Categories
Canada Class USA Workers

Working class disarmed, Canadian redux

Looking at the prevalence of strikes in the US over the past six decades, Doug Henwood writes,

Second Amendment fetishism aside, there’s an old saying that the working class’s ultimate weapon is withholding labor through slowdowns and strikes. By that measure, the U.S. working class has been effectively disarmed since the 1980s.

Doug then produces a graph showing a precipitous decline in the number of strikes in the US involving more than 1000 workers starting about three decades ago. Intrigued, two thoughts quickly crossed my mind. First, as is often the case, I wanted to see whether the same trend holds for Canada. Second, I was curious whether the decline had anything to do with the large scale of the strikes in the data Doug used.

Sure enough, the conclusions are (sadly) the expected ones: Canada exhibits the same trend and shows it to be one that is independent of the number of employees striking or locked out.

Figure 1. Work stoppages relative to employment: the number of person-days of work lost to stoppages (strikes and lockouts) divided by total employment. Source: CANSIM, FRED and BLS.
Figure 1. Work stoppages relative to employment: the number of person-days of work lost to stoppages (strikes and lockouts) divided by total employment. Source: CANSIM, FRED and BLS.
Categories
Austerity Crisis Finance Political Eh-conomy Radio USA Workers

In and out of crisis with Sam Gindin

Today’s podcast is a feature interview with fellow political economist Sam Gindin. I interrogate Sam about the political economy of the present: the exit from the 2007 crisis, the role of states, austerity, the place of finance and the possibilities of resistance.

Sam Gindin is a left political economist with a long career. He was the longtime Research Director of the CAW and later held the Packer Visiting Chair in Social Justice at York University. Most recently, Sam authored The Making of Global Capitalism with Leo Panitch, a book that has gone on to win prestigious awards and spark important debates.

Categories
Canada Precarity Workers

Re-making markets with unpaid internships

From political proposals to street protests, unpaid internships have been making news in Canada. Rightfully so, as there is a litany of problems with unpaid internships. For individuals, unpaid internships can not only be a form of outright wage theft, they also help entrench class-based privilege that allows some the luxury of forgo income in exchange for work experience. Unpaid internships also distort the labour market and contribute to lower participation and higher unemployment, especially among young workers. For firms, of course, unpaid internships offer some real cost savings. There could, however, be another reason why unpaid internships are popular: they help remake the terms of the labour market itself.

Categories
Class Inequality Workers

We can’t all be workers: Putting inequality in the inequality debate

It’s easy to get confused about who is a worker and who isn’t these days. Your CEO may worker longer hours than you, not the top-hatted capitalist of the Monopoly board he. Indeed, it may seem that the leisure class of the turn of the last century has been replaced by the workaholic professional and managerial class of today. Yet, if everyone is a worker and no one is a capitalist, then how can we still be living under capitalism?

The short answer is we can’t…or, better yet, we are, which means that not everyone can be a worker, no matter how hard they try and how many hours they put in. These reflections are a continuation of something I just posted on the Progressive Economics Forum. With all the talk these days in Canada about income inequality and the shrinking middle class, I thought it might be a good idea to take another look at the labour share of income. I concluded that post with the following chart.

Figure 1. The labour share of income, with and without the 1%.
Figure 1. The labour share of income, with and without the 1%. (Source: Statistics Canada and World Top Incomes Database).

I think this has some of the answers as to why it is unhelpful to talk about the very highest income earners as workers. The reason is economic power, for which the labour share of income is a proxy. The widening gap between the income share made up by total employment income and the employment income of the bottom 99% shows precisely a gap in power. The highest earners disproportionately affect the power of labour, but they do so not as uber-workers but as something different entirely.

Categories
Economic history in the present Minimum wage Workers

Economic history in the present: The wage fund and the minimum wage

How many bushels of wheat do you make a year? While this is not the most relevant question to be asking about wages today, some of the discussion around the minimum wage is taking inspiration from a very old economic idea according to which questions like this would be right at home. The idea is that of a “wage fund”: a fixed amount of total wages available to an economy for a given period that dictates the average wage. If such a fund exists, then any aim to raise wages within the period for which the fund is fixed will inevitably end up harming workers – most likely those with the lowest wages and the least power. Today’s arguments against increasing the minimum wage at times mirror this flawed logic – and for reasons that, oddly enough, reflect on why the theory was discarded in the first place. (Click here if you want to skip the history and get to the present; otherwise read on.)

wagefund2

Categories
Minimum wage Workers

The political aspects of the minimum wage

Discussion of the minimum wage can easily slide into a technocratic back-and-forth that ignores the vital political aspect at play. We can see this in much of the response to the report just released by the Ontario government’s Minimum Wage Advisory Panel (MWAP). Andrew Coyne, for example, once again argues that a basic income is a better solution to poverty than increases in the minimum wage. The question, however, should not be one of which single tool is best for fighting poverty, but how we can build the most effective toolkit, one that also puts political power into the hands of the poor. Poverty is multi-faceted and, while low-wage work is only one potential aspect of being poor, the minimum wage has effects beyond providing much-needed higher incomes.

Categories
Precarity Unions USA Workers

Precarious workers or satisfied customers: a fine line for giant retailers

This post is an appendix of sorts to my article, “Fired by Walmart for Christmas”, to be published this weekend by Common Dreams. In the article, I describe the stresses and difficulties faced by Walmart workers during the holidays. Overwork, a climate of fear and barely-organized chaos make for taxing shifts at work. Low wages, insufficient hours and inadequate benefits stretch budgets and make it harder to find holiday joy at home. A Walmart Christmas could have easily been written by Dickens.

Here, I want to focus on an aspect of Walmart’s practices that stood out from my interviews with long-time Walmart employees and OUR Walmart organizers: the increased use of temporary workers and the greater degree of precarity experienced by all workers at the retail giant. The workers and organizers I interviewed all described a long-term shift in company culture. From the perspective of veteran employees, the company has gone from one that at least outwardly respects its workers to one solely focused on profit, even at immense cost to worker well-being. My interviewees all claimed this change took place during the transition in management after the death of founder Sam Walton.

Make no mistake: Walmart was always focused on cost-cutting. However, through a shrewd mix of charisma and good business sense, Walton was able to maintain a sense of community amongst his employees. He knew what he needed to do to keep costs down, but he also knew how to do it in a way that did not completely alienate and break his own employees.

In the two decades since his passing, Walmart has changed. Without Walton’s calculated approach to cost savings, working conditions have deteriorated. Wages, benefits and hours have all been reduced.  In addition, without Walton’s charisma, not even a veneer of respect for workers remains. Today’s Walmart employees are not only tired, poor and often on social assistance; they are also deeply disheartened and afraid.

Categories
Minimum wage Workers

Legislating a real raise: Minimum wages and real earnings growth

In a recent post titled, “What happened to the distribution of real earnings during the recession?”, Stephen Gordon presents a graphs that shows some significant growth in real (adjust for inflation) earnings in Canada between 2007 and 2012. In addition, plotting average annual growth rates in real earnings against the distribution of earnings, the graph has a U shape. That is, the growth rates of real earnings are higher for those at or near the bottom and those at or near the top of the earnings distribution, with a “hollowed-out” middle.

Figure 1. Stephen Gordon’s graph showing a U-shape in real earnings growth 2007-2012 (black line). Source: Worthwhile Canadian Initiative.

This graph, as well as several others presented by Gordon in this post and a previous article that show some sustained general growth in real earnings, goes against the received wisdom that real earnings have been stagnant, in Canada and across the world, for the past 30 or 40 years – especially so for low earners. What is behind the discrepancy between this new data and the long-standing trend? Gordon claims it is lower-than-expected inflation and, if not the active, then at least the passive policy of the Conservative government. I take issue with these claims.