The Rate of Exploitation of the Workers of Toronto-Dominion Bank (TD Bank), One of the Largest Private Employers in Canada

Introduction

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

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 of workers at the Canadian Imperial Bank of Commerce (CIBC) (see ???).

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

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

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

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

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

Conclusions First

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

We have the following:

Adjusted income before income taxes=s= $13,570
Adjusted total salaries and employee benefits=v=$10,997

The rate of exploitation or the rate of surplus value of Toronto Dominion Bank workers is =s/v=13,570/10,997=123 percent.

That means that for every hour worked that is equivalent to her/his wage, a worker at TD Bank works around an additional 74 minutes for free for TD Bank. Alternatively, this means that, in terms of money, $1 of wage or salary of a regular TD Bank worker results in $1.23 surplus value or profit for free (calculated on the basis of the procedure outlined in the post on the rate of exploitation of Canadian Imperial Bank of Commerce bank workers).

It also means the following (I use minutes as well as hours):

  1. For a 6.5 hour working day (390 minutes), TD Bank workers spend 174 minutes (2 hours 54 minutes) to obtain their wage for the day, and they spend 216 minutes (3 hours 36 minutes) in obtaining a surplus value or profit for TD Bank.
  2. For a 7.5 hour working day (450 minutes), TD Bank workers spend 201 minutes (3 hours 21 minutes) to obtain their wage for the day, and they spend 249 minutes (4 hours 9 minutes) in obtaining a surplus value or profit for TD Bank.
  3. For an 8-hour working day (480 minutes), TD Bank workers spend 214 minutes (3 hours 34 minutes) to obtain their wage for the day, and they spend 266 minutes (4 hours 26 minutes) in obtaining a surplus value or profit for TD Bank.
  4. For an 8.5 hour working day (510 minutes), TD Bank workers spend 228 minutes (3 hours 48 minutes) to obtain their wage for the day, and they spend 282 minutes (4 hours 42 minutes) in obtaining a surplus value or profit for TD Bank.
  5. For a 9-hour working day (540 minutes), TD Bank workers spend 241 minutes (4 hours 1 minute) to obtain their wage for the day, and they spend 299 minutes (4 hours 59 minutes) in obtaining a surplus value or profit for TD Bank.
  6. For a 10-hour working day (600 minutes), TD Bank workers spend 268 minutes (4 hours 28 minutes) to obtain their wage for the day, and they spend 332 minutes (5 hours 32 minutes) in obtaining a surplus value or profit for TD Bank.
  7. For a 17-hour working day (1020 minutes), TD Bank workers spend 455 minutes (7 hours 35 minutes) to obtain their wage for the day, and they spend 565 minutes (9 hours 25 minutes) in obtaining a surplus value or profit for TD Bank.

TD Bank workers do not belong to a union. Would their becoming unionized turn their situation into one where they had a “fair contract” and “decent work?” I think not. Unions can limit exploitation and can control some aspects of their working lives, but in principle workers are things to be used by employers even with unions. This does not mean that a non-unionized environment is the same as a unionized environment. With unions that are independent of particular employers, that is to say, are real unions, there is an opportunity for workers to develop organizations of resistance against the power of particular employers.

The ideology of unions–that somehow they can produce a “fair contract” and “decent work”–needs, though, to be constantly criticized. Workers deserve better than the acceptance of such ideology by the left.

Data on Which the Calculation Is Based

The annual report has both statistics on revenue and expenses, but there are also reported statistics in the annual report modified by an adjustment that is specific to the Toronto Dominion Bank; the adjustment in the annual report is not a standard adjustment. I have omitted any reference to such an adjustment since it would probably make the posts on the rate of exploitation in other posts less comparable.

The calculation of the rate of exploitation is undoubtedly imperfect, and I invite the reader to correct its gaps.

In millions of Canadian dollars:

page 15:

(millions of Canadian dollars, except where noted) 2019
Results of operations
Total revenues $ 41,065
Provision for credit losses $3,029
Insurance claims and related expenses $2,787
Non-interest expenses $22,020
Income before income taxes and equity in net income of an investment in TD Ameritrade $13,229

Page 23:

NON-INTEREST EXPENSES

Salaries and employee benefits
Salaries $ 6,879
Incentive compensation 2,724
Pension and other employee benefits 1,641
Total salaries and employee benefits 11,244

Occupancy
Rent 944
Depreciation and impairment losses 405
Other 486
Total occupancy 1,835

Equipment
Rent 245
Depreciation and impairment losses 200
Other 720
Total equipment 1,165

Amortization of other intangibles 800
Marketing and business development 769
Restructuring charges 175
Brokerage-related fees 336
Professional and advisory services 1,322
Other expenses 4,374 }

Total expenses $ 22,020

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.

Before entering into the issue of adjustments according to Marxian theory, however, it is necessary to address one of the categories that I did not include in the above calculation. It is a reference to Income before income taxes and equity in net income of an investment in TD Ameritrade,” which is equal to the $13.229 billion reported above. The inclusion of the term “equity” seems to refer to assets, but the following led me to believe that it was referring to net income rather than to assets as such (https://seekingalpha.com/news/3507506-td-bank-expects-230m-net-income-from-td-ameritrade-in-q4):

TD Bank expects ~$230M net income from TD Ameritrade in Q4

TD Bank Group (NYSE:TDexpects TD Ameritrade’s fiscal Q4 net earnings to translate to ~C$301M (~US$230M) reported equity in net income of an investment in fiscal Q4.

I therefore leave the category “Income before income taxes and equity in net income of an investment in TD Ameritrade” as is, except that I shorten it now to just “Income before income taxes.”

In the annual report, the category of “Non-interest expense” is subtracted from total revenue, to yield the category “Income before income taxes.” However, to calculate the rate of exploitation according to the principles of Marxian economics, it is necessary to make certain adjustments. To that end, we need to look in more detail at the category “Non-interest expense.”

In the category “Salary and employee benefits,” there is the subcategory “Incentive compensation.” A one-page TD document indicates what this involves for all employees:

TD’s Approach to Compensation

TD provides employees with a comprehensive total rewards package that includes a combination of base salary, incentive compensation, benefits, and retirement and savings plan

Further, for executives:

Executive Compensation

We have a balanced approach to executive compensation that is intended to attract, retain and motivate high-performing executives to create sustainable value for shareholders over the long term. … This compensation is tied to the bank’s share price and promotes decision-making that is in
the best long-term interests of the bank and its stakeholders.

There is thus additional compensation called incentive compensation, but the issue is whether such additional compensation is a result of workers being exploited or exploiting workers.

As I wrote in the post on the exploitation of Canadian Imperial Bank of Commerce (CIBC) 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 “Performance-based compensation” is divided into two parts: one part is a function of the number of hours worked by regular employees as well as the intensity of that work; the other is based on the extent to which bank managers and senior executives are successful in exploiting those regular employees.

Without further information, it is impossible to determine the proportion that is derived from exploiting bank workers and being exploited. I will assume, as I did in the case of the CIBC, that 10 percent of the “Incentive compensation” originates from the exploitation of TD bank workers. This 10 percent is equal to $247 million and must be subtracted from the subcategory “Total salaries and employee benefits” and added to the category “Income before income taxes.”

Another expense category is also relevant for making adjustments–the category “Rent.” The rent of buildings, like the rent of equipment, is an expense both at the level of the firm and at the level of the economy as a whole. However, in the case of occupancy, rent also includes the capitalized value of land, and this capitalized value of land is derived from surplus value (see Jorden Sandemose (2018), Class and Property in Marx’s Economic Thought: Exploring the Basis for Capitalism). Again, without further information, it is impossible to tell or determine the proportion that is paid for the rental of buildings and the rental of land. I will assume that 10 percent of rent is due to the exclusive ownership of land (a non-produced means of production). This 10 percent is equal to $94 million and must be subtracted from the subcategory and added to the category “Income before income taxes.”

Adding $94 million to $247 million gives $341 million.

“Income before income tax” must thus be increased by $341 million, and “Total salaries and employee benefits” must be decreased by $247 million.

This gives us the following:

Adjusted Results

Adjusted income before income taxes $13,570
Adjusted total salaries and employee benefits $10,997

The Rate of Exploitation of TD Bank Workers

To calculate the rate of surplus value, we need to relate “Income before income taxes” to “Total salaries and employee benefits.” So, with the adjustments in place:, s=13,570; v=10,997. The rate of exploitation or the rate of surplus value=s/v=13,570/10,997=123 percent.

That means that for every hour worked that produces her/his wage, a worker at TD Bank works around an additional 74 minutes for free for TD Bank.

According to a few people who have worked at TD Bank, the length of the working day is:

I worked 7.5 hrs each day, some overtime is required. but not so often.

I normally am scheduled to work 8 1/2 hours a day Monday to Thursday. On fridays i am scheduled for 6 1/2.

It depends on the activity but can vary from 10 hours to 17+ hours

8 hours a day

Nine hours

I will calculate the division of the working day from the shortest to the longest in the above quotes accordingly. I use minutes rather than hours.

  1. For a 6.5 hour working day (390 minutes), TD Bank workers spend 174 minutes (2 hours 54 minutes) to obtain their wage for the day, and they spend 216 minutes (3 hours 36 minutes) in obtaining a surplus value or profit for TD Bank.
  2. For a 7.5 hour working day (450 minutes), TD Bank workers spend 201 minutes (3 hours 21 minutes) to obtain their wage for the day, and they spend 249 minutes (4 hours 9 minutes) in obtaining a surplus value or profit for TD Bank.
  3. For an 8-hour working day (480 minutes), TD Bank workers spend 214 minutes (3 hours 34 minutes) to obtain their wage for the day, and they spend 266 minutes (4 hours 26 minutes) in obtaining a surplus value or profit for TD Bank.
  4. For an 8.5 hour working day (510 minutes), TD Bank workers spend 228 minutes (3 hours 48 minutes) to obtain their wage for the day, and they spend 282 minutes (4 hours 42 minutes) in obtaining a surplus value or profit for TD Bank.
  5. For a 9-hour working day (540minutes), TD Bank workers spend 241 minutes (4 hours 1 minute) to obtain their wage for the day, and they spend 299 minutes (4 hours 59 minutes) in obtaining a surplus value or profit for TD Bank.
  6. For a 10-hour working day (600 minutes), TD Bank workers spend 268 minutes (4 hours 28 minutes) to obtain their wage for the day, and they spend 332 minutes (5 hours 32 minutes) in obtaining a surplus value or profit for TD Bank.
  7. For a 17-hour working day (1020 minutes), TD Bank workers spend 455 minutes (7 hours 35 minutes) to obtain their wage for the day, and they spend 565 minutes (9 hours 25 minutes) in obtaining a surplus value or profit for TD Bank.

It should be noted that I have used the verb “obtain” rather than “produce.” In Marxian economics, bank workers, as well as sales workers do not produce surplus value but rather transfer the surplus value already produced. This does not mean that these workers are not exploited capitalistically; they are used impersonally by the employer to obtain surplus value and a profit. Furthermore, things produced by others are used by employers such as TD Bank to control their working lives in order to obtain surplus value or profit.

TD Bank workers do not belong to a union. Would their becoming unionized turn their situation into one where they had a “fair contract” and “decent work?” I think not. Unions can limit exploitation and can control some aspects of their working lives, but in principle workers are things to be used by employers even with unions. This does not mean that a non-unionized environment is the same as a unionized environment. With unions that are independent of particular employers, that is to say, are real unions, there is an opportunity for workers to develop organizations of resistance against the power of particular employers.

The ideology of unions–that somehow they can produce a “fair contract” and “decent work”–needs, though, to be constantly criticized. Workers deserve better than the acceptance of such ideology by the left.

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 Rate of Exploitation of the Workers of the Canadian Imperial Bank of Commerce (CIBC), One of the Largest Private Employers in Toronto and in Canada

Introduction

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

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

The Nature of the Rate of Exploitation

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

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

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

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

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

Conclusions First

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

We have the following:

Income before income taxes: $6,656=s
Employee compensation and benefits: $5,539=v

The rate of exploitation or the rate of surplus value is s/v; therefore, s/v is 6,656/5,539=120 percent.

This means that, for every hour worked that enables her/his to obtain a wage, a CIBC worker works 72 minutes (or 1 hour 12 minutes) for free for CIBC. Alternatively, in terms of money, $1 of wage or salary of a regular bank worker results in $1.20  surplus value or profit for free.

  1. in a 5.75 hour working day, CIBC workers spend 157 minutes (2 hours 37 minutes) to obtain their wage for the day, and they spend 188 minutes (3 hours 8 minutes) in obtaining a surplus value or profit for CIBC.
  2. For a six-hour working day, follow the same procedures as above, but replace 345 by 360: result: in a 6-hour working day, CIBC workers spend 164 minutes to obtain their wage for the day, and they spend 196 minutes in obtaining a surplus value or profit for CIBC.
  3. 7-hour working day: 420 minutes: in a 7-hour working day, CIBC workers spend 191 minutes to obtain their wage for the day, and they spend 229 minutes in obtaining a surplus value or profit for CIBC.
  4. 7.5-hour working day: 450 minutes: in a 7,5-hour working day, CIBC workers spend 205 minutes to obtain their wage for the day, and they spend 245 minutes in obtaining a surplus value or profit for CIBC.
  5. 8-hour working day: 480 minutes: in an 8-hour working day, CIBC workers spend 218 minutes to obtain their wage for the day, and they spend 262 minutes in obtaining a surplus value or profit for CIBC.
  6. 10-hour working day: 600 minutes: in a 10-hour working day, CIBC workers spend 273 minutes to obtain their wage for the day, and they spend 327 minutes in obtaining a surplus value or profit for CIBC.

CIBC workers do not belong to a union. Would their becoming unionized turn their situation into one where they had a “fair contract” and “decent work?” I think not. Unions can limit exploitation and can control some aspects of their working lives, but in principle workers are things to be used by employers even with unions. This does not mean that a non-unionized environment is the same as a unionized environment. With unions that are independent of particular employers, that is to say, are real unions, there is an opportunity for workers to develop organizations of resistance against the power of particular employers.

The ideology of unions–that somehow they can produce a “fair contract” and “decent work”–needs, though, to be constantly criticized. Workers deserve better than the acceptance of such ideology by the left.

Data on Which the Calculation Is Based

Now, the calculation:

In millions of Canadian dollars:

Revenue:  $18,611

Net interest income $ 10,551
Non-interest income $8,060

Provision for credit losses $1,286
Non-interest expenses $10,856

Employee Compensation and Benefits:

Salaries: $3,081
Performance-based compensation: $1,873
Benefits: $772

Total employee compensation: $5,726

Other expenses:

Occupancy costs:  $892
Computer, software and office equipment: $1,874
Communications: $303
Advertising and business development: $359
Professional fees: $226
Business and capital taxes: $110
Other: $1,366

Total other expenses: $5,130

Income before income taxes (Revenue minus provision for losses minus non-interest expenses): $6,469 ($18,611-$1,286-$10,856=$6,469).

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.

It is necessary, however, to make adjustments on the revenue side; From  https://www.payscale.com/research/CA/Employer=Canadian_Imperial_Bank_of_Commerce_(CIBC)/Bonus :

How much does Canadian Imperial Bank of Commerce (CIBC) pay in bonuses?

Canadian Imperial Bank of Commerce (CIBC) pays an average of C$4,962 in annual employee bonuses. Bonus pay at Canadian Imperial Bank of Commerce (CIBC) ranges from C$1,014 to C$30,521 annually among employees who report receiving a bonus. Employees with the title Information Technology (IT) Director earn the highest bonuses with an average annual bonus of C$30,521. Employees with the title Customer Service Representative (CSR) earn the lowest bonuses with an average annual bonus of C$1,014.

Although there is no direct evidence to indicate whether such bonuses form part of “Performance-based compensation,” there is indirect evidence.

Bloomberg notes the following (https://www.bnnbloomberg.ca/canada-s-bankers-face-the-bleakest-bonus-year-in-almost-a-decade-1.1358606):

The Canadian banks pay bonuses based on performance, with most of the variable compensation going to capital-markets employees such as investment bankers, research analysts and those in sales and trading. …

Senior investment bankers will see a 10 per cent decline in compensation from last year, hurt by fewer financings and a decline in mergers-and-acquisitions activity, according to Vlaad & Co. Junior investment bankers will see little change in their payouts following three years of increases, while those in sales, trading and research will see compensation fall 15  per cent to 25  per cent, and fixed-income employees will face a similar decline, the firm said.

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 “Performance-based compensation” is divided into two parts: one part is a function of the number of hours worked by regular employees as well as the intensity of that work; the other is based on the extent to which bank managers and senior executives are successful in exploiting those regular employees. Evidence for such exploitation is indirect, via the level of compensation of some senior executives. For example, Victor Dodig, president and CEO,  received $9,017,000 in total compensation in 2019 (salary, $1,000,000; share-based awards, $4,806,420; option-based awards, $1,201,560; Non-equity GPS awards, $1,501,950; Pension value, $505,000; all other compensation, $2,250) (CIBC Proxy Circular 2020, page 79).

It is impossible to determine the proportion of bonuses that form part of salaries and bonuses that represent the exploitation of bank workers. Some facts may, however, be relevant. From   https://www.comparably.com/companies/cibc/executive-salaries:

The average CIBC executive compensation is $270,917 a year. The median estimated compensation for executives at CIBC including base salary and bonus is $253,828, or $122 per hour. At CIBC, the lowest compensated [executive] makes $52,000.

It is probable that even middle-level bank executives receive some surplus value or profit through the exploitation of regular bank workers. This means that part of their compensation is a function of how much work regular bank workers work for nothing or for free.

Given that the level of income for top executives is far beyond the level of income of even the lowest executive, as well as the fact that the average executive compensation is almost five times the level of the lowest executive (not even taking into account additional compensations for senior executives), it is probably reasonable to assume that a minimum of 10 percent of the “Performance-based compensation” comes from the exploitation by senior bank 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, though, this means that 10 percent of the total of “Performance-based compensation, ” is reduced by 10 percent, or $187,300,000, and that amount is added to “Income before income taxes.” As a consequence, we have the following:

Adjusted Results

Income before income taxes: $6,656=s
Employee compensation and benefits: $5,539=v

The Rate of Exploitation of CIBC Workers

The rate of exploitation or the rate of surplus value is s/v; therefore, s/v is 6,656/5,539=120 percent.

This means that, in terms of money, $1 of wage or salary of a regular bank worker results in $1.20 cn surplus value or profit for free (calculated as follows–you can skip this calculation if not interested in how the result was obtained). Alternatively, for every hour worked, a CIBC worker works 72 minutes (or 1 hour 12 minutes) for free for CIBC.

  1. s/v=1.2
  2. multiplying  s/v and 1.2 by v (multiplying both sides by v does not change the equation), we have (s timesv)/v=1.2v;
  3. Dividing v by itself in the left-hand part of the equation in 2 above results in 1 (any number divided by itself except 0 is equal to 1, and any number multiplied by 1 is the same number), so we have: s=1.2v
  4. We can use this equation to calculate the division of the working day into time required to obtain the equivalent of the wage for workers at CIBC and the time they provide free of charge to obtain surplus value for CIBC.

According to a few people who have worked at CIBC, the length of the working day is:

8 hours a day

Work hours are manageable and flexible. The company is accommodating with every schedule.

They vary – just like it does anywhere.

8 hours in a day, 1 hour for break and lunch.

8-10 hours

I work 7.5 hours each day.

6 – 5.75 hours a day, 4 days a week. for the last 1.5 years

Evidently, the length of the working day varies for workers at CIBC. I will calculate the division of the working day from the shortest to the longest in the above quotes accordingly. I use minutes rather than hours. I provide more detail for the calculation for the first one so that others can more easily calculate similar rates in the cities where they live.

  1. A 5.75- hour working day: 345 minutes;
  2. We can use this information to create an equation:
  3. v+s=345;
  4. We also have the equation s=1.2v from above;
  5. We can therefore replace, in equation 3 above, s by 1.2v since they are the same.
  6. We now have: v+1.2v=345;
  7. From 6, we have 2.2v=345
  8. Dividing both sides by 2.2 does not change the equation, so the result is: v=345/2.2=157 minutes (rounded to the nearest minute).
  9. Since v+s=345, we have 157+s=345;
  10. Subtracting 157from both sides does not change the equation, so now we have s=345-157=188 minutes
  11. So, in a 5.75 hour working day, CIBC workers spend 157 minutes (2 hours 37 minutes) to obtain their wage for the day, and they spend 188 minutes (3 hours 8 minutes) in obtaining a surplus value or profit for CIBC.
  12. For a six-hour working day, follow the same procedures as above, but replace 345 by 360: result: in a 6-hour working day, CIBC workers spend 164 minutes to obtain their wage for the day, and they spend 196 minutes in obtaining a surplus value or profit for CIBC.
  13. 7-hour working day: 420 minutes:i n a 7-hour working day, CIBC workers spend 191 minutes to obtain their wage for the day, and they spend 229 minutes in obtaining a surplus value or profit for CIBC.
  14. 7.5-hour working day: 450 minutes: in a 7,5-hour working day, CIBC workers spend 205 minutes to obtain their wage for the day, and they spend 245 minutes in obtaining a surplus value or profit for CIBC.
  15. 8-hour working day: 480 minutes: in an 8-hour working day, CIBC workers spend 218 minutes to obtain their wage for the day, and they spend 262 minutes in obtaining a surplus value or profit for CIBC.
  16. 10-hour working day: 600 minutes: in a 10-hour working day, CIBC workers spend 273 minutes to obtain their wage for the day, and they spend 327 minutes in obtaining a surplus value or profit for CIBC.

It should be noted that I have used the verb “obtain” rather than “produce.” In Marxian economics, bank workers, as well as sales workers do not produce surplus value but rather transfer the surplus value already produced. This does not mean that these workers are not exploited capitalistically; they are used impersonally by the employer to obtain surplus value and a profit. Furthermore, things produced by others are used by employers such as CIBC to control their working lives in order to obtain surplus value or profit. (I leave the issue of how banks exploit workers as consumers to others more competent to deal with the issue; the point here is to focus on the exploitation of bank workers as workers and not as consumers.)

CIBC workers do not belong to a union. Would their becoming unionized turn their situation into one where they had a “fair contract” and “decent work?” I think not. Unions can limit exploitation and can control some aspects of their working lives, but in principle workers are things to be used by employers even with unions. This does not mean that a non-unionized environment is the same as a unionized environment. With unions that are independent of particular employers, that is to say, are real unions, there is an opportunity for workers to develop organizations of resistance against the power of particular employers.

The ideology of unions–that somehow they can produce a “fair contract” and “decent work”–needs, though, to be constantly criticized. Workers deserve better than the acceptance of such ideology by the left.

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?

 

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

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

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

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

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

Wow. Does this not sound encouraging?

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

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

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

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

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

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

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

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

  • PerformersScott HelmanRupi KaurSarah McLachlan, SonReal, Tegan and Sara

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

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

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

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

Social Justice

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

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

Ways to get involved:

We Day

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

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

MTS Bows Out of We Day

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

 

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

In another post, 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). One of those employers is Magna International Inc., a multinational corporation whose workers produce automobile supplies for inputs into car manufacturing.

This is a first attempt at calculating the rate of exploitation of one of the largest private employers in Toronto, Magna . It is undoubtedly imperfect in many ways, 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 by has undoubtedly reinforced social-reformist tendencies.

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

That means that for every hour worked that produces her/his wage, a worker at Magna International works around an additional 47 minutes for free for Magna International. In an 8-hour work day, the worker produces her/his wage in about 4.5 hours, and the remaining 3.5 hours works for free for Magna. In a 10-hour work day (both work days seem possible at Magna International—see https://www.indeed.com/cmp/Magna-International-Inc/faq/how-are-the-working-hours-at-magna-international-inc?quid=1at7gf6rrak7i9ff)–the worker produces her/his wage in about 5.6 hours and the remaining 4.4 hours works for free for Magna International.

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 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 and salaries).

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 if they are available in order to calculate the rate of exploitation at a more local level. I begin with one company and invite others to provide criticisms or suggestions for improvement.

I have used some of the ideas from Thomas Ittelson (2019), A Visual Guide to Financial Statements: Overview for Non-Financial Managers and Investors, and Antonios Patidis (2016), “A Micro-Approach for Testing Marx’s LTRPF:Evidence from Greece, 2000 and 2009,” Review of Political Economy. Patidis “utilises data taken directly from company reports and accounts” in order to determine whether the rate of profit falls in the major corporations in Greece. My purpose, however, is not, initially at least, in determining whether the rate of profit has fallen but rather what the rate of exploitation is in diverse companies in Toronto.

I also asked Michael Roberts how to calculate the rate of exploitation; he graciously sent me a couple of articles (one of which I read). After that, I sent him the above, and he commented that it looked good.

Again, the following undoubtedly contains many limitations, but I will leave that for further discussion, should the issue arise.

The income statement is broken into the following categories for 2019 (in millions of US dollars): (pages 5, 36):

Sales $39,431
Costs and Expenses $37,208

Cost of goods sold $34,022

Material $24,585

Direct labour $2,815

Overhead $6,622

Depreciation and amortization $1,345

Selling, general and administrative $1,697

Interest expense, net $82

Other expense, net $240

Equity income ($178) [If you add up all the numbers–34,022; 1,345; … 82, then you get 37,286; if you subtract 178 from that, you get 37,208–the same amount as “Costs and expenses.” That is why the 178 is in parentheses–it is necessary to subtract it from expenses since it is really income. 

Income from operations before taxes: $2,223 (profit or surplus value) 

A couple of adjustments are probably necessary. On page 37, 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.

A second 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. Hence, it should be added to “Income from operations before taxes.” Adjusting “Income from operations before taxes,” we have 2,223-47+82=2,258.

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%.

That means that for every hour worked that produces her/his wage, a worker at Magna International works around an additional 47 minutes for free for Magna International. In an 8-hour work day, the worker produces her/his wage in about 4.5 hours, and the remaining 3.5 hours works for free for Magna. In a 10-hour work day (both work days seem possible at Magna International—see https://www.indeed.com/cmp/Magna-International-Inc/faq/how-are-the-working-hours-at-magna-international-inc?quid=1at7gf6rrak7i9ff)–the worker produces her/his wage in about 5.6 hours and the remaining 4.4 hours works for free for Magna International.

This is not, however, the end of the story. Christopher Arthur, in his book The New Dialectic and Marx’s Capital,  argues that there are two kinds of exploitation, one that occurs during the production of the wage by the workers (since they are subject to control by employers during that time), and the other kind of exploitation outlined above, where workers work for free for the employer. This issue, however, will be addressed in a follow-up post.

The Poverty of Academic Leftism, Part Six: The Idealization of the Nation State or the National Government in the Wake of the Coronavirus Pandemic, Part One

Professor Noonan, a self-declared historical materialist and teacher of Marxism, continues to argue a political position that ignores the reality of capitalist society. In his post Back to the Magic Mountain, he argues the following:

No one should fetishize the nation state, but it remains the dominant form of political society and, when it chooses to, it can marshal the power to override capitalist market forces. The dependence of human life on market forces has been suspended in large parts of the world during this crisis. The state has effectively taken over the direction of economic activity and positioned itself as the guarantor of people’s income. We have been re-acquainted with a truth that capitalism works hard to suppress: our lives depend upon collective labour and nature, not market forces. This truth has to become the basis for post-pandemic reconstruction.

Professor Noonan’s opening part of the first sentence, “No one should fetishize the nation state,” is supposed to prevent any criticism of what follows. Professor Noonan, he implies, does not fetishize the nation-state.” The use of the conjunction “but” then is used to do just that.

In a Canadian context, Professor Noonan, in his statement: “The dependence of human life on market forces has been suspended in large parts of the world during this crisis. The state has effectively taken over the direction of economic activity and positioned itself as the guarantor of people’s income,” can refer to the provisions for workers to receive $500 a week for up to sixteen weeks through the Canadian Emergency Response Benefit (CERB), a federal program. From workers’ point of view, such economic relief is of course welcome–if they qualify (they must have worked a certain number of hours, for example–although some of the gaps are being addressed).

Professor Noonan forgets that workers are means to employers’ ends (see The Money Circuit of Capital). Consider things that you own, use and need. Do you take care for them in some way? They are means to the end of your goals, but you do care about preserving their existence in order to achieve your goals. Professor Noonan idealizes (and fetishizes) the modern state. The Canadian federal government, like other governments, instituted income policies because the workers could not temporarily work for employers–and because they lack their own independent means by which to produce and hence to live.

Employers need employees in one way or another if they are going to continue to be employers. The modern state intervenes in the capitalist market, if necessary, because that market needs the continued existence of workers as employees. The dependence of employers on employees can be seen from the following issue that arose in the 1860s in England in relation to the possible emigration of skilled English workers (from Karl Marx, Marx-Engels Collected Works, volume 35, Capital:

The reproduction of the working class carries with it the accumulation of skill, that is handed down from one generation to another.1′ To what extent the capitalist reckons the existence of such a skilled class among the factors of production that belong to him by right, and to what extent he actually regards it as the reality of his variable capital, is seen so soon as a crisis threatens him with its loss. In consequence of the civil war in the United States and of the accompanying cotton famine, the majority of the cotton operatives in Lancashire were, as is well known, thrown out of work. 471 Both from the working class itself, and from other ranks of society, there arose a cry for State aid, or for voluntary national subscriptions, in order to enable the “superfluous” hands to emigrate to the colonies or to the United States. Thereupon, The Times published on the 24th March, 1863 [p. 12, col. 2-4], a letter from Edmund Potter, a former president of the Manchester Chamber of Commerce. This letter was rightly called in the House of Commons, the manufacturers’ manifesto.2′ We cull here a few characteristic passages, in which the proprietary rights of capital over labour power are unblushingly asserted.

“He” (the man out of work) “may be told the supply of cotton workers is too large … and … must … in fact be reduced by a third, perhaps, and that then there will be a healthy demand for the remaining two-thirds…. Public opinion … urges emigration….The master cannot willingly see his labour supply being removed; he may think, and perhaps justly, that it is both wrong and unsound…. But if the public funds are to be devoted to assist emigration, he has a right to be heard, and perhaps to protest.”

… He [Mr. Potter] then continues:

“Some time …, one, two, or three years, it may be, will produce the quantity…. The question I would put then is this — Is the trade worth retaining? Is it worth while to keep the machinery (he means the living labour machines) in order, and is it not the greatest folly to think of parting with that? I think it is. I allow that the workers are not a property, not the property of Lancashire and the masters; but they arc the strength of both; they are the mental and trained power which cannot be replaced for a generation; the mere machinery which they work might much of it be beneficially replaced, nay improved, in a twelvemonth.’: Encourage or allow (!) the working power to emigrate, and what of the capitalist?”a “…Take away the cream of the workers, and fixed capital will depreciate in a great degree, and the floating will not subject itself to a struggle with the short supply of inferior labour…. We are told the workers wish it” (emigration). “Very natural it is that they should do so…. Reduce, compress the cotton trade by taking away its working power and reducing their wages expenditure, say one-fifth, or five millions, and what then would happen to the class above, the small shopkeepers; and what of the rents, the cottage rents…. Trace out the effects upwards to the small farmer, the better householder, and … the landowner, and say if there could be any suggestion more suicidal to all classes of the country than by enfeebling a nation by exporting the best of its manufacturing population, and destroying the value of some of its most productive capital and enrichment…. I advise a loan (of five or six millions sterling), … extending it may be over two or three years, administered by special commissioners added to the Boards of Guardians in the cotton districts, under special legislative regulations, enforcing some occupation or labour, as a means of keeping up at least the moral standard of the recipients of the loan … can anything be worse for landowners
or masters than parting with the best of the workers, and demoralising and disappointing the rest by an extended depletive emigration, a depletion of capital and value in an entire province?”

Potter, the chosen mouthpiece of the manufacturers, distinguishes two sorts of “machinery”, each of which belongs to the capitalist, and of which one stands in his factory, the other at night time and on Sundays is housed outside the factory, in cottages. The one is inanimate, the other living. The inanimate machinery not only wears out and depreciates from day to day, but a great part of it becomes so quickly
superannuated, by constant technical progress, that it can be replaced with advantage by new machinery after a few months. The living machinery, on the contrary, gets better the longer it lasts, and in proportion as the skill, handed from one generation to another, accumulates.

…the factory operatives are part of the movable fittings of a factory. Their emigration was prevented.1; They were locked up in that “moral workhouse”, the
cotton districts, and they form, as before, “the strength” of the cotton manufacturers of Lancashire.

With millions of workers being sent home in order to prevent damage to human beings as employees–a necessary part of the process of capitalist production and exchange as well as governmental processes– the government’s intervention in being “the guarantor of people’s income” looks much less positive. The government or state (here the distinction is not important) is not the benevolent, neutral institution that Professor Noonan makes it out to be. It is providing income as a stop-gap measure until the capitalist and governmental processes can once again operate normally.

Indeed, Professor Noonan implies as much when he writes:

The danger, of course, is that the state is currently acting under emergency powers, but will revert to its standard function of enframing and protecting capital, if we let it.

Professor Noonan sees the provision of income by the state that is supposedly independent of market forces as something positive–but as we have already seen, the preservation of workers independent of the market in the sense that they can obtain money without having to work for an employer–is only a temporary measure that in no way is in opposition to the interests of the class of employers.

As the pandemic recedes in intensity, at least two issues will arise concerning the opposition of the working class to the nation-state. Firstly, there will be increased intensification of calls for workers to go back to work for employers despite the health risks. After all, around 1000 workers die and 600,000 workers are injured every year in Canada; health and safety are not a priority for the Canadian state.

Secondly, the issue of who will pay for the temporary income of workers and the subsidies for employers during the pandemic will arise. Although calls for cutbacks in health care will undoubtedly be more difficult to justify, cuts in other areas (such as education) will probably intensify.

Without a movement that expressly or consciously opposes the treatment of workers as things to be used by employers, the temporary measure taken by the Canadian (and other capitalist) government(s) is just that–a temporary measure. There will likely be opposition from the labour movement and from communities to the treatment of such measures as temporary, but since the labour movement and communities, for the most part, share Professor Noonan’s view that the state can somehow overcome its own nature as a capitalist state, the tasks required for converting such temporary measures into permanent measures cannot be addressed.

Professor Noonan refers to “we.” But who is this “we?” The “we” is a figment of his social-democratic imagination. In order for there to be a “we,” there would have had to have been much prior preparation. Has Professor Noonan engaged in such preparation? Not at all. He has engaged in the idealization of the collective-bargaining process and promoted class harmony (see earlier posts, such as  The Poverty of Academic Leftism, Part Five: Middle-Class Delusions).

Surely an essential part of the process of our preparing for a society where we all have our biological, social, intellectual, emotional and aesthetic needs met is a negative process–a process of coming to understand that the present social relations inside and outside work are in opposition to our interests and nature and that we therefore need to organize to change the situation by abolishing all class relations and relations of oppression.

However, my experience here in Toronto has been that most of the so-called left simply do not want to deal with the issue and attack those who do, such as calling them “a condescending prick,” ridiculing them and so forth. Alternatively, they ignore the issue by remaining silent over the issue. For example, John Clarke and other so-called radicals here in Toronto opposed calling for a basic income; I called for a radical basic income in opposition to Mr. Clarke’s rejection of any consideration of a basic income (see Basic Income: A Critique of the Ontario Coalition Against Poverty’s Stance). It has been largely ignored by the left here in Toronto; there has been no real discussion or movement for establishing a radical basic income here in Toronto.

Professor Noonan’s reference to “if we let them” is, therefore, utopian thinking. My prediction is that at best there will be some pressure from the organized social-democratic left for the maintenance of some kind of improvements in the welfare state, but that is all. Of course, there will be counter-pressure by the government or state and the class of employers to such improvements.

Professor Noonan’s further utopian social-democratic thinking can be seen in the following:

The alternative is to use this crisis as a basis of legitimacy for the state– under the control of democratic political forces acting in our shared life-interest– to assume control over the productive basis of society and re-orient production to serving life-needs.

I certainly share the goal of having “the productive basis of society…serving life-needs,” , but Professor Noonan has not shown how he or other members of the so-called progressive left have engaged in the preparatory work necessary to take advantage of a crisis.

Professor Noonan’s reference to using

“this crisis as a basis of legitimacy for the state–under the control of democratic political forces acting in our shared life-interest–to assume control over the productive basis of society and re-orient production to serving life-needs”

follows in the footsteps of another post by Professor Noonan, a post that assumes the present existence of certain social relations that are required if other social relations are to arise. In the previous post already referred to above, I pointed out how contradictory Professor Noonan’s theoretical position is with respect to the interests of most workers at universities; Professor Noonan assumed that there was already democracy at universities and thereby assumed what in fact needs to be accomplished.

The same logic applies here. If we already have democratic control of forces “acting in our shared life-interest,” then we already have “control over the productive basis of society” and have already “reoriented production to serve life-needs.” The reconstruction of the economy is democratic control. We need to reconstruct the political and the economic simultaneously and not the so-called political seizure of power occurring before and then democratic control of the economy somehow following afterwards.

Professor Noonan’s call for nationalization by the present state ignores this problem altogether by assuming that nationalization by the modern state will somehow magically lead to control over our own life process and life needs:

 Nationalization can pre-figure democratic socialization, and democratic socialization can re-focus economic life on collective work to provide each and all that which we really need, and freeing our time for the– real-life, multidimensional– experiences, actions, and interactions that make life worth fighting for, protecting, and living.

The call for nationalization as a prelude to socialism is typical of social democrats; they idealize and fetishize the modern state–contrary to Professor Noonan’s disclaimer–and thereby short-circuit what needs to be done–expose the anti-democratic and alienated nature of the modern state–a nature that has its parallel in the modern economy dominated by a class of employers or what some call civil society (see Employers as Dictators, Part One).

This issue, however, is somewhat complicated and will be dealt with in the next post. Professor Noonan’s position, ironically, is similar in some ways to the Leninist view of the modern state–a view that Professor Noonan supposedly finds unsatisfactory.

 

 

What’s Left, Toronto? Part Seven

As I indicated in an earlier post, on September 19, 2018, several leftist activists gave a talk about what was to be done in the city of Toronto, Ontario, Canada. The talks were posted on the Socialist Project website on October 7, 2018 (also posted on YouTube) (What’s Left, Toronto? Radical Alternatives for the City Election). As I indicated in my earlier posts, over the next few months, I will be analyzing some or all of the talks from a Marxian perspective.

This post is the last post in the series since it looks at the last talk by David Kidd, introduced by Herman Rosenfeld as a community worker, trade-union activist and as a political activist. Mr. Kidd was supposed to talk about some of the challenges and options the left have.

Mr. Kidd opened by claiming that he was going to provide a Twitter version of some of the left-activist projects in Toronto since he had limited time. It was indeed a Twitter version–and the weakest “analysis” of all the talks.

Mr. Kidd first outlines how, in the 1970s, he took a stance between either the choice of liberal or Tory (conservative) at the municipal, provincial or federal level (Canadian politics is usually analyzed at one or more of these three levels). Mr. Kidd acted negatively by tearing down any Conservative signs since he aimed to ensure, where he immediately lived, that it was a Tory-free zone.

He then refers back to the 1950s and 1960s. The Toronto Labour Council was instrumental in obtaining a public transit system and a public education system. In the 1950s, it campaigned against the racist discrimination of blacks and other people of colour to gain access to restaurants and other places as well as against the anti-Semitic and racist policies of exclusion to recreational facilities.

The 1970s and the 1980s were a period of struggle of massive community mobilizations and organizations for, for example,tenants’ rights and against gentrification. Women’s groups emerged to fight for their rights. This period also saw opposition to the far right and to fascist movements. A movement against carding also was initiated as was a movement for police accountability. The fight for gay and lesbian rights started to develop despite violent attacks against gays and lesbians.

Fights against business-oriented initiatives, such as the attempt to bring the Olympics to Toronto, were defeated in 1996 as organizations for the rights of the homeless fought back. The left gained a victory in this instance.

The 1990s and 2000s saw the public-sector unions and environmental groups fight back against privatization. This period saw the fight against the amalgamation of the city and the emergence of such leftist organizations as Black Lives Matter, No One Is Illegal and the Ontario Coalition Against Poverty (OCAP).

Mr. Kidd then tries to explain the shift towards a right-wing populism because of two economic crises in Toronto and the increase in homelessness. Deindustrialization has led to a decrease in decent paying jobs. The emergence of a substantial working-class poor has led to their blaming others and to a shift towards right populism. The municipal left also failed to offer solutions to problems they were facing.

Municipal activism is rooted in the communities in the city, but so too is the fight for democracy. The fight for democracy is like the fight against oppression. Both involve a daily fight and should not be conceived as something that you win and then is finished.

What is necessary is to renew the left’s analysis and its strategic sense of how to build working-class power.

Mr. Kidd then refers to Doug Ford’s elections and the need to build community councils again. In particular, it is necessary to build parent councils once again that, in the past, had some decision-making power at the school-board level.

Ultimately, the left cannot count just on the elected officials at City Hall but need to build local community organizations that will fight for people’s needs.

Mr. Kidd then claims that, as socialists, the left need to build programmatic unity on where it needs to go. The fight against the Conservative Harris Ontario government in the past was purely negative–to stop Harris. Consequently, welfare rights 20 years later are still at the same level. Subsequent governments did not raise them nor did they undo some of the attacks on welfare rights instituted by the Harris government. The same logic applies to subsequent governments after Ford loses power, Mr. Kidd implies–unless the left does something different.

What Mr. Kidd means by “programmatic” is what the audience has heard from other presenters, who have shown what is necessary in order to talk to people about where to go. The free transit movement and Stefan Kipfer’s presentation on housing are examples of what needs to be done (descriptions of these are found in my previous posts on this topic–as are criticisms of them). The left cannot count on the market to achieve its goals. It needs public land banking, expropriation, public housing, co-ops and nationalized affordable housing. It needs to maintain free public education and healthcare. The left needs to protect and expand public assets in Toronto.

Finally, what is needed is a Municipal Human Rights Code since discrimination is still the daily experience of queer, racialized and elder members of Toronto. What is needed is a city that is for all its citizens and not just taxpayers.

Mr. Kidd’s description of various struggles sounds very radical–but it really is a rehash of social-democratic demands of an expanded public sector, supplemented by non-governmental organizations (NGO’s) that are linked to community organization. Mr. Kidd’s socialism is really welfare capitalism. Not once does Mr. Kidd question the power of employers as a class.

Mr. Kidd mentions necessary community organizations required to fight for what he calls socialism, such as the Ontario Coalition Against Poverty (OCAP), and yet as I showed in a previous post, OCAP, although it recognizes economic coercion via the power of employers as a class with one hand, ignores it subsequently when dealing with social proposals and solutions with the other hand (see “Capitalism needs economic coercion for its job market to function” (Ontario Coalition Against Poverty: OCAP)

Mr. Kidd, like much of the social-democratic left, idealizes the public sector. What is needed, for them, is the expansion of the public sector. The social-democratic left, however, rarely inquire into the adequacy of the public sector to express either the interests of public sector workers or the interests of workers in general. They assume that the existing relations will prevail and that all that will change is the quantitative weight of the public sector relative to the private sector.

Mr. Kidd, like many of the social-democratic left, do not bother to consider the adequacy, for example, of the current educational system in terms of quality. What they propose is an expansion of services under present conditions rather than a radical restructuring of education in relation, for instance, to work.

Rather than repeat what I have written elsewhere, I refer the interested reader to links to some of my publications and writings as found on my home page. I am adding another link that is directly more relevant to educational issues: A Deweyan Review of the the Chicago Teachers’ Union Publication The Schools Chicago Students Deserve: Research-Based Proposals to Strengthen Elementary and Secondary Education in the Chicago Public Schools (2012).

Although Mr. Kidd’s proposals may help people in one way or another, they also can be co-opted and integrated into the capitalist economic and political structures. Each proposal he has made has nothing specifically socialist about it. Such proposals are socialist only if they are linked to a more radical program of eliminating both the power of employers as a class and the social, economic and political structures associated with that power.

The same could be said of Mr. Kidd’s reference to the need for a Municipal Human Rights Code. Although this and other such measures may help workers and citizens in particular situations, such measures fail to address the issue of the power of employers as a class. None of the references made by Mr. Kidd have any link to questioning the power of employers as a class. They are reformist measures as such. Furthermore, in a post that I will send in the distant future, I will point out the inadequate nature of “human rights” personally, when I filed a human rights complaint for political discrimination (something which Mr. Kidd fails to mention–typical of the social-democratic left).

Mr. Kidd did indeed provide a twitter version of the struggles in which he has been involved. Such struggles are reformist through and through. This should surprise no one. Mr. Kidd has been a Canadian Union of Public Employees (CUPE) organizer and executive member of local 79. He evidently prides himself on his activism–but there is no indication whatsoever that Mr. Kidd has ever intended, through his activities, in contributing to the creation of a new kind of society without classes in general and without employers in particular. His reference to “decent paying jobs” tips his hand.

There is no indication that Mr. Kidd has ever intended to contribute to the radical restructuring of social, economic and political institutions in such a way that human beings finally control their own life process rather than having their lives controlled by objectified social, economic and political structures which they create but do not control. His aim is to achieve “decent paying jobs” supplemented by a welfare state–hardly anything “radical.” Mr. Kidd, like much of the social-democratic left, want to turn back the clock to the 1950s and 1960s, when workers obtained increased wage gains and expanded their benefits–but he forgets that the economic times have changed and that the capitalist economy is not the same as it was then. Moreover, even during the 1950s and 1960s, workers were treated as things–something about which Mr. Kidd is silent. As long as workers receive “decent paying jobs” while being treated as things, Mr. Kidd will be content. Such is the implicit view of those who refer to “decent paying jobs.”

In general, then, the series of talks which claim to be radical fall far short of being radical. They are all in one way or another reformist and have no intention of questioning the class structure of modern society. Even the most radical of them–presented by Michelle Lee of No One Is Illegal–fails to live up to its own potentiality.

This series of talks should have been named: What’s Left, Toronto? Social-Reformist Alternatives for the City Election.

I will leave these radicals to their own delusions. I hope that by exposing the limitations of such views, others will abandon such delusions and see more clearly what needs to be done.