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      ).

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.”

Basic Income, Public Ownership and the Radical Left in the Wake of the Coronavirus Pandemic: A Critique

In a couple of posts, I criticized John Clarke’s opposition to a particular form of basic income. Mr. Clarke is a former leader of the Ontario Coalition Against Poverty (OCAP) in Toronto, Ontario, Canada.

Mr. Clarke continues to oppose any alternative universal  basic income scheme (see  ‘Pandemic Basic Income’ Gets It Wrong). He has ignored my criticisms, of course. As I pointed out in one of the posts, his opposition then turns into a social-democratic or social-reformist criticism; he ignores entirely his own observation that capitalist society necessary involves economic coercion, which forces workers to work for employers. At the time, he offered no alternative solution–other than an implicit return to the welfare state of the earlier post-war era. In his new post, he does offer an apparent solution. Before looking at his proposed solution, let us briefly look at his analysis of the problem of universal basic income.

Rather predictably, this situation has led to a bit of an upsurge in calls for a Universal Basic Income (UBI). To the liberal and left thinkers who promote this idea, it naturally makes particular sense to put it into effect at a time such as this. Of course, the last thing I want to oppose is the idea of emergency payments to those without adequate income, as COVID-19 impacts our communities. However, the ‘pandemic basic income’ solution of simply distributing state payments to everyone ($1,000 a month has been suggested) puts into exceptionally clear focus the basic problem with UBI. In more normal times, the scheme represents an ill considered effort, as I’ve argued elsewhere, ‘…to make its peace with (the) neoliberal order and accept a commodified form of social provision.’ It doesn’t challenge low wage precarious work or the degrading and privatizing of the social infrastructure but asks only for a basic payment, paid out of general revenues, and it is taken on faith that the adequacy of this can somehow be assured.

Mr. Clarke still remains riveted to proposals for a basic income that remain well within limits acceptable to employers. However, what if a movement for a minimum basic income of $3000 per month per household member (or even more) emerged? Why limit such a movement to $1000 a month? A universal income that threatens the existence of the supply of workers on the market would not only “challenge low-wage precarious work” but would challenge in many instances the very employer-employee economic structure. Mr. Clarke simply implies through his silence that such a movement is not feasible.

What is his alternative proposal, or his alternative solution?

A fight for no bailouts without public ownership is the only approach that makes any sense if the current period is not to become the greatest free ride for the rich in history and a prelude to austerity on an unprecedented scale.

Mr. Clarke’s reference to a move towards “austerity on an unprecedented scale” is likely true if experience from the 2008 economic crisis is to be our guide. However, the idea that bailouts tied only to “public ownership” is a sufficient solution to the problems that workers and communities face. This reference to “public ownership” or nationalization is a staple of the social-democratic left. How does public ownership solve the problem of a society out of control by those who work and live in it?

The view that public ownership or nationalization by itself implies that  the state is a neutral instrument which merely needs to be captured by the left in order for social problems to be solved. I criticized this view in another post  (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).

Public ownership certainly addresses some of the concerns of workers and communities–specifically, the need for certain services without having to pay money for them. However, as long as the general process of producing our lives is out of our control, public ownership is bound to result in distorted and inadequate satisfaction of our needs.

This call for public ownership as a solution to the problems that we currently face is also proposed by other social democrats. For example, a social-democratic organization–Rankandfile.ca (“Canadian Labour News and Analysis from a Critical Perspective”) Emily Leedham refers to Tony Leah (ex-worker at GM Oshawa), who calls for public ownership of the plant:

While many workers are encouraged by GM’s decision, Leah says Green Jobs Oshawa will continue to push for public ownership of the plant.

“If it’s under public ownership, then it can be the basis for expanding and becoming an important manufacturing centre that provides a security of supplies for future crises,” he explains.“That can’t happen if it’s left up to a corporation that’s always driven by maximizing their own profit.”

In one sense, public ownership can overcome some of the problems associated with the limitations of private capitalist employers: production need not directly be produced for profit. However, if it is not produced for profit, what of its inputs? Public ownership exists alongside private corporations in a world market, which is the main driver of our lives

Neither Mr. Clarke nor Mr. Leah discusses at all the limitations of public ownership. They do not discuss the nature of the modern state and how it, magically, is to enable us to control our own lives. Should we not be discussing the adequacy of the modern state and public ownership or nationalization to enable us to control our own lives rather than assuming that it satisfies our needs?

When we look at the modern government or state, we see a political organization designed to ensure the continued maintenance of a society characterized by classes, specifically, on the one hand, the class that owns and controls the means for us to produce our lives–buildings, factories, computers, raw materials and so forth–the class of employers–and, on the other, those who work for them, the class of workers. Of course, in the real world it is more complicated, but such complications should not blind us to the basic class structure.

Werner Bonefeld (2014) in his Critical Theory and the Critique of Political Economy: On Subversion and Negative Reason, points out how the German philosopher G.W.F. Hegel characterized both modern “civil society” or a society characterized by an antagonism of individuals and modern classes, and it was this specific antagonism that required the modern political form (pages 166-167):

Hegel conceived of bourgeois society as antagonistic in character. It was because of its antagonistic character that it required a political form. He develops the necessity of the state from the innate character of bourgeois society. … He then argues that the division of labour crystallizes ‘into systems, to one or another of which individuals are assigned – in other words, into class divisions’. These divisions are antagonistic in character as the development of bourgeois society leads to its polarization into
antagonistic class relations. According to Hegel, the polarization of society into two opposing classes is an innate necessity of bourgeois society. It belongs to its constituted dynamic. As he sees it, bourgeois society ‘results in the dependence and distress of the class tied to [work]’. Dependence and distress are also entailed in the ‘inability to feel and enjoy the broader freedoms and especially the intellectual benefits of civil society’. Moreover, the expanded reproduction of bourgeois society results ‘in the creation of a rabble of paupers’ and the ‘concentration of disproportionate wealth in a few hands’. What to do ‘when the masses begin to decline into poverty’ and start to rebel? He rejects redistribution of wealth as this ‘would violate the principle of civil society’. He also rejects what today is called a policy of full-employment as contrary to its logic. Rather than solving the problem, it would intensify it. Thus, ‘despite an excess in wealth, civil society is not rich enough, i.e. its own resources are insufficient to check excessive poverty and the creation of a penurious rabble’. There is no economic answer to the polarization of society. Economy does not provide order, nor does it curb the ‘rabble’. In fact, ‘the inner dialectic of civil society . . . drives it . . . to push beyond its own limits’. How to keep the class antagonism within the limits of its bourgeois form? For Hegel, there is only a political answer. He saw the state as the political force of bourgeois society and charged it with containing the class antagonism.

The modern form of government, or the modern form of state, emerges simultaneously with the emergence of the class of employers and the class of employees or workers. To treat this modern political institution or modern political form as somehow capable of realizing our class interests as workers seems far fetched–and yet this is what the social-democratic left do when they call for public ownership or nationalization without further ado.

Note how the call for public ownership or nationalization is often not linked to the critique of the general class relation between employers and employees. It is seen as a solution to specific problems–a stop-gap measure needed to address specific problems that workers face. In such a situation, there is no challenge to the general power of employers.

What of the more general call for the nationalization of industry, means of communication and the like? This often has reactionary overtones since there is then an alliance between workers and employers within one country against workers and employers in other countries (Bonefeld, page 151):

The notion, then, of a ‘national economy’ makes little sense; it is a regressive concept that lends itself, at best, to ideas of national developmental methods associated with the theory and practice of economic nationalism or, at worst, and as Chapter 9
sets out, to the reactionary ideas and practices of nationalism that in reaction
to world-market disturbances assert the regressive equality of the imagined
national community as the rallying cry against the external enemy within. Of
course, protectionism remains a very powerful device to protect a ‘national
economy’. However, the national economy is neither independent from the
world market nor does it merely exist in relation to the world market. Rather,
the national economy subsists in and through the world market. Protectionism,
then, amounts to a ‘measure of defence within free trade’.

The more general view that somehow public ownership leads to control over our lives and thus to freedom simply ignores the nature of the modern state.

Mr. Clarke’s solution to the problem of the current crisis idealizes the modern state. A call for a radical basic income, on other hand, pushes beyond the existing society by challenging on the one hand the power of the class of employers over the class of workers. As workers become more independent of the class of employers, they will be required to change the nature of the modern state since the latter is, by its very nature, designed to ensure their continued real subordination to the power of employers while making it appear that workers freely subordinate themselves to that power (Bonefled, pages 176-177):

Liberalism therefore does not demand ‘weakness from the state, but only freedom for economic development under state protection’.58 In this sense, the state of the free economy does not really govern over society. Rather, it governs through the individuals. There is no freedom without the order of freedom, and order is not only a matter of law. It is also a matter of morality. The order of freedom entails surveillance as a means of freedom. The premise of government is that economic ‘security is only to be had at a price of constant watchfulness and adaptability and the preparedness of each individual to live courageously and put up with life’s insecurities’. There really is only one freedom, and that is the freedom of the self-responsible economic agents who adjust to the price signals with the will of and for enterprise, the one buying labour power with the expectation of making a profit, the other selling labour power as the dispossessed producer of surplus value, seeking to make ends meet. That is, poverty is neither unfreedom nor is it primarily material in character.60 Rather, poverty expresses a moral form of deprivation that is characterized by a poverty of aspiration, requiring state action to transform the sellers of labour power from quarrelsome proletarians into citizens of private property. As such a citizen the worker personifies labour power, which she takes to the market to trade for a wage. She appears thus as an entrepreneur of labour power, always ready to compete for a contract of employment. She thus perceives poverty as an incentive to do better, sees unemployment as an opportunity for employment, prices herself into jobs willingly and on her own initiative and takes her life into her own hands, gets on with things, lives courageously and puts up with life’s insecurities and risks. For the neoliberals, unemployed workers are fundamentally entrepreneurs of labour power in transit, ‘floating’ from one form of employment to another. However, the sociological condition of the worker is based on ‘the transformation of labour power into a commodity, which results from the separation of the worker from the means  of production’. There is thus a ‘natural tendency towards proletarianisation’, and government is therefore required to counteract this tendency, time and time again, to secure the order of freedom. Government over society is government in and through society to ensure ‘the will’ for enterprise and labour market competition, integrating the free labourer into the capitalist relations of ‘coined freedom’ as a willing employer of labour power.

By labour power is meant what the worker sells to the employer. Labour power is what workers sell to employers, not their labour. Labour is what workers do when they work, and it is already controlled by employers when workers work.

Proletarianization here means the formation of workers into organized opposition to the class of employers (in other contexts it has a different meaning). The modern state not only attempts to monopolize the physical forms of violence (police, courts, prisons, military) but also attempts to forge the hearts and minds of workers so that they accept their situation as “entrepreneurs” or vendors of their labour power. In other words, it indoctrinates workers and their children into accepting their unfree status as somehow free.

Mr. Clarke’s assumption that public ownership, then, is a solution to the current crisis is conservative. It does not really address the class nature of modern society nor the class nature of the modern state. A drive for

Such is the nature of the social-democratic or social-reformist left.

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 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’.19 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.

 

 

Health Care: Socialist versus Capitalist Nationalization

Since the coronavirus and health care are undoubtedly on the minds of many people throughout the world, I thought it appropriate to do a bit of research on socialist health care versus present capitalist health-care systems.

Health care even in a nationalized context can easily be an expression of oppression and exploitation. The idealization of nationalization often goes hand in hand with an argument  that we need to extend public services in health and education (as Sam Gindin has argued). However, nationalized health care can easily become an oppressive experience for workers (as well as patients). From Barbara Briggs (1984), “Abolishing a Medical Hierarchy: The Struggle for Socialist Primary Health Care,” pages 83-88, in the journal Critical Social Policy, volume 4, issue #12, page 87:

GPs AND SOCIALISM

Socialists have traditionally argued for state control of key areas of the economy and of the provision of welfare services such as health and education. Socialist health workers have argued for general practitioners to become salaried employees of the Area Health Authorities, along with the ’ancillary workers’, instead of continuing to enjoy the independent self-employed status that they insisted on to protect their status when the NHS [National Health Service of the United Kingdom] was set up.

But the NHS, the largest employer in the country, has shared with nationalised industries the failure to demonstrate any evidence of ’belonging to the people’: because of the backing of the state it has proved a ruthless and powerful employer, keeping the wages of unskilled and many skilled workers also at uniquely low levels; time and again, union members seeking improvements in pay and amelioration of very poor working conditions have been defeated. Nor has the NHS shown any kind of effective accountability to its users. Public spending constraints have hit the NHS not only by causing a decline in working conditions and in the services provided, but also by imposing even more centralised planning priorities based on the need to save money whatever the cost.

This situation likely characterizes the Canadian public health-care system as well.

A word about the Canadian health-care system. One inadequate view on the Canadian health-care system is the social-democratic or social-reformist perspective, which certainly exists in Canada. One definitely inadequate view considers the Canadian health-care system to be socialist (Mary E. Wiktorowicz, pages 264-262, “Health Care Systems in Evolution,” in Staying Alive:  Critical Perspectives on Health,
Illness, and Health Care (2006), page 243):

In many ways, national health insurance symbolizes the great divide between:
liberalism and socialism; the free market and the planned economy (see Box 10.1).

Nationalized health care in no way represents the great divide between liberalism and socialism. An apparently critical form of the analysis of health care–but in reality a variant form of social democracy or social reformism–looks at the inequality in access to health care, according to level of income. Thus, in the edited work Health Promotion in Canada: Critical Perspectives (2007), Denis Raphael, in his article (pages 106-122) “Addressing Health Inequalities in Canada: Little Attention, Inadequate Action, Limited Success,” refers to levels of income as the major social determinant of the level of health. Since income inequalities in Canada are increasing, it follows that health inequalities are also increasing. However, this view defines a social determinant purely in terms of level of income–a typical social-democratic or social reformist method (I will deal with this issue in another post). As Glenn Rikowski (2001) points out (“After the Manuscript Breaks Off: Thoughts on Marx, Social Class and Education”, though, level of income is used instead of social class, or rather level of income is often used as a substitute by the social-democratic left:

… we witness the virtual abandonment of the notion of the working class…. Most people who analyse social class today do no such thing; rather, they have social inequality and stratification in view.

This use of the level of income to evaluate access to adequate health care is useful to a certain extent, but if it is the prime definition of class and inequality, it is far from adequate. It ignores entirely the source of income and exaggerates differences within the working class rather than a shared economic and social situation of being employees (or unemployed or temporary employees) and subject to a hierarchy of power at work (of course, managers are also subject to control from above, but in general it can be safe to assume that they form part of the middle class if not subordinate members of the ruling class).

The situation of the British NHS is typical of what happens when so-called socialist principles are realized in a capitalist context. Two socialist principles in particular fall by the wayside. From Bob Brecher (1997), (pages 217-225), “What Would a Socialist Health Service Look Like?,” in the journal Health Care Analysis,  volume 5, issue #3, page 219:

These principles are: (a) that there by a reasonable degree of equity in respect of outcome concerning the distribution of basic resources, and (b) that people treat each other as ends and not merely as means. The first may perhaps be understood as a political and economic dimension of socialism, while the second constitutes a moral and social element.

The first principle considers that social equity is itself a good in itself or an end at which we should aim. The second principle considers that people deserve to be treated as people in all circumstances and not just outside work or as “consumers.” This second principle, of course, can never be realized in a capitalist society since human beings are necessarily treated as things or objects to be used as means by a class of employers (see The Money Circuit of Capital).

Health care would be just that: health care–not health service. From Brecher, page 221:

‘Service’ implies server and served; consultant and client; provider and consumer. But none of these describes the sort of relationship between carer and person carefd for that the two principles outlined suggest. To take the example of the NHS again: despite the intentions of its founders, it was the connotations of service–by turn beneficently providing for patients and ‘servicing’ them as though they were objects–which helped provide amply justified dissatisfactions with the resultant shortcomings of the NHS treatment: and these have been used to undermine its founding principles. The combination of professional paternalism, especially in respect of senior doctors; an inability or unwillingness to treat people rather than their symptoms; and an attitude of ‘servicing’ and being ‘serviced’ all helped alienate people from what was supposed to be ‘our’ NHS, enabling successive conservative governments to turn what was at its inception at least a ‘social’ health service into an expliictly anti-socialist one. … these are not accidents of the British context: such terms and the attitudes and mores they describe are inimical to a socialist structure, based as that must be on considerations of equity and respect.

It is important to emphasize, as Brecher points out, that the assumption that nationalization is somehow socialist without further ado itself contributes to the Conservative backlash and the emergence of neoliberalism. By indulging the social-democratic or social-reformist left, with their talk of “decent work,” “fair contracts,” “fair share of taxes,” “$15 Minimum Wage and Fairness,” and the like, the so-called radicals have in reality contributed to the neoliberal backlash. What is needed is not indulgence of such talk, but continuous critique of such talk. What is needed is a critical attitude towards the so-called “left” and its associated idealized institutions.

What is needed is critical and hence democratic analysis and discussion of health-care systems. What is absolutely unnecessary is the defense of flaws in various social systems. If we are going to create a socialist society worthy of human beings, we need to be honest about the inadequacies of current social structures and systems.

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.

Socialism, Part Four: What It May Look Like, or Visions of a Better Kind of Society Without Employers

The following is a continuation of previous posts on the possible nature of socialism that excludes the power of employers as a class.

In the following, Tony Smith elaborates on the democratic nature of the workplace, which is subject to control not only by the workers at the particular workplace electing managers but also by certain community organizations that represent specific community interests. From Globalisation: A Systematic Marxian Account (2006. Boston: Brill), page 303:

(iii) Worker collectives produce public goods, inputs into the production process, or final consumption goods. Funds for the first are directly allocated to collectives by the relevant planning agencies (see below). The latter two categories of products are offered for sale in producer and consumer markets. In Schweickart’s view, attempts to centrally plan all inputs and outputs in a top-down fashion are simply not feasible, at least not in a complex and dynamic economy. But it does not follow that capitalist market societies are the only acceptable forms of economic organisation. It is possible to imagine a feasible and normatively attractive society combining markets with the socialisation of the means of production, that is, a society making use of producer and consumer markets after abolishing both capital markets and
labour markets.

In addition to the elimination of a market for workers and management of work enterprises being accountable to work councils and community councils, capital markets in the sense of an investment process owned by a minority would no longer exist. There would, nonetheless, be markets that produced means of production and markets that produced consumption goods. For example, at the brewery where I worked, the workers who produced the soaker or the filler that the brewery workers used would be subject to competition from other workers who produce soakers or fillers. Workers in the brewery would be subject to competition from workers in other breweries.

Unfortunately, Smith does not elaborate much on what he means by the abolition of capital markets. His reference to David Schweickart’s work Against Capitalism, however, gives a clue to what he means. Schweikart has the following to say (page 172):

First, we issue a decree abolishing all enterprise obligations to pay interest or stock dividends to private individuals or private institutions.

This decree will need no enforcement, since enterprises are not going to insist on paying what they are no longer legally obligated to pay.

But Schweickart sees a flaw in the abolition of all capital markets, at least immediately (page 173):

6.3.2 Once More, This Time with Feeling (for the Stockholders)

Too Simple? Of course. The above is not meant to be a realistic scenario. Above all, it fails to take into account the fact that millions of ordinary citizens (not only capitalists) have resources tied up in the financial markets. People with savings accounts or holdings in stocks and bonds have been counting on their dividend and interest checks. (Nearly half of all American households have direct or indirect holdings in the stock market, mostly in pension plans.) Eliminating all dividend and interest income-which is what Radical Quick does-will not strike these fellow citizens as a welcome reform. Let us run through our story again, this time complicating it to take into account their legitimate concerns.

Schweickart, realistically, recognizes that workers have investments in capital markets and hence are in some ways tied to such markets. His solution is to imagine a situation where at least the key corporations, due to the circumstances of a crisis, would be subject to elimination from capital markets (pages 173-174):

Let me first set the stage a little more fully than I did with Radical Quick. Let us suppose that a genuine counterproject to capitalism has developed, and that, gradually gaining in strength, it has been able to elect a leftist government that has put most of the reforms outlined earlier in this chapter on the table and has secured the passage of some of them. Suppose investors decide they’ve had enough and begin cashing in their stock holdings. A stock-market crash ensues. In reaction, the citizenry decide that they too have had enough-and give their leftist government an even stronger mandate to take full responsibility for an economy now tumbling into crisis.

Our new government declares a bank holiday, pending reorganization (as Roosevelt did following his election in 1932). All publicly traded corporations are declared to be worker-controlled. Note: This control extends only to corporations, not to small businesses or even to privately held capitalist firms. It is decided that it will be sufficient  to redefine property rights only in those firms for which ownership has already been largely separated from management. (With the “commanding heights” of the economy now democratized, most other firms can be expected to come under increased pressure from their own workers, over time, to follow suit.)

The exact way in which capital markets would be reduced and eventually abolished would vary across time and place, depending on circumstances.

As I have emphasized throughout this blog, though, it is much less likely that workers will be receptive to a call for the elimination of capital markets and markets for workers unless they find the situation to be unfair. The ideology of the social-reformist left consistently makes reference to fairness within the limits of the employer-employee relation. We need to break with such ideology if we are to initiate such a process without having to respond erratically when a crisis hits.

Or are there alternatives? What do you think?