeed, fighting against austerity is perfectly consistent with the stated aims of the NDP and other social democratic organizations. On the federal NDP website , it states:

Canada’s NDP has a proud history of fighting for ordinary Canadians and delivering results. Over the last 50 years, New Democrats have helped ensure the introduction of universal medical care, public pensions, and the expansion of Canada’s social safety net.

New Democrats are champions for people – not corporations or the ultra-rich. We believe in building a society that is more equal and more just for everybody. We are determined to fight for solutions people urgently need right now. From skyrocketing housing prices to soaring out-of-pocket healthcare costs – Canadians haven’t received the help they need.

Mr. Bush perhaps advocates for a new organization because the NDP does not, in practice, live up to its own claims. This interpretation is justified since Mr. Bush points out that we need to think about what is needed to the left of the NDP. Yes, we do. Unfortunately, his references to “ripping apart our collective services” seems to assume that public services are our services. Public services are hardly democratic, as he undoubtedly knows, and yet his vocabulary leads to a false image of the public sector as a collectivity of some sort. Workers in the public sector are employees just as much as employees in the private sector. How being “public services” magically converts being a public employee into a collective organization that provides “our collective services” is never explained.

Mr. Bush also refers to “making gains beyond a specific campaign” as being strategic. In what sense is it strategic? One campaign to which he refers in Halifax was to fight for converting hydro from a private corporation and monopoly into a public one. I certainly agree that privatization should be fought against, but the left then tends to limit its demands to its opposite–make it public, which is exactly what Solidarity Halifax advocated. Nationalizing utilities, however, is hardly a socialist measure if by a socialist measure you mean increased control over our lives at work and in life generally.

Nationalizing hydro does not even take it to the same level as education (at the public school level) and health services in that, at least theoretically, the use of the services do not require money. To use hydro that is publicly run by the capitalist state still requires that the users have money. How is that a major socialist gain? From the point of view of public workers, how is it a gain? Do they not have “jobs” working for an employer (the capitalist state)? Is that what is meant by socialism? How is that a enriching life, to have to work for the capitalist state as your employer?

Mr. Bush argues that advocating for the nationalization (or rather provincialization) of hydro was strategic for two additional reasons than just the need to protect public services as public: firstly the private corporation would raise rates whenever it wanted to do so, so there was a potential large opposition to it and hence for conversion to a public corporation. Secondly, none of the regular political parties, including the NDP, were making it an issue. Hence, Solidarity Halifax could distinguish itself by focusing on a large potential need.

However, It could in fact be said that Mr. Bush and the rest of the left is now in fact a purely anti-austerity movement. It considers, practically, that fighting against austerity is the only practical thing to do. To challenge the power of employers as a class is off the agenda forever for the left here in Toronto and indeed in most parts of Canada. At best, Mr. Bush illustrates the limits of the social-reformist left, which cannot envision a world beyond the power of employers as a class.

Mr. Bush also says that we need to engage in coalition building. On what basis? There was little discussion about what the goals of such coalition building would be,

Coalition building perhaps was supposed to be centered around the fight against privatization in general and the privatization of Canadian postal services in particular. This seems to be some of what Mr. Bush is aiming to achieve. However, having services performed by state employees rather than the private sector may be preferable in that, on the one hand, more employees are proportionately unionized in the public sector than in the private sector and, on the other, at least on the side of consumption workers who receive services do not need to pay directly out of their pocket; consumption is socialized and made available to all (in theory if not always in practice).

Although these two reasons form a basis for fighting against austerity, they hardly question the principle recognized theoretically but not practically by the Ontario Coalition Against Poverty (OCAP) (a leftist organization that resists policies that lead to “immiseration and destitution”): that economic coercion forms the necessary base of class relations in a capitalist society. State employees are subject to economic coercion like their private-sector counterparts (see The Money Circuit of Capital).

Fighting against austerity through nationalization and other measures should be a means towards the end of abolishing the power of employers as a class; fighting austerity should not be an end in itself–which is what Mr. Bush seems to seek.

Mr. Bush further argues that the community’s role is mainly one of support. Admittedly, he makes this assertion in the context of the potential privatization of postal services, but is that the major role of the community? Is the community merely to be a reflective support for “labour” (actually, unionized workers), or can it not be both supportive and critical? Or can it be supportive by being critical? The view that the community’s main role is to be supportive assumes that the union movement represents a standard that is sufficiently robust and powerful to justify subordinating the community to it.

Why should we accept that assumption? The open letter by John Cartwright, president of the Toronto & York Region Labour Council to the union movement on January 30, 2018,  refers to economic justice, and yet in another post (see Basic Income: A Critique of the Social-Reformist Left’s Assumptions and Analysis: Part Two), it was pointed out just how inadequate is Cartwright’s implicit claim that the union movement has as its goal economic justice when the power of employers as a class is not questioned.

It can be further added that the nationalization of hydro involves its own set of problems that the social-democratic left do not seem to want to address. For example, public sector workers are employees. Being employees, they lack freedom in various ways. How does the fact that public sector workers are employees relate to socialism? Is socialism consistent with the existence of employees? If so, then it is consistent with using human beings as things, is it not? Is that then socialism or capitalism?

What is more likely meant by socialism is what existed before the emergence of what is called neoliberalism: a truce between unions, employers and government and the resurgence of the old welfare state.

What I call socialism would include the abolition of the employer-employee relation–period. It is not about nationalizing utilities and converting institutions merely from private to public government; it would involve the democratization of the economy (see Socialism, Part One: What It May Look Like,  Socialism, Part Two: What It May Look Like,   Socialism, Part Three: What It May Look Like, or Visions of a Better Kind of Society Without Employers).

Despite these many limitations of Mr. Bush’s presentation of what an anti-capitalist movement needs to become, his idea of having an organization as a membership based organization does have merit. The idea is that membership will determine what is feasible in terms of human capacity. If there are only four members, then only four-member actions should be taken. If 400 members, then larger actions, or more coordinated actions, can emerge. Mr. Bush’s recognition of some of the limitations placed on leftist organizations, unfortunately, does not extend to any recognition of his own views on leftist organization.

Mr. Bush claims that it is necessary to build a non-sectarian left, but what that means he fails to spell out. His own brand of anti-capitalism is really only anti-austerity and is itself sectarian.

Basic Income: A Critique of the Ontario Coalition Against Poverty’s Stance

In the pamphlet published on the Socialist Project website, Basic Income in the Neoliberal Age (Toronto, 2017), the Ontario Coalition Against Poverty (OCAP) implies that only a social-reformist vision–maintaining the welfare-state–is a viable option; it implicitly assumes that going beyond it is not viable. Its argument combines both a realistic assessment of the impossibility of an adequate universal basic income for all as long as the power of the class of employers exists, and an implied conservative call for maintaining the existing welfare state rather than going  beyond it.

It–correctly–argues that we should be very skeptical of proposals for basic income originating from liberals and conservatives (and, it should be added, the social-reformist left). Those who believe in an economic system characterized by a class of employers are hardly going to break the link between having to work for an employer and receiving an income. Indeed, as OCAP argues, the current benefits that the government does offer would probably be substantially reduced or eliminated and replaced by a basic income that was even more inadequate than current welfare and other social assistance rates.

However, the skepticism about implementing a basic income scheme that is acceptable to the class of employers is illegitimately extended to skepticism about its viability for a movement that seeks to go beyond a society dominated by the power of the class of employers. They write,

page 6:

These kinds of left advocates are easily able to show how providing a
universal adequate payment, while maintaining other elements of social
provision, would weaken or even eliminate the basis for exploitation of the
working class under capitalism. However, where they uniformly fail is in
the not unimportant area of showing how this is all possible. Capitalism
needs economic coercion for its job market to function and decades of
neoliberal austerity have intensified that coercion considerably. With
trade unions weakened and powerful social movements conspicuous by
their absence, it is doubtful that a major social reform, such as the
proponents of progressive and transformative BI advance, is likely.

At least this paragraph realistically argues that “Capitalism needs economic coercion for its job market to function.” Let us stop at this sentence. If capitalism indeed requires economic coercion if the job market is to function, then should not OCAP be advocating for the abolition of such coercion?  That such a process requires a movement with substantial organizational power goes without saying, and that will take time, energy and much organizing and debating. Of course, this requires a desire to orient social movements towards abolishing the power to coerce, but OCAP is silent about what to do about this coercion that many experience on a daily basis at work (which, of course, spills into situations outside the workplace). Should not OCAP address what it itself admits is characteristic of a society dominated by a class of employers?

OCAP excludes any discussion at all in the document about what is to be done about economic coercion (aka economic blackmail). Its critique of basic income presumes that economic coercion is the order of the day–that there is no alternative–except to maintain the current welfare system, flawed though it may be.

OCAP uses the fact of the weakness of trade unions as a reason for opposing the principle of basic income. Surely one of the reasons why trade unions have become weaker is because they have failed to question the coercive power of employers as a class. For example, John Cartwright, president of the Toronto & York Region Labour Council, in his open letter of January 30, 2018 ( An open letter to our movement) , wrote the following: “We need to fight for labour law reform including broader based bargaining so that precarious workers can have a vehicle in which to achieve dignity and economic justice.”

If, however, economic coercion or economic blackmail is required in the kind of society in which we live, how is it possible to “achieve dignity and economic justice”? If such rhetoric has contributed to the current situation, then should not its criticism form part of the solution? Does OCAP take a stand by taking seriously its own assertion that economic coercion is a necessary feature of the power of employers as a class by criticizing union representatives who talk of economic justice under such dictatorial circumstances?

Throughout the whole document, there is nothing that links this requirement of capitalism–needing “economic coercion for its job market to function”–to the need for a movement that goes beyond such economic coercion.

Ultimately, as noted above, this document is a social-reformist document–a document that has no better solution to “economic coercion” than implicitly proposing that we return to the so-called golden age of capitalism, where employers had accepted, within limits, the need for a mor generous welfare state. OCAP does not explicitly state this, but it implies it.

Would it not be possible to propose a basic income that cannot be satisfied within a structure defined by economic coercion or economic blackmail? The document does not even refer to such a possibility.

Logically, if OCAP takes seriously the view that “Capitalism needs economic coercion for its job market to function,” should it not redefine the nature of poverty? Should not the definition of poverty include taking into account this economic coercion? Does OCAP do so?

In another post, I will refer to an author who does indeed take seriously OCAP’s view that “Capitalism needs economic coercion for its job market to function” and proposes a redefinition of poverty. In that post or another post I will also refer to a proposal for a radical basic income as part of a movement for a different kind of economic, social and political life–a life not characterized by economic, social and political coercion.