The Rate of Exploitation of Workers at Magna International Inc., One of the Largest Private Employers in Toronto, Part Three, Updated, 2020

Introduction

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

I have tried to calculate the rate of exploitation of workers of workers in several capitalist companies: Magna International, Bell Canada Enterprises (BCE), ScotiaBank (Bank of Nova Scotia), Bank of Montreal (BMO), Telus, Royal Bank of Canada (RBC), Suncor Energy, Toronto-Dominion Bank (TD Bank),Rogers Communications Inc., the Canadian Imperial Bank of Commerce (CIBC) and  Air Canada,  (see for example The Rate of Exploitation of Workers at Magna International Inc., One of the Largest Private Employers in Toronto, Part One).

I thought it might be useful to begin the comparison of rates of exploitation of the same capitalist employer for different years. Although this fails to capture the dynamic of capitalist relations of production and exchange (being two snapshots at different times), it may provide further insight into the nature of capitalist society.

The structure of the post is as follows:

  1. I outline the nature of the rate of exploitation
  2. I then provide “Conclusion first,”
    a. the 2020 rate of exploitation is indicated
    b. the 2020 rate of exploitation is compared with the 2019 rate and some possible explanations of the differences are provided
    c. a long quote of a discussion around tactics and strategies between Sam Gindin (former research director of the Canadian Autoworkers Union (CAW) (now Unifor) and me relating to  union ideology.
    d. Further brief criticisms of Mr. Gindin’s political position
    e. Consideration of an Integram Bargaining Report produced by Unifor Local 444 (Integram is a division of Magna International), dated November 8, 2020 in relation to Mr. Gindin’s views
  3. How I calculated the rate of exploitation (including adjustments) as well as a justification for interpreting the substantial decrease in the rate of exploitation in terms of “fixed costs.”
  4. The conclusions as stated in 2.

The Nature of the Rate of Exploitation

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

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

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

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

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

Conclusions First

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

The Rate of Exploitation

So, with the adjustments in place: s=1081; v=2,509. The rate of exploitation or the rate of surplus value=s/v=1081/2,509=43%.

I will first consider this rate in relation to the workers in 2020, and then compare this rate with the 2019 rate of exploitation.

That means that for every hour worked that produces her/his wage, a worker at Magna International works around an additional 26 minutes for free for Magna International. Alternatively, in terms of money, $1 of wage or salary of a regular Magna International worker produces around $0.43 (43 cents) surplus value or profit for free.

  1. In an 8-hour work day (480minutes), the worker produces her/his wage in 336 minutes (5 hours  36 minutes) and works 144 minutes (2 hours 24 minutes) for free for Magna International.
  2. In an 9-hour work day (540minutes), the worker produces her/his wage in 378 minutes (6  hours 18 minutes) and works 162 minutes (2 hours 42 minutes) for free for Magna International.
  3. In an 10-hour work day (600 minutes), the worker produces her/his wage in 420 minutes (7  hours) and works 180 minutes (3 hours) for free for Magna International.
  4. In an 12-hour work day (720 minutes), the worker produces her/his wage in 503 minutes (8  hours  23 minutes) and works 217 minutes (3 hours 37 minutes) for free for Magna International.

Comparison of the 2019 Rate of Exploitation with the 2020 Rate of Exploitation

2020: So, with the adjustments in place: s=1081; v=2,509. The rate of exploitation or the rate of surplus value=s/v=1081/2,509=43%.
2019: So, with the adjustments in place: s=2,258; v=2,862. The rate of exploitation or the rate of surplus value=s/v=2,258/2,862=79%.

The absolute decrease in s is substantial: 1,177, and the rate of decrease is 52% (1081-2,258)/2,258=-1,177/2,258).

By contrast, the absolute decrease in v is much less: 353, and the rate of decrease is (2509-2862)/=2509=-353/2862=12%.

The substantial decrease in the rate of exploitation is likely due to the treatment of workers as “fixed costs” as the pandemic forced employers to retain workers despite the relatively extra costs associated with it (partly offset by federal, provincial and municipal supports).

There may, of course, be other causes of the decrease in the rate of exploitation, such as problems pertaining to supply of inputs, but I will leave that issue aside.

It should be emphasized that the exploitation of workers pertains to the production of a surplus beyond the production of the value equivalent of their own costs of production. Even during the time the workers require to produce their wage, they are oppressed by employers since they are subject to the will of the employer (or her representatives) and to the control over their labour.

Political Considerations

The rapid decrease in the rate of exploitation of workers of Magna International with the onset of the pandemic will likely call for an opposite pressure to increase exploitation directly through intensification and an extension of the working day and changes in technology and organization of the production process. Pressures to increase tax breaks for such capitalist employers (and corresponding reduction in state expenditures for welfare measures) may also arise. Of course, some workers will not just lay down and accept such counter-pressures.

Why is it that workers have to put up with this situation? Should they not be organizing not only to resist exploitation and oppression and increased pressures related to those phenomena but also to abolish such pressures? Not according to the social-democratic or social-reformist left. Such organizational efforts, for them, are undoubtedly unrealistic. New structures are supposedly to arise without criticizing the old structures.

Thus, for social democrats like Sam Gindin (former research director for the Canadian Auto Workers (CAW) (now Unifor), challenging the ideology of “decent jobs or work,” “fair contract,” “fair collective agreement,” “fair deal,” “fair wages” and other abstract phrases (rhetoric) is relatively unimportant. New material structures more relevant to the lives and experiences of working people are somehow to arise without constantly challenging the existing social structures–and the corresponding ideology that justifies such structures.

Frankly, I doubt that such new material structures will arise without a persistent and constant challenging of the ideological rhetoric rampant among the left in general and unions in particular.

I will include a rather long quote from a previous post. It is a conversation between Sam Gindin (a self-claimed “leader” of radical workers here in Toronto despite his probable own explicit denial of such a title) and me:

Re: A Good or Decent Job and a Fair Deal
Sam Gindin
Sat 2017-02-18 8:05 AM
Something is missing here. No-one on this list is denying that language doesn’t reflect material realities (the language we use reflects the balance of forces) or that it is irrelevant in the struggle for material effects (the language of middle class vs working class matter And no one is questioning whether unions are generally sectional as opposed to class organizations or whether having a job or ‘decent’ pay is enough. The question is the autonomy you give to language.

The problem isn’t that workers refer to ‘fair pay’ but the reality of their limited options. Language is NOT the key doc changing this though it clearly plays a role. That role is however only important when it is linked to actual struggles – to material cents not just discourse. The reason we have such difficulties in doing education has to do with the limits of words alone even if words are indeed essential to struggles. Words help workers grasp the implications of struggles, defeats, and the partial victories we have under capitalism (no other victories as you say, are possible under capitalism).

So when workers end a strike with the gains they hoped for going in, we can tell them they are still exploited. But if that is all we do, what then? We can – as I know you’d do – not put it so bluntly (because the context and not just the words matter). that emphasize that they showed that solidarity matters but we’re still short of the fuller life we deserve and should aspire to and that this is only possible through a larger struggle, but then we need to be able to point to HOW to do this. Otherwise we are only moralizing. That is to say, it is the ideas behind the words and the recognition of the need for larger structures to fight through that primarily matter. Words help with this and so are important but exaggerating their role can be as dangerous as ignoring it.

What I’m trying to say is that people do, I think, agree with the point you started with – we need to remind ourselves of the limits of, for example, achieving ‘fair wages’. But the stark way you criticize using that word, as opposed to asking how do we accept the reality out there and move people to larger class understandings – of which language is an important part – seems to have thrown the discussion off kilter.

On Sat, Feb 18, 2017 at 7:00 AM, Frederick Harris <arbeit67@hotmail.com> wrote:

I was waiting to see whether there was any dispute concerning either the primary function of language or its material nature. Since there has been no response to that issue, I will assume that the view that the primary function of language is to coordinate social activity has been accepted.

What are some of the political implications of such a view of language? Firstly, the view that “But material conditions matter more” has no obvious basis. If language coordinates our activity, surely workers need language “to reproduce themselves.”

The question is whether coordination is to be on a narrower or wider basis.

Let us now take a look at the view that a contract (a collective agreement) is fair or just and that what workers are striving for is a decent or good job.

If we do not oppose the view that any collective agreement is fair to workers and that the jobs that they have or striving to have are decent jobs, then are we saying that a particular struggle against a particular employer can, in some meaningful sense, result in a contract that workers are to abide by out of some sense of fairness? Does not such a view fragment workers by implicitly arguing that they can, by coordinating their action at the local or micro level, achieve a fair contract and a good job?

If, on the other hand, we argue against the view that the workers who are fighting against a particular employer cannot achieve any fair contract or a decent job, but rather that they can only achieve this in opposition to a class of employers and in coordination with other workers in many other domains (in other industries that produce the means of consumption of workers, in industries that produce the machines and the raw material that go into the factory, in schools where teachers teach our children and so forth), then there opens up the horizon for a broader approach for coordinating activity rather than the narrow view of considering it possible to achieve not a fair contract and a decent job in relation to a particular employer.

In other words, it is a difference between a one-sided, micro point of view and a class point of view.

As far as gaining things within capitalism, of course it is necessary to fight against your immediate employer, in solidarity with your immediate fellow workers, in order to achieve anything. I already argued this in relation to the issue of health in another post.

Is our standard for coordinating our activity to be limited to our immediate relation to an employer? Or is to expand to include our relation to the conditions for the ‘workers to reproduce themselves’?

“They turn more radical when it becomes clear that the system can’t meet their needs and other forms of action become necessary -”

How does it become clear to workers when their relations to each other as workers occurs through the market system? Where the products of their own labour are used against them to oppress and exploit them? Are we supposed to wait until “the system can’t meet their needs”? In what sense?

I for one have needed to live a decent life–not to have a decent job working for an employer or for others to be working for employers. I for one have needed to live a dignified life–not a life where I am used for the benefit of employers. Do not other workers have the same need? Is that need being met now? If not, should we not bring up the issue at every occasion? Can any collective agreement with an employer realize that need?

Where is a vision that provides guidance towards a common goal? A “fair contract”? A “decent” job? Is this a class vision that permits the coordination of workers’ activities across industries and work sites? Or a limited vision that reproduces the segmentation and fragmentation of the working class?

Fred

I guess workers’ explicit consciousness of their own exploitation and oppression and their discussion of such experiences is to arise only after the emergence of “larger structures to fight through.” It is, however, likely that such “larger structures” will simply mimic the “narrower” structures if both are not criticized. How is the CLC substantially different from union structures in terms of challenging the class power of employers? Or is Mr. Gindin referring to the larger structures, such as the class power of employers?

My own experience with union reps has been that they assume the necessity and legitimacy of the class power of employers–and do not do anything to raise the issue of the legitimacy of the class power of employers, the exploitation of workers and their oppression among their own members; their aim is to improve the working conditions without questioning at all such class power, exploitation and oppression. I have been a union member, a union rep (union steward and member of a collective-bargaining committee), a member of the executive of a union and a rep for an Equity and Social Justice Committee. I have seen up close the assumptions and limitations and unions–and have tried to address such limitations when and where I could.

The false nature of Mr. Gindin’s political position stands out when he claims the following:

Which brings me back to the point that the problem is not [Wayne] Dealy [union director for the Canadian Union of Public Employees (CUPE) Local 3902] or Sean [Smith,  Unifor Local 2002 Co-Ordinator and Toronto Airport Workers Council (TAWC) activist”] or others but OUR Collective inability to provide them with an effective alternative politics…They can be criticized but only if we do so with humility and part of criticizing ourselves. [my emphasis] 

Is there evidence that Mr. Gindin criticizes his own views? Are union reps (and union members) really conscious of the exploitative and oppressive nature of the class power of employers as such? If so, what are they doing about it? I fail to see evidence of it. I also fail to see evidence of Mr. Gindin engaging in self-criticism. He implicitly assumes that he knows what workers need–and that is not an explicit and real consciousness of their exploitation and oppression–with or without unions, collective bargaining and collective agreements

Let us look at an Integram Bargaining Report produced by Unifor Local 444 (Integram is a division of Magna International), dated November 8, 2020 (see  https://d3n8a8pro7vhmx.cloudfront.net/uniforlocal444/pages/43/attachments/original/1604838387/Integram_Ratification_Bulletin.pdf?1604838387).

It contains such enlightening items as the following:

Our members are their most vital asset that sets the supplier bar in this industry and deserves proper compensation through pay and benefits that award them for their labour and aids the company in retaining their highly skilled workforce. [my emphasis]

I find this language both typical of union reps–and disturbing. As I pointed out above, it is likely that Magna International treated the workers as a “fixed cost” in order to retain them during the worst moments of the pandemic. However, to read a union rep write that Magna workers are “an asset” surely is both disturbing and in need of criticism. Should any human being be considered and treated as an “asset?” Consider any member of your family. Would you want them to be treated as “an asset?”

That they are “assets” is real enough–to be exploited by Magna International (and all other private companies)–but should we not be criticizing this? Is Mr. Gindin in any specific way? Apparently not–since radicals are supposed to only criticize such views in “material cents.” Perhaps Mr. Gindin can provide an example of this in his own concrete practice? I see no concrete examples of his recommendations–they are so vague.

Where is Mr. Gindin’s “humility?” Where is his “self-criticism?”

Let us continue with this Integram Bargaining Report:

deserves proper compensation through pay and benefits that award them for their labour

This is ideology frequently expressed by union reps. “Proper compensation” is a synonym for “fair wages” and, indirectly, a “fair contract.” The union rep clings to the appearance of workers selling their “labour” [labour is an activity that requires a material link between that labour and the means to be used–without those means, there is only a capacity for labour or labour-power. As Marx remarked, in Capital: A Critique of Political Economy, volume 1, page 277:

When we speak of capacity for labour, we do not speak of labour, any more than we
speak of digestion when we speak of capacity for digestion. As is well known, the latter process requires something more than a good stomach.

Workers lack the conditions for the realization of their capacity for labour–just as many in the world lack the conditions for the use of their digestive tract–they lack food. The Unifor union rep. by identifying labour with the commodity which the worker sells simply ignores the difference between a capacity and the conditions for its exercise–and such neglect of the conditions is hardly in the interests of workers.

How workers sell “labour” that is already linked to the means of production owned by (Magna) Integram (and hence under the control of Integram is a mystery. Furthermore, by identifying compensation with labour, the exploitation of workers by Magna Integram is excluded, and the internal or necessary relation between the wage and the profit of Magna Integram becomes broken.

Does Mr. Gindin criticize this approach so typical of union reps? Not at all. Rather, he criticizes those who engage in such criticism. For him, radicals are to indulge such beliefs. After all, it is only “discourse” and has no “autonomy.” This dismissal of ideological struggles is itself arrogant and lacks humility. Mr. Gindin somehow knows what workers need without even considering in any detail how union reps aid to legitimate the existing class power of employers by constantly using such language.

Where has Wayne Dealy provided any criticism of collective agreements (not the particular provisions of collective agreements) publicly? Sean Smith? Frankly, I find it astounding that such arrogance displayed by Mr. Gindin in his assumption that we are not to engage in criticism of union reps’ views is paraded as “humility” and “self-criticism.”

Let us listen to what Mr. Gindin called “Our Tracy” (McMaster, a union steward for Local 561 of the Ontario Public Service Employees Union (OPSEU); who was also vice-president of the local union at one point):

Collective bargaining is limited and imperfect, but a fuck-ton better than none.

I have hardly denied that collective bargaining is better than none. I have belonged to several unions in my life, and I certainly would prefer to belong to a union when working for an employer than not belonging to one. However, I do not take seriously her claim that “Collective bargaining is limited and imperfect.” I see no evidence that Ms. McMaster takes such a view seriously. Where is the evidence that she has inquired into “the limitations and imperfections” of collective bargaining? Rather, for Ms. McMaster, collective bargaining provides an imperfect but ultimately fair contract.

Perhaps Mr. Gindin can provide evidence to the contrary it. I doubt that he will–or can.

Mr. Gindin’s tactics are as follows: Let us try to convince such union reps of our views. Frankly, I think such an effort is, for the most part, a waste of time. Of course, there are exceptions, and it is necessary to use one’s judgement under specific circumstances and in relation to specific union reps. However, my judgement was and is that it Ms. McMaster would never be really convinced of the “limitations and imperfections” of collective bargaining.

Rather than indulging such union reps, it is in the interests of workers to criticize them and to expose their lack of a critical approach to collective bargaining.

Let us continue to look at this Bargaining Report:

Your bargaining committee achieved Pay Raises, Benefits Improvements, Lowering the new higher grid, Buy-out packages, and Signing Bonus. A healthy contract that reflects a greater worth in our Integram members.

Such achievements, of course, are in the interests of the workers. But why call it a “healthy contract?” Apparently, this is a synonym for a “fair contract”–and I have shown that Canadian unions persistently use such language to justify both the collective-bargaining process and collective agreements (see, for example,   Fair Contracts (or Fair Collective Agreements): The Ideological Rhetoric of Canadian Unions, Part One: The Canadian Union of Public Employees (CUPE)  or Fair Contracts or Collective Agreements: The Ideological Rhetoric of Canadian Unions, Part Three: Unifor (Largest Private Union in Canada)). No collective agreement can express something legitimate–unless the necessary exploitation and oppression of workers by employers (including Magna Integram) is somehow legitimate.

In the Bargaining Report, there then follows a list of items that were obtained by the bargaining committee. Not one word of the “limited and imperfect” nature of the collective agreement or the collective-bargaining process. Not one word on the management rights clause, implicit or explicit in the collective agreement. Do not workers persistently experience the power of management in a variety of ways? Why the silence over such experiences? Does the collective agreement address such power? Or does it only address the limited areas defined by collective-bargaining legislation?

For Mr. Gindin, though, to question the “language” used by union reps, as well as the omission of any criticism of the limitations of collective bargaining and collective agreements, expresses merely “moralizing.”

I will leave Mr. Gindin with his fake humility and his fake self-criticism. I will continue to engage in “discourse analysis”–that is to say, with a criticism and exposure of the limited nature of unions, collective bargaining and collective agreements.

Data on Which the Calculation Is Based

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

Now, the calculation:

In millions US dollars:

Sales $32,647
Costs and expenses $31,641

Cost of goods sold 28,207

Material $19,750
Direct labour 2,498
Overhead 5,959

Depreciation and amortization 1,366
Selling, general & administrative 1,587
Interest expense, net 86
Equity income (189)
Other expense, net 584
Income from operations before income taxes $1,006

[28,207+1,366+1,587+86+584=31,830; 31,830+1006=32,836; 32,836-189=32,647]

Adjustments

As I indicated in the 2019 post, a couple of adjustments are necessary.

Adjustment on Cost Side of Direct Labour and Corresponding Adjustment of Income  from Operations Before Taxes

I wrote in the 2019 post:

On page 37 [of the 2019 annual report], there is a reference to pension benefits. I assume that this category belongs to “direct labour” since it forms part of the deferred wages of workers that is paid in the current year (but then again, it is unclear whether the category of direct labour includes this, but since it is subtracted from net income, this leads me to believe that it is not included in that category). This should be added to direct labour. Hence, direct labour would be: 2,815+47=2,862, “Costs and expenses” would be $37, 255 “Costs of goods sold”would be $34,069, and “Income from operations before taxes” should be adjusted downward accordingly.

Now the 2020 “Pension and post-retirement benefits” is  (11).

This US $11 million should be added to “Cost and Expenses,” “Direct labour” and subtracted from “Income from operations before taxes.” Accordingly:

Temporarily Adjusted Costs and Expenses: $31,652
Temporary Adjusted Costs of Goods Sold: $28,218
Adjusted Direct Labour Costs: $2,509
Temporarily Adjusted income from operations before income taxes: $995

Adjustment of income from operations before income taxes due to interest expense, net

Another adjustment relates to interest. As I indicated in my post about the 2019 rate of exploitation of workers at Magna International:

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

Accordingly, it is necessary to add $86 “Interest expense, net” to “Income from operations before income taxes” and subtract it from “Cost and expenses.”

(“Equity income” is already subtracted from costs since it is not really a cost at all but rather income.)

Adjusted Cost and Expenses $31,566
Adjusted Direct Labour $2,509
Adjusted income from operations before income taxes $1081

The Rate of Exploitation

So, with the adjustments in place: s=1081; v=2,509. The rate of exploitation or the rate of surplus value=s/v=1081/2,509=43%.

I will first consider this rate in relation to the workers in 2020, and then compare this rate with the 2019 rate of exploitation.

That means that for every hour worked that produces her/his wage, a worker at Magna International works around an additional 26 minutes for free for Magna International. Alternatively, in terms of money, $1 of wage or salary of a regular Magna International worker produces around $0.43 (43 cents) surplus value or profit for free.

The following provides information about the length of the working day:

  1. There are 3 shifts. 9 hours a shift.
  2. Typical 8 – 12 hours per shift.
  3. 8-12 hrs, 7 days a week, with very last minute overtime mandating, and i mean literally as your punching out theyll tell you that you have to stay for another 4+ hours. No work life balance and management could care less because theyre at home on the weekends. Better positions come with 100% more stress, more responsibilities that others pass off cause they dont want to do it, 1000s of strings attached and literally no way to avoid getting screwed by them. Constant harassment and belittling by management and engineers and if you report it, youre facing constant retaliation and impending termination. If your not part of the HR posse or the “good ol’ boys club”, youre nothing but a rug for them to walk across. So, if you value your sanity, health and family, this is not a place to work.
  4. I have been there for 3 years until i quit and half of the plant is doing either 10 or 12 hours 7 days a week
  5. Article 17 (page 51) of the collective agreement between Magna International and Unifor Local 2009AP: Employees normally work an eight-hour day, five days per week

Accordingly:

  1. In an 8-hour work day (480minutes), the worker produces her/his wage in 336 minutes (5 hours  36 minutes) and works 144 minutes (2 hours 24 minutes) for free for Magna International.
  2. In an 9-hour work day (540minutes), the worker produces her/his wage in 378 minutes (6  hours 18 minutes) and works 162 minutes (2 hours 42 minutes) for free for Magna International.
  3. In an 10-hour work day (600 minutes), the worker produces her/his wage in 420 minutes (7  hours) and works 180 minutes (3 hours) for free for Magna International.
  4. In an 12-hour work day (720 minutes), the worker produces her/his wage in 503 minutes (8  hours  23 minutes) and works 217 minutes (3 hours 37 minutes) for free for Magna International.

Comparison of the 2019 Rate of Exploitation with the 2020 Rate of Exploitation

2020: So, with the adjustments in place: s=1081; v=2,509. The rate of exploitation or the rate of surplus value=s/v=1081/2,509=43%.
2019: So, with the adjustments in place: s=2,258; v=2,862. The rate of exploitation or the rate of surplus value=s/v=2,258/2,862=79%.

The absolute decrease in s is substantial: 1,177, and the rate of decrease is 52% (1081-2,258)/2,258=-1,177/2,258).

By contrast, the absolute decrease in v is much less: 353, and the rate of decrease is (2509-2862)/=2509=-353/2862=12%.

Factors or Determinants of the Rate of Exploitation and Its Changes

Normally, when there is a change in the rate of exploitation, whether positive or negative, we should look at the general factors that govern the production of surplus value.  In general, there are three ways of changing the rate of exploitation:

  1. changing the real wage (the absolute amount and variety of commodities consumed by workers);
  2. changing the absolute amount of surplus value produced either by
    1. changing the length of the working day intensity of labour or
    2. changing the intensity of labour length of the working day
  3. changing (in fact, increasing) the relative amount of surplus value produced, generally through new technology, thereby decreasing the value of the commodities produced that form the real wage consumed by workers (with a fixed or constant working day and a constant amount of commodities consumed by workers, but with less labour time required to produce them, the amount of labour time required to reproduce the workers’ wages is reduced and more labour time constitutes surplus value).

As Ben Fine  and Alfredo Saad-Filho (2016) describe the factors with a view to increasing the rate of exploitation by employers in their book Marx’s Capital, pages 36-37:

Assume, now, that real wages remain unchanged. The rate of exploitation can be increased
in two ways….

First, e [the rate of exploitation[ can be increased through what Marx calls the production of absolute surplus value. On the basis of existing methods of production – that is, with commodity values remaining the same – the simplest way to do this is through the extension of the working day. …

There are other ways of producing absolute surplus value. For example, if work becomes more intense during a given working day, more labour will be performed in the same period, and absolute surplus value will be produced. The same result can be achieved through making work continuous, without breaks even for rest and refreshment. The production of absolute surplus value is often a by-product of technical change, because the
introduction of new machines, such as conveyors and, later, robots in the production line, also allows for the reorganisation of the labour process. This offers an excuse for the elimination of breaks or ‘pores’ in the working day that are sources of inefficiency for
the capitalists and, simultaneously, leads to increased control over the labour process (as well as greater labour intensity) and higher profitability, independently of the value changes brought about by the new machinery.

The desired pace of work could also be obtained through a crudely applied discipline. There may be constant supervision by middle management and penalties, even dismissal, or rewards for harder work (i.e. producing more value).

The above are general conditions for the determination of the rate of exploitation and its changes. The specific change observed in the rate of exploitation of workers at Magna International are unlikely due to these general conditions. Rather, the decrease in the rate of exploitation in 2020 relative to 2019 is likely due to the specific economic conditions that accompanied the pandemic.

One Possible Explanation for the Substantial Decrease in the Rate of Exploitation

Part of the explanation for the  substantial decrease in the rate of exploitation was probably the treatment of workers at Magna International, in part, as “fixed costs.”

Initially, Magna International laid off many of “its” workers, but it also sought to retain them by paying them additional money beyond that flowing from the government initially through federal  unemployment insurance (although it may have also been a function of provisions in the collective agreement concerning layoffs).

Magna International did lay off around 2,000 workers in Ontario during the initial wave of COVID. From https://lfpress.com/business/local-business/magna-cuts-production-2000-local-staff-amid-fallout-from-covid-19:

Magna cuts production, 2,000 local staff amid fallout from COVID-19

Magna, one of the largest automotive employers in the London region, has laid off about 2,000 workers locally as the fallout from the COVID-19 pandemic sweeps through the manufacturing sector.

Article content

Magna, one of the largest automotive employers in the London region, has laid off about 2,000 workers locally as the fallout from the COVID-19 pandemic sweeps through the manufacturing sector.

The Canadian auto parts giant has closed its two St. Thomas plants, Presstran and Formet, employing a combined 1,500 to 2,000, as well as Qualtech in London, which employs about 275.

“Both Formet and Presstran will be temporarily suspending operations today . . . Qualtech will also temporarily suspend its operations,” read a statement from Scott Worden of Magna’s corporate communications department.

“Magna is committed to both the health and financial well-being of our employees. We will be providing additional payments to employees beyond the minimums provided under the federal Employment Insurance program.”

The closings are not unexpected, and may not last long, as the Detroit Three automakers, Toyota and Honda have all closed plants for up to two weeks across North America as a result of the coronavirus.

Presstran is a stamping plant and Formet supplies several different parts to many automakers, including truck frames to GM plants in the U.S. Qualtech supplies seating systems.

“Magna continues to closely monitor developments related to coronavirus (COVID-19) with a focus on the health and safety of our employees and our operations. In addition, we are in daily communication with our customers, many of which have recently announced partial or full temporary production suspensions at plants in Europe and North America,” read an additional statement from Tracy Fuerst, vice-president of corporate communications at Magna.

The automaker said it will continue to follow World Health Organization protocol on cleaning the workplace and limiting contact with between people.

“We continue to assess our operations on an individual basis and are beginning to temporarily suspend manufacturing operations at a number of our manufacturing divisions around the world . . . many of our facilities are expected to suspend operations with production status re-evaluated week to week,” said Fuerst.

Further evidence for treating Magna International workers as fixed costs comes from Annual Information Form, Magna International Inc., March 25, 2021, page A-17:

Despite inevitable temporary layoffs of employees in light of the suspension of production during the first half of 2020, we took a number of steps to minimize the impact felt by our employees, including: maintaining employee benefits coverages through the temporary layoff period; …

We also engaged emergency government support programs primarily for employees to maintain compensation levels and/or benefits for a certain period, where applicable. The countries in which Magna engaged such programs included Canada, the United States, the United Kingdom, Germany, Austria and China. These programs allowed participating employees to remain on our payroll while inactive or furloughed due to mandatory stay at home orders, with Magna receiving full or partial reimbursement for such inactive labour.

The view that workers were treated more as fixed costs (probably out of fear that Magna International would lose such workers to other employers if they were not treated as fixed costs) is supported by the relatively limited decrease in v when compared to s.

Treating workers as “fixed costs” under the conditions of the pandemic is understandable since workers are not linked politically or legally to particular employers; they can work for another employer (if they can find another employer who will hire them). See Do Workers Work for a Particular Employer or for the Class of Employers? Part One: A Limitation of Some Radical Left Critiques of Capitalist Relations of Production and Exchange (A.K.A. Capitalism) and  Do Workers Work for a Particular Employer or for the Class of Employers? Part Two: Critique of Unions and the Social-Reformist or Social-Democratic Left).

This treatment of workers as fixed costs (to retain them over the short term) and the resulting decrease in the rate of exploitation is consistent with abnormal conditions that capitalist employers generally try to avoid since, on the one hand, they own means of production (c) that fail to absorb surplus value and, hire relatively more workers (v) than can be exploited under given conditions. From Karl Marx, Capital: A Critique of Political Economy. Volume 2, The Process of , page 111:

The point is simply that under all circumstances the part of the money that is spent on means of production – the means of production bought in M-mp [money used to purchase means of production, such as computers and other machines, raw material, buildings and other produced commodities necessary for labour to be performed] means of production – must be sufficient, i.e. must be reckoned up from the start and be provided in appropriate proportions. To put it another way, the means of production must be sufficient in mass to absorb the mass of labour which is to be turned into products through them. If sufficient means of production are not present, then the surplus lahour which the purchaser has at his disposal cannot be made use of; his right, to dispose of it will lead to nothing. If more means of production are available than disposable labour, then these remain unsaturated with labour, and are not transformed into products.

In effect, in terms of the pandemic, Magna International purchased too much labour power (the capacity to use the means of production and to produce value–a capacity sold by workers) and too many means of production. Not all of the labour power purchased could be exploited, and not all the means of production owned by Magna International could absorb labour and hence surplus labour and surplus value.

There may, of course, be other causes of the decrease in the rate of exploitation, such as problems pertaining to supply of inputs, but I will leave that issue aside.

It should be emphasized that the exploitation of workers pertains to the production of a surplus beyond the production of the value equivalent of their own costs of production. Even during the time the workers require to produce their wage, they are oppressed by employers since they are subject to the will of the employer (or her representatives) and to the control over their labour.

Conclusion

The rapid decrease in the rate of exploitation of workers of Magna International with the onset of the pandemic is likely due to the temporary) overinvestment in the purchase of labour power relative to the inability of management to use the means of production to exploit the workers. This situation will likely now call for an opposite pressure to increase exploitation directly through intensification and an extension of the working day and changes in technology and organization of the production process. Pressures to increase tax breaks for such capitalist employers (and corresponding reduction in state expenditures for welfare measures) may also arise. Of course, some workers will not just lay down and accept such counter-pressures.

Why is it that workers have to put up with this situation? Should they not be organizing not only to resist exploitation and oppression and increased pressures related to those phenomena but also to abolish such pressures? Not according to the social-democratic or social-reformist left. Such organizational efforts, for them, are undoubtedly unrealistic. New structures are supposedly to arise without criticizing the old structures.

Thus, for social democrats like Sam Gindin (former research director for the Canadian Auto Workers (CAW) (now Unifor), challenging the ideology of “decent jobs or work,” “fair contract,” “fair collective agreement,” “fair deal,” “fair wages” and other abstract phrases (rhetoric) is relatively unimportant. New material structures more relevant to the lives and experiences of working people are somehow to arise without constantly challenging the existing social structures–and the corresponding ideology that justifies such structures.

Frankly, I doubt that such new material structures will arise without a persistent and constant challenging of the ideological rhetoric rampant among the left in general and unions in particular.

Where is there evidence that Mr. Gindin has contributed to the creation of material structures that question the fundamental economic, political and social structures characteristic of a society dominated by a class power of employers by indulging in the beliefs of union reps? Does the organization Green Jobs Oshawa, to which Mr. Gindin contributes, do so? Where is the evidence that it does?

What are Mr. Gindin’s fellow social democrats like Herman Rosenfeld (who worked in the education department of the Canadian Auto Workers (CAW) (now Unifor) doing to fight against the exploitation of workers and oppression of Magna workers? Mr. Rosenfeld wrote an article, criticizing the existence, practically, of a company union at Magna, CAW Local 88, comparing it to the independent union Unifor Local 2009 AP. The independent union is certainly preferable to a company union, but even an independent union at the local level of a particular employer in effect assumes the legitimacy of the power of employers as a class (see my criticism in the post    Do Workers Work for a Particular Employer or for the Class of Employers? Part Two: Critique of Unions and the Social-Reformist or Social-Democratic Left).

The false nature of Mr. Gindin’s political position stands out when he claims the following:

Which brings me back to the point that the problem is not [Wayne] Dealy [union director for the Canadian Union of Public Employees (CUPE) Local 3902] or Sean [Smith,  Unifor Local 2002 Co-Ordinator and Toronto Airport Workers Council (TAWC) activist”] or others but OUR Collective inability to provide them with an effective alternative politics…They can be criticized but only if we do so with humility and part of criticizing ourselves. [my emphasis] 

Is there evidence that Mr. Gindin criticizes his own views? Are union reps (and union members) really conscious of the exploitative and oppressive nature of the class power of employers as such? If so, what are they doing about it? I fail to see evidence of it.

I also fail to see evidence of Mr. Gindin engaging in self-criticism. He implicitly assumes that he knows what workers need–and that is not an explicit and real consciousness of their exploitation and oppression–with or without unions, collective bargaining and collective agreements.

:

.

For Mr. Gindin, though, to question the “language” used by union reps, as well as the omission of any criticism of the limitations of collective bargaining and collective agreements, expresses merely “moralizing.”

I will leave Mr. Gindin with his fake humility and his fake self-criticism. I will continue to engage in “discourse analysis”–that is to say, with a criticism and exposure of the limited nature of unions, collective bargaining and collective agreements.

.

The Rate of Exploitation of Workers at Bell Canada Enterprises (BCE), One of the Largest Private Employers in Toronto

Introduction

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

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

The Nature of the Rate of Exploitation

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

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

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

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

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

Conclusions First

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

Adjusted Net Income: 5587.3=s
Adjusted Total labour Costs: 5611.7=v

The rate of exploitation or the rate of surplus value=s/v=5587.3/5611.7=100% (after rounding).

That means that for every hour worked that produces her/his wage, a worker at BCE works around an additional hour for free for BCE. Alternatively, in terms of money, $1 of wage or salary of a regular BCE worker produces around $1 surplus value or profit for free. 

In terms of varying lengths of the working day: 

  1. In a 7.5-hour work day (450 minutes), the worker produces her/his wage in 225 minutes (3 hours  45 minutes) and works 225 minutes (3 hours 45 minutes) for free for BCE.
  2. In an 8-hour work day (480 minutes), the worker producer her/his wage in 240 minutes (4 hours) and works 240 minutes (4 hours) for free for BCE.
  3. In a 10-hour work day (600 minutes), the worker producers her/his wage in 300 minutes (5 hours) and works 300 minutes (5 hours) for free for BCE.
  4. In a 12-hour work day (720 minutes), the worker produces her/his wage in 360 minutes (6 hours) and works 360 minutes (6 hours) for free for BCE.

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

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

Even if workers were not exploited, they would still be oppressed since they are used as things (means) for purposes which they as a collectivity do not define (see The Money Circuit of Capital). Does that express something fair? Management rights clauses (implied or explicit in collective agreements give management as representative of employers–and as a minority–the power to dictate to workers what to do, when to do it, how to do it and so forth–and is not the imposition of the will of a minority over the majority a dictatorship? (See  Employers as Dictators, Part One). Is that fair? Do union reps ever explain how a collective agreement somehow expresses something fair? Is that fair?

Is the following an example of what union reps mean by a “fair contract?”

COLLECTIVE AGREEMENT
BETWEEN
UNIFOR
AND
BELL CANADA

CRAFT AND SERVICES EMPLOYEES
EFFECTIVE FEBRUARY 23, 2017 

ARTICLE 8 – MANAGEMENT RIGHTS

8.01 The Company has the exclusive right and power to manage its operations in all respects and in accordance with its commitments and responsibilities to the public, to conduct its business efficiently and to direct the working forces and without limiting the generality of the foregoing, it has the exclusive right and power to hire, promote, transfer, demote or lay-off employees, and to suspend, dismiss or otherwise discipline employees.

8.02 The Company agrees that any exercise of these rights and powers shall not contravene the provisions of this Agreement.

Should workers not be discussing why management has these rights? Should workers not be discussing whether an unelected management should have such rights? Should workers not be discussing how to organize to abolish this dictatorship? Should workers not be criticizing any union rep who claims that a collective agreement somehow expresses a “fair contract?” A “good contract?” All other such platitudes? 

Data on Which the Calculation Is Based

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

Now, the calculation: 

In millions of Canadian dollars:

Page 113:

Operating revenues 23,964

Costs
Operating costs 13,858
Severance, acquisition and other costs 114
Depreciation 3,496
Amortization 902
Finance costs
Interest expense 1,132
Interest on post-employment benefit obligations 63
Other expense 13
Total costs: 19,578

Net income: 4386 [23,964-19,578=4386] [the 3253 is after taxes; if you add taxes, you get 4386 as well]

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

Labour costs
Wages, salaries and related taxes and benefits 4,303
Post-employment benefit plans service cost (net of capitalized amounts) 247
Other labour costs 1,005
Less:
Capitalized labour 1,032
Total labour costs: 4,523

Adjustments

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

Adjustment of Total Labour Costs

Capitalized Labour

It is necessary to consider the category “Capitalized labour” since it is not treated as a labour cost by BCE whereas here it will be so treated. Capitalized labour involves the following:

CAPITALIZED LABOR means all direct costs of labor that can be identified or associated with and are properly allocable to the construction, modification, or installation of specific items of capital assets and, as such, can thereby be written down over time via a depreciation or amortization schedule as capitalized. 

I have chosen to treat capitalized labour as part of labour costs since it is current labour that is involved in the operations of BCE; the work performed by workers in installing and assembling machinery includes surplus value.

Temporarily Adjusted Total labour Costs: 5555

Severance, acquisition and other costs

It is necessary to make adjustments for this category since part of the money expended relates to costs destined to be received by workers. To take this into account, it is necessary to break the category down further.

Severance 63
Acquisition and other 51
Total severance, acquisition and other costs 114

I assume that “Acquisition and other” are non-labour expenses.
In a note, it states:

Severance costs consist of charges related to involuntary and voluntary employee terminations. In 2018, severance costs include a 4% reduction in management workforce across BCE.

Given that the severance package for management is likely to be much higher than for regular employees, the 4 percent reduction in the management workforce likely results in a higher percentage of severance pay to that 4 percent. It is impossible to determine with precision how much higher. I will assume 10 percent. The reason for taking into consideration such a difference is that the severance for management is likely to be a function of its exploitation of other workers and not its own exploitation.

Ten percent of 63 is 6.3; therefore, this 6.3 needs to be added to net income and subtracted from 63.
Temporarily adjusted Net income: 4392.3

This shift from considering part of severance pay from a cost to a part of net income also changes the total costs by reducing it by 6.3. Therefore:

Temporarily adjusted Total Costs: 19,571.7

The remaining severance is 56.7. This needs to be added to the category “Post-employment benefit plans service cost” since it forms part of the income of workers and costs for BCE. Accordingly:
Adjusted Total labour Costs: 5611.7

Adjustment of Finance Costs

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

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

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

Accordingly, both “Interest expense” and “Interest on post-employment benefit obligations” are deducted from “Total costs” and added to “Net income,” and “Total costs” are therefore also adjusted.

Operating revenues 23,964
Adjusted Total Costs: 19,571.7- 1,132 – 63=18,376.7
Adjusted Net Income: 5587.3=s
Adjusted Total labour Costs: 5611.7=v

The Rate of Exploitation

The rate of exploitation or the rate of surplus value=s/v=5587.3/5611.7=100% (after rounding).

That means that for every hour worked that produces her/his wage, a worker at BCE works around an additional hour for free for BCE. Alternatively, in terms of money, $1 of wage or salary of a regular BCE worker produces around $1 surplus value or profit for free. 

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

I worked, on average, twelve hours a day.
I worked about 8 hours a day on the average.
10 hours per and about 50 hours weekly and was paid for only 37.5 weekly.

The collective agreement between Bell Canada and Unifor Atlantic CommunicationLocals (Unifor ACL) states: 

(c) Employees whose standard hours of work are eighty (80) hours in a scheduling period, will normally work either ten (10) scheduled tours of eight (8) hours. Employees whose standard hours of work are seventy-five (75) hours in a scheduling period, will normally work ten (10) scheduled tours of seven and one-half (7.5) hours. …

(d) Tours can be scheduled for a maximum of ten (10) hours with mutual agreement between the employee and their direct supervisor.

(e) Longer tours, to a maximum of twelve (12) hours per tour, may be scheduled with the mutual agreement of the employee(s), their direct supervisor, Labour Relations and the Council. Such special
arrangements must be committed to in writing and signed by the parties prior to implementing. These arrangements can be cancelled by any party with eight (8) weeks notice.

Since Bell workers are exploited 100 percent, the calculation of the number of hours they work to produce the equivalent value of their wage and the number of hours they work for free for Bell is relatively easy.

  1. In a 7.5-hour work day (450 minutes), the worker produces her/his wage in 225 minutes (3 hours  45 minutes) and works 225 minutes (3 hours 45 minutes) for free for BCE.
  2. In an 8-hour work day (480 minutes), the worker producer her/his wage in 240 minutes (4 hours) and works 240 minutes (4 hours) for free for BCE.
  3. In a 10-hour work day (600 minutes), the worker producers her/his wage in 300 minutes (5 hours) and works 300 minutes (5 hours) for free for BCE.
  4. In a 12-hour work day (720 minutes), the worker produces her/his wage in 360 minutes (6 hours) and works 360 minutes (6 hours) for free for BCE.


Critique of the Limited Aim (Solution)–Decent Wages–of a Radical Social Democrat: The Case of the Toronto Radical, John Clarke: Part One

Introduction

There are some people among the social-democratic left whom I can respect more than others. John Clarke, former leader of the Ontario Coalition Against Poverty (OCAP), is one of them. Here is what one reads on Wikipedia about him:

John Clarke is an anti-poverty activist who lives in TorontoOntarioCanada. As of 2019, he was teaching at York University.

Activism

A native of Britain, he moved to Toronto, Ontario and became an organizer there.[1] He was a leading figure of the Ontario Coalition Against Poverty (OCAP) group until he retired from it in January 2019.[2] The Globe and Mail reported in the year 2000 that Clarke’s “guerrilla activism has pitted him against police countless times during the past decade.”[3]

Clarke was arrested with three other activists and charged with inciting a riot for his role in an OCAP protest at Queen’s park in June 2000. Clarke appealed his restrictive bail conditions in August 2000.[3] In 2003, a judge stayed the charges and Clarke walked free.[4]

The Sudbury Star described Clarke in 2016 as “a 25-year veteran of activism.”[1] In 2019, he announced an online fundraiser asking people to contribute $25,000 for his retirement.[5]

Teaching

In 2019, Clarke took on the post of Packer Visitor in Social Justice in the faculty of Liberal Arts and Professional Studies at York University. The position is for two years.[2]

References

  1. Jump up to:ab Keenan Kusan, Workers being held down, activist says in SudburySudbury Star (March 26, 2016).
  2. Jump up to:ab Levy, Sue-Ann (26 November 2019). “Poverty warrior teaching Activism 101 at York University”Toronto Sun. Retrieved 21 March 2020.
  3. Jump up to:ab Margaret Philp, Activist to fight bail termsGlobe & Mail (August 10, 2000).
  4. ^ Clarke, John (28 October 2003). “RIOT CHARGES AGAINST OCAP ORGANIZER STAYED BY TRIAL JUDGE – Statement by John Clarke, OCAP Organizer”OCAP. Archived from the original on 1 June 2005. Retrieved 21 March 2020.
  5. ^ Levy, Sue-Ann (28 January 2019). “Poverty activist John Clarke wants help funding retirement”Toronto Sun. Retrieved 21 March 2020.

Although I can admire not only Mr. Clarke’s activist stance but his willingness to engage in civil disobedience despite the possible consequences for himself, his writings persistently fall short of a socialist stance. This limitation is evident in his aims (which are, generally, solutions to specific problems). 

The Aim or Goal of His Intervention 

What is the aim or goal of his intervention? What is he seeking to achieve?

On Mr. Clarke’s blog, on June 15, 2021, he has written a post titled “A Basic Income in Waiting?” (https://johnclarkeblog.com/node/65). 

Surprisingly, Mr. Clarke’s goals are very similar if not identical to those of  Simran Dhunna and David Bush’s views.  He writes:

During the pandemic, struggles have broken out across the world, from Minneapolis to New Delhi to East Jerusalem. As the global health crisis subsides, there will be a strong determination to fight for something better. As we challenge, not just the ‘economic scarring’ left by the pandemic, but the impact of decades of austerity, we shouldn’t settle for a commodified form of social provision that makes its peace with the neoliberal order. We need to fight employers to win decent wages and to take to the streets to demand massively expanded social housing, greatly improved public healthcare, free public transit, universal child care and much else beside.

His reference to “much else beside” is in reference to an article written by Ms. Dhunna and Mr. Bush (if you click on the the “else beside,” you will be taken to their article). The “much else beside” probably refers to the following list (the social-democratic or reformist left frequently have a grocery list of demands that rarely if ever are realized in practice since they lack the power to realize them):

  1. free dental care
  2. strengthening and regularizing the new changes to EI (employment insurance–which I still call unemployment insurance)
  3. raising social assistance rates
  4. status for all (meaning presumably that immigrants and “illegal” migrants would have the same legal rights as Canadian citizens)
  5. paid sick days
  6. improving tenants’ rights
  7. universal public services.

Of course, I support such efforts, but such efforts hardly make a socialist society since they are likely compatible with some form of capitalism and not with its abolition and with the abolition of all classes; they seek to humanize capitalism and not abolish it. Those who advocate such policies are anti-neoliberal but not necessarily anti-capitalist. To be anti-capitalist, such policies would have to be linked to other policies that push beyond what is acceptable to a capitalist society–such as a radical or robust basic income–which Mr. Clarke opposes. 

I have criticized Dhunna and Bush’s article in several posts on this blog (see for example A Basic Income Versus the Expansion of Public Services? Part One: Critique of the Social-democratic Idea that the Expansion of Public Services is SocialistThe Strawman of a Minimal Universal Basic Income by the Social-democratic Left in Toronto or  A Robust or Ambitious Universal Basic Income: An Impossible Dream for Some Among the Social-democratic Left), and Mr. Clarke’s uncritical reference to it is indicative of Mr. Clarke’s lack of critical distancing from his social-democratic compatriots; his rubber stamping of other social democrats’ position is quite typical of social democrats in general, it would seem (see Exposing the Intolerance and Censorship of Social Democracy, Part Two: Critique of the Standard of Canadians and Landed Immigrants Working for an Employer). 

The way in which Ms. Dhunna and Mr. Bush refer to articles written by others on the subject of basic income, for instance, gives the impression that the authors of some of the articles to which they refer find basic income to be impractical–whereas it is often the case that it is only certain forms of basic income that such authors find impractical; other forms they find feasible–but Ms. Dhunna and Mr. Bush (and Mr Clarke) neglect to acknowledge this. By referring to the article Dhunna and Bush wrote without further ado, Mr. Clarke in effect rubber stamps uncritically their own distortion of the views of others. This is hardly what the working class needs today. Mr. Clarke, despite his apparent anti-capitalist rhetoric, is anti-neoliberal but not anti-capitalist. 

Let us, however, see what Mr. Clarke himself actually proposes as an alternative–what his aims are.  The following is almost a verbatim report of the third section of Mr. Clarke’s presentation on YouTube, presented on June 21, 2021, titled Basic Income Is a Neoliberal Trap  (https://www.youtube.com/watch?v=r40D6fU760s&t=4s):

Alternative Directions

The alternative is to rejuvenate our unions and fight for decent wages, to fight to increase minimum wages, to fight for workers’ rights–rather than extend the cash benefits and extend the reach of the marketplace. It is far better to put considerable effort into the struggle for public services.

Now, Mr. Clarke fully acknowledges that there are income-support programs that are vital and needed, and we cannot let these supports become a kind of poor cousin. We need unemployment insurance that provides adequate coverage and secure coverage. We need the disgusting attack on injured workers that has taken place to be reversed and decent benefits be provided. We need a fight to ensure that disability benefits are adequate and meet people’s needs and that they are secure. We need to challenge the intrusion and moral policing that goes on within these systems.

But to extend the cash benefit widely out into the workforce is a huge mistake. And we could do so much better. Rather than try to get what in practice would be a meager cash benefit, it would be so much better to struggle to challenge the commodification of housing, the neoliberal city, the blighting of urban space with this agenda of greed by fighting for a massive extension of social housing. So that’s a benefit that goes to working-class people and does not go into the pocket of landlords. There’s a need to fight for increases in the adequacy of healthcare. The pandemic has made that absolutely clear. We need pharmacare, dental care, a unviersal childcare program that is not an empty perennial liberal promise. We need post-secondary education to be free; we need free public transport systems. On all of these fronts, we need to take up a fight.

But people will say: We have suffered defeats. We cannot win these things. Mr. Clarke argues that the left has for a very long time forced on the defensive. The class struggle has not gone in our favour for a considerable period of time. But there is no alternative but to rebuild and to fight back and to win what we can. And to challenge this society but to fight for a different society. That’s absolutely indispensable. There in fact is not some social policy ruse that can just put things right.

Basic income is not going to solve the problem. Our lack of strength, our lack of ability to fight in the way we need to fight is the problem we have to address. We need to build that movement now more than ever. In this situation of global crisis we need more than ever to fight back, and we can do so much better in focusing our struggles than to fight for the commodification of social provision and basic income.

There is little difference between Dhunna and Bush’s call for a refurbished welfare state and Mr. Clarke’s vision of a “different society.” The society he envisions is an improved version of the welfare state established after the Second World War; it is hardly a vision of a society without classes, without exploitation and without oppression. 

I will, however, restrict my criticism of Mr. Clarke’s position in this post to his reference to decent wages–and will continue with my criticism of Mr. Clarke’s views on economic coercion–the first part of his presentation in the YouTube video in another post by referring to his apparent acknowledgement that economic coercion forms an essential element of a capitalist society–all the while ignoring the significance of that for formulating policies to counter such economic coercion.  

Decent Wages and Exploitation 

Mr. Clarke does not subject the concept of decent wages to any critical scrutiny. Ironically, Mr. Clarke often refers to exploitation as an essential aspect of a society dominated by a class of employers (and I agree with him on this view), as a basis for criticizing the impracticality of a proposal for universal basic income (see his Youtube presentation)–which I will address in relation to basic income in another post), but he isolates the concept of “decent wages” from any consideration of exploitation. 

The concept of “decent wages” in effect justifies the exploitation of workers and their continued economic coercion. That does not mean, of course, that I would criticize workers for seeking to increase their wages–increasing the standard of living does have the potentiality of improving the quality of life for those who work for employers, and I also have sought to increase my wages or salary to improve my quality of life. However, seeking to increase wages does not make the wages “decent”–given exploitation. 

By referring to “decent wages,” Mr. Clarke, despite his references to exploitation, implicitly uses the standard of working for an employer as a standard for determining what is decent work. This limitation of the left has been noted by others. Kathleen Millar (2017) has argued just that in her critique of the isolation of a set of individuals as the “precariat”. From “Toward a critical Politics of Precarity,” Sociology Compass, Volume 11,  pages 6-7: 

At the same time, translating the concept of precarity to different parts of the world has also meant recognizing that precarity is originary to capitalism. The very condition of having to depend on a wage to sustain one’s life is what makes a worker precarious—not just the specific structures of this or that job (Barchiesi, 2012a; Denning, 2010). From this perspective, precarity is capitalism’s norm, not its exception, and is shared by all workers whether employed or unemployed. We usually think of the worker with a stable, full‐time job as the model of capitalist labor—against which the numerous unemployed, informal, or wageless workers (largely in the global South) are compared. But the latter
reveal the latent precarity of all workers who must sell their labor‐power for a living. This means that the precarity of labor, far from being the exception in capitalism, is the necessary condition for the creation of capital.

To see insecurity at the heart of wage labor (rather than a condition of its absence) is to complicate the current denunciatory discourse of precarity. Critiques of precarity—whether explicitly or as another element of what Thorkelson (2016) describes as its political unconscious—uphold full‐time, wage‐labor employment as an ideal. One problem with this politics of precarity is that it ignores how wage labor can itself be an experience of insecurity, degradation, exploitation, and abuse. For example, Franco Barchiesi (2011) makes this argument through his study of wage labor as a technique of governance in both colonial and postcolonial South Africa. He shows how colonial administrators emphasized the “dignity of work” as a way to use wage labor to discipline African populations seen as “uncivilized” and “unruly.” Many African workers refused waged employment, instead opting for various forms of
subsistence labor or self‐employment that, while insecure, allowed them to avoid the discipline and indignity experienced when working in factories and mines. In this historical context, Barchiesi argues, “precarious employment was not a condition of disadvantage but enabled opposition to the labor‐centered citizenship of Western modernity” (15). Barchiesi goes on to show how today, the continued emphasis on “decent jobs” and “job creation” in postapartheid South Africa fuels the precariousness of workers by continuing to link social citizenship to full‐time wage labor at
the same time that stable employment is increasingly scarce (see also Barchiesi, 2012b). The emphasis on decent jobs also reinforces forms of masculinity, nationalism, and inequality that a social order structured around wage labor produced. In short, the demand for decent jobs, as a solution to precarity, generates a conservative politics attached to the valorization of wage labor. It also precludes the “political potentials of precarity” (Barchiesi, 2012b, 248) or what I have described elsewhere as the possibility that forms of work beyond wage labor might open up other ways of fashioning work and life (Millar, 2014).

This brings me back to the question that began this article: what are we holding onto through the ubiquitous, denunciatory discourse of precarity? One answer to this question is certainly wage labor. Or more precisely, many critiques of precarity remain attached to what Kathi Weeks (2011) has described as the taken‐for‐granted valorization of waged work as an economic necessity, social duty, and moral practice. This attachment to waged work is part of a broader response to precarity that has reaffirmed normative modes of life. For example, Lauren Berlant (2011) argues that conditions of precarity have led to deepened aspirations for and reinvestments in the normative good life—a
stable job, middle‐class home, guaranteed rewards for hard work, and the promise of upward mobility. These forms of attachment, she suggests, paradoxically become obstacles to fulfilling the very desires that are wrapped up with the aspiration for a good life. This produces what Berlant calls a “relation of cruel optimism” (170).

Alternatively, we could see the denunciation of precarity through the lens of “left melancholy.” Drawing on Walter Benjamin’s use of this term, Wendy Brown (1999) reflects on the ways leftist politics remains mournfully committed to ideals, categories, and movements that have been lost, preventing the possibility of radical change in the here and now.4 To cling to the ideal of full employment and decent jobs, rather than to question waged work as a social and economic requirement, could certainly be an example of left melancholy. But Brown is less interested in specifying the objects of attachment than in showing how the very state of melancholia replaces a political commitment to disruption with an unacknowledged pernicious traditionalism. In other words, perhaps it matters less what one is holding onto, just that one is holding on. Or as Dorothy Day (1952) insisted in her decades‐old article on precarity, “The thing to do is not to hold on to anything.”

Mr. Clarke, like so many social-democratic or social-reformist leftists, implicitly clings to working for an employer as the standard for his own goals. 

This implicit standard is kept separate from Mr. Clarke’s rhetorical references to exploitation, which serve to hide his social-democratic or social-reformist political position. 

Let me make a categorical statement: There is no such thing as a decent wage. To work for an employer is in itself degrading, exploitative and oppressive. The concept of a decent wage serves to hide this exploitative situation (see The Money Circuit of Capital). 

Mr. Clarke, apparently, only aims at refurbishing the welfare state rather than abolishing exploitation. Like Mr. Bush’s own references to exploitation, Mr. Clarke uses the concept as a rhetorical flourish (in his case, to criticize a radical policy of basic income) while conveniently “forgetting” the concept when it comes to the issue of whether wages can ever be decent.

Thus, on Mr. Clarke’s blog, on March 7, 2021, in a post titled http://WHEN YOUR ENEMY’S ENEMY IS NOT A FRIEND we read: 

  In a world based on exploitation and oppression, resistance is ever present. … 

 The US and its junior partners compete with their major rivals and pose a terrible threat to the poor and oppressed countries they seek to dominate and exploit. However, we can’t forget that those countries are themselves class divided societies and that not all the exploitation and oppression that their populations face comes out of Washington. Domestic capitalists are also the enemy and the governments of those countries, even where they clash with US objectives, still represent the interests of these home grown exploiters. [my emphases]

Despite his reference to exploitation, Mr. Clarke conveniently forgets the concept when it comes to referring to a “decent wage.” Nowhere does Mr. Clarke justify his view that there is such a thing as a decent wage. There are undoubtedly better wages and worse wages, but how any wage is decent is something that Mr. Clarke merely assumes rather than demonstrates.

The reference to “decent wages” is a social-democratic trick to hide the fact that there is no such thing as “decent wages” in a society dominated by a class of employers. How can any wage be decent when it involves at a minimum economic coercion and oppression of workers by treating them as things or means for purposes not defined by them (see The Money Circuit of Capital  and  Employers as Dictators, Part One)  but by a minority and, in addition, exploitation that involves producing a surplus (see for example  The Rate of Exploitation of Workers at Magna International Inc., One of the Largest Private Employers in Toronto, Part One )?

Furthermore, in the case of workers in the private sector, in the case of both oppression and exploitation, the results of the previous labour of workers is used to further oppress and exploit the workers by means of previous acts of oppression and exploitation–an intensified form of oppression and exploitation (something Mr. Clarke entirely ignores). Mr. Clarke simply ignores this additional feature of exploitation and oppression.

Mr. Clarke thus uses the concept of exploitation for social-democratic purposes–an anti-neoliberal purpose and not an anti-capitalist purpose. Advocating for decent wages while using the word “exploitation” is contradictory–but exploitation is really just a word for Mr. Clarke. Alternatively, Mr. Clarke believes that workers are exploited–but that such exploitation cannot be abolished. He certainly never advocates the abolition of exploitation, and his aim of achieving decent wages simply ignores the issue. 

What I wrote in another post relation to Ms. Dhunna and Mr. Bush’s political position applies as much to Mr. Clarke:

Dhunna and Bush’s first aim–to “meaningfully improve the material realities of working class and oppressed people”–sounds both practical and radical. It is actually conservative since its focus is entirely on distributional struggles rather than struggles over control of working conditions at both the micro and macro levels. Indeed, since this is their primary goal, they practically define a socialist society as an enhanced welfare state–capitalism with a more human face.

By focusing on distributional struggles, they imply, without ever saying it, that wider struggles to control working conditions are impractical and utopian. They, the realists, know what “bread and butter issues” are relevant for the working class, and such “bread and butter issues” are purely distributional struggles. Such a stance is conservative–its aim is not to end class rule, but to perpetuate it–though in a more humanized form than at present.

Wages, Exploitation and the Accumulation of Capital 

This  becomes even more evident when we consider, not only the immediate exchange between workers and employers and the subsequent exploitation but also the antecedent processes of exploitation. When we consider the process of exploitation and oppression of workers as a process, the immediate exchange between workers and employers (whether through collective or individual bargaining) is actually the use of surplus value (symbolized by “s” produced by workers in earlier rounds of exploitation to further exploit them. I referred to this process in my critique of Dhunna and Bush’s conservative use of Marx’s theory of exploitation. From Karl Marx, Capital: A Critique of Political Economy, volume 1, pages 727-730:

Let us now return to our example. It is the old story: Abraham begat Isaac, Isaac begat Jacob and so on. The original capital of £10,000 brings in a surplus-value of £2,000, which is capitalized. The new capital of £2,000 brings in a surplus-value of £400, and this too is capitalized, transformed into a second additional capital, which in its turn produces a further surplus-value of £80. And the process continues in this way.

We leave out of account here the portion of the surplus-value consumed by the capitalist. We are also not interested, for the moment, in whether the additional capital is joined on to the original capital, or separated from it so that it can valorize itself independently. Nor are we concerned whether the same capitalist employs it who originally accumulated it, or whether he hands it over to others. All we must remember is this: by the side of the newly formed capital, the original capital continues to reproduce itself and to produce surplus-value, and this is true of all accumulated capital in relation to the additional capital engendered by it.

The original capital was formed by the advance of £10,000. Where did its owner get it from? ‘From his own labour and that of his forefathers’, is the unanimous answer of the spokesmen of political economy. And, in fact, their assumption appears to be the only one consonant with the laws of commodity production.

But it is quite otherwise with regard to the additional capital of £2,000. We know perfectly well how that originated. There is not one single atom of its value that does not owe its existence to unpaid labour. The means of production with which the additional labour-power is incorporated, as well as the necessaries with which the workers are sustained, are nothing but component parts of the surplus product, parts of the tribute annually exacted from the working class by the capitalist class. Even if the latter uses a portion of that tribute to purchase the additional labour-power at its full price, so that equivalent is exchanged for equivalent, the whole thing still remains the age-old activity of the conqueror, who buys commodities from the conquered with the money he has stolen from them.

If the additional capital employs the person who produced it, this producer must not only continue to valorize the value of the original capital, but must buy back the fruits of his previous labour with more labour than they cost. If we view this as a transaction between the capitalist class and the working class, it makes no difference that additional workers are employed by means of the unpaid labour of the previously employed workers. The capitalist may even convert the additional capital into a machine that throws the producers of that capital out of work, and replaces them with a few children. In every case, the working class creates by the surplus labour of one year the capital destined to employ additional labour in the following year.5 And this is what is called creating capital out of capital.

The accumulation of the first additional capital of £2,000 presupposes that a value of £10,000 exists, advanced by the capitalist, and belonging to him by virtue of his ‘original labour’. The second additional capital of £400 presupposes, on the contrary, only the prior accumulation of the £2,000, of which the £400 is the capitalized surplus-value. The ownership of past unpaid labour is thenceforth the sole condition for the appropriation of living unpaid labour on a constantly increasing scale. The more the capitalist has accumulated, the more is he able to accumulate.

The surplus-value that makes up additional capital no. 1 is the result of the purchase of labour-power with part of the original capital, a purchase which conformed to the laws of commodity exchange and which, from a legal standpoint, presupposes nothing beyond the worker’s power to dispose freely of his own capacities, and the money-owner’s or commodity-owner’s power to dispose freely of the values that belong to him; equally, additional capital no. 2 is merely the result of additional capital no. 1, and is therefore a consequence of the relations described above; hence each individual transaction continues to conform to the laws of commodity exchange, with the capitalist always buying labour power and the worker always selling it at what we shall assume is its real value. It is quite evident from this that the laws of appropriation or of private property, laws based on the production and circulation of commodities, become changed into their direct opposite through their own internal and inexorable dialectic. The exchange of equivalents, the original operation with which we started, is now turned round in such a way that there is only an apparent exchange, since, firstly, the capital which is exchanged for labour-power is itself merely a portion of the product of the labour of others which has been appropriated without an equivalent; and, secondly, this capital must not only be replaced by its producer, the worker, but replaced together with an added surplus. The relation of exchange between capitalist and worker becomes a mere semblance belonging only to the process of circulation, it becomes a mere form, which is alien to the content of the transaction itself, and merely mystifies it. The constant sale and purchase of labour power is the form; the content is the constant appropriation by the capitalist, without equivalent, of a portion of the labour of others which has already been objectified, and his repeated exchange of this labour for a greater quantity of the living labour of others.

The immediate exchange between workers and employers is an exchange of equivalents, so that workers receive the value of their cost of production. However, when considering the larger context of previous production, then the immediate exchange between employer and workers is a semblance . The employer uses a part of the surplus produced by the workers in a previous round as means of production (machines, raw material, buildings, etc.) and another part (socially as money and physically as means of consumption, such as food, clothing, shelter) to further employ them (in addition to the initial investment). 

If this is the case, how can anyone who believes in the existence of class exploitation refer to wages as decent wages? There is no such thing. Wages used to control the working class and to exploit them in the present, when conceived in the continuous process of production and exchange, are derived from surplus value produced in antecedent rounds of production so that the wage they receive today is the result of past exploitation and oppression.

The present domination of workers at work by employers is a consequence of past accumulation of surplus value and its investment in the further exploitation of workers.  How anyone who is anti-capitalist could refer to wages as “decent” is beyond me–unless they are really only anti-neoliberal (a particular form of capitalism but not capitalism as such) and not anti-capitalist, despite the rhetoric to the contrary. 

Again, the issues of exploitation and the accumulation of capital need to be linked together when determining whether there is such a thing as a decent wage. The following couple of long quotes by  Teinosuke Otani (2018) points to this need –a need that Mr. Clarke ignores by referring to decent wages as a primary aim without even engaging into inquiry into the nature of capitalist relations of production and exchange.

The first long quote has to do with what is called simple reproduction, where the private employer exploits workers by obliging them to work for more time than they themselves cost to produce, thereby enabling the private employer or capitalist to appropriate and then consume the entire surplus value (profit) produced. Since the entire surplus value (profit) is consumed, each year the same level of investment arises–simple reproduction. 

From  Teinosuke Otani (2018),  A Guide to Marxian Political Economy: What Kind of a Social System Is Capitalism?, pages 218-224 ( emphases in the original):   

8.4 Capital as the Materialisation of Unpaid Labour of Others

Under simple reproduction, it is assumed that the capitalist consumes the entirety of the surplus-value appropriated from the worker year after year. Now let’s assume that during a period of 5 years, a capital value of 1000 brings the capitalist a surplus-value of 200 every year and that the capitalist consumes this entire amount. At the end of the 5 years, he still has the 1000 in capital value that he possessed at the outset, but over the 5 years, he has appropriated 1000 in surplus-value from the worker and consumed this 1000 in value.

The capitalist would likely say: «It is precisely because I initially possessed 1000 in value, as the fruit of my own labour, that I was able to appropriate and consume 200 in value every year. The 1000 in value that I advance each year—no matter how many years this is repeated—is the initial value created by my labour».

The situation appears quite different, however, if we carefully observe the process as repeated reproduction.

Let’s take our capitalist at his word here and assume that the 1000 in value he started off with was appropriated through his own labour, so that it is the materialisation of his own labour.

During the 5-year period, the capitalist consumes a sum of value equal to the value he initially possessed. Yet after the 5 years, he is still in possession of a sum of value equal to what he started off with. Why? What is clear is that it is precisely because the capitalist has received the 1000 in surplus value for free that he can still have 1000 in value despite having consumed that amount. The 1000 that he holds after 5 years is thus the result of the 1000 in surplus-value appropriated during the 5 years, merely representing the total sum of 1000 in surplus-value obtained for free. This point can be well understood if we consider what would happen to the capitalist, who consumes 200 in value every year, if he did not appropriate any surplus-value during those years. In such a case, even if he had 1000 the first year, he would have no alternative but to consume 200 every year, reducing by that amount the sum of money that could be advanced as capital. After 5 years, the sum would reach zero and he would cease to be a capitalist. The fact that he is able to still exist as a capitalist at the end of 5 years, with 1000 in capital, is clearly the outcome of appropriating 200 surplus-value every year over the course of that period.

The capitalist in our example has appropriated the materialisation of 1000 in value from another person’s labour during a 5-year period. Since the capitalist is still in possession of 1000 in value after 5 years, having lived by consuming 200 per year, his 1000 is nothing but the materialisation of the labour of others. Even if the capital value the capitalist initially possessed was the materialisation of his own labour, the capital value he is now in possession of after 5 years is the materialisation of the worker’s surplus-value, which is to say, thematerialisation of the labour of others. Starting from the sixth year, the capitalist appropriates further surplus-value that is the materialisation of others’ labour by means of capital value that is also purely the materialisation of the labour of others. 

8.5 Reproduction of Capital-ownership Through Appropriating the Labour
of Others

At first glance, the capital relation, which is the relation of production between capitalists and workers, seems to continue to exist, as is, year after year. In particular, it seems that the pivot of this continuity is the capitalist’s continued possession of capital, which he owned from the outset. In fact, however, as noted in the previous section, the capital relation is not an inorganic entity like a cornerstone, which cannot collapse once put in place unless some outside force is applied, but rather is maintained by being constantly reproduced and formed through the labour of labouring individuals within the production process. This is similar to how the human body is maintained by the infinite number of cells that compose it being replaced every day by newly created ones.

… 

Now let’s imagine that a person with no money borrows 1000 in value from someone (assuming that the loan is free of interest) and makes it function as capital for a 5-year period, during which he appropriates 200 in surplus-value every year and that after 5 years he repays the 1000. Once the loan had been repaid, he would return to his penniless state and cease to be a capitalist. In this case, the fact that he was able to exist as a capitalist for 5 years was not because he held on to 1000 in value during the 5 years. Indeed, if the 1000 had not functioned as capital, he would have consumed the 1000 during the 5 years, leaving him with nothing but the debt for that amount. The reason the capitalist is instead able to still have 1000, and was able to consume 200 in value every year, is that during those 5 years, he made the 1000 in value function as capital and was thus able to appropriate 200 in surplus-value from workers each year. It is precisely because of appropriating this unpaid labour that the capitalist is able to exist as a capitalist for a period of 5 years.

Even if, during the 5-year period, he had been able to live without consuming the 200 of surplus-value or had somehow been able to procure a separate consumption fund to last the 5 years, so that even after repaying the 1000 by the end of that period he would have a total of 1000 in value appropriated from workers, it would still be clear that this value is the mass of surplus-value appropriated from the workers.

In short, the capital value owned by the capitalist must sooner or later, through the progression of reproduction, be transformed into the materialisation of the appropriated labour of others, so that the ownership of capital value by the capitalist (even if initially the result of his own labour) is transformed into the outcome of the appropriation of others’ labour, i.e. transformed into the outcome of exploitation carried out in the production process.

In simple reproduction, it is assumed that the original investment came from the labour of the purchaser of the labour power of workers and of the means of production (machinery (such as computers), buildings, raw material, and other such products), but on the basis of that assumption the preservation of the same initial investment arises through the constant exploitation of workers.

In simple reproduction the preservation of the original value of the investment year after year, therefore, is due to the continued exploitation of workers year after year. Can the wages the workers receive then be considered in any way decent under such circumstances? Let Mr. Clarke and other social democrats explain this. 

When we consider the real accumulation of capital, where part of the surplus value (profit) produced for free by workers and appropriated by private employers (capitalists) for no equivalent is not consumed but ploughed back into further investments, not only is the original value of original capital preserved through the continued exploitation of workers but the relation between the original capital invested and the new capital invested due to the exploitation of workers increasingly becomes smaller and smaller relatively as the accumulation of capital and the continuous exploitation of workers proceed. From Otani, pages 228-234:  

Our assumption here again will be that a capitalist has advanced 1000 in value and then appropriates 200 in surplus-value, all of which is subsequently advanced as additional capital.

Where does the capitalist get this 1000 in capital? The capitalists and the economists who defend their interests respond in unison that this capital was the fruit of the capitalists’ own labour or that of their forbearers. But we have already seen that, even seen from the perspective of simple reproduction, all capital is transformed into a mass of unpaid labour of others through the recurrence of reproduction and that capital-ownership is also reproduced through the appropriation of unpaid labour. But, for now, let us accept the capitalist’s view of the situation.

… commodity holders in the sphere of commodity exchange recognise each other as private owners, but in so doing, they do not concern themselves with how the other person came to possess his commodity. Instead, they can only assume that this other person obtained it through his own labour. This socially accepted assumption that a private owner’s property title stems from own labour is the property laws of commodity production.

When the capitalist initially appears on the market with 1000 and purchases means of production and labour-power at their value, those involved in the commodity and labour markets do not care how he came into possession of the 1000 in value, provided he is the proper owner of that sum. Those involved in the transaction all assume with regard to each other that commodities and money were obtained through their own labour, with each quite content to declare: «I worked to save up this 1000» or «It was obtained through my parents’ hard work». And it seems that this is the only assumption that could be made, according to the property laws of commodity production.

The situation is completely different, however, in the case of the 200 that the capitalist seeks to advance as additional capital. We are perfectly familiar with the process that generates this sum of value, knowing that it was originally surplus-value. This means that the 200 in its entirety is the objectification [materialisation] of the unpaid labour of others. The additional means of production and additional labour power purchased with this sum are nothing more than a new form taken by this value qua [as] objectification of unpaid labour.

Viewed as a transaction between the capitalist class and working class, we have a situation where the working class, through its surplus-labour in the current year, creates the new capital that becomes the additional means of production and additional labour-power the following year.

Now let us assume that the 200 is advanced in the second year as additional capital and yields 40 in surplus-value [the same rate of profit as the initial investment of 1000 with a surplus value of 200: 200/1000=40/200=1/5=20 percent]. Since the original capital also generates 200 in surplus-value in the second year, by the third year, there is 440 (in addition to the 1000) that can be advanced as capital [First year: 200s from the initial exploitation of workers+ second year, an additional 200s  from the 1000 again invested and used to exploit the workers +the 40s produced in the second year by the workers and used for further investment in the third year=440]. Not only is 400 unmistakably the objectification of unpaid labour, 40 is the objectification of unpaid labour appropriated through the additional capital, which itself is the objectification of unpaid labour. If this process of accumulating all the surplus-value is repeated for the subsequent 4 years, by the end of that period the capitalist will have—in addition to his original capital of 1000, which we could call the «parent»—the surplus-value appropriated through the parent capital during the 4 years… Together this forms an «offspring» of 1074. So if the capitalist advances the aggregate capital in the fifth year, there will be 2074 of capital («parent» and «offspring») in operation that year. [The capitalist is assumed to exploit workers to the extent of 20 percent per unit. At the end of the first year, 1000×1.2=1,200; this is invested in the second year, and at the end of the second year, 1,200×1.2=1,440; this is invested at the beginning of the third year, and at the end of the third year, 1,440×1.2=1,728; this is invested at the beginning of the fourth year, and at the end of the fourth year, 1,728×1.2=2074, which again can be invested at the beginning of the fifth year…]. 

Even if we assume that the capitalist possessed the 1000 of the 2074 to begin with, he certainly cannot claim that the remaining 1074 in value was created through his own labour. As long as it is recognised that the 200 in surplus-value appropriated every year from the 1000 in capital is the objectification
of surplus-labour, then this 1074 in value is, from top to bottom, the surplus-value transformed back into capital and thus the objectification of labour of others. … In other words, we are dealing with a mass of surplus-labour appropriated through a mass of surplus-labour.

The more the reproduction of capital is repeated, the smaller the original capital advanced, until it becomes an infinitesimal amount. The surplus-value transformed back into capital, whether it is made to function as capital in the hands of the person who accumulated it or in the hands of someone else, comes to represent the overwhelming part of the capital that currently exists.

The capitalist every year buys the means of production and labour-power on the commodity market and labour market in accordance with the property laws of commodity production in order to repeatedly carry out production. The result of this is that the capitalist appropriates unpaid living
labour on an increasingly large scale by making the unpaid surplus-labour of others function as capital. Marx refers to the capitalist’s appropriation of unpaid labour in this manner as the laws of capitalist appropriation.

In the market, which is the surface layer of capitalist production, the property law of commodity production operates. But if we consider the production of capital that underlies this in terms of social reproduction, it becomes clear that the law of capitalist appropriation is in operation. Where the capital relation exists, the law of capitalist appropriation is the necessary consequence of the property laws of commodity production. Marx expresses this reality by referring to the inversion of the property laws of commodity production in the laws of capitalist appropriation.

The surplus-value qua ]as] objectification of the surplus-labour of another person, which the capitalist appropriates in the production process, is turned into capital; and the ownership of this capital value is thus the result of the appropriation of surplus-value in the production process. The capitalist’s
appropriation of surplus-value in the production process precedes, and brings about, his ownership of capital. Here it is precisely the production of surplus-value by the labouring individuals first. Rather, it is precisely the behaviour of the labouring individuals within the production process that is always generating the ownership of the means of production by the capitalist within the production process that generates capital ownership.

At first glance, there seemed to be a vicious circle with regard to capitalist ownership of the means of production by the capitalist and his appropriation of surplus-value, wherein the latter is only possible through the former, but the latter always generates the former. However, within this relation,
the active determining moment that continues capitalist production as such is the constant reproduction of products within the production process by the labouring individuals and the constant production of surplus-value. Labouring individuals are the active subject of continual production,
regardless of the form of society, but under capitalist production, we have a situation where labouring individuals completely separated from the conditions of labour come into contact with the means of production in the production process as things belonging to others, which means that the resulting
surplus-labour always belongs to others as well, and through this there is the continual reproduction of capital and wage-labour and the relation between them. Thus, in terms of the
capitalist ownership of the means of production, and the capitalists’ appropriation of surplus-value, it cannot be said that the former is the immovable premise or even that it is a vicious circle where it cannot be said which of the two comes first. Rather, it is precisely the behaviour of the labouring individuals within the production process that is always generating the ownership of the means of production by the capitalist.

When conceived as a continuous process of exploitation and accumulation of capital, the idea of “decent wages” sounds and is hollow. The idea of “decent wages” completely ignores the whole process of exploitation founded on previous exploitation. Mr. Clarke, practically, by referring to “decent wages,” converts his references to exploitation into mere words, emptied of content. 

What is necessary is to criticize the claims of capitalist society’s own ideologues. From Elena Lange (2021),  Value without Fetish: Uno Kōzō’s Theory of ‘Pure Capitalism’ in Light of Marx’s Critique of Political Economy, page 33: 

… Marx was less interested in contrasting the capitalist mode of production with the utopias of socialism, but in contrasting the bourgeois mode of production with its own claims.

Mr. Clarke, despite his nod towards Marx’s theory of exploitation, seems to have little interest in critiquing the claims of the ideologues of employers when he refers to decent wages. 

The Parallel of Decent Work and Decent Wages: The Case of the Social-Democratic International Labour Organization (ILO) 

Mr. Clarke has more in common with the social-democratic rhetoric of the International Labour Organization (ILO) than with any Marxian critique of capitalist society. The ILO talks about “decent work” and the like, and it claims that labour should not be treated as a commodity–but workers need to treat themselves necessarily as commodities, and euphemisms about “decent wages” and “decent work” serve to hide that fact. From Gerry Rodgers, Eddy Lee, Lee Swepston and Jasmien Van Daele (2009),  The International Labour Organization and the Quest for Social Justice, 1919–2009, page 7: 

Key passages from these documents are reproduced in Appendix II. Together, they identify the principles, issues and means of governance that lie at the heart of the ILO ’s work.

Five basic principles can be distinguished in these texts.

  • Lasting peace cannot be achieved unless it is based on social justice, grounded in freedom, dignity, economic security and equal opportunity.
  • Labour should not be regarded merely as a commodity or an article of commerce.
  • There should be freedom of association, for both workers and employers, along with freedom of expression, and the right to collective bargaining.
  • These principles are fully applicable to all human beings, irrespective of race, creed or sex.
  • Poverty anywhere constitutes a danger to prosperity everywhere, and must be addressed through both national and international action.

These moral and political principles guide the action of the ILO , and provide the cognitive framework for its work – the spectacles through which the ILO sees the world. The first of these, that peace must be based on social justice, has been considered above. It lays out the overriding reason for the existence of the Organization. The second provides the fundamental principle guiding its action. It expresses the dignity of labour and the recognition of its value, in contrast to the Marxian notion that, under capitalism, labour becomes a commodity. In the ILO ’s vision, all forms of work can, if they are adequately regulated and organized, be a source of personal well-being and social integration. Of course, labour is bought and sold, but market mechanisms are subordinate to higher goals. The original 1919 Constitution states that “labour should not be regarded merely as a commodity”. By the time of the Declaration of Philadelphia, the same idea is expressed more strongly: “Labour is not a commodity.”

Labour in Marxian economics is certainly not a commodity, but labour power is–the capacity to work or to use means of production to produce a product. The ILO simply denies that it labour (power) should be a commodity–all the while denying the reality that it is in fact a commodity and must be a commodity if capitalist society is to emerge and to continue to exist. (Of course, unfree forms of labour (so that workers cannot freely choose a particular employer) can exist side by side with free labour–but the existence of free labour power as a commodity is still necessary. It may not be very pleasant to think about the social implications of the necessary existence of labour power as a commodity, but it is necessary to do in order to enable the working class to formulate policies that will more likely enable them to control their own lives by abolishing all class relations. 

Just as the ILO places a veil over the eyes of workers by arguing that labour (power) should not be a commodity–whereas it is necessarily a commodity in a society dominated by a class of employers, with the associated economic, social and political structures–so too do Mr. Clarke’s references to decent wages place a veil over our eyes by implicitly denying that workers are necessarily and continuously exploited. 

I would like to know what Mr. Clarke means by decent wages. Are the wages received by the unionized workers for Magna International, Air Canada, Rogers Communication, Suncor Energy or Telus decent wages? (see various posts that attempt to calculate the rate of exploitation for these unionized workers). If so, how does Mr. Clarke square such a view with the fact of exploitation? If not, then the concept of decent wages has no relevance for workers other than as an ideological cloak for their continued exploitation.

Or are the wages that I received as a brewery worker in the early 1980s decent wages? For example, at the brewery where I worked in Calgary, Alberta, Canada, in the collective agreement between the Brewery Employers Industrial Relations Association (BEIRA) (for Carling O’Keefe) and the Western Union of Brewery, Beverage, Winery and Distillery Workers, Local 287, dated April 1, 1980 to March 31, 1983, bottling operators received a base wage of $13.20 on April 1, 1982. Sick pay was 12 days per year, a guaranteed wage plan, life insurance up to $20,000, a long-term disability plan, paid basic Alberta Health Care Insurance Plan, hospital expenses to a maximum, major medical expenses (with a yearly deductible of $10 for an individual and $20 for a family)), a dental plan, etc. In fact, many of the benefits specified by Mr. Clarke in his reference to Dhunna and Bush’s article (“much else beside”) are included in the collective agreement. ,

(I ended up operating a machine, at first part of the soaker from the end where the cleaned bottles come out of the soaker as well as the EBI (electric bottle inspector), and then when there was technological change, just the EBI unit (and maintaining the line going into the filler free of glass).

Did I receive a decent wage? What of the surplus value that had been used in previous rounds of accumulation that were used to further exploit us? Should not these facts be  taken into account when judging whether there is anything like a decent wage? Apparently not. 

Conclusion

Mr. Clarke refers to exploitation and capitalism often enough, but he then conveniently forgets about it when he refers to “decent wages.” Mr. Clarke is anti-neoliberal but not really anti-capitalist–despite the rhetoric to the contrary. A real anti-capitalist perspective would never refer to any wage as decent–or for that matter any work that involves working for an employer as decent work. 

In a follow-up post, I will critically analyze Mr. Clarke’s references to “economic coercion.” I may or may not integrate such  an analysis with a critique of Mr. Clarke’s criticisms of a basic income. 

 

Fair Contracts (or Fair Collective Agreements): The Ideological Rhetoric of Canadian Unions, Part Two: Warren “Smokey” Thomas, President of The Ontario Public Services Employees Union (OPSEU)

Introduction

This is the second part of a series on the ideology or rhetoric of unions when it comes to collective agreements. In the first part, I compiled a list of some of the claims of the largest national union in Canada–the Canadian Union of Public Employees (CUPE)–that collective agreements signed by its various local unions were somehow fair.

I planned on doing the same thing for the second largest Canadian union–Unifor (the largest private sector union)–but Smokey Thomas’ apologetic comments concerning Doug Ford inspired me to focus on his union rhetoric (see Fair Contracts (or Fair Collective Agreements): The Ideological Rhetoric of Canadian Unions, Part One).

I have persistently pointed out in this blog that collective agreements are, generally, better than individual employment contracts. They provide more protection for workers and more benefits. On the other hand, we also need to acknowledge the limitations of collective agreements in the context of a society dominated by a class of employers–something which unions rarely do. Furthermore, many of them use the rhetoric of “fair contracts,” and similar terms to hide the dictatorial nature of the employment relationship (for a description of that relationship, see Employers as Dictators, Part One).

Smokey Thomas’ Union Rhetoric of a Fair Contract

I will just make a list of Mr. Thomas’ union rhetoric concerning fair contracts. This rhetoric can be compared to management rights clauses. One such clause is found in the following:  

 

Collective Agreement
between
Ontario Public Service Employees Union on behalf of its_ Locals (various)
and
Municipal Property Assessment Corporation

DURATION: January 1, 2019- December 31, 2022

ARTICLE 4- MANAGEMENT RIGHTS
4.01 The Union acknowledges that it is the exclusive right of the Employer to:

a) maintain order, discipline and efficiency;

b) hire, transfer, classify, assign, appoint, promote, demote, appraise, train, develop, lay off and recall employees;

c) discipline and discharge employees for just cause, except that probationary employees may be discharged without cause;

d) generally manage the enterprise in which the Employer is engaged and without restricting the generality of the foregoing, the right to plan, direct and control operations, facilities, programs, systems and procedures, direct its personnel, determine complement, organization, methods and the number, location and classification of personnel required from time to time, the number and location of operations, buildings, equipment and facilities, the services to be performed, the scheduling of assignments and work, the extension, limitation, curtailment or cessation of operations and all other
rights and responsibilities not specifically modified elsewhere in this Agreement.

4.02 The Employer shall exercise the above rights in’ a manner consistent with the
expressed terms of the Collective Agreement.

Mr. Thomas, by calling collective agreements fair, by implication calls the right of management to dictate to workers covered by the collective agreement fair. However, to treat any worker as a mere means for employers’ purposes is to treat workers as things–and that is hardly fair (see The Money Circuit of Capital). 

Let us proceed with several statements made by Mr. Thomas concerning collective agreements. Most bold print are my emphases: : 

  1. Dated April 10, 2015. From   https://www.newswire.ca/news-releases/r-e-p-e-a-t—-government-workers-protest-to-demand-a-fair-contract-517437241.html:

AURORA, ONApril 10, 2015 /CNW/ – Workers in the Ontario Public Service (OPS), represented by the Ontario Public Service Employees Union, will hold an information picket over the government’s refusal to bargain a fair collective agreement.

OPSEU President Warren (Smokey) Thomas said that at the same time that the Wynne Liberals are slashing funding for much-needed public services, they are wasting billions on private sector contracts and spending billions more on corporate tax cuts.

“After years of austerity, Premier Kathleen Wynne is demanding that the public service accept more wage freezes, cutbacks and concessions,” Thomas said. “Government negotiators at the bargaining table appear they would rather push the OPS into a strike than negotiate a fair deal with their employees.”

2. Dated June 5, 2019. From https://www.newswire.ca/news-releases/statement-from-opseu-president-warren-smokey-thomas-on-the-introduction-of-a-public-sector-pay-bill-823871469.html): 

Statement from OPSEU President Warren (Smokey) Thomas on the introduction of a public sector pay bill

 


NEWS PROVIDED BY

Ontario Public Service Employees Union (OPSEU) 

Jun 05, 2019, 17:24 ET

TORONTOJune 5, 2019 /CNW/ – The bill introduced today capping wage settlements shows that Premier Doug Ford has no respect for the rule of law or the right to fair collective bargaining.

3. Dated August 31, 2018. From https://nupge.ca/content/grca-members-ratify-contract-wage-increases-privatization-protection:  

GRCA members ratify contract with wage increases, privatization protection

Toronto (31 August 2018) — The members of the Ontario Public Service Employees Union (OPSEU/NUPGE) working at the Grand River Conservation Authority (GRCA) have ratified a contract that includes significant wage increases, protection from contracting-out, and a number of other improvements.

Workers and the public win with this contract

“This is a great deal for our members, and great news for all the people in the communities they serve,” said Warren (Smokey) Thomas, OPSEU President 

“Everybody wins when workers are paid a decent and fair wage. And everybody wins when a local like this bargains language that will prevent their jobs from being contracted out or privatized,” Thomas said.

The roughly 150 members of Local 259 work at the GRCA as planners, assistant superintendents, and environmental officers.

Their new 4-year contract includes wage increases of between 6 and 14 per cent. It also includes language that prevents the employer from contracting-out their work, and improvements to time-off and on-call provisions. 

4. Dated early April, 2019. From  https://www.correctionsdivision.ca/2019/05/22/opseu-submission-on-public-sector-consultations/

In early April 2019, OPSEU’s leaders were invited by the deputy minister of the Treasury Board Secretariat to take part in a series of consultation meetings.  opseu_public_sector_consultation_submission.pdf

“The government is seeking your feedback on how to manage compensation growth in a way that results in wage settlements that are modest, reasonable, and sustainable,” the deputy minister wrote.

While completely opposed to any attempt to impose “modest” wage settlements outside of its members’ constitutionally guaranteed right to free and fair collective bargaining, OPSEU’s leaders chose to take part in the consultation sessions in good faith and good conscience. And without prejudice.

As leaders of an open, transparent, and democratic union with 155,000 members across Ontario, OPSEU President Warren (Smokey) Thomas and OPSEU First Vice-President/Treasurer Eduardo (Eddy) Almeida attended the sessions with a number of their members’ ideas about ensuring the sustainability of decent and fair compensation growth in the public sector.

5. Dated January 28, 2015. From https://sites.google.com/site/opseulocal599/:


FOR IMMEDIATE RELEASE                     

January 28, 2015

Government forcing OPSEU towards a strike 

TORONTO – The union representing 35,000 frontline Ministry employees who work directly for the Ontario government announced today that bargaining representatives of the Ontario Government have taken a significant step towards forcing OPSEU members out on strike.

OPSEU President Warren (Smokey) Thomas said that instead of trying to bargain a fair contract with their employees, the government has initiated the process of negotiating Essential and Emergency Service (EES) Agreements, which by law must be completed prior to a legal strike or lockout.

6. Dated November 1, 2017. From https://www.newswire.ca/news-releases/college-faculty-ready-to-bargain-as-employer-returns-to-table-654537183.html:

 

 

College faculty ready to bargain as employer returns to table 

TORONTONov. 1, 2017 /CNW/ – The union bargaining team for Ontario public college faculty is interested in what the College Employer Council has to say and ready to bargain when contract talks resume tomorrow, team chair JP Hornick says.

“College faculty are taking a stand for a better college education system,” she said. “We are ready, as we have been from the start, to bargain a fair contract that addresses the issues of good jobs and quality education.”

The mediator in the talks has called the parties back together to meet Thursday, November 2 for the first time since the strike by 12,000 faculty began October 16.

“This strike has highlighted the problems that come when an employer uses precarious work as a tool to cut costs,” said Warren (Smokey) Thomas, President of the Ontario Public Service Employees Union. “When faculty aren’t treated fairly, education suffers, and OPSEU members have stayed strong on the picket lines because they want colleges that are better for faculty and students alike.

7. Dated July 15, 2016. From https://www.thesudburystar.com/2016/07/15/ymca-workers-vote-to-join-opseu/wcm/47381266-1e5e-b122-ff7f-754415b71d4f

YMCA workers vote to join OPSEU

YMCA staff in employment and newcomer services have voted to join the Ontario Public Service Employees Union, the union announced this week.

“This is great news for these hard-working employees,” Jeff Arbus, OPSEU regional vice-president, said in a release. “One of the many benefits they’ll enjoy with OPSEU membership is increased job security – something they badly need right now so they can better plan for the future.”

The July 7 vote means 36 full- and part-time staff in employment and newcomer services, not including administrative assistants, supervisors and those above the rank of supervisor, have been certified by OPSEU.

The result was good news not only for the new members, Arbus said, but also for the YMCA and its clients.

“When working conditions are improved, staff retention is increased and so is their experience and knowledge,” Arbus said. “The Y’s reputation as a prominent community partner will be enhanced, while clients will benefit even more from the help they receive.”

OPSEU President Warren (Smokey) Thomas said the publicly funded programs at the Y are essential to the well-being of Ontario communities.

“An agency delivering them should be setting an example to the employers they work with by treating their employees with respect,” Thomas said “We’ll be sitting down with the employer and these employees to make sure their employment conditions are fair.

“I congratulate them for choosing OPSEU. We’re proud of our long track record when it comes to standing up to employers who don’t treat their workers with the respect they deserve.

For Mr. Thomas, it is possible to treat workers, who are employees (who subordinate their will to management as representatives of employers) in a fair manner. Mr. Thomas, like other social democrats, it is fair that, on the one hand, a class of employers exist and that a class of workers exist who must submit their will to the class of employers; such fairness, however, only arises for Mr. Thomas if this relation is embodied in a “free collective agreement.”

What does Mr. Thomas have to say about management rights? Nothing. He never once addresses the issue. He assumes that management has the right to dictate to workers as it see fits provided that a collective agreement has been obtained through “free collective bargaining.” Or perhaps he shares the same attitude towards collective bargaining and collective agreements as John Urkevich, former business agent to a union to which I belonged (AESES, or The Association of Employees Supporting Education ). I will quote from that post (see Comments from John Urkevich, AESES-UM Business Agent, to my Critique of the Grievance and Arbitration Procedure: Letter to the Editor, Inside The Association of Employees Supporting Educational Services (AESES), Vol. 17, No. 4, May 1994). First. Mr. Urkevich:

After all the employer only has control over the how, what, and when, it does not have the right to treat employees in an unjust or undignified manner. Employees are not chattel.

I respond in my post to the above: 

This last sentence likely sums up the attitude of many union representatives. No, employees are not chattel, that is to say, they are not slaves, owned 24 hours a day. They are not required to work for a particular employer. No one forces them to work for a particular employer.

However, just as with the manipulative use of the word “if” above, Mr. Urkevitch uses the word “only” in order to minimize the importance of how much power management has over the lives of even unionized workers: “the employer only [my emphasis] has control over the how, what, and when….”

Mr. Urkevitch evidently does not think that “control over the how, what, and when” is “unjust or undignified.”

I do. (See above, referring to Kant and the money circuit of capital). Employers, by controlling “the how, what, and when”–control the lives of workers, which is undignified and unjust.

Union representatives, like Mr. Urkevich, however, obviously believe that it is just. They believe in the justice of the collective agreement, where “the employer only has control over the how, what, and when.”

Union representatives imply, often enough, that there is somehow something fair about collective agreements. No one seems to challenge them to explain what they mean by fair collective agreements.

I then quoted a statement from Mr. Thomas about fair contracts–and my post was dated Auguste 17, 2018, referring to a published item on May 24, 2018, that contained Mr. Thomas’ reference to union members getting a “fair contract.”

The radical left here in Toronto, for the most part, though, do not engage in any systematic criticism of the limitations of unions. Rather, they fall over themselves in trying to accommodate their own positions to the limitations of union reps in order to gain a “hearing” from the union reps. Their silence over the issue of management rights, for example, expresses their own limitations. 

But then again, Mr. Thomas now does the same thing with respect to Doug Ford, Conservative premier of Ontario. Perhaps he now does so because it had been confirmed that Ford will now permit paid sick days for essential workers who need to stay home because of posible exposure to the virus—something which the labour movement, community organizations and unions have been calling for for some time. That Ford recently tried to institute more police powers (see the previous post)–his apology notwithstanding since many police departments simply refused to comply with such expanded powers–is now forgiven and forgotten–as the many, many oppressive acts of his government over the last three years–all for the sake of paid sick days.

Is there really any wonder why the so-called left is in shambles? From being a critic of Ford to apologizing for Ford, Mr. Thomas is a good example of the real nature of not only union leadership in Canada but also the left in Canada. Mr. Thomas, like so many among the left, ultimately believe that the class power of employers is somehow fair. 

What do you think? 

Smokey Thomas, President of the Ontario Public Service Employees Union (OPSEU)–A Good Example of the Real Attitude of Many Union Leaders Towards the Ruling Class

A few days ago, on April 17, 2021, Warren “Smokey” Thomas, the president of the Ontario Public Service Employees Union (OPSEU), wrote the following(https://opseu.org/news/a-statement-from-opseu-sefpo-president-warren-smokey-thomas/120559/). The immediate background is that Doug Ford is the premier (head) of the Ontario government (Ontario is the province with the largest population in Canada). My comments are within the square brackets]:

Chaos is the last thing we need [The government waited to hospitals would fill up as predicted by models–and then reacted when they filled up. It permitted restaurants to open up outdoors and then ordered them close within a couple of weeks. It permits schools to remain open. It has resisted a movement to provide paid sick days for workers despite such a recommendation by the medical field. And so forth. Of course, all this is without mentioning the health cuts before the pandemic–by the same government). 

Cornwall.  Peterborough. Guelph. Ottawa. Niagara. Peel. Toronto. And now police forces right across the province are refusing to make use of the new powers authorized by the Ontario government yesterday. And with good reason; randomly stopping citizens and ticketing those who don’t comply won’t stop the COVID-19 pandemic. [The Ford government responded to the third wave of the pandemic by granting expanded powers to the police, including enabling them to question why a person is outside and to provide their home address. There was a backlash against the expansion of such powers, but to what extent Ford changed his mind due to citizen backlash or police backlash remains unclear. Even the police objected to granting them such powers–and responsibility; several police forces in the province indicated that they would not be actively enforcing the law.] These measures could lead to racialized, homeless and vulnerable communities already disproportionately impacted from this virus to now be living in fear and apprehension. What’s now labelled as the back of napkin efforts of a government furiously trying to stop the spread of the virus are leading to ineffective measures and chaos. And chaos is the last thing we need.

Ontarians don’t know who to trust on the issue of COVID-19. No matter where we look, there is conflicting information about masks, about safety, about vaccines. They are confused by the lockdowns, followed by the easing of restrictions, followed by more lockdowns. Businesses are mandated to close, then opened next month, then closed again the next week. The economy is teetering on the brink of the next announcement. And Ontarians are left feeling insecure and unsafe.

When the police refuse to follow the instructions of the government, we have the beginnings of civil unrest. [Mr. Thomas is evidently afraid of civil unrest. Civil unrest for him is something purely negative.] We are already seeing parents tearing down yellow tape to get into playgrounds and visiting elderly family members despite orders.  It’s been more than a year of announcements that don’t fully work and measures that only temporarily curb the pandemic or protect the public.

As the leader of Ontario’s public service union, I am most concerned with public safety. Thousands of OPSEU/SEFPO members have been in the front lines of this pandemic, risking life and limb for the protection and safety of all Ontarians. To protect them, and the rest of us, we need a return to public trust and measures that work.

I am also concerned with how politicized the issue has become. There is no easy answer to ending the pandemic. If there were, surely we would see evidence around the world, not just in a few select places. If we are to get through this, we are going to have to rely on a few things, starting with available vaccines into as many arms as possible, regardless of the name on the label. 

We are going to need capacity, both in terms of infrastructure and skilled, trained human resources.

We need treatment options for early onset symptoms for high-risk individuals.

Education, not enforcement, will see us through.

And we need collaboration.

Accusing the Premier of being uncaring, callous and more concerned with finances than health is simply dishonest.

I have come to know the Premier. I know he is distraught. I know he cares. I know he is working around the clock. The burden of leadership, whether he signed up for it or not, weighs heavy in life or death decisions. Armchair quarterbacking is far cozier.

Stop lobbing rhetorical bombs, end the name calling and hostility. Now is not the time for posturing along party lines that has been so front and centre.

We must come together now. [My daughter, Francsesca, calls the idea of “We’re all in this together”–bullshit.]

I am calling on the Premier to share the burden, widen the tent and bring all voices into a room where egos can be checked at the door for the good of Ontario. [We are, after all, all Ontarians if not Canadians. That despite the class power of employers in Ontario and Canada. That in spite of the fact that Mr. Ford is himself a capitalist employer.] Let’s hash it out; determine a course, develop a narrative everyone can trust and understand. And finally let’s implement it once and for all.

With nearly 4,500 new cases of COVID-19 reported in Ontario today, it’s clear that the answers must come quickly. Real answers from leaders who care more about people than their own futures. [Yes, real leaders–not the pseudo-leader called Warren “Smokey” Thomas.]

OPSEU/SEFPO President Warren (Smokey) Thomas

For more information: Warren (Smokey) Thomas, 613-329-1931; OPSEUCommunications@opseu.org

The above expresses the ideology of “We’re all in it together.” This is the real nature of trade union leaders–not the rhetoric (bullshit) that they often express to their members.

I quoted Mr. Thomas in another post, this time dated November 27, 2018. In that quote, it is the rhetoric (bullshit) that is expressed. I invite the reader to contrast the two quotes. All bolded words in the text are my emphases:

Ford in bed with business, won’t save good GM jobs

OPSEU President Warren (Smokey) Thomas in the Queen's Park media gallery.
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Toronto – OPSEU President Warren (Smokey) Thomas says Doug Ford has indeed made Ontario “open for business” … to trample all over workers and kill good jobs.

Shrugging his shoulders at GM’s callous plan to shutter a state-of-the-art Oshawa plant next year is yet another sign that Ford has no clue how to manage the province, Thomas said. He could care less that thousands of hard-working people will end up losing their jobs.

“This premier is in bed with business and this is how business behaves. Always putting profits ahead of people,” said Thomas. “Ford couldn’t organize a two-float parade, let alone run the province.  We need leadership that will stand up for working people.”

GM is a successful company that has already posted $6 billion in profits so far this year, Thomas noted.

“Ontario was there in 2009 when GM needed a multibillion-dollar lifeline from taxpayers. Now it’s turning its back on the people and Ford isn’t lifting a finger to stop it,” he said.

Contrast that with the premier’s red-faced fury a few months ago when he vowed to do whatever it took – including invoking the notwithstanding clause – to settle a score with Toronto city council, said OPSEU First Vice-President/Treasurer Eduardo (Eddy) Almeida.

“This is the bully who threatened to suspend constitutional rights to slash city hall and get even with his critics,” he said. “But when GM tells him they’re going to close shop and throw thousands of people out of work, he just rolls over. What are his priorities?”

With the Conservative government in shambles over its disastrous decision to scrap the office of Ontario’s French-language Commissioner and abuse-of-power scandals breaking almost daily, it’s clear that Ford’s incompetence is dragging Ontario down.

“He can’t run a party, never mind the province,” Thomas said. “At least Ontario has strong unions who stand united to fight for good jobs, even if the premier won’t.”

For more information: Warren (Smokey) Thomas, 613-329-1931

Which is the real Warren “Smokey” Thomas?

Striking Brewery Workers and a Fair Deal or Contract (Collective Agreement): The Impossible Dream

I thought it might be useful to paste a short conservation I had on Facebook concerning locked-out brewery workers:

February 26 2021 at 1:50 p.m.

 

Thank you to everyone who has shown support for us during this lockout.
As essential workers, we were pretty shocked to be put out on the street since bargaining was progressing. Your solidarity is very important to us and will help us get back to the table with Molson Coors to negotiate a fair deal[my emphasis] for all of our members.

 

Keep the solidarity coming!

 

What is a fair deal? How can any collective agreement express a fair deal when workers (including brewery workers) are used as things for other people’s benefits?

 

 

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Author
Fred Harris

 i hear you, a fair deal would be a planned economy and a transition to socialism, but workers need means to keep from pauperization between revolutionary upsurges. I would also tend to think worker associations would still be relevant in a communist society to advocate for specific industries and sectors. But you are definitely hitting on something.

The issue is not that workers need to construct organizations of defense against the rapacious and oppressive power of employers; of course they need to do so. The issue is: Why is it that the reps in such defensive organizations time after time then turn around and claim that defensive measures (such as a collective agreement) are then idealized by claiming that all workers want is a fair contract.
On my blog recently, I posted a collection of quotes from CUPE reps that claimed that collective agreements were fair. I will, in the future, find and post similar claims by the next largest union–Unifor.

 

Socialists need to constantly criticize such idealization of collective agreements since fairness cannot be achieved in such terms.; it is an illusion.

 

Collective agreements are, certainly, in general better than no collective agreement–but fairness is not one of their characteristics.

 

Unless of course the implicit or explicit management clause is also fair–which requires workers to follow orders and transfer some of their decision-making power to the employer and reps of the employer. I have also provided on my blog many examples of management clauses that specify the general power of management in relation to work and workers.

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

Introduction

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

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

The Nature of the Rate of Exploitation

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

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

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

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

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

Conclusions First

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

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

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

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

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

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

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

Data on Which the Calculation Is Based

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

Now, the calculation:

In millions of Canadian dollars:

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

Total revenue 15,073

Operating Expenses

Operating Costs

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

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

Total operating expenses 11,488
Finance costs 840

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

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

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

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

Adjustments

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

Adjustment of Stock-Based Compensation

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

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

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

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

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

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

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

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

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

Adjustment of Finance Costs

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

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

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

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

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

That leaves $22 million for Finance Costs so far. 

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

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

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

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

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

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

Accordingly, adjusted Finance Costs are:

Adjusted Finance Costs

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

Total finance costs 22

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

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

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

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

So, with the adjustments in place:

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

The Rate of Exploitation

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

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

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

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

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

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

The Pearson Survey of the 50,000 Employees at the Toronto International Airport: A Document Expressing the Ideology of Employers

The following is based on the report Understanding the Pearson workforce: Canada’s first airport workforce survey: Summary report, October 2019. The survey consists of a sample of 3,582 employees at the Toronto Pearson airport from a variety of positions, with the statistical expectation that these employees would be representative of the 50,000 workers who work at the airport.

Of course, since this report was written before COVID, the situation has changed at the airport, but it is still useful to look at the report.

The background to the survey expresses its limitations since it was initiated by the Greater Toronto Airport Authority GTAA).

The Greater Toronto Airports Authority (GTAA) is the operator of Pearson Airport.

The Greater Toronto Airports Authority (GTAA) is the operator of Pearson Airport.

The GTAA undertook a workforce survey—the first survey of its kind at any airport in Canada—to provide a baseline to understand more about the airport’s complex work environment, including who the workers are and how they get to their jobs. The information obtained from the survey will inform future work to identify gaps and support planning and programming to meet the airport’s transit and workforce needs. The survey was undertaken by Northstar Research Partners (Northstar) and developed in consultation with the Toronto Airport Workers Council (TAWC), a collective
of union representatives from across the airport that work together to address issues that impact airport workers.

The report was written with the support of the Peel-Halton Workforce Development Group and Northstar.

The GTAA is itself an employer. According to its Facebook web page, “The Toronto Airport Workers Council is committed to speaking up for workers at YYZ.” According to the Toronto Pearson web page, “The Toronto Airport Workers’ Council (TAWC) is the collective voice of Pearson’s 50,000 workers and its largest unions.”

Since the GTAA is an employer, its consultations, like consultations with union reps, expresses the power of employers to define issues and to express points of view that favour their interests–and not those of the working class. Given the power of the GTAA as a representative of employers as a whole at the Toronto Pearson Airport and its power as a particular employer, it is understandable that TAWC, in order to at least have some of its concerns recognized and perhaps addressed, decided to be a consultant  in the survey.

The report implicitly uses the standard of better paying, (unionized?), stable (permanent) and full-time positions as the basis for determining inadequacies in the employment situation of the workers at the airport. These better paying (unionized?), stable (permanent) and full-time positions are, apparently, the “good jobs” or “decent work” that social democrats refer to when they justify the goals that they pursue.

Consider, for example, the situation of workers at the airport who are part-time or who receive the minimum wage (as the report notes, these two categories of workers often overlap). The report states (page 4):

As noted above, there is an opportunity to identify and support career path development, in this case to less precarious jobs. Moreover, there appears to be some mitigation of the possible impacts of these aspects of employment precarity on these employees at Pearson.

Less precarious jobs (full-time/permanent), with better pay, thus constitute the standard of evaluation in the report.

I have criticized this standard in various posts. It is, of course, better to have a permanent position for most workers. Full-time work is also often preferable for workers than part-time work if they are going to meet their financial obligations and live some kind of enjoyable life outside of work. Receiving higher wages while working the same number of hours, obviously, is also preferable. However, nowhere in the report is their a hint of criticizing this standard.

This standard fails to criticize the fact that workers are Pearson International Airport are things to be used by

400-plus companies—public and private, large and small [pages 1 and 5].

(There are multiple page references to the same passage sometimes since the report includes the executive summary.)

There is not even a hint of the treatment of workers as things in the report (see The Money Circuit of Capital for a description of how workers are mere means to be used by employers, whether private or public.)  There is also not even a hint that the workers at Toronto Pearson are controlled and exploited (see the posts The Rate of Exploitation of Workers at Air Canada, One of the Largest Private Employers in CanadaManagement Rights, Part Four: Private Sector Collective Agreement, Ontario    and   Employers as Dictators, Part One).

The report in fact idealizes the working lives of 50,000 workers at Pearson. Apart from the issue of precarity, there is a lack of critical distancing from the class point of view of employers.

Thus, the report states (pages 1 and 5):

Employers include airport service providers, retail partners, airline and agency partners, to name a few, and all have a role in ensuring Pearson is a great place to work.

I fail to see how working for one or more of the 400+ employers at Pearson can ever result in Pearson being “a great place to work.” How can a workplace be a great place to work when the workers are used as a means to ends that they do not define? How can it be a great place to work when the workers are controlled, oppressed and exploited? The document is more ideology than anything else. Given that Air Canada workers are oppressed and exploited, it is undoubtedly also the case  that the other 400+ employers oppress and exploit their workers. How could it be a great place to work under such conditions?

Consider the workplace survey about workers’ attitudes towards working at Pearson. The report states (pages 2 and 23):

The majority of employees believe that Pearson provides not only a good job today, but also opportunity to grow and advance. This is especially true of younger employees who are early in their careers and see a path forward within the airport employment community.

Since the standard of evaluation for determining what constitutes a “good job” is one where work is permanent, full-time and better paying (unionized?), there is little wonder that “the majority of employees believe that Pearson provides … a good job today.”

Before becoming workers, working-class children in schools have been indoctrinated into believing that working for an employer is natural. Consider my posts concerning indoctrination of students in schools; the school history curriculum fails to provide opportunities for an historical understanding of the emergence of a class of employers and employees in Canada (see, for example, A Case of Silent Indoctrination, Part One: The Manitoba History Curricula and Its Lack of History of Employers and Employees ; this is one of several posts on the silencing of such an understanding in various Canadian provinces and territories). The lack of such an understanding is reflected in the silence concerning the power of employers to dictate to workers in various ways and to exploit them at Pearson International Airport.

Unions, in turn, have not even provided an opportunity for workers to question this dogma. Their reference to “fair contracts” and “decent work” reinforce such standards of evaluation. Is there any wonder that the majority of workers at Pearson use such low standards to determine whether their job is good or not?

Professor Tufts, a geographer professor at York University and spokesman for the Toronto Airport Workers’ Council (TAWC), refers to the “data being in.” Yes, but there is no data that provides for an examination of the extent to which workers at Pearson Airport would consider that they have good jobs by working for an employer on a permanent and full-time basis with a wage somewhat higher than the minimum wage–if they also believed explicitly that they were being oppressed and exploited by the employers at Pearson Airport.

Professor Tufts has some interesting things to say about the purpose of this report. He says the following (Professor Tufts on the Pearson Airport Workforce Survey):

We want to know … how their careers are developing in the future, and how we can better help their careers develop at the airport and make Pearson a place where it’s not just a place to come to work to survive, but it’s a place where you come to build a career and thrive. And this survey is the first stop to getting something to talk about, to come together and talk about how we can better solutions.

Count on Pearson and Toronto Airport Workers’ Council to make the airport a great place to work.

I would not count on that. The Toronto Airport Workers’ Council may stimulate the improvement of working conditions at Pearson, but improved working conditions are hardly the same as “a great place to work.” Of course, workers should struggle to improve their own working conditions. However, Professor Tuft, like most union reps here in Toronto, assumes that it is really possible to create a good workplace environment on the basis of working for a particular employer in the context of the class power of employers so that the workplace is “a great place to work.” I deny that categorically.

Professor Tufts and the authors of the report assume that working for an employer and working at a great place are mutually compatible. As noted above, in referring to the money circuit of capital, workers are ultimately things to be used for the benefit of employers. They are also exploited. These facts limit improvements in working conditions–including workers’ control of their own working lives at work. These facts also means that workers necessarily lack control over a large area of their work at Pearson International Airport–a fact hidden behind the rhetoric of “a great place to work.”

These facts, on the other hand, are expressed in management rights’ clauses (explicitly in collective agreements if present but implicitly otherwise because arbitrators assume that management has dictatorial powers to direct the workforce, with the collective agreement only limiting such power). .

The report–and Professor Tufts’ commentary on it–express at best a social-democratic point of view, where it becomes possible to improve working conditions, but always within the limits of the power of employers as a class that use and exploit workers for their own benefit.

For the authors of the report and for Professor Tufts, improvement of working conditions, while leaving the power of employers generally intact, means the same thing as making Pearson “a great place to work.”

Now, TAWC may have thought that their participation in the consultation process may benefit the Pearson Airport workers’ interests. There is nothing wrong with that; in fact, the attempt to improve workers’ conditions is to be praised. On the other hand, by not engaging in a critique of the report, TAWC simultaneously–although implicitly–justifies the continued oppression and exploitation of Pearson Airport workers.

Do not the workers at Toronto Pearson International Airport deserve more? Do they not deserve a critical analysis of the report? Does TAWC provide such a critical analysis to the workers?

What do you think?

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

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

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

MTS Bows Out of We Day

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

The Silences of the Social-Democratic Left on the Standards They Use in Relation to Health and Safety

I had a debate on the Facebook page of the Toronto Airport Workers Council (TAWC), an organization designed to facilitate communication and common actions among unions at the Toronto International Pearson Airport. The issue was health and safety and workers’ compensation. In Canada, most workers who work for an employer are covered by workers’ compensation–a fund derived from premiums that employers pay, based on the rate and extent of accidents in the particular industry as well as the accident record of particular employers. Being covered by workers’ compensation means that, if an injury (or disease) is work related, then the worker has the right to be compensated.

The following conversation occurred on October 18, 2019, first with an anonymous member of TAWC and then with the TAWC member Mike Corrado (who is also the general chairperson of the central region of the International Association of Machinists and Aerospace Workers (IAMAW):

Premier Ford [of Ontario,Canada] says he cares about safety, but after the 5th temp agency worker death at Fiera Foods Company, he still refuses to take action. Legislation already exists to stop companies from treating temp workers’ lives as disposable. Tell FordNationto implement this law, now! VISIT: www.15andFairness.org

Fred Harris Are there any statistics about now many non-temporary agency workers have died since 1999? Or even during Doug Ford’s term as premier? Is one death one too many in that situation? If so, what is being done about it? Why the focus exclusively on temporary workers? Certainly, that issue should be addressed–but what about those who supposedly have :”good jobs” (unionized, for example)? Do they not still die needlessly in the context of an economy dominated by a class of employers?

Tawc Yyz Thats far too many questions to realistically answer on this post.

Fred Harris Let us assume that this is the case. There are six questions in the above post. Take any question and answer it. Or perhaps one question per week? Or per month? Every two months?

Should not at least one question be answered now? If not, why not?

Take any of the six questions and answer it. Or is one quetion “too much” to realistically answer on this post?”

I remember when I worked at one of those so-called “decent jobs” that much of the social-democratic left talk about. One night, a few days after the brewery was “inspected” (mysteriously the brewery was advised of the inspection beforehand so that the machinery, etc. could be cleaned), a worker lost a couple of fingers when his glove got caught in a chain on the conveyor belt. Not long afterwards, we started to produce beer again.

I guess non-temporary workers have it so good that the issue of whether workers will ever be safe under working conditions controlled in large part by employers should not be brought up? That the general issue of the unsafe working conditions in various forms should not be brought up? Or is that too many questions to answer in a post? If so, then feel free to answer it on my blog.

That temporary workers are more subject to the possibility of unsafe working conditions than regular working conditions is probably true (I worked as a substitute teacher–a temporary worker–though not for a temp agency) for a number of years. That did not prevent me from questioning the more general question.

Mike Corrado The brewery workers were fully covered under worker’s compensation or WSIB whereas temp workers aren’t afforded with the same rights!

Open Letter to Premier Ford
October 8, 2019

RE: Urgent action required after fifth temp worker death at Fiera Foods

Dear Premier Doug Ford,

As you know, on Wednesday, September 25, Enrico Miranda, a father of two, was killed on the job. As you also know, Mr. Miranda is the fifth temporary agency worker who has died on the job at Fiera Foods or an affiliated company.

Shockingly, it has been almost two weeks since his death and yet we have heard nothing from you. You have chosen to remain silent, despite having the power to implement legislation that could have prevented this tragedy.

Mr. Ford, this is the second worker killed at Fiera Foods under your watch.

Had you implemented Section 83(4) of the Workplace Safety and Insurance Act – legislation which has already passed, but simply needs your signature – Mr. Miranda might still be alive today.

That’s why we are writing to you to demand that you immediately enact this existing law that will make companies using temp agencies financially responsible under the Workplace Safety and Insurance Act for workplace deaths and injuries.

Laws like this will make companies like Fiera Foods think twice before putting temp workers into harm’s way.

There’s no more time to waste, and we need you to take action to make sure this is the last temp agency worker death.

Implement Section 83(4) of the Workplace Safety and Insurance Act – right now!

We expect to hear from you right away, and certainly no later than Friday, October 11.

Ontarians deserve to know whether their premier will stand up for workers – or whether he will remain silent and continue allowing companies to treat their workers’ lives as disposable.

Fred Harris Yes, the brewery workers were “fully covered under worker’s compensation or WSIB”–and is this compensation for the man who lost his two fingers?

Furthermore, substitute teachers (at least in Manitoba) are not covered by workers compensation.

In addition, the answer that “being fully covered under workers’ compensation” (or not) skirts the question of whether workers, whether covered or not, can ever be safe under conditions that are dominated by a class of employers.

Why shift the issue to being “fully covered under worker’s compensation or WSIB” or not to the issue of whether human safety is really possible under conditions dominated by a class of employers?

Of course, this does not mean that workers who are not covered by worker’s compensation should not struggle to obtain coverage (and others should support such struggle). However, the standard is itself ‘workers who are covered by worker’s compensation or WSIB”–an inadequate standard,.

Let us assume that all workers who work for employers are covered by worker’s compensation. On such a view, then workers would be safe? If not, why not? How many workers have suffered injury at the airport in the last five years? Two years? One year? Do they qualify for worker’s compensation?

Finally, legislation can prevent some injuries and deaths–but hardly all injuries and deaths under existing conditions of domination of the economy by a class of employers and the social structures that go along with that domination. Human beings are things to be used by employers–like machines. Given that situation, there are bound to be injuries and deaths. Or why is it that there around 1000 deaths at work a year in Canada and over 600,000 injuries?

No further response was forthcoming. Was my question about whether being covered by workers’ compensation was an adequate standard out of line? Do not workers deserve an answer to the question? Why the silence?

To be fair to Mike Corrado, at least he broke the silence typical of much of the social-democratic left. Unfortunately, he chose to then revert back to the silence so typical of the social-democratic left when it comes to the power of employers as a class.

Furthermore, Mr. Corrado’s position with respect to the power of employers as a class shines through on the same Facebook page just prior to the Canadian federal elections held on October 21, 2019:

Election Day is Monday. Family values, workers rights, healthcare, pharmacare, the economy, privatization, electoral reform, the environment and the wealthy paying their fair share are at stake and so is my child’s future!

I too am for workers’ rights, healhcare, pharmacare, etc. But what does Mr. Corrado mean by “the wealthy paying their fare share?” This is a social-democratic slogan or cliche. What does it mean? There is no elaboration about what it means. The slogan implies that the wealthy should continue to be wealthy–but only that they should “pay their fair share.” As long as they pay “their fair share,” they can continue to treat workers as things at work. They can continue to make decisions about what to produce, how to produce, when to produce and where to produce. They can continue to dictate to workers (subject to the collective agreement). They can continue to make decisions concerning how much of their wealth will be reinvested and how much will be personally consumed (determining thereby the rate of accumulation and the level of economy growth and the quality of that growth).

Just as the social-democratic left are silent concerning the adequacy of the standard of workers’ compensation, so too they are silent concerning the legitimacy of the existence of a class of persons who make decisions that affect, directly and indirectly, the lives of millions of workers.

Why the silence? Why are not workers constantly talking about these issues?