Archive for the ‘Unemployment’ Category

Many useful articles have been written about the recent demonetisation, perhaps the most discussed economic event in India in recent times. The entire discussion has brought to the fore many aspects of India’s economy. Among them is an important theme that we have emphasized in earlier issues of Aspects: Namely, the gulf between different sectors of the economy. This gulf has economic and political implications.

This gulf can be seen in many measures, which are expressions of a single reality: the gap between the income of the ‘informal’ (‘unorganised’) and ‘formal’ (‘organised’) sectors; between rural areas and urban areas; between the sectors producing commodities (agriculture, manufacturing) and the services sector; between income-poor regions which are rich in natural resources and other regions where income is concentrated.

The gulf is also within each sector, between the activities which make up most of the employment, and the activities which have most of the income. For instance, what is termed the ‘services sector’ encompasses both the courier delivery man and the captains of the financial world; ‘urban areas’ include the most miserable squalor and the most obscene wealth; mining regions are the homes of destitute tribals as well as the fiefdoms of mining barons. Thus when we talk of any of these categories or regions we need to be clear which sections and activities we are discussing.

The perverse course of ‘development’ being pursued by the economy, far from narrowing this gulf, keeps reproducing it and expanding it, by transferring not only surpluses but even, increasingly, natural assets (which are not reproducible) from the informal sector to the formal sector. This process substantially explains the dramatic growth of inequality in recent years.

While the current policies are touted as ‘formalising’ the economy, in fact thoroughgoing formalisation (which critically involves formalising employment and its terms) is not on the cards. Instead, policy measures that, within the existing framework, increase the share of formal sector firms (corporations) in the economy actually increase the incomes of the cream of the formal economy, without increasing employment in that sector. At the same time, they depress the incomes and employment of the vast majority in the informal sector. Thus we find that:

(i) the share of the organised sector in national income (GDP) has risen from about one-third in the 1980s to well over half today; but

(ii) within that organised sector GDP, the share of workers’ wages has collapsed, causing the share of profits to rise correspondingly;

(iii) more than half the workers in the organised sector are now informal workers (contract, casual, etc); and

(iv) the unorganised sector still accounts for the overwhelming majority of jobs – i.e., a growing number of workers in this sector have to share a shrinking percentage of national income.

The entire discussion on this question betrays how (i) the very methodology of estimating GDP disregards or discards the (more…)

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It’s easy to have woman working and stay at home dad when the woman is being paid over $470,000 a year; but what about poor families?

by Don Franks

NZ prime minister Jacinda Ardern’s bearing of a baby while in office has understandably launched many words.

Michelle Duff writing in the NZ Herald enthused: “When her partner Clarke Gayford is excited about being a stay at home dad, it’s equally inspirational.

“It sets a precedent.  It normalises powerful women and nurturing, caring men.  It decimates outdated ideals of where a mother ‘should’ be – at home, with the children, while dad earns the money.  It smashes those boring boxes and makes room for new shapes, new ways we can all live our lives.

“It creates a conversation about (more…)

Pic: Rosa Woods/Stuff

by Don Franks

Delivering her pre-Budget speech to a Business New Zealand audience, Labour prime minister Ardern said business confidence was “the elephant in the room”.

Business confidence has apparently been low since the new government took office. A business confidence survey conducted by NZIER found businesses had become pessimistic about economic outlook for the first time in two years after Labour assumed office.

There is no need to worry.

Over the last hundred and two years, Labour has demonstrated a loyalty to capitalism that can’t really be faulted. During the 1951 waterfront workers lockout, possibly the most tense class standoff after the land wars in New Zealand history, Labour delivered for the class they have always answered to. “Labour is neither for nor against the watersiders,” party leader Walter (later Sir Walter) Nash declared.

The pattern of behaviour continued in later years, all down the line.

Following the stock market crash of October, 1987 capitalism was in trouble. State-owned enterprises started (more…)

Gareth from the Otago Socialist Society is presenting and hosting a discussion on Wage Labour and Capital, Monday (April 30).

Written in 1847 by Karl Marx and published towards the end of the wave of European revolutions that began in 1848, Wage Labour and Capital is a short, accessible pamphlet that introduces the substance of Marx’s critique of political economy and capitalism.

While it was written a cebtury and a half ago, the principles of Marx’s thought presented in the text are very much applicable today.

5.30pm, Monday, April 30
Seminar room
Third floor
Dunedin Public Library
All welcome

The third Labour government under Norman Kirk enabled employers to take out injunctions against workers withdrawing their labour; Northern Drivers Union leader Bill Andersen was jailed for his union’s defying an injunction; the jailing sparked massive workers’ protests

by Don Franks

Striking.

Jacinda Ardern’s dead against it.

Today’s unions accept tight government constraints on it.

At some time in the future workers will recall this potent weapon, because it gets results. I wrote the history below when the previous Labour government was in power, our circumstances today remain essentially the same.

Strikes have brought workers suffering and death. They’ve also won money and righted wrongs. Striking involves risk, excitement and, dare I say it – (more…)

Being arrested for union organising, Minneapolis 1934

One of the most important battles fought by workers in the United States in the 1930s was waged by the Teamsters Union in Minneapolis.  Through a series of fights, Minneapolis was converted into a union town and the Teamsters were able to spread organising across the Mid-West.  At the heart of the working class struggle in Minneapolis were a group of teamsters who were union militants and Marxists.  One of the most prominent of these was Vincent Raymond Dunne (1889-1970).  Dunne later spent 16 months in jail for opposition to WW2.

Recently, long-time left-wing activist Howard Petrick, a former anti-Vietnam War GI, produced a play on Dunne and his life. 

by Barbara Gregorich

Howard Petrick’s one-man play, Fight for 52 Cents, is set in 1969, with Vincent Ray Dunne speaking to a meeting. With this as the framing device, Dunne tells his younger-generation audience about his life — the lessons he learned in helping lead the working class in its struggle for better living conditions and why he became a communist.

Howard Petrick as V.R. Dunne

As written and performed by Petrick, Fight for 52 Cents is a well-structured play that treats the audience to the story of Dunne’s life: what events were significant to him, and why; how these events helped shape him and allowed him to stand on a strong foundation.

Childhood experiences

The first event Dunne speaks about is that when he was five years old, his father, who was a street-car conductor in Kansas City, fell into a hole and broke both legs. Because of this accident, his father was not able to work. There was no such thing as workman’s compensation in 19th century United States. Dunne experienced this grave injustice first-hand: the five-year-old child saw that his father was injured and as a result the company he worked for dropped him from existence. The Dunne family was forced to (more…)

by Phil Duncan

Last Friday (December 1) all the staff at Rotorua Aquatics, which is owned by the local council, were presented with redundancy notices.

The Council wants to bring in an outside management company, and is preparing the ground for this with the redundancy notices.  The Rotorua Lakes Council is so high-handed that it didn’t even bother with the usual employer pretence of “consultation”.

The mayor involved in this assault on workers’ rights is Steve Chadwick, a former four-term Labour MP

Not surprisingly, the mayor involved in this attack on workers’ rights is a former Labour MP, Steve Chadwick.

The Council’s over-riding motive is clear – (more…)