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

Introduction

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

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

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

The structure of the post is as follows:

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

The Nature of the Rate of Exploitation

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

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

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

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

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

Conclusions First

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

The Rate of Exploitation

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

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

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

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

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

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

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

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

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

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

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

Political Considerations

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Fred

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

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

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

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

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

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

It contains such enlightening items as the following:

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

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

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

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

Let us continue with this Integram Bargaining Report:

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

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

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

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

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

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

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

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

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

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

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

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

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

Let us continue to look at this Bargaining Report:

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

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

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

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

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

Data on Which the Calculation Is Based

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

Now, the calculation:

In millions US dollars:

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

Cost of goods sold 28,207

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

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

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

Adjustments

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

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

I wrote in the 2019 post:

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

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

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

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

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

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

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

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

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

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

The Rate of Exploitation

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

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

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

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

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

Accordingly:

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

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

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

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

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

Factors or Determinants of the Rate of Exploitation and Its Changes

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Conclusion

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

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

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

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

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

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

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

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

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

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

:

.

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

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

.

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

Introduction

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

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

The Nature of the Rate of Exploitation

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

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

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

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

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

Conclusions First

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

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

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

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

In terms of varying lengths of the working day: 

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

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

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

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

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

COLLECTIVE AGREEMENT
BETWEEN
UNIFOR
AND
BELL CANADA

CRAFT AND SERVICES EMPLOYEES
EFFECTIVE FEBRUARY 23, 2017 

ARTICLE 8 – MANAGEMENT RIGHTS

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

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

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

Data on Which the Calculation Is Based

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

Now, the calculation: 

In millions of Canadian dollars:

Page 113:

Operating revenues 23,964

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

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

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

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

Adjustments

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

Adjustment of Total Labour Costs

Capitalized Labour

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

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

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

Temporarily Adjusted Total labour Costs: 5555

Severance, acquisition and other costs

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

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

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

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

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

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

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

Temporarily adjusted Total Costs: 19,571.7

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

Adjustment of Finance Costs

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

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

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

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

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

The Rate of Exploitation

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

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

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

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

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

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

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

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

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

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


Economics for Social Democrats–but Not for the Working Class, Part One: Critique of Jim Stanford’s One-Sided View of Job Creation in a Capitalist Society

Introduction

The title of this post–and the series of posts that will follow–comes from the title of Jim Stanford’s book (2008) Economics for Everyone: A Short Guide to the Economics of Capitalism. 

If I remember correctly, perhaps less than a year after I had came to Toronto (in 2013), I heard Mr. Stanford present at a  social-democratic leftist-sponsored workshop. I thought that his presentation assumed the legitimacy of the power of employers as a class. No one else questioned his point of view from the audience.

I was right.

One-Sided Presentation of Working for an Employer in a Purely Positive Light

Mr. Stafford wrote a piece that was published in the business section of the Toronto Star on January 18, 2020. In that piece, he claims that both the quantity and quality of work in 2019 has improved:

The news was undeniably positive….

On the quantity side, employment rose by 390,000 jobs in 2019, compared to 2018. That’s the biggest annual increment 1979. …

But I am more excited about evidence of a broad improvement in the quality of work.

By several indicators, jobs in Canada became better last year: more full-time jobs, less temporary work, growing unionization and rising wages. These improvements in job quality, if sustained, will underpin future improvement in income equality and social well-being.

This point of view is definitely social democratic and reformist.  At the quantitative level, an increase in the number of employed by employers is presented in a purely positive light. Of course, for many workers, working for an employer is better than being unemployed, but to present more jobs that involve working for an employer as purely positive expresses a definite one-sided view of the situation of workers in a society dominated by a class of employers.

Mr. Stanford nowhere shows any idea of just how degrading working for an employer as an employer can be (see for example  Employers as Dictators, Part One   and The Money Circuit of Capital). Furthermore, working full-time for an employer is presented as purely positive rather than as something that involves an increased length of time in which workers must subordinate their will not only  to the will of the immediate employer but to the impersonal and independent system of capitalist relations of production and exchange.

Of course, workers may prefer full-time work, ultimately, to part-time work since they may not be able to make ends meet otherwise. However, they may also find their lives to be worse off in that they have less of their life free from the direct dictates of the employer.

Mr. Stanford also implies that increased unionization will somehow magically make the world of work fulfilling work rather than something that must be endured. Unionized work settings are generally better than non-union work settings, but they do not involve the control of workers’ lives at work (see various management rights clauses on this blog as well as posts that indicate the oppression and exploitation of workers despite the existence of a collective agreement as, for example, in the post The Rate of Exploitation of Workers of Suncor Energy, One of the Largest Private Employers in Canada).

In addition, Mr. Stanford simply focuses on one moment in time in the capitalist economic cycle. Capitalist accumulation may involve a tighter market for workers as demand for such workers increases, but the overaccumulation of capital then throws workers out of work as an economic crisis follows.

It should not be surprising that Mr. Stanford’s article reflects a social-democratic bias. The limitations of Mr. Stanford’s article is linked to the limitations of his own theory.

Nationalist Idealization of Being a Canadian

Mr. Stanford is one among many social-democratic leftist economists who are in one form or another nationalist. He writes in his article (2008) “Radical Economics and Social Change Movements: Strengthening the Links between Academics and Activists,” (pages 205-219), Review of Radical Political Economics, Volume 40, Number. 3, page 206:

This year we will inaugurate a new biennial prize, named after John Kenneth Galbraith. It will be awarded at the CEA meeting to someone whose life work has combined economics with social justice. Many U.S. economists will not know this, but Galbraith was born and initially educated in Canada before coming to America to make his name. That is very Canadian of us. Sure, we Canucks have gone and set up our own little nationalist group of lefty economists. But then we name our prize after someone who only became famous after they moved south of the 49th parallel! As usual for us Canadians, we never let consistency stand in the way of being sanctimonious.

We must live in different countries. I remember living in Canada as: having a number of odd jobs that I quit because I could not stand the alienating conditions under which we worked: for example, a dishwasher at a restaurant at Saskatchewan River Crossing (a resort area in between Lake Louise and Jasper, Alberta, Canada) (I was called useless despite my efforts to work as hard as possible); having work extremely fast by piling up on wooden slats wood on wooden cut from an electric saw (I lasted three days–I was in extreme pain in my lower back from bending up and down–when I was in my early 20s); crushing coal for a steel company (breathing in coal dust despite having a mask, and a lunch room with coal dust on the table and benches–spitting up coal dust after work, in addition, having to dump coal into various kinds of chemicals rapidly in order to determine their quality (with some of the chemicals splashing back onto our legs, burning us momentarily)–lasted three weeks; working for one week before quitting at the Canada Safeway factory in Calgary: could not keep up with the fast pace of having to load loaves of bread onto carts with wired shelves. I finally did find a job that I could tolerate for some time–working at a brewery in Calgary, but when I got off in the morning in the summer and fall (I frequently worked the night shift in order to minimize having management around), the so-called beautiful sunrises held little interest because I was exhausted. Then of course there is my experience of being a Marxist father in Canada (see, for example, A Worker’s Resistance to the Capitalist Government or State and its Representatives, Part One).

I would say that my experiences are just as reflective of the “Canadian” experience as Mr. Stafford’s–but you would not know it from reading Mr. Stanford’s reference to “very Canadian of us.”

But who is Mr. Stanford?

Until 2016 Stanford was economist and policy director for Unifor (and formerly for the Canadian Auto Workers), and a regular economics panelist on CBC-TV’s The National. He is also Harold Innis Industry Professor of Economics at McMaster University, and a contributing columnist for the Toronto Star.

Given the social-democratic nature of Unifor, with its limitations (see, for example, Fair Contracts or Collective Agreements: The Ideological Rhetoric of Canadian Unions, Part Three: Unifor (Largest Private Union in Canada)), it is likely that Mr. Stanford shares some of the limitations of the organization for which he worked for a number of years.

Mr. Stanford, in addition to teaching at McMaster University, according to his biography:

Until 2016 Jim also served as Vice-President and Treasurer of the Canadian Centre for Policy Alternatives, Canada’s premiere progressive think tank, and he remains a member of the CCPA’s Members’ Council.  He was the founding chairperson of the Progressive Economics Forum (formed in 1998), Canada’s network of over 150 progressive economists.

The Canadian Centre for Policy Alternatives (CCPA) is a social-democratic organization that generally assumes the legitimacy of the power of the class of employers–for example, by referring to companies paying “their fair share of taxes,” which implies that, as long as companies do so, they are legitimate and should not be taken over by workers (see my critique in  Co-optation of Students at School Through We Day, Part Two: The Social-Democratic Left Share Some of We Day’s Assumptions).

I doubt that Mr. Stanford’s economics reflects an economics that is relevant for addressing the class interests of workers–although it appears to do so. His economics reflects more a social-democratic view than a view that challenges the class power of employers.

I will pursue the issue in further posts in this series. In particular, in the next post in this series, I will take a critical look at his definition of money as “purchasing power.”  As will be shown, this definition is a far from adequate one in the context of a society where commodities are produced to exchange for money–by workers who work for an employer.

Fair Contracts or Collective Agreements: The Ideological Rhetoric of Canadian Unions, Part Three: Unifor (Largest Private Union in Canada)

In the previous post in this series, I quoted several references by the largest union in Canada, the Canadian Union of Public Employees (CUPE) to “fair contracts,” “fair treatment,” and similar expressions (see Fair Contracts (or Fair Collective Agreements): The Ideological Rhetoric of Canadian Unions, Part One). This is a continuation of the series.

Since in this blog I have often referred to particular union reps referring to collective agreements as fair in some way, I thought it would be useful to provide further examples of this rhetoric to substantiate the view that unions function as ideologues for the continued existence of employers–even if the unions are independent of the power of particular employers and hence represent independently the workers in relation to the particular employer of the workers.

The following series of quotes are from various webpages of Unifor–the largest private-sector union in Canada. They show how Unifor refers to such rhetoric as

1. Dated January 10, 2018 at https://www.unifor.org/en/whats-new/news/paramedics-rally-a-fair-contract:

Paramedics and supporters in Sault Ste. Marie demonstrated in front of City Hall on January 8, calling for a new collective agreement for EMS workers represented by Local 1359. 

The demonstration was organized to remind city councillors that paramedics need a fair deal, which takes into account issues such as: lunch breaks, major gaps in pay and benefits between Sault Ste. Marie and other emergency responders and the ongoing issue of PTSD.

The group, made up of paramedics, nurses, retired health care workers, union members, family and supporters, marched into the council chambers after the rally with signs and Unifor flags. 
“Our employer is not negotiating fairly. City representatives continually talk about the debt and nothing else,” said Mary Casola, Local 1359 unit chair and paramedic of 28 years. “They offered workers a measly wage increase of 10 cents an hour, per year. That’s 0.25 per cent. But as our sign says – ‘10 cents is non-sense.’”


  1. Of course, the issues of “lunch breaks, major gaps in pay and between Sault Ste. Marie and other emergency and other emergency responders and the ongoing issue of PTSD” are immediate issues that are important to unionized (and non-unionized) workers and need to be addressed. They should not be just shoved aside and “revolution” declared. On the other hand, while addressing these issues, the possibility or impossibility of actually achieving a “fair deal” should be discussed; in my experiences as a union member, it never is. Unions thereby become ideological institutions, in part, for the class of employers–even if they are unaware of it.





    In the context of the Coronavirus pandemic, some employers have become even more exploitative and vicious than normal. However, unions that legitimately focus on resisting such employers have no right that somehow, if they resist such employers successfully, there will be such a thing as “a fair and equitable contract.”
    Dated January 10, 2018 at https://www.unifor.org/en/whats-new/news/paramedics-rally-a-fair-contract:
  2. From https://www.unifor.org/en/whats-new/press-room/health-care-workers-hold-rally-demand-a-fair-collective-agreement:

December 8, 2020

WINDSOR – Health care workers represented by Unifor Local 2458 will escalate actions by holding a rally outside of Fairfield Park long term care home to demand a fair and equitable collective.

“The employers’ approach of viewing our members as zeroes instead of heroes is insulting and disrespectful,” said Tullio DiPonti, President of Unifor Local 2458. “To think at a time where these health care heroes are risking their lives to care for others, their employer turns around and puts forward a laundry list of concessions and says this is what you’re worth. This employer should be ashamed. Let’s get back to the bargaining table and negotiate a fair collective agreement, free of concessions.

Last week a rally was held outside of Broulliette Manor, urging the employer to return to the bargaining table and withdraw its long list of concessions.

“I have negotiated many contracts in my day, but I have never seen an employer so blatantly disrespectful,” said Chris Taylor, Unifor National Staff Representative. “The pandemic has forced long term care workers across the country to do more with less and here we have an employer that’s asking these COVID heroes to take on all the new protocols and get nothing in return.  Our members will not be made to feel worthless and we will continue to ramp up our actions until they receive the respect and dignity that they deserve.”

Contract negotiations opened with Fairfield Park and Broulliette Manor on October 27, 2020. The union proposed modest changes to the collective agreement that were immediately rejected by the employer’s legal representatives. The employer’s representatives presented the union with more than six pages of concessions that include cuts in wages, health care benefits, time off, forcing of more hours of work.

The union is steadfast in its resolve to bargain an agreement that fits the needs of the members working at both Fairfield Park and Broulliette Manor.

Unifor is Canada’s largest union in the private sector, representing 315,000 workers in every major area of the economy. The union advocates for all working people and their rights, fights for equality and social justice in Canada and abroad, and strives to create progressive change for a better future.
To arrange in person, phone or FaceTime interviews or for more information please contact Unifor Communications Representative Hamid Osman at hamid.osman@unifor.org or 647-448-2823 (cell).

Again, it is certainly necessary to have a union that fights against “six pages of concessions that include cuts in wages, health care benefits, time off, forcing of more hours of work.” The union should be praised for doing so.

On the other hand, it should be criticized for making such statements as: “Health care workers represented by Unifor Local 2458 will escalate actions … to demand a fair and equitable collective [agreement]”

As shown in the last post, unions persistently claim that, through collective bargaining and a collective agreement, there can arise somehow (by magic?) “a fair and equitable collective agreement.” There can be no such thing as long as there exists a market for workers, where human beings are treated as things and as means for purposes over which they have little control. To claim otherwise is to bullshit workers–and workers deserve much better than this.

Or perhaps union representatives can explain how collective bargaining and collective agreements can express “a fair and equitable collective agreement?” If they truly believe that it does, why do they not explain how it does so in the context of the power of both a particular employer and the power of the class of employers. (For a critical analysis of a lame attempt to minimize the power of management over workers by a representative in a unionized setting , see the post Comments from John Urkevich, AESES-UM Business Agent, to my Critique of the Grievance and Arbitration Procedure: Letter to the Editor, Inside The Association of Employees Supporting Educational Services (AESES), Vol. 17, No. 4, May 1994. Also see the much more honest assessment of the real limited powers of unions in relation to employers, see Confessions of a Union Representative Concerning the Real Power of Employers)

The union should also be criticized for claiming “to bargain an agreement that fits the needs of the members working at both Fairfield Park and Broulliette Manor.” Obviously, the agreement should address the needs of the workers at these facilities, but “the needs of the members working” for an employer go far beyond the capacity of a collective agreement to address them.

3. Dated August 31, 2020 at https://www.unifor.org/en/whats-new/press-room/unifor-members-detroit-3-give-bargaining-committees-strong-strike-mandate:

TORONTO—Unifor members at Fiat Chrysler Automobiles, Ford Motor Company, and General Motors have authorized their bargaining committees to take strike action, if necessary, to secure fair contract settlements.

4. Dated January 7, 2020 at https://www.unifor.org/en/whats-new/press-room/locked-out-workers-escalate-fight-a-fair-deal-co-op-refinery:

REGINA – Hundreds of members of Unifor Local 594 and their supporters rallied at noon today to show the Co-op Refinery that, on day 34 of the lockout, their resolve has never been stronger.

“Co-op will not bust our union by using profits only made possible by your hard work. We are going to hold them to their pension promises. Our union will intensify our campaign to achieve a fair collective agreement for our members,” said Lana Payne, Unifor National Secretary-Treasurer.

Payne told locked out Local 594 members that locals across Canada will mobilize and send members to Regina as the union ramps up the fight for a fair deal.

“While refinery workers walked picket lines 24-7 in the frigid cold, their greedy employer posted revenues of $9.2 billion last year,” said Scott Doherty, lead negotiator and Executive Assistant to the Unifor National President. “For Co-op to attack workers with lies and misinformation while claiming to respect workers is just shameful.”

During the rally, secondary pickets were also underway at Co-op retailers in Western Canada as the union announced an escalation of the boycott campaign against Co-op. The union’s Boycott TV commercial has been seen by millions of Canadians, including during Saturday’s Gold Medal World Juniors Hockey game.

“Co-op must return to the bargaining table with a deal that does not include gutting half the value of our pensions as was promised in the last round of bargaining,” said Kevin Bittman, President of Unifor Local 594. “We just want to get back to doing the jobs we love.”

The event was streamed live on Unifor’s Facebook Page. Photos from the rally will also be available on Facebook. Facts about the dispute can be found at http://unifor594.com.

Unifor is Canada’s largest union in the private sector, representing 315,000 workers in every major area of the economy. The union advocates for all working people and their rights, fights for equality and social justice in Canada and abroad, and strives to create progressive change for a better future.

5. Dated May 15, 2019: at https://www.unifor.org/en/whats-new/press-room/unifor-energy-workers-sign-historic-pattern-deal:

May 15, 2019

MONTREAL— Unifor has achieved a new tentative agreement that establishes the pattern for 8,500 members of the National Energy Program.

“The energy and chemical sector continues to be an important economic driver in Canada. By working together, our members have used their collective power to make much-deserved significant gains,” said Jerry Dias, Unifor National President. “Energy and chemical jobs continue to be good jobs in communities right across the country.”

The tentative agreement covers Unifor members working in the sector across Canada. Suncor was selected by Unifor as the chosen employer to set the pattern that will be rolled out to the remaining employers after ratification.

During this round of bargaining Unifor and Suncor bargained both local and national issues concurrently during one week, ensuring that no one union local was left behind.

“Make no mistake: energy companies provide good jobs across this country and are critical to Canada’s economy,” said Renaud Gagné, Unifor’s Quebec Director. “Unifor members are instrumental in the success of energy and chemical companies and have earned a fair contract.” [my emphasis]

6. A campaign promoted by Unifor also claimed that, if realized, it would make the situation fair (https://www.unifor.org/en/whats-new/news/help-change-ontarios-labour-law-make-it-fair), dated July 13, 2016:

Help change Ontario’s Labour Law to Make It Fair

Today in Ontario, more than 1.7 million workers are earning at or around minimum wage and many Ontarians are trapped working precarious part-time, temporary, contract and subcontracted jobs, without a union.  

The Government of Ontario has initiated its “Changing Workplace Review” to examine the out-dated Employment Standards Act and the Labour Relations Act. In order to seize the once-in-a-generation opportunity presented by the provincial review, the OFL [the Ontario Federation of Labour] has launched the “Make It Fair” campaign [my emphasis] to push for employment reform. 

As part of this campaign, the OFL and unions across Ontario have launched a survey on precarious work – an issue that is fast becoming the ‘new normal’ for Ontario’s seven million workers.  The goal of the survey is to speak to union members about their experiences and the experiences of their families with precarious work. Lend your voice – participate in the survey here:

http://www.makeitfair.ca/precarious_work_survey

 “Inequality and precarious work are on the rise across our growing province, but collectively each of us has the power to change the law and help Ontario workers out of poverty,” said OFL President Chris Buckley.

Unionized workers have a long history of incredible gains at the bargaining table, including the 40-hour work week, maternity/parental benefits and unemployment insurance, which have become the law of the land.  

“There is an urgent need for new laws as workers, particularly young workers, increasingly find themselves in part-time or contract positions with low pay, few benefits and unpredictable schedules,” said Unifor Ontario Regional Director Katha Fortier. “Our goal is to ensure that the voices of union members are heard in the changes that will come.”

Upon finishing the survey, participants will also have a chance to enter to win a $200 gift card for either Loblaws or Metro grocery stores.  

Unifor is a member of the Ontario Federation of Labour, which represents approximately 1 million working people across Ontario.

7. Dated November 15, 2017 at https://www.unifor.org/en/whats-new/news/picket-highlights-need-first-contract-youth-workers:

Picket highlights need for first contract for youth workers

Members of Unifor Local 333 working at Kennedy Youth Services organized an information picket on November 14 to highlight their struggles to reach a fair first collective agreement and increase pressure on their employer.

Prior to bargaining the employer  repeatedly refused to follow the Employment Standards Act around overtime, meal breaks, statutory holidays and vacation pay.  Kennedy Youth Services has also failed to provide a safe work environment, with workers regularly getting injured on the job. On top of the current workplace issues, the employer is pushing to introduce a 10-year wage progression from $17 an hour to $18.75 and has made any wage increase contingent on centre funding. The bargaining committee has said firmly enough is enough and will continue to push for fairness and a safer workplace.

“We need more safety measures at work. Arms are getting broken, staff members are being beaten and nothing is done about it – it’s not right,” said Amber Simpson, bargaining committee member. “Frequently, there are untrained temporary staff people who are brought in and this puts everyone in greater danger.”

The 42 developmental service workers are employed at two residential homes, providing care and support to vulnerable youth and adults with developmental disabilities. The workers joined Unifor in February and negotiations started in late October. After two days, the employer broke away from conciliation and requested a no-board report, which opens the door to locking out the workers.

“These workers joined the union because they want to improve their working lives in areas of fair wages and work schedules, and want the employer to be sensitive to the effect their work has on their health and well-being both physically and mentally,” said Kelly-Anne Orr, national representative.

Orr said that the employer did not come to the table to negotiate a fair agreement and seems to have no interest in acknowledging even basic rights as required by the law.

8. Dated January 30, 2021 at https://ca.finance.yahoo.com/news/iiroc-trading-halt-nee-db-180300576.html

Tentative agreement reached between Unifor and VIA Rail

OTTAWA, ONJan. 30, 2021 /CNW/ – Unifor has reached a tentative contract with VIA Rail, in negotiations covering more than 2,000 rail workers.

VIA Rail train at the Belleville Station. (CNW Group/Unifor)
VIA Rail train at the Belleville Station. (CNW Group/Unifor)

“My congratulations go to members and the bargaining committees who adapted to bargaining online through the pandemic, and remained committed to reaching a fair deal for all members [my emphasis] while VIA Rail faces truly unprecedented challenges,” said Jerry Dias, Unifor National President. “We must highlight all the work done by our members to ensure safe, clean standards on board trains and also, to ensure that the trains are in impeccable condition for the safety of this critical transit infrastructure. In the current difficult circumstances, this collective agreement secures good unionized jobs in the sector for years to come.”

The agreement covers Unifor National Council 4000 and Unifor Local 100 members, who work as maintenance workers, on-board service personnel, chefs, sales agents and customer service staff at VIA Rail.

“Unifor members in rail have made incredible contributions to the industry, and advancements in workers rights and labour laws have been made possible with thanks to them. Our members are greatly affected by the pandemic, and Unifor has put all the necessary resources to support them and counter the attempts at concessions made by the employer,” said Renaud Gagné, Unifor Quebec Director.

The new 2-year contract replaced the collective agreement that expired on December 31, 2019. Contract talks began in October 2019 and were conducted in recent months remotely, with the assistance of mediators assigned by the federal government.

“I wish to thank our members for their support throughout the bargaining process. This is a good contract that will ensure fairness for members,” said Dave Kissack, President of Unifor’s Council 4000.

Zoltan Czippel, President of Local 100 echoed the message, adding that, “This deal represents the end of a long negotiation where the bargaining team put member’s priorities front and centre. I’m proud to recommend adoption.”

Details of the deal will only be released following ratification by members. Votes will be conducted in the coming weeks.

Unifor is Canada’s largest union in the private sector, representing 315,000 workers in every major area of the economy. The union advocates for all working people and their rights, fights for equality and social justice in Canada and abroad, and strives to create progressive change for a better future.

SOURCE Unifor

 

9. Dated October 20, 2019 at https://www.newswire.ca/news-releases/unifor-reaches-tentative-agreement-with-saskcrowns-853371456.html:

Unifor reaches tentative agreement with SaskCrowns

REGINA, Oct. 20, 2019 /CNW/ – Unifor bargaining committees have signed tentative agreements with SaskEnergy, SaskPower, SaskTel, SaskWater, DirectWest, and SecureTek, ending a 17-day strike by nearly 5,000 workers across the province.

“Solidarity and the support from Unifor members at all six Crowns along with those who joined our picket lines from across the province were key to achieving this agreement,” said Jerry Dias, Unifor National President. “I want to thank Ian Davidson, President, Unifor Local 649, Dave Kuntz, President, Unifor Local 1-S, Penny Matheson, President, Unifor Local 2-S and Doug Lang, President, Unifor Local 820 for showing tremendous resolve and leadership to stand together and fight back against the regressive Moe government mandate to achieve a fair collective agreement.” [my emphasis]

The details of the tentative agreements will be released following the ratification votes, which will be held this month.

Unifor members have been escalating strike action after the employers rejected the union’s offer to go to binding arbitration. On Saturday the Poplar River power plant in Coronach was behind reinforced picket lines that only granted access to essential services staff. Unifor members also picketed SaskTel dealers across the province asking customers to support locked out workers and take their business elsewhere.

“Unifor members proved that they are vital to their communities and the Saskatchewan economy,” said Chris MacDonald, Assistant to the National President.

“This was an historic and yet complicated round of bargaining and the bargaining committees will be recommending members ratify the tentative agreement reached today,” said Scott Doherty, Executive Assistant to the National President.

The members want to thank the public, and other unions and Unifor members across the country who showed support on picket lines in more than 80 locations.

Unifor is Canada’s largest union in the private sector, representing 315,000 workers in every major area of the economy. The union advocates for all working people and their rights, fights for equality and social justice in Canada and abroad, and strives to create progressive change for a better future.

SOURCE Unifor

10. Dated July1, 2019 at http://unifor1996-o.ca/unifor-demands-fair-restructuring-agreements-for-auto-parts-workers-impacted-by-gm-oshawa/:

Unifor demands fair restructuring agreements for auto parts workers impacted by GM Oshawa

ips_media_release_photo

TORONTO Unifor is reinforcing its demand for fair agreements [my emphasis] for workers negatively impacted by the discontinuation of vehicle production at General Motors Oshawa as the union enters discussions with multiple auto parts and service provider companies.

“As Unifor warned, thousands of additional independent parts and suppliers (IPS) workers are now facing job loss as a direct result of the assembly line closure at GM Oshawa,” said Unifor National President Jerry Dias. “The workers deserve respect and support as operations are restructured or wound down. Unifor is determined to secure agreements that address important issues such as transition to retirement opportunities, financial support, and adjustment support.”

Vehicle manufacturing at Oshawa GM will start to wind down in late September and cease completely in December 2019. This will cause the closure of several independent parts suppliers. An estimated 1,700 Unifor members are facing job loss due to closure or restructuring.

“In every one of these workplaces, severance is a key issue. Workers facing job loss need a financial bridge as they transition. That is why we are demanding that all of these companies step up and provide enhanced severance for affected workers,” said Colin James, President of Unifor Local 222.

The majority of the job losses will occur at CEVA Logistics, Syncreon Supplier Park, Inteva, Oakley, Auto Warehousing, Marek Hospitality, Securitas, Robinson Solutions, Robinson Building Services and Lear Whitby.

On Sunday June 23, Lear Whitby workers, members of Unifor Local 222 in Oshawa, met with Local and National Union leadership to discuss concerns over pension eligibility, severance, and health care benefits.

“This is devastating to workers at companies like Lear Whitby where the vast majority of the workers are in their mid-fifties and have at least 30 years of service. The closure creates a massive problem as it currently prevents many of these members from reaching retirement eligibility under the pension plan. This issue highlights why we fought so hard to try to convince GM to keep building vehicles in Oshawa,” said Dias. “On the other end of the spectrum are companies like Oakley and CEVA where our members are younger and need access to adjustment centre funding as they try to transition to new employment.”

The union is actively engaged in negotiations with all involved employers as it calls on the companies to provide the necessary support for workers in all age groups.

Transparency in Collective Bargaining: A Necessary but Insufficient Condition for Democratic and Rational Working-Class Practice

Rebecca Keetch wrote an article that was posted on the Socialist Project’s website on transparency and collective bargaining (https://socialistproject.ca/2020/09/canadian-auto-workers-fight-for-contract-transparency/). Ms. Keetch was a former GM worker at Oshawa, Ontario, Canada, and she is a member and activist of Green Jobs Oshawa.

Ms. Keetch advocates for transparent bargaining in a form similar to what I tried to do when I was a member of the negotiating committee for the support workers of the Prince George School District No. 57, in Prince George, British Columbia, Canada (see Reform or Abolition of the Police, Part One). Not only must we present to our unionized fellow workers the proposals that we have tentatively negotiated but also what we have been unsuccessful in negotiating or had to modify in the process:

As bargaining at the Detroit Three automakers kicks off in Canada, union members are fighting back against a longstanding undemocratic contract ratification process. In an unprecedented development, the Solidarity Movement, a rank-and-file movement within Unifor, has launched a petition to demand full disclosure of the collective agreement before voting takes place. Since the launch in early August, more than 1,800 members have signed.

The petition calls on Unifor leadership to “provide full disclosure of the contents of the contract, five days before ratification, by publishing all revisions, additions, deletions, and changes to the contract, clearly marked, on the Unifor National website and the websites of the locals involved in ‘Detroit Three’ bargaining.” It also requests “that the ratification highlights include a clear statement of all money and benefits negotiated on behalf of union representatives and any money or benefits negotiated to be paid to the Locals and/or National Union.”

In the US, the United Auto Workers publishes the full contract with all changes on its website where Detroit Three members can read it before they go to their ratification/information meetings — a long-time demand of American union reformers. The UAW began posting the tentative Detroit Three contracts online in 2011.

This movement to create transparency is to be welcomed. Workers deserve to be able to see what negotiators have done on their behalf before making a decision on whether to ratify the collective agreement or to reject it. It is their lives, and they have a right to make decisions concerning its direction and quality as far as is humanly possible.

Ms. Keetch certainly is moving in a more democratic position when she writes:

The members’ concerns should be acknowledged, not simply dismissed. Real democracy means taking our lead from the members.

She then outlines the procedures used in typical undemocratic collective bargaining:

Historically, auto negotiations are secretive. Once contract demands are collected by leadership, workers are nearly shut out of bargaining, which takes place behind closed doors. At the completion of bargaining, information/ratification meetings are immediately scheduled.

As members enter the meeting, they are given a handout called a “Bargaining Report.” The Bargaining Report contains highlights of the tentative agreement and includes messages from the national president and other leaders encouraging ratification. Union leadership and staff make a presentation on the highlights of the agreement. Members are given limited time and opportunity to ask questions and no opportunity to meaningfully discuss the agreement with each other before being required to vote. Historically, voting has taken place at the information meeting.

She then argues that the Constitution of Unifor is supposed to be democratic and that it is necessary for it be in reality democratic rather than just formally:

Democracy In The Constitution

The Unifor constitution makes it clear that Unifor is intended to be a democratic organization and that the members are meant to control the union. Article 2, Section 1 states, “Unifor is a voluntary organization that belongs to its members. It is controlled by members and driven by members. Its role is to serve their collective interests in the workplace and in our communities. The life of Unifor is shaped by the essential ingredient of democratic participation. Democratic values are the foundation of all that we do. Our commitment to the principles and practices of democratic unionism define who we are and are reflected in our rules, structures, and processes.”

Our constitution cannot just be words on paper. If union leadership doesn’t live and breathe to empower and engage the membership, if leadership limits worker agency, participation, discussion, and debate, then the inevitable outcome is a weak, disempowered membership that can’t fight back when the bosses are trying to walk all over us.

Unifor members are often told to just trust our leadership. But ratifying a collective agreement isn’t about rubberstamping whatever the leadership brings. If that were the case, why would we even go to the time and trouble of having a ratification vote? With technology today, it couldn’t be cheaper or easier to make the contract available ahead of ratification.

The democratization of the collective bargaining process at the level of the local is certainly necessary. However, even if it were democratized, the result would not overcome limitations which Ms. Keetch does not address.

She makes the following claim:

Though the collective agreement is one of the most important documents to shape a worker’s life, Canadian auto workers at General Motors, Fiat-Chrysler, and Ford are not allowed to see it before we are asked to ratify it. Unifor, the largest private sector union in Canada, represents nearly 17,000 auto workers at the Detroit Three.

Technically, as a document, the collective agreement does indeed shape a worker’s life–by limiting what the employer can do. From a worker’s perspective, it is, on the one hand, a a tool for limiting the power of management and, on the other, an expression of monetary remuneration and benefits for transferring the power of control over the worker’s life, temporarily, to the employer.

Ms. Keetch’s critique of the collective bargaining process is more advanced than Brian Forbes’ implicit defense of typical collective-bargaining procedures (see the article “Critique of Collective-Bargaining Models in Canada” found in the Publications and Writings section of this blog) since Mr. Forbes fails to criticize the traditional anti-democratic model of collective bargaining.

However, what if you democratize a process in the context of a situation that is undemocratic? Ms. Keetch nowhere explores the limitations as such of the collective bargaining process and the resulting collective agreement in the context of a class of employers. How does this context “shape a worker’s life?” Is this context more or less important than the collective agreement?

Readers who have read some of my posts will already know my answer: the context of a class of employers and the associated economic and political structures influences workers’ lives much more than any collective agreement. The level of influence of this context can be seen explicitly seen in various managements rights’ clauses in collective agreements (see, for example, Management Rights, Part One: Private Sector Collective Agreement, British Columbia or Management Rights, Part Two: Public Sector Collective Agreement, Ontario). This lack of reference to this class situation will at most enable particular workers working for particular employers to limit their particular employer’s power in the best way possible without moving towards threatening the power of employers as a class.

Transparency is not only necessary at the level of the particular employer but at the macro level of the class economy. Mr. Keetch’s reference to democracy needs to involve both micro and macro level transparency if workers are to make rational decisions concerning the working lives and the purpose of their organizations.

At the micro level, even if there were complete transparency during collective bargaining, how would workers decide on what to do if they took no or little account of the macro structure that involves treating them as impersonal means for impersonal ends (see The Money Circuit of Capital).

Should there not be open discussion about the kind of economy that exists in order for workers to make rational decisions about the adequacy of collective agreements in meeting their lives, both inside and outside work? To exclude transparency in the wider situation is like looking at the hand and treating it as if it were the whole body. The hand may look to be in perfect condition, but not when linked to a body that has invasive cancer in the bladder, or rectal cancer or metastatic liver cancer.

Nor can any collective agreement be considered a fair contract without considering the context of exploitation and oppression characteristic of the general situation of workers–whether in the public or private sectors (see various posts on management rights in both the public and private sectors on this blog. See also such posts as Employers as Dictators, Part One , The Rate of Exploitation of Workers at Magna International Inc., One of the Largest Private Employers in Toronto, Part One and The Rate of Exploitation of Magna International Inc., One of the Largest Private Employers in Toronto, Part Two, Or: Intensified Oppression and Exploitation).

It is thus questionable whether collective bargaining can really be transparent if the wider picture of the general economic and political structure is excluded. If the purpose of transparency of the collective-bargaining process at the micro level is to ensure that workers make democratic and rational decisions concerning their lives, it is necessary to move towards macro transparency.

The purpose of this blog is, in part, to move in that direction. If others wish to do so as well, they are most welcome to do so on this blog or by providing links to their own blogs or other resources.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Toward an Alternative

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

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

But let us proceed:

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

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

Let us continue:

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

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

The Oshawa facility could then be converted to assembling fleets of electric vehicles. The sale of these vehicles was to depend not on market competition, but a social plan based on direct government purchases of the products the government had invested in. The fleet vehicles involved would range from electric post office vans (as recommended earlier by the Canadian Union of Postal Workers) to hydro-electric vans, newly designed school buses, ambulances and police cars. With that base, the plant could also produce electric cars for individual consumers and, depending on how much space remained available, add other environmentally-related products.

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

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

In line with this outlook, Green Jobs Oshawa called on the federal government – or the municipal government with substantial financial and technical support from the feds – to take over the land and equipment idled by GM.

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

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

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

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

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

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

Frustration and Persistence

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

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

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

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

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

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

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

Green Jobs Oshawa Lives On

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Defense of Arrested Picketers is Vital–But Not the Idealization of Collective Bargaining, Collective Agreements and Strikes

On January 20, 2020, Jerry Dias, president of a large private-sector union in Canada, and others–were arrested in Regina, Saskatchewan, Canada. Despite my criticism of Mr. Dias on this blog, in this instance he and others deserve support–as do the workers who are on the picket line in that city.

I am copying the details below from the Rank-and-File website–but I also have a criticism of how Rank-and-File used the situation to support an ideology of fairness if there were anti-scab legislation to prevent the situation from arising in the first place:

In a move that shocked trade unionists across the country, the Regina Police Service arrested Unifor National President Jerry Dias and thirteen other Unifor members at Gate 7 of Regina’s Co-op Refinery Complex on Monday, January 20, 2020.  About 730 refinery workers, members of Local 594, have been locked out for the past 49 days for trying to save their current Defined Benefit pension plan.

Earlier that day, Dias announced Unifor would blockade the refinery gates, challenging a court injunction which ruled workers could only delay vehicles entering and leaving the refinery by 10 minutes. The union argues this injunction interferes with workers’ constitutional right to picket.

“Let’s just say in 2019 – and so far 2020 – we’ve had enough injunctions that we could probably wallpaper a concert hall,” Dias tells RankandFile.ca. “The simple reality is that Unifor is very different than other unions. The fines, the police, the court decisions are not going to prevent us from winning justice for our members. It isn’t any more complicated than that.”

The night prior to the Unifor arrests, around 500 Unifor members from across Canada flew in to help bolster the picket lines. Because of this, Dias asserted that Unifor – not Local 594 – was blockading the refinery, and therefore not breaking the injunction leveled against Local 594.

However, the Co-op Refinery disagreed, calling the blockade “illegal” and a “bullying tactic.”

The Regina Leader-Post also reported that trucking companies lobbied the government and police to intervene the morning of the crackdown:

“C.S. Day Transport president Heather Day sent a letter Monday morning to RPS Chief Evan Bray, as well as Premier Scott Moe, Labour Minister Don Morgan, Corrections and Policing Minister Christine Tell, Mayor Michael Fougere and Regina city councillors.”

“RPS is failing to enforce the court order and other laws and bylaws by ‘not choosing sides.’ Does the presence of a labour dispute mean that laws no longer need to be followed or enforced?” she asked.”

Regina Police Chief Evan Bray stated this letter did not influence his decision to intervene.

Following Dias’ arrest around 5 PM, the Regina Police Service continued a protracted attempt to break Unifor’s blockade, bringing in several tow trucks – two belonging to the City of Regina – and a front-end loader to remove vehicles Unifor had parked as part of their blockade. Bray says about 50 police officers were deployed.

Unifor members responded by climbing in and on top of the union’s vehicles to prevent them from being towed, letting air out of the tires, or removing tires altogether. At one point, an RPS officer took control of one of Unifor’s U-Haul trucks and attempted to drive it away, hitting a worker who was then arrested by other officers. RPS also threatened to use tear gas, but the union was able to talk to the police and deescalate. The police withdrew around 11 PM and the blockade remained intact. The workers arrested throughout the night were charged with mischief.

“We don’t see the police getting involved very aggressively very often anymore,” says Charles Smith, co-author of Unions in Court: Organized Labour and the Charter of Rights and Freedoms. “It was much more common in the post-war period in the 50s and 60s. We don’t see it as much anymore – which is why it’s in some ways so shocking.”

Instead of jail time, courts often level major fines against unions for breaking laws or injunctions. For example, Prime Minister Trudeau legislated the Canadian Union of Postal Worker’s back to work in 2018. This broke the union’s rotating strikes under threat of $1,000 – $50,000 fines a day for individual workers and $100,000 a day for the union if found in contravention of the act. These fines are significant enough to deter union leadership from breaking the law, even if it weakens the union’s position at the bargaining table.

Unifor 594 has been fined $100,000 for breaking the injunction.

“You know, if you want to win these battles, sometimes you’re going to have to pay a bit of fines,” Unifor 594 President Kevin Bittman explains to RankandFile.ca. “Because really, if you’re going to just stand out here and walk back and forth, you’re probably not going to win it against somebody that’s willing to spend a billion dollars just to try and break you.”

Smith argues Co-op’s injunction escalated tensions on the line because it took away the workers’ key bargaining chip – putting economic pressure on the employer by withholding their labour.

“There’s no way we can call it an equal struggle,” he states. “Now imagine if we had anti-scab legislation, which meant the employer couldn’t use replacement workers. Then it becomes much more of a fair fight, but of course we’re not willing to have that sort of negotiation in Saskatchewan, because the government isn’t interested in evening the playing field.” [my emphasis] 

“Because we have this situation where employers can weaken lines through these legal instruments,  why would we be surprised that tensions ramp up like this?” Smith continues. “It easily could have not happened, we easily could have avoided this had there been some sort of semblance of fairness by the employer or the state.”

SOLIDARITY RALLY HIGHLIGHTS NEED FOR WORKING CLASS UNITY

Unifor 594 President Kevin Bittman speaks at Wednesday’s solidarity rally.

Following Monday’s arrests, labour unions across the country condemned the police intervention and called for Co-op to return to the bargaining table.

Notably, Canadian Labour Congress President Hassan Yussuff flew in for a solidarity rally on January 22, alongside CUPE National President Mark Hancock, OPSEU President Warren “Smokey” Thomas and Seafarers’ International Union President James Given. Canadian Federation of Nurses’ Unions President Linda Silas and Saskatchewan Federation of Labour President Lori Johb were also present.

Representing Unifor was Local 594 President Kevin Bittman and National Secretary Treasurer Lana Payne. Dias was barred from the picket line, a condition of his release. Payne told the crowd Dias faces a two year prison sentence if he returned to the refinery.

“You cannot allow an employer, whether it’s a government, or private business to be allowed to destroy workers hopes and dreams to build a better life,” Yussuff tells RankandFile.ca. “I’m here to show solidarity with these workers – regardless of course of anything else – and to make sure they know the entire labour movement is with them to ensure they can get a fair settlement to resolve this dispute.” [my emphasis] 

In 2018, Unifor disaffiliated from the CLC following an attempted raid of the Amalgamated Transit Union Local 113. Unifor and the CLC disagreed over the interpretation of Article 4 of the CLC constitution. According to Larry Savage, Article 4 “governs the disputes between affiliates and provides a pathway for workers to switch unions.”

The disaffiliation created tension between Unifor and the broader labour movement, impacting organizing & resource distribution all the way down to the labour councils. Given this history, Yussuff’s presence at the Unifor picket line is significant.

“I think this should remind us all we’re stronger together. When we’re together, we’re a stronger movement, because we need each other,” he continues. “Without that, of course, any employer or government could take advantage of us. This again demonstrates why we need solidarity and to build together to build the entire labour movement in this country.”

CUPE National President Mark Hancock not only showed up to Wednesday’s rally, but actively intervened in de-escalating Monday night’s police crackdown. The police had brought two City of Regina tow trucks and a front-end loader operated by CUPE members. Hancock let his members know they had the right refuse unsafe work, which they did, leaving Gate 7.

“We all have our differences,” Hancock tells RankandFile.ca. “Every union is different…they all bring different things to the Canadian Labour Congress…and sometimes, you know, we have our disagreements, we have our fights – and that’s okay. But when it comes to workers, being treated the way that these workers are, the attack on their pensions, the labour movement needs to be united. Whether it’s Unifor, whether it’s OPSEU, whether it’s CUPE, we all need to support each other – and that’s why CUPE is here.”

President of the Seafarer’s International Union James Given said SIU would donate $10,000 to Unifor, and challenged all other unions present to do the same.

“If they wanted a fight, if they’re looking for a fight, they’ve got themselves a fight” Given said about Co-op at the rally, “…11.5 million union members are now focused on Regina.”

Shobna Radons, President of the Regina and District Labour Council, believes it is important to remember this dispute is about real people.

“One of the things that’s just amazing to me is coming out and spending time with folks on the line and talking with real people,” she tells RankandFile.ca. “Everyone knows there’s been a disaffiliation of Unifor and that affects us even at the municipal level and the labour councils. It’s pretty powerful having [Yussuff] here supporting workers, the fact that we can put our differences aside and fight the fight.”

Bittman is thankful for the support, and emphasizes the outcome of this pension fight with the Co-op impacts workers across the country, not just his members.

“It just keeps building and building, every day there’s more people on the lines, there’s more unions coming out to support, everybody knows what’s at stake here,” he says. ”This is just old fashioned union busting and we’re not going to let it happen. If you can let a company that’s making 2.5 billion dollars over 3 years take away pensions, it’s really okay for companies to take anybody’s pension away. This is a stand that we’ve got to put down and say it’s not okay.“

The call for solidarity is indeed welcome. Anti-scab legislation, furthermore, is certainly preferable to a lack of such legislation. However, alongside this call in the article for such legislation, it is argued that anti-scab legislation can somehow magically transform the struggle between the working class and the class of employers into “an equal struggle,” that anti-scab legislation can miraculously transform such struggles into a “much more fair fight,” thereby “evening the playing field,” leading to a “fair settlement?”

Is there evidence that any collective agreement expresses “a fair settlement?” Is there evidence that anti-scab legislation leads to a much more level playing field between employers and workers?

Anti-scab legislation does exist in two other provinces–Quebec and British Columbia (see “A Federal Anti-Scab Law for Canada? The Debate over Bill C-257,” Larry Savage and Joseph Butovsky, 2009, in Just Labour: A Canadian Journal of Work and Society , Volume 13 , Spring 2009). Such legislation does not prevent the economic power of employers from taking precedence; therefore, such legislation does not by any means tip the relation between unionized members and their employers in such a way that they are equals (page 20):

Unions are not interested in negotiating an employer out of business. For that reason, economic conditions rather than the presence of anti-scab laws, continue to dictate the tone and content of negotiated agreement.2 … anti-scab laws may provide modest improvement in settlements…

Furthermore, as shown on this blog, collective agreements in Quebec and British Columbia express, implicitly and often explicitly, the power of management (a minority) to dictate to workers (a majority) in a particular firm or state organization (see Management Rights, Part One: Private Sector Collective Agreement, British Columbia,  Management Rights, Part Six: Public Sector Collective Agreement, British Columbia  and Management Rights, Part Seven: Public Sector Collective Agreement, Quebec).

The social-democratic left, it can be seen, must idealize legislation and  the collective-bargaining regime because, if they did not, they would then have to openly recognize that the working class can never possess equal power to the power of employers as long as the economic power of employers as a class is not challenged as such (and not just the particular powers of particular employers).

(I will critique Canadian Labour Congress President Hassan Yussuff’s views in another post when I review Jane McAlevey’s book A Collective Bargain: Unions, Organizing, and the Fight for Democracy.) 

What has been the response of some leftists here in Toronto? If the response by the Steering Committee of the Socialist Project is any indication, then there is obviously condemnation of the arrests, but the Steering Committee then makes a vague criticism of the rule of law:

While the employer crows on about how wonderful the “rule of law” is – a trumped-up law that prevents workers from protecting their futures and jobs – Unifor Secretary-Treasurer Lana Payne commented, “[t]his will not be settled in the courts. This will not be settled by police. We’re holding the line. I don’t know how much more clear I can be.”

The Socialist Project stands in support and solidarity with the members of Unifor 594 and the union’s national leadership in this struggle. We support the union’s demands for an end to the prosecution of workers exercising their right to picket, removal of the trumped-up charges and injunctions, stopping the use of scabs and demand that Co-op return to the bargaining table and withdraw their efforts to change workers’ pensions. •

Reference to the “rule of law” in quotation marks, I assume, uses the quotation marks as “scare quotes.” But what is the Steering Commitee’s position on the rule of law? Silence. (See, by contrast, the posts Socialism, Police and the Government or State, Part One). What is the Steering Commitee’s position on the idea that collective bargaining is a fair process and that the collective agreement is a fair contract? That unionized workers have a “decent job” because of the existence of a collective agreement? What is the Steering Committee’s position on the implicit or explicit management rights clause that exists in collective agreements?

Such is the left in Toronto these days. Is there any wonder that there is a rightward drift of workers when the left simply ignores such issues?

 

Employers as Dictators, Part Two

Union reps typically refer to fair compensation in order to justify their short-term actions. Of course, there is nothing wrong with short-term goals as such, but when they are presented as the same as what should be a long-term goal (fairness and freedom), then such goals become an ideology that justifies the power of employers as a class.

Contrast, for example, the following quote from Ms. Anderson’s book and a discussion I had with a union rep.

From Elizabeth Anderson, Private Government: How Employers Rule Our Lives (And Why We Don’t Talk about it), page 40:

I expect that this description of communist dictatorships in our midst, pervasively governing our lives, open to a far greater degree of control than the state, would be deeply surprising to most people. Certainly many U.S. CEOs, who think of themselves as libertarian individualists, would be surprised to see themselves depicted as dictators of little communist governments. Why do we not recognize such a pervasive part of our social landscape for what it is? Should we not subject these forms of government to at least as much critical scrutiny as we pay to the democratic state?

The social-democratic left do not engage in “critical scrutiny” of the “forms of government” of employers. Rather, they use as their standard improved working conditions relative to immediate working conditions–but they leave out any reference to the need to critique the dictatorship of employers.

Thus, I had a conversation with a union rep on Facebook–Dave Janssen–on the issue of fair compensation. Mr. Janssen, according to the Facebook page, “is an integral leader with the TAWC [Toronto Airport Workers’ Council] and the IAMAW [International Association of Machinists & Aerospace Workers] . He continuously strives to improve safety standards and the overall working conditions for the 49,000+ workers at Toronto Pearson [International Airport].”

Here is the following conservation:

Dan Janssen is at Toronto Pearson International Airport.

June 23 at 1:59 PM · Mississauga ·

Today was the Safety Expo event at Terminal 3 for the Canadian Airports Safety Week. It was a great opportunity to speak to my coworkers at YYZ [Toronto Pearson International Airport] about the importance of coming together to improve working conditions. Amazing to see so much support for flight attendants, as they need a change to federal labour laws that will ensure they are fairly compensated for their work. TAWC: Toronto Airport Workers’ Council [Facebook page]

9 Comments

Fred Harris What determines being “fairly compensated?” Can labour laws really ever “ensure they are fairly compensated?” Or is this an illusion? A cliche? Can any amount of money be considered “fairly compensated” when the people receiving the money are used as things for other persons’ purposes?

Please explain what “fairly compensated” means. Otherwise, the reference to “fairly compensated” is a cliche and does workers a disservice.

Dan Janssen For flight attendants, being fairly compensated means actually being paid for hours worked. The current model used around the world allows FAs to be paid only when the door of the aircraft is closed prior to pushback, not for any time spent prior to the flight departing.

Fred Harris It is more fairly compensated if they are paid for hours worked. How is it fairly compensated if they receive such pay?

When I worked in a brewery, we were paid for hours worked according to that definition (of course, not for travel to and from work). If we were paid for travel time and for hours worked, would we then have been fairly compensated?

I fail to see how that can be so. Firstly, we were things to be used by employers for the end of profit–no matter what our current pay. Secondly, of course the question arises: where does the profit come from except from the workers’ labour in the first place.

Thirdly, even if there were no profit, flight attendants would still be things to be used for purposes external to their own lives; it is not they who democratically control their own working lives.

Fourthly, flight attendants operate within a social division of labour that is determined by the general structure of the economy. They are not free to choose different kinds of activities, within the limits of their time and abilities and those of other workers because they are economically dependent on an employer.

They are unfree in various ways.

Fighting for higher earnings is always necessary–to refer to “fairly compensated”–that does workers a disservice. How can any compensation be adequate to such a lack of freedom when working for an employer?

Dan Janssen I see where you are coming from. This campaign for fair compensation has been resonating with all of our coworkers in support of flight attendants since it was launched. We are open to suggestions if you would like to put forward any ideas.

Fred Harris My suggestion is: cease referring to it as fair compensation. Use the relative term “fairer” and explain why there can be no such fair compensation. Explain that workers deserve much more than that–to control their own working lives and that a fight for increasing compensation for flight attendants is one step in a link of steps to eliminate the power of employers over workers and over our lives in general.

In other words, what is needed is an approach that links up, explicitly, one particular fight against employers with a general fight against employers.

Another aspect would be to start a discussion–or campaign–to question both explicit and implicit management clauses in collective agreements. Why do they exist? Why do employers have such power? What are the implications of managerial power for the limitations of legal union power?

What of collecting several management rights clauses in various collective agreements at the airport and having discussions over such clauses via emails, to the general membership, asking them what they think about this power? What of steward training that shows the limitations of collective agreements in relation to the power of unions?

Why not expand such discussions by linking them to other aspects of power by employers (their legal power, their political power, their social power and so forth)?

Fred Harris Any responses to the suggestions?

Dan Janssen Yes Fred, please come out to one of our TAWC open meetings and put your ideas forward to the council to be actioned. Our meetings are open to all airport workers, unionized or not and anyone can bring forward ideas, events, actions, etc. Decisions are made as a group. Message the page with your email and we will add you to our email list.

Fred Harris Another suggestion: Have a discussion (both among union reps and among the general membership of various unions) concerning the lack of discussion about the origin and nature of employers in the Ontario history curriculum (and the origin and nature of employees, of course, since employers without employees is impossible).

In other words, have a discussion about this issue in order to counter the silent indoctrination of hundreds of thousands of students concerning their probable future lives as subordinates to the power of the class of employers–unless they organize not only to oppose that power but to overcome it.

Fred Harris Not really feasible. I already attempted to question the idea of $15 and Fairness” at a public forum, and despite raising my hand a number of times to ask a question, I was not recognized by the chair–Sean Smith.

Secondly, I have experienced hostility by union members (rather, union reps) before concerning such ideas. I doubt that my ideas would be taken seriously if I broached the issue.

To be fair to Mr. Janssen, he did invite me to attend the Toronto Airport Workers’ Council (TAWC), but as I indicated above, in a public forum, I was not recognized by Sean Smith (a member of another union, Unifor), and Mr. Smith is a member of TAWC. Indeed, on the TAWC Facebook page, along with Mr. Janssen and others, there is a short passage about Dan Janssen and Sean Smith : ” Sean Smith (UNIFOR) and Dan Janssen (IAMAW) spent some time going over the history, past actions and structure of the Toronto Airport Workers’ Council to a captive audience of MAN [Manchester International Airport) workers from various companies and job functions.”

Although it is possible that Mr. Smith inadvertently did not recognize me when I raised my hand several times to ask the question about why the campaign for $15 and “Fairness” had the campaign linked to the concept of fairness, I am skeptical about such a view. I was sitting on an end chair in a direct line of sight with Mr. Smith. Furthermore, when one of the members of the audience who was instrumental in campaigning for the $15 and “fairness” raised her hand (Pam Frache), she was not only recognized by the chair but spoke for much longer than normal.

Given my skepticism about Mr. Smith’s attitude towards my views, and given the close relation between Mr. Smith and TAWC, it is unlikely that my views would be taken seriously at such meetings. Mr. Janssen’s invitation, then, though it may look democratic, may be less so.

Or perhaps I am wrong. Should I attend such meetings despite the probable ridicule of my views? What do you think? Any suggestions about what should be done?

Critique of a Social-Reformist Left’s Position in RankandFile.Ca on GM’s Decision to Close the Oshawa auto plant

An article (Buckle Up: GM Declares War on Oshawa)   by Gerard Di Trollo, Dave (or David) Bush and Doug Nesbitt, written for the social-reformist unionist website Rankandfile.ca purports to look critically at GM’s decision to close the Oshawa plant. It is far from critical in this regard.

The title of their article is GM’s supposed declaration of war against Oshawa. One of the authors, Gerard di Trollo, has another article with a similar title: “Ford’s teacher snitch line is a declaration of war.” Apparently, we are in a war now overtly. Let us see whether the proposed solutions to this alleged war situation correspond to the rhetoric of war.

Some of the criticisms that I made in an earlier post concerning the GM situation in Oshawa relating to the statement made by the Socialist Project Steering Committee applies to the post by these three social-reformist leftist activists. Indeed, since the article by Di Trollo, Bush and Nesbitt was published earlier than the statement, it is likely that some of the ideas of the statement are derived in part from this article (such as Unifor’s inadequate response, or the need to shift production into green production). Indeed, there is some similarity of wording: The Di Trollo, Bush and Nesbitt article: “…we need to retool the plants to build mass transportation, electric vehicles, and other green transition infrastructure and equipment.” The Steering Committee statement: “GM could easily retool these plants, and produce both new electric and hybrid vehicles, as well as the SUVs that are dominating current markets.”

There are differences, though. The statement goes into less detail about the inadequacy of Unifor’s bargaining tactics whereas the Di Trollo, Bush and Nesbitt article criticizes–rightly–Unifor’s acceptance of a two-tiered pension system. They also criticize Unifor’s pandering after attracting jobs at all costs–and at the expense of the jobs in other countries.

This, however, is where their proposed solution runs into problems. They claim the following:

The labour movement has little room to protect jobs for workers unless they redouble their efforts to promote a real green transition strategy founded on international workers’ solidarity. It’s the only way to create jobs without succumbing to the elite’s real strategy of race-to-the-bottom.

Part of the solution is similar to the Steering Committee’s statement (“a real green transition strategy”). It is different in proposing that international solidarity as the only possible solution to prevent a “race-to-the-bottom.”

There are two problems with this strategy. Firstly, although international solidarity among workers is certainly to be lauded as a goal, there is no indication of how such solidarity is to be achieved and on what basis. It is, like much of social-reformist leftist rhetoric, vague. How is this to be achieved in the concrete between, say, workers in Canada and workers in Mexico? Forming links without thinking about the kinds of links that promote international solidarity is likely to break down quickly or to end up merely with a general call for solidarity among union leaders without the rank-and-file really forming solid links with other workers across countries.

This leads to a second problem: there are implied terms to the kinds of such linkage required when they write the following: “Our society needs the productive capacity in places like Oshawa, and the skills and job knowledge of the autoworkers. We not only need these good jobs….” They do not go into detail what constitutes “good jobs,” but there is a fact that constitutes evidence of what they mean by good jobs.

I had a debate with Dave Bush on Facebook about the appropriateness of pairing the Fight for $15 in Ontario with the idea of “fairness.” Mr. Bush nowhere explained why it was fair; he simply declared it. The employment laws that expressed that “fairness” were certainly better than before, but their provisions are generally less adequate that many collective agreements. Since I have implied that collective agreements are unfair since they merely limit the capacity of management to dictate to workers what to do, where and when to do their work and how to do it (Management Rights, Part Two: Public Sector Collective Agreement, Ontario), thereby still permitting employers to treat workers as things or objects for the benefit of the employer, employment laws and their provisions by implication are even less fair than the provisions of collective agreements.

Solidarity across borders as a class of workers against the class of employers cannot be expressed in terms of “good jobs” since there is no such thing in the given social relations characterized by a class of employers (see The Money Circuit of Capital). Workers in the Oshawa plant did not have good jobs; they had better jobs than many other workers in terms of pay and benefits and, perhaps, some working conditions, but they did not have good jobs. This is an ideology of employers, repeated ad nauseum by the social-reformist left and union leaders. The standard of what constitutes a “good job” for such people is–the existence of a class of employers with a “humanized face.” This is really liberal rhetoric disguising itself as radical.

In any case, the call for international solidarity at this stage will unlikely have any meaningful impact in terms of whether the Oshawa plant will be shut down. What is required is not just occupation of the plant but an explicit rejection of the claim that such jobs can ever be characterized as good in a context characterized by the dictatorship of an economy by a class of employers.

It would be in the interest of the working class to not only seize the plant and not only shift production to more earth-friendly forms of transportation (certainly not though, SUVs, contrary to the article), but to establish solidarity on a ground characteristic of a lack of bullshit concerning “good jobs” and the like as long as employment is controlled by a class of employers. Solidarity needs to be grounded in rejection of the shared assumption of the right and left concerning the continued need for a class of employers–as expressed in the rhetoric of “good jobs.”

Unfortunately, the bullshit rhetoric of the social-reformist left concerning “good jobs” (and other such rhetoric) prevails among many trade unionists, with the consequence that no such solidarity will likely arise without prolonged struggle against such bullshit. In the meantime, it is likely that the Oshawa GM workers will be thrown out of work and no real solidarity will arise internationally for some time to come.

 Or is this an inaccurate analysis of the situation? What do you think?

 

Management Rights, Part Five: Public Sector Collective Agreement, Ontario

There are some among the left who idealize the public sector. They fail to address how the public sector magically treats workers in the public sector, who are employees, as human beings rather than as things. They have no solution to the problem of the employer-employee relation in general except–nationalization. Such nationalization hardly implies democratization and humanization of the workplace, and yet the left continue to idealize the public sector.

From page 1, Collective Agreement:

THIS AGREEMENT made this 16th day of September, 2016
BETWEEN:
UNIVERSITY OF WINDSOR, hereinafter called the ‘Employer
OF THE FIRST PART
and
UNIFOR LOCAL 2458 –
(FULL TIME OFFICE & CLERICAL UNIT) hereinafter call the “
Union”
OF THE SECOND PART:

ARTICLE 2 -MANAGEMENT RIGHTS

2:01 The Union acknowledges that all managerial rights of the Employer hitherto exercised by the Employer shall be reserved to it, except to the extent herein limited; and without limiting the generality of the foregoing, the Union acknowledges that it is the right of the Employer to:

(a) Manage, conduct and operate the University of Windsor;

(b) Maintain order, discipline and efficiency;

(c) Establish and enforce rules and regulations consistent with the provisions of this Agreement, governing the conduct of the employees;

(d) Hire, classify, direct, transfer, lay off, promote, demote, suspend, discipline or discharge employees for just cause provided that a claim of direction, transfer, promotion, demotion, lay off, suspension, discipline or discharge without just cause may be the subject of a grievance under the orderly procedure as outlined in this Agreement.

2:02 The Employer agrees that such rights shall be exercised in a fair manner consistent with the terms and provisions of this Agreement.

2:03 The Employer will inform the Union and the Chairperson, in writing, with at least one (1) month notice, prior to any changes concerning rules and regulations as referred to in 2:01 (c) above.

Should the radical left not develop a more critical approach to the public sector? Should it not also develop a more thoroughgoing critical analysis of this sector (as Marx did for the private sector)? What of public financing? What is the left’s analysis of such financing? In relation to the employer-employee relation and the power structure at work in the public sector?

Should the left engage in self-criticism–including its own theoretical, empirical and practical limitations?