5. Labour & Globalization
1. PWC (Post-War Compromise), KWS (Keynesian Welfare State), & BWA (Bretton Woods Agreement)
2. Crisis & Neoliberalism
3. Fordism & Post-Fordism
4. The JIT (Just-in-Time) Workforce: non-standard, precarious employment
5. Globalization & the NIDL (The New International Division of Labour)
A compromise after World War 2 between big businesses
The workplace in the poor economy such as large firms and large unionizes revolves around
There will be new labour laws. There will be more employment laws. Collective Bargaining, the
rights and obligations of workers, etc. More and more Canadians will belong to unions; there
will be increases in wages and benefits. There will be an era of stability.
PWC will result in economic and social mobility for the working class.
2) Economics will revolve around Keynesian principles: high rates of employment. Employment
trumps inflation. There will be expanded mass production & expanded mass consumption.
3) Social policy: The PWC is referred to as social citizenship. Welfarism will manifest itself in the
creation of new sources of expansion in the public sector
There is an expansion of social rights for the working class. These include unemployment
insurance, student loans, pensions, welfarism
There were 4 pillars in the KWS
o 1) Investment will remain almost entirely in private hands. There is no socialization of
o 2) Full employment policies: High and stable levels of employment.
o 3) The social safety net: Referred to as sometimes as the social wage. This will provide
citizens with a source of income where they are not dependent on their employer. This
enhances the bargaining position of the workers. It makes the worker less dependent on
Government Spending: 5% GDP. 1947: 30% GDP. 1990: 52% GDP (in the US it
was 32) 2011: 39% GDP. Government spend on health, education & welfare.
1990 2/3 2011 ¾.
o 4) Rights for labour: Introduction of collective bargaining laws. This was made
compulsory. Unionized workers will secure more & more rights and these rights will
filter down in the form of employment standards. Unions led the way on employment
stands which created the model which employers followed.
June 1944: 45 countries allied in WW2 and met up to avoid post-war problems. They discussed
the great depression, gold standards, protectionist trade policies, etc.
Bretton Woods created a global Keynesianism Over the 1945-1949 Bretton Woods created the Big four
o 1) The creation of IMF (International Monetary Fund). It created short term payment
solutions. It created international demand and paid.
o 2) The World Bank. It created long term loans to rebuild some of the economy’s
devastation & provide capital on a long term basis in the economic development of the
developing countries (the global south, the third world countries.)
The cold war. Between the Us & Russia. They engage in an ideological struggle
for this developing world. The World Bank tries to buy the will of these loyal
o 3) The General Agreement on tariffs & Trade: It is an ongoing set of negotiation
between the members of the Bretton Woods Agreement. Countries will meet every 5
years to discuss reductions in their tariffs. The goal is to create freer trades in the
Bretton Woods countries. It was so successful that by 1993-1994, tarrifs were no longer
the problem, but non-tariff countries were the problems. This became the WTO in 1994
(World Trade Organization)
o 4) 1870-1930: The global economy operated on the gold standard. An international
system that produced stability in exchange rates. The gold standard was revised using
the American dollar. The ratio was $16 (or 35$?) for an ounce of gold. You could
exchange gold for money, and money for gold. Currency trading would be limited to
banks with fixed official exchange rates. If the country wanted to change the value of
this currency, the needed the permission of the IMF.
This resulted in an explosion of trade between Bretton Woods nations and an
unprecedented economic growth
One of goals of Bretton Woods was to rebuild the economy
o 1945: The UN is up and running. Marilyn Waring: Member nations of the UN must
subscribe to concepts of GDP, Post-War problems, etc.
1960s: Cold War & The Vietnam War. The Japanese economy is doing quite nicely. They
produced a lot of nice consumer goods which Americans loved. By the end of the 1960s, the US
has a lot of debt.
COLA (Cost of Living Allowances)
1974: There isn’t a COLA in the rubber industry. People start to strike until they get COLA.
Mid 1970s: Inflation. High levels of unemployment. Inflation isn’t a result of their wage
demands, but an increase of prices and the unwilling of businesses to acknowledge the gap
between bay st. main st. conflicts (they blame each other)
1971: The US President comes up with the Nixon shots. Nixon announces 10% tariff on
everything entering the American Market Place. Ironic because US should be promoting a free
market. This created conflict with Pierre Elliot Trudeau.
US then introduce waging price controls. The emphasis was on the wage side.
US then announces that the US dollar won’t be fixed, but i