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Labour Studies-January 10, 2014.docx

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Labour Studies

Labour Studies- Lecture 1 th Jan 20 -tutorial Theories of Work and Labour I • Opening Thoughts • Basic concepts o Functions (what type of function does the job provide?)  Manifest functions (primary answer) • Compensation • money/monetary  Latent functions (secondary answers) • things that speak to well-being and fulfillment • diverse • emotions: feeling value, productive, accomplishment • day-to-day aspects of work-structured day of work • sense of fitting in to the workplace and having a role in society/ serving a purpose • identify with fellow co-workers • work forces people to socialize • nature of socializing has changed over time • Rewards- what do you get out of work o Intrinsic  Things that come with the nature of doing the job  Available in the workplace  Something satisfying about doing the job  Ex: challenging work, independence, creativity, variation of work, sense of accomplishment, social relationships (do you like the people you work with?) o Extrinsic  Things that come along with the job  Pay, benefit, promotions  Allow you to get ahead in your career  Men tend to focus on extrinsic and women on intrinsic **one good aspect of the job will allow people to not find the bad things so valuable (good people while low pay) • Orientations- what people see in their job, basic behavioral patterns in the job, fluid/can change over time o Deferential  Certain workers defer to authority  Respect authority and do what they are told to do  Tend to identify with employer  Want to get along with colleagues and authority  Common in small businesses  Parts of service sector  Can be seen as the ‘suck-ups’ because they want to get in good terms with the boss  Are happy to have the particular job  Think in the short-term  Tend to not recognize the risks in a job (boss asked to do it so it should be ok)  Gone up o Upward  Means you’re looking up  See the first job as a first step  Respect for job and desire to perform well  NOT to identify with the job in the long-term (know they will leave sooner or later)  Often extremely deferential  Don’t support protest  Tend to become less deferential if authority comes in way of progress  Take sides in arguments/ stand up in situations o Proletarian  Working class consciousness-workers to identify with other workers  Identify against employers  Don’t respect authority  Tend to be resistant  Don’t think about getting ahead in their job (no upwardly oriented)  Happy if independent  Tends to happen where there is a big separation between workers and management (mines)  Ex: common in resource towns (cluster of people)  Gone down o Instrumental  Common among young people  See the job as an instrument  Only interested in the money (manifest function)  Not seeing as a long term career path  Don’t identify with the job  Ex: part time work, young workers, manufacturing  Indifferent/don’t care about anything in the job  Gone up o Family (formerly Female)  Men tend to focus on the job where women are family oriented  Men tend to push family to the side  Thought that females should take care of family  Couples having kids is decreasing  Gender roles are changing in terms of family responsibilities  Men are now orienting their work around family more than before  Risking a good job for men is seen as family oriented  Seeing men taking on the role of the previously known as mothers o Youth  Young people tend to have emphasis on getting job to get experience  See the job as training for something else down the line  Willing to take work that is not paid at all just to get experience (co-op)  Employers exploit these workers because they are willing to work for free  Young workers have high expectations/low expectations?? In question Theories of Work and Labour II • Job Satisfaction o Measurements  Extremely difficult to reliably measure  Levels of loyalty workers feels to their employers is low  Intrinsic and extrinsic satisfaction tend to be low  Measurements of behavior- if they don’t like their jobs they will take more sick days, absentee  People feel conflicted about their work o Expectations  Workers are coaxing themselves to convince that they are happy with their jobs  Job satisfaction went up during the economic crisis- people were happy to have a job, their expectations lessened  Expectations are based on social reasons- your interaction with other people o Priorities  People prioritize on their careers on basis of class  Higher income/education place more priority on career  Middle class priorities going down – especially in balance of family  The extent to which people are prioritizing their education and work • Early History: Labour o Work was seen as punishment from Greek gods o Work in Greek means sad o Adam and eve had everything given to them so people that had to work were seen as inferior o People who has status and power avoided work o In Greek, the citizens did not work as they had power to cote, etc-> other people did the work o Serfs (peasants) did the majority of the work o Powerlessness • Competition=Liberalism o Markets  Kind of freedom  In capitalist economy, people have more freedom than they did before, they would get rewarded for their work  Gives opportunity to get ahead if one works hard  Work is an outlet for creativity  Markets allow you to compete  Markets creates opportunity for people to be productive and get rewards  Adam Smith • Saw liberalism as a source of liberal good • Opposed market values (make most money as you can) • Believed in other goods (moral, environment) • Conflict=Marxism o Karl Marx  Misconceptions about his theories • Rejected everything liberal o He wanted to take smith, early economic thinkers and bring them into fundamental question o Materialism  Profound  Human beings understand themselves and how they operate in the material industry  Understanding how they eat is to understand how they operate  The ability to organize themselves is what separate them  How you produce things around yourself is how you understand yourself  You see yourself in things you make  How do you make your mark? Build something- put yourself out there in the world (essays)  Organize themselves in classes and diff. groups in society is what distinguishes humans o Class Struggle  Modes of production – way things are made  Different classes conflict as some own the modes or production and other don’t  Ex: slavery o Alienation  Separation of your fruits and your labour  The loss of control over what you make  Working at Tims and not getting to keep the donut you make (you do still get a paycheck)  Jobs done routinely lose creativity  Marx says you fundamentally lose yourself if you routinely do the same thing o Capatalism  Higher level of civilization  Business class are more engaged than any previous lords  Capitalism saved humanity (marx)  Alienated workers  Underestimated the amount of time of would take capitalism to develop  Good and bad • Bad: alienation • Good: Sophisticated mode of production-> technology o Immiserization  The more capitalism develops, the more it exploits workers and the unhappier the workers get o Revolution  Revolution will only happen when capitalism has fully developed  The more something develops, flaws become apparent, and it downfalls eventually • Cohesion o Emile Durkheim  Post Marx  Interested in cities and the conflict within it  Found cities to be cohesive as work organization creates cohesion and shared interests • If cities economy is going to work, you need to co-operate and you have similar goals • Fundamentally need a form of cohesion with people around you (trusting the work of other people- airplane)  Forms of magic • Culture=Marx Weber o LIBERALISM AND MARKETES o Cultural attitudes towards work o Protestant Work Ethic  England, and other British countries  Shift in attitudes in protestant countries about work  As religions starts to challenge catholic thinking, attitudes change  Protestants say that work is not a punishment  Salvation is determined by good work and being productive is God’s will  Wants people to see work as a calling  Do work that increases everyone’s wealth is doing God’s work  The idea that doing good work gets you a reward  This lays foundation for capitalism -> did not believe capitalism was all good  Greed shouldn’t be involved with work (capitalism belief) o “Culture of…”  Culture and economic performance and culture and work performance  How certain cultures affect the economy  Other cultures apart from protestant cultures put high value on work (Asian cultures)  Within certain communities, a culture helps or hinders cultural attitudes • Culture of poverty, culture of wealth (ideas)  Cultural dependency ??  Surface at particular times • Ex: economic crash • Blame a culture for economic downfall (usually blamed Mediterranean cities) UNIONS January 17, 2014 Understanding the Basics • Core=Collective Bargaining & Collective Agreement o Collective agreement: workers make collective agreement with employers  Have a contract negotiated with employer  Have a back fall incase employers does a=something against the contract  When collective agreement is in effective, you stick to that agreement (cannot go on strike)  Striking is only allowed when you are bargaining  Union is trade-offs  Recognition is the term for the employer recognizing the union as a bargain setter  Individual contract has issues included in union agreement o Strengths and Limits  Strengths: stability • Recognition o Certification  Labour board will certify union  Majority rules -> if majority of workers want to form a union, they will prevail  When certification happens, 1) union is created, 2) bargaining unit • Union: • Bargaining unit: all of workers who are covered by collective unit. Pay dues o Bargaining Unit  Coverage & Dues • Rand Formula o Trade off’s o Should not have to join union to get a job o Compromises individual union • “Free Riders” o Benefit from unions activities (higher wages) but don’t contribute to the union • Compensation o Union Wage Premium  Wages and compensation tend to be higher for individuals in union  Free riders do not benefit from this  Union wages in temporary workers is 50%  25% gap between union and non-union workers  Women earn more than men if unionized o Spill-over affect: whatever unions make, the non-unions get it too o Benefits  Medical benefits, leave (mat/ pat leave)  Pensions • Most pensions are unionized • They were concessions made by employers because they didn’t want to pay higher wages • Pensions increase employee loyalty • Known as the “golden handcuffs” as they cuff you to the employer over time • Unions mention pension plans (controversy) o Job Security  Collective bargaining is not good for job security as you can’t back out of an agreement after its made  Seniority • Can bargain seniority • Have more job security the longer you have worked • Not popular with younger workers • Senior workers are usually first fired because they are more expensive • However, the new value says that people who spend more time should have more job security o Day to Day  Grievance system • Work now, grieve later • Cannot walk off the job if you have a problem rather you file an grievance • If you show that employer violated the collective agreement, the you have protection • This way the employer can’t favour certain people or fire anyone spontaneously • Centers on collective agreement: if something is not mentioned in collective agreement then it is hard to work against the employer • Complaint under the collective agreement  Health and Safety • Apply to all workplaces • Diff. between unionized and non-unionized • Unions have health and safety committees • Get more protection o Social and Political Engagement  Human rights and reasonable accommodations • 80% of workplaces cases are human rights violations • Disabilities workers get special accommodations is enforced by unions Unions: Understanding the Basics III Anti-union complaints  Strikes • Biggest complain about unions • Amount of complaining has gone down as well as the # of strikes • 95% of all collective bargains do not result in a strike • Striking has dropped significantly due to collective agreement • Workers are not allowed to strike  Productivity • Slow down productivity by protecting lazy workers etc • Hard to draw connection between unionized workplaces and productivity • Management decisions o we get blamed for the stupidity of our bosses o the productivity goes down because management isn’t working effectively • Auto Industry o auto-industry prevalent o political decisions o Competitiveness  Controversial: Economies that have unionized workers can’t compete w/ workplaces  Myth: Have to make compromises in order to protect job thus lowering competitiveness  Germany & Scandinavia • These have unionized economies however their economies survive the best and are the more competitive • Has the best unionized workplaces • Germany has universal deals to cover agreements whereas Canada has local agreements because they cannot control the universal deals • Germany is doing well in comparison to other places o Corruption  Political corruption and business corruption  Corruptions is heard within union  Come from the left (socialist pro-workers) o Out of Date  Called out of date in 1960 and before that  Bailouts • Big banks failed and got bailed out • Brazil has gained more ground with a progressive government January 21, 2014 The “Golden Age” for Labour - Time of economic policies - Every dollar you made over 2 million dollars were taxed at 90% - Workers lives got better steadily in the golden age - From 1945-1973/1975 - growth of peoples income was higher than ever o Standards of Living  Peoples buying power doubled  Their income was 100% higher  In the economy now, the income has only gone up 0.7% whereas in the golden age was 2.7%  Average worker became twice as productive  Workers were getting their share of rewards  Economic benefit o Status of Workers  If you were unskilled blue collar worker, you were poor  Outside of a few skilled workers, the rest were poor  The unskilled workers would now be considered in the middle class-> that’s how high peoples income were that even now “average” people would be considered poor  Their buying fuels the economy o Daily Life  Transformed daily life of average workers  Mostly a struggle to get by  Workers had to strategize in their family on how they were going to get by  Mothers had to be resourceful in order to get as much as they could to survive  girls did domestic work and guys went to work  in golden age, people are buying stuff whereas they couldn’t afford it before  overall standard of living got better than it was before o Education  Becomes wide-spread/ pervasive  More kids were staying in school and going to university  Blue collared kids would rarely aspire to become doctors however ambition in this era allows people to look up and want to become doctors January 24, 2014 • “Great Middle Class” o Larger parts of population were in that middle class o Individuals were comfortable in being in that middle class o Era where people had been previously disadvantaged were now living middle- class lives o North American Advantages  happened because north America and Canada had most of the industrial advantage  other countries were at war  All the wartime expenditure of money has benefits  Canada has resources (pot ash)  Has advantages over the economies of developing world  US was in great debt after the war was over o Government policy  Full employment • Keeping the unemployment low as low as possible • Boosting buying power in economy  Redistribution • Gov. took money from rich and giving it to middle class • Redistributing the wealth • Done through taxation • Tax depends on your income over a certain amount determined by the gov.  Public investment • In education, health care • Things to build up the economy in order to create jobs • Inner state highways in the US was the biggest infrastructure investment • Public investment overseas called the (Marsha??) • Universities are the big investments as jobs come out of it  Security • Making workers feel secure in the long term • Secure about job, life, family, retirement • Social security is the biggest thing in the US • Unemployment insurance: allows people to bridge from one job to another  Social insurance • Protection for workers in health insurance, etc • Expansion  Collective bargaining • Gov. creates a place for collective bargaining • Encourages labour relations to bargain for higher benefits and wages • Labour relations systems allows employer to notice the union • Guarantees that union will be there for the workers • Keynesianism o “Mass production Requires Mass Consumption”  John mayer keyn  Economist concerned about instability and viability of capitalism in the long term  What he has to say about depression in the 1960’s  Says the basic problem is that there is not enough demand  Cannot have mass production without mass consumption  Mass consumption: people should have enough money in their pockets  Says you need the long term security in order to buy stuff because you have to be sure that you will be secure in the long term before you buy  Their buying power will fuel mass consumption and this mass production o Shift in Liberalism  Puts faith in market  They believe it will run itself and fix itself  Keyn says that economy crashes when it is left on its own because markets themselves don’t create market consumption  He believes the gov. has to intervene and force because capitalists don’t always know what’s good for them  Roles of Unions again • Collective bargaining is forcing companies to pay workers more • Unions have a positive role • If they force employers for more security and wages, then it will boost consumer power • Stability o Ending the “Age of Catastrophe”  Series of catastrophes starting with WW1, great depression, WW2  This has to end and people need to gain stability back  Promise of better times: after total war can come total living o Fear of Extremism  Rise of extreme ideologies  Fear of communism • Fear of return of nazi- ism o Workplace Disruption  Restless  Constant disruptions (strikes)  Workers being overworked, underpaid etc o Cold War Context  Cold war is about cultural issues  America said that they will win cold war and that capitalism will prove to improve people’s lives  Hearts and mines • Drawbacks o Role of Military  Easier to justify by saying the money was going into military  “Military Industrial Complex” • System where there is connection between gov. spending and furthering of an industry • Innovations driven by military research: optical fibers, lasers, sensors, aircrafts, microwaves, internet  “The Bland Society” • People complained that the focus on consumer items were making life dull o Social Divisions  Some people got a lot of benefits especially white men  Most people were able to live off of one income in the family  Deal between white men getting job and other people not getting any benefits  Time of civil rights movements (martin Luther king, feminism)  Race and Gender • Retrenchment after WWII o During WW2, large # of working women including African American and other origins o After war is over, traditional barriers get put back up especially regarding women, women are then expected to return to domestic labour o The time period where civil rights movement occurred. People expectations arising o Enormous individual breakaway movements in india, africa o Lost Ideals  Industrial Democracy • Labour had been major player in reforming • Driven by wanting more democracy in the workplace o Reflected in nature of union created o Organization that you could elect to perform democratic ideals o By 1950, industrial democracy is not as prevalent  Social Reform Neo-Liberalism o 1970s Breakdown of Keynesianism  Economic Struggles • Isn’t doing well • Businesses are suffering • Productivity is down • Property values decreasing • Inflation  (Another) political Shift • Most important? • Happens in business community • Shift away from Keynesianism • Businesses start rejecting Keynesianism o Young generations don’t think they need gov. interference, hate taxes, gov. bargaining system • Thatcher, Reagan o Committed to neo liberalism o Mulroney (Canadian PM) is not as committed to neo- liberalism but is part of the movement o Neo Liberals & Neo- Conservatives  Washington Consensus • All political parties are neo-liberal • Consensus among the powerful o Key=Faith in the Market  Neo-liberalism believe in the market freedom (market must be free in order to work best/no intervention, markets make you free(more chances and opportunity through markets)  Market freedom • Way Beyond Smith • As people pursue attempting to get rich, they will increase everyone else’s standard of living  Self-Correcting • Rejecting keyn • Markets will regulate itself, no gov. interference needed • Allan Greenspan says that no matter the situation, the market will correct itself  “Heroes” of Business • Push forward the economy • Ayn Rand o Real heroes are entrepreneurs, innovators o Public workers are all parasites and should beg to business people because they are nothing without them • “Financial Master of the Universe”  Trickle Down Economics • Let these people innovate, free the market, let them do what they want, some people will get really rich but the benefits will trickle down to everyone else o Neo-Liberalism in Action  Role of the State • Problems blamed on gov. • When economies are not competitive, the gov. is to be blamed  Expand the market • Domestic policy: Privatize & deregulate o Taking things that gov. used to do/own and putting them Iin markets hands o Public assets (train systems, utilities) privatize o Privatize means being put into markets hands • Internationally: Globalization o Expanding market geographically o Globalization is political consensus • Monetizing Life: Intellectual Property o Taking things that used to not be in the market and putting them there so they can be bought and sold o Intellectual property: allowing things to be patented and so only they can sell it o Patenting genes and sell the right for people to use these genes (grains) o Companies like Monsanto go to countries and patent genes that farmers grow and then get the farmers to pay them o Terminator gene: seed only grown for one year. This allows them to get farmers to buy year after year o Toll booth capitalism: making money off of what was already there  Consumerism & “Ownership Society” • Ownership society: people are more free if they see themselves as owners. Encouraging home ownership and to spend • Buying things to make the economy prosper January 31, 2014 o Unions & Labour Law  Extremely hostile towards unions. See them as limiting functions of market  Right to work • Right of individuals worker to get a job • If unions is seen as limiting worker to get a job, the state will stop the union • The concept that workers want to work in free market and unions get in the way • Don’t see unions as democratic and see the market as democratic • Individual workers are free in the market and have the right to work  View of workers • Had spending power to push economy forward is a view rejected by keyn • Workers are an expense • The freer business is, the more proper it will be • Let business do its thing and remove workers and unions and let business run more freely  Democracy? • Market populism o Idea that markets are the best vehicle for the public o Markets are the best way for determining what people want o Markets show the choices people make and the items they want o Politics don’t work; they lie and cheat o The free will of people is in the market o People who are rich in the market have earned it • Legitimacy & elitism o Some people have so much power and other are so desperate o The market is democracy, it is a more democratic realm than anything else o Elitism: doubting the will of the people as expressed in the market o Elites think they know best in the market and are unwilling to listen to normal people in the market o Rob Ford is an elitist because he was born in a business affluent family • Demand o ideology was that boost buyer power of people and that drives economy o Consumerism & ownership again  Push people to spend every dollar they’ve got  Be hard bargainers  Consumers get cheaper stuff such as things in the dollar store  Ownership: buying property by borrowing money o Debt  Wages are low now but debts are high as neo- liberalism has come into effect  Personal savings have dramatically reduced o Daily-life (credit)  Turning your house into an ATM  People are borrowing money through secured line of credit by bank because they think it’s safe and they have security of their house in times of debt  Securities: mortgage back securities • Demand is falling and so people borrow for their mortgage-> think its secure  Works until they exceed and end up paying the bank money (debt they had) when property value goes down o Political impacts  Biz. People and banks are going to people and asking them to buy mortgages because it expands the economy  2007-08 Crash • Neo-liberals realize that their faith in market wasn’t all that they thought after the downfall of the market • Banks collapse and people get kicked out of their houses • Gov. steps in and bails out banks  Assessing Neo-liberalism • Triumph of the market? o Does neo-liberalism succeed on its own? o Right and left  Left: said neoliberal was successful (skeptical of market)  Right: growth hasn’t really occurred in the neoliberal era (pro market-let market rule)  Even after the crash, people had faith in the market even thought people thought it would change that  Some people shifted to the left o Financialization  With deregulation, finance takes over more and more of the economy  Corporate profits are coming from finance  Manufacturing is diminishing and finance is taking over  Class Project • Capital Freed from Labour o Neo-liberalism has been successful o Public has been supportive of neo-liberalism even after the crash  Political project • Debt crisis o Due to economy crash • Rise of the Right o Class project has been a success o As wages have gone down, corporate profits have gone up as the companies are taking that extra money from wages into profit o Capital has freed itself from labour  People don’t need labour like they used to  You can invest finance elsewhere if it’s not working in one market o Ayn Rand: more popular than ever • Stability o Keyn were worries about stability of the economy o Leaders do not worry about the markets insecurity and peoples jobs • Inequality o Society that reached levels of inequality (1% owning large piece of pie) where people would not be equal however this was not the case, people were fairly equal February 4, 2014 Labour and Globalization • Factors driving globalization: o Neo-liberalism  Washington consensus (power player in the US that open up markets and say globalization is good)(political consensus on free markets) o Technology & Innovation  Transport • Globalization has allowed us to transport goods • Transporting goods around the world especially China • Revolutionary thing on new trucks: refrigerator on tops helps to preserve meats and other foods • Major transformation in shipping: container shipping (big box stacked together on a big boat) • Creation of mega ports in Singapore  Communications • Advent of internet, communication technology allows people to communicate with each other and allows you to get in contact with people all over the world • Need coordination for retail transporting (one Walmart needs to coordinate with other one in/outside the country)  Machinery? • New machines (smaller, lighter) are much more portable • New machinery continues to descale workers (easier to train people) • Garment industry has not been driven by technological innovation • Globalization is cutting down innovation because people are sending labour abroad for cheaper production and that’s not allowing Canada to be innovative • Telecommunication has expanded rapidly due to globalization • Automobile hasn’t seen that much innovation  Finance? • Instrumental in pushing globalization forward • Ability to move money from place to place • New ranges of financial products and institutions • “New Economy” o Level of competitiveness o Workers today are competing with workers all around the world o Competition in the global market o Now, productivity has increased in companies but worker wage has not risen as rapidly • Politics: T.I.N.A. o “There is no alternative” o Tech. advances had dug deep into the minds of people and policy makers o No alternative (can’t change the direction in which business is headed)- if we try to change companies can take their business to China, or Mexico o • Canada in Global Context (Canada has accepted neo-liberal policies) o Business Culture  Embraced free trade and pushed forward to globalization  Canadian banks: banks have invested into American sports stadium  Canadian businesses tend to be very careful in terms of taking risks  Canada’s economy has always been a resource economy o Resources  Canadian resources tend to do well in the neo-liberal age  Tend to remain big employers o National Politics  Canadian governments - free trade  Alliance between Pro market neo-liberal and conservatives  Rene Levesque( premier of Quebec): politics tilted towards left o Immigration  Economic problems have occurred due to aging population  In Europe, immigration is now bigger in order to make up for the population die to their aging pop.  250, 000 people coming into the country each year  Property value keeps going up because more and more people are coming into the country which keeps the economy going o Luck- especially in 1990s- Canada had bad luck in free-trade agreement in early 90’s, they went into recession after but after they recovered Canada benefitted from it- at this time a lot of other countries had crises but Canada’s panic was in 90’s (it was a deficit panics not currency panic) Canada was lucky their bad luck came at the time it did o Harper- he is seriously neo-liberal- he took power at a weird moment within the process because he was in power when the big crises happened in 2007-08- Harper is luckiest politician Canada has had- he attacked the cautions business culture in Canada he wanted them to be less careful and regulation BUT when recession happened they were safer than others because of those regulations and he was prime minister at the time so he got the credit (he was lucky about what time he came into parliament) Labour and Globalization II • Manufacturing decline o Business people see labour as an expense so they are always looking for cheaper places to produce- so they go to foreign countries because they have less labour rights, lower wage, disparity etc. o How countries attract manufacturers:  Control over workers- if you have control there is no resistance from employees  Environmental regulations- these have become increasingly important so places that disregard these regulations will attract manufacturers  Government giving money or services to support a factory  Low wages/ regulations o Global competitiveness  Garment industry- one of biggest single industry- big money and employed industry (everyone needs clothes) • When countries are trying for industrial development this is where they target first • This industry is very mobile (easier to move and ship in supplies and ship the product) • Working on the cheap is common for this industry everywhere- sweatshops • See impact in Canada/US- there were big garment plants in places like Toronto, Montreal, and New York but they were part of wave as unionization- my late 80’s almost all of it is gone because they have gone elsewhere • These old buildings are now mostly turned into condos • There are small mill-towns where garment industry used to be big- now they are gone (Paris, Canada)  Rubber industry • Mainly tire making or rubber for electronics etc. • Big industry- big employer during the golden age • Huge in southern Ontario- employed more than steel • Steel is number 1 employer but rubber is second • Labour-intensive and there is want to move across seas (mainly Asia) • Environmental impact is important to consider- making rubber is bad for earth  Automotive industry • Prime target for countries to attract over-seas (after garment) because it employees so many people, involves a lot of parts and also supports other industries (plastic, garments for seats, rubber for tires) • Industry where competition is created- these plants are easier to move to other countries • Canada’s industry held up well- Ontario had very productive industry • Canada’s peak was in 1999- 3 million cars and they are 5th in the world, by 2012- 2.5 million and 10th in the world- after this it was hard to compete with the foreign countries  High-tech production • Computers, phones etc. • For a while this was the hope- many leaders would say that this will be the new kind of manufacturing- that manufacturing will stay but this will be the new way • Wire-making stayed strong through 80s and 90s • By 21st century this production is realised that it will not be the salvation • This production is being moved over-seas and there is explosion of this work in the 3rd world • Asian-owned countries are becoming big players (it’s not just American companies moving but Asian countries are now big) • This impacts lots of areas (not just the economy) o The “rust belt” emerges- industries that are rusting out  Windsor maintained high standards of living and employment but in last 15 years rust belt has came there o Government role- government policy is important and often effective  Standard response was understood that if you have a lot of competition then you create regulations and tariffs to make up for how it is more expensive to make here rather than in 3rd world  3rd party control is in a lot of countries- currency manipulation can change value of exports  Lots of government are protectionious (buying products made in your own country)  Government can help to subsidise industries  Auto pact to FTA to bailouts- certain proportion of cars sold in Canada has to be made in Canada- this is Keynesian policy (to protect market you keep production close)  Free trade model comes into effect and this affects automotive hard- auto pact is gone and shakes industry  In 2007-08 recession government helps to bail out companies then those companies go overseas and the government does nothing o Union responses  Resistance- unions have tried to resist/ fight back • CAW breaks away from UAW? • Broader trend is that rates of strikes is going down • This is because of TINA  Structural weaknesses- unions have these and they stop ability to resist • Collective bargaining (having to stick with contract but having to deal with new issues over time)- Companies used to unions are not used to challenging employers • Localised in Canada- 1 local with 1 employer- there is almost no leverage (strike is weak option) – • Unions representing whole industries, or whole big companies have a lot of leverage but in Canada locally has almost no leverage o Example- steel industry  Triple whammy from technology- it replaces workers, raises levels of productions and technology is other industries is decreasing demand for steal (making more for less but demand is shrinking) this creates overproduction and fierce competition  1975-2003 steelworkers jobs lost: Canada only 57% but other countries are much more (they hold up well but still lose a lot)  Globally- they hold up because products are nearby  Hamilton Stelco- one of biggest producers (Hamilton stays strong that they do not want to change economy away from steel) • 1970 & 81 strikes- 81 was longest strike in recent history in steel industry (125 days) and this was bad timing because competitors were striking at this time • Restructuring and conflict- by 80s there is restructuring everywhere so this is idea for everyone- they are restructuring because of price-cuts and looking for way to still make profit even though everything is shrinking February 11, 2014 • Government role o Subsidizes the manufacture sector and steel to some extent o Free trade agreements play a big role o Role is bigger in terms of steel production in other countries. Ex: China o China’s gov. obsession is to produce the most steel o Steel seen as strategic asset and so they want to produce as much as they can; and cheaply • “hanging on” generation o Series of lay-offs and restructuring is changing demographics of workforce o Hanging on generation is the core of workers who have had seniority for a long time; younger people are not getting hired, and the core of the workers are trying to survive in the long run o Deepens image of workforce as older, generation that has it easier, trying to stay protected o Aging steel workforce-> more older people are holding onto good jobs • Bankruptcy and U.S steel o Steel industry has been disappearing due to technology replacing workers and also reducing demand for steel o Stelco goes into bankruptcy and US gov. takes over o Plant is gone and hanging on generations have moved into retirement • Resource o Potash, Mining  Potash: industrial metals production  Mining: gold mining o Northern Alberta Energy  Boomtown mentality • Biggest new area of growth in Canadian economy • Area where people are getting rich and people who go there to work are going there to make a lot of money very quickly • A lot of people do not wish to stay there for the long-term • They are there to make money and get out • Resources are not forever • Not a lot of long-term investment in the area (health, transportation) • “Everywhere and nowhere” o Everywhere there are people coming however they are not coming there to live rather they are temporary workers  Social breakdown • People making about average $100 000; although the cost of living iss very high, therefore a lot of people live there in poverty • Young, often from poor areas are cutoff and come here and make a lot of money • Human mind cannot handle rags to riches • Signs of social breakdown due to getting rich so high • Divorce rate, spousal abuse, alcohol and drug abuse are high • Given incentive to gangs  Infrastructure & services • Highway 63-> no investment has been made for transportation and so there is always traffic and traffic mishaps happening in that area • Housing is a long term investment which is rarely seen • Waiting for things is high (getting groceries, waiting for pizza, average wait time for coffee is 40 mins)  Health problems • Safety on jobs • Workplace accidents are frequent • Air pollution, water pollution • There are no doctors up there if you do get sick • 1:1500 doctor/people ratio • Very few breaks  “Price of Progress” • That’s the price of progress; that’s what it takes to see this kind of development • Challenges to companies and governments • People are mad at gov. because they are not wanting to spend money of health care • People say that maybe we should slow down some tar sands; however it is stomped on o A new Petro-State?  Gov. are addicted  Extent to which gov. is willing to keep progress going has raised some questions • Rise Service Sector o Tertiary Sector (third sector) o Primary sector is resources, secondary is manufacturing, tertiary sector is services  Upper & lower • Distribution, business services, public services, retail • Upper-tier service work: doctors • Massive workforce doing lower-tier shipped work like laundry, cleaning, loading and shipping • Service work expands and takes place of manufacturing o Expansion since 1980s  Work & family pressure • People have to work longer hours, people don’t have time to do a lot of things • People rely on market and service industry to provide for them. This includes buying of fast food since they don’t have time to be at home. • Expansion of child care  Advertising, experience, expectations • More services sell themselves for the experience • Advertising sells these services for the fun of i  New urban economies • Service services has taken over • Way that service companies advertise themselves have changed a great deal • Workers are more focused on the experience when selling service whereas for manufacturing, you don’t have to worry as much • More workers are needed because service need more people to offer these services (custom made sandwiches by workers now) • Expectations are rising from the top population (elite)-> they expect more than other people • Ex: Toronto, Vancouver, Los Angeles, New York, London • Large numbers of rich people have caused the expansion of service industries to provide to the needs of the rich • Half then NYC population live off of $30,000 dollars in a year, whereas the top 6% make millions of dollars • Make wider tourist experience (Los Vegas). This is a major employer. o Working Patterns  Part time & Precarity • Need to work when customers want it and so the working rhythm is quite different • Precarity: Uncertainty and insecurity work for part-time workers • Do not have a standardized work day  Emotional labour • Demands of work are that you have to make the customer happy • This requires using your emotions, and controlling your emotions (keeping your cool when there is a long line-up) • Demand on the worker is crucial in this • Labour & Globalization- 3 World • Explosive Growth o Due to neo-liberal policies, there have been benefits and growth in the global south o 500,000,000+ people out of poverty in last 20 years o Poverty has reduced drastically due to globalization  Social programs • Allowed countries to develop state support • Countries have started to launch social programs • Ex: Korea, Latin America o New Middle Class  Vast expansion in middle class  Brazil, Mexico, China, Korea growing middle class  Led to global power change-> countries like China are on the rise and they are now providing money to the US etc  Critiques say that a lot of the population used to live off the land and were self-sufficient and so they were independent whereas now they have to depend on the economy and buy stuff in order to survive. Therefore they technically aren’t better off. o Global Power Shift (?) • “Good Work” In the Global South o Hours  80-96 hours/week for Microsoft contractor  It is expected that workers spend long hours and they bring their own mattress when they first join the job because they are expected to sleep there. This is skilled work. o Control & Discipline  Due to labour being offshored, work is intensive and disciplined  Government control over workers. Governments work with employers and so they have a lot of control over workers.  Export processing zones • Zones that are designated by government in third world where the industry will be devoted to exporting • Normal laws for countries can be suspended because they can be suspended in these zones • Practice in these zones is limited control over what the employer wants to do  Foxconn, Shenzhen in China. It is an electronics company and they contract out. They are huge players in making of Apple products. They have built a massive complex in order to export. Huge employer for workers. Work is highly structured through gov. and employer control. Lots of people are employed and work in a small section to produce goods (skilled labour, not sweatshops). These workers are there to work for as long as they and as hard as they can. They are part-time workers. There were many suicides there because the workers worked until they cracked. In response to suicides, the employers build nets below the building so it would catch the employees trying to commit suicides. • Bad Work in the Global South o Sweatshops are the manufacturing of goods (unskilled labour) o Child labour  Used because they have small fingers and an do small details that older workers can’t o Unsafe conditions o Resources-Mining  Can use good technology and machinery  There can also be mines in which primitive machinery is used  Coal mining  Open Pit Mining in Africa. Dangerous work as they are on the side of the hill o Shipbreaking(Chittagong, Bangladesh)  Huge ships that are left as junk on the islands  These ships are then taken apart by workers for parts and metal  Chittagong, Bangladesh  Large cargo ships are ditched on shore of Bangladesh and workers have to break down the ship for parts which are then sold to merchants who then give them a cut (wage) • Development vs. Progress o Urbanization  Developing work is developing countries is being created but progress is the real question  Development of massive new cities which have become major centers. Ex: Singapore, Hong Kong, Bangalore, Beijing, Rio  There is a price as a result of this development. The amount of risk that migrant workers take is enormous (Dubai, Qatar) The workers have very few rights.  No real progress for workers. A lot of workers are being pushed of the land into these cities to work o Planet of Slums  Has brought people out of poverty. It has also created a 1.1 billion people living in slums  Push factors • Peasants get swept off land (slums) due to globalization and end up in large cities; this is seen by people as reduction in poverty for these people however this is untrue  Services • Everything is made by the people that live there, organizing roads, no basic services (no streets developed, sewage, running water, transportation)  Insecurity • Women can’t go to the same bathroom as men so they have to go at night (not safe) • In eyes of government, these slums don’t exist and they can simply push people off their land as they don’t have the right to their land (no sense of housing) o 3rd world informal sector • Many people have work although a lot of them don’t (have to run fruit stands, wash cars). They are in the informal sector • Mobility within South • Services and manufacturing being moved from global north to the global south • Within the south, companies and investors are moving around from place to place • Coastal regions of china-> wages increases and some people are losing jobs o Northern Mexico • Parts of new Mexico that have gone into deindustrialization • This is because a lot of people found better places to take work like china • Democracy ?? o Dictatorships are adjusting as a result of globalization in places such as china. Although people are saying that these countries will soon become democratic because economy is becoming better and people will then have more right etc. This is untrue because dictatorships are adjusting just fine to this change o Technology is going to explode and it is going to be impossible for dictatorships to keep people quiet. This is untrue because dictatorships can use this technology instead of the people to control people more than they did before o Labour connection is essential. Labour rights are an issue. How much freedom do you have in the workplace? In the workplace, grea
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