Skip to main content

Trade Unions and the Phenomenon of Globalization


Trade Unions and the Phenomenon of Globalization[1]

By 

 

Femi Aborisade

The Polytechnic, Ibadan


 

Paper Outline

This paper is structured as follows:

  • Understanding Globalization
  • Periodisation of Capitalist Development and Expansion, and the Mode of Surplus Transfer from the Periphery to the Core
  • Monocropping and Monotasking in Globalisation
  • From Capital Valorization to Capital Decomposition and Accumulation by Dispossession
    • Privatisation as a solution to declining profitability
    • Monopoly as a likely solution to declining profitability
    • Trade liberalization as a likely solution to declining profitability
    • Removal of subsidies as a likely solution to declining profitability
    • Commodification as a likely solution to declining profitability
    • Commercialization as a step towards privatization
    • Contracting out/outsourcing
    • Public-Private Partnerships as a form of privatization
    • State stoppage of providing goods or services
    • Intense Exploitation as a likely solution to declining profitability
    • Monstrous violence against the working class in defense of profit
    • Under Globalization: Rule of law is rule of capital, in defense of profit
    • Some implications of globalization on the private sector
    • Opposition to unionization, in defense of profit
  • PROPOSED POLICIES TO DEAL WITH THE THREATS AND NEGATIVE EFFECTS OF GLOBALIZATION: Action Programme
    • The role of the state
    • Employment security
    • Increased investment in education and health
    • Basic incomes and commodities
    • Improved capacity of the state to manage the economy
    • Workers’ and Civil Society Power
  • Conclusion

Understanding Globalization

Conceptualizing appropriate alternatives to globalization requires an understanding of globalization and its essence. Yet, the term ‘globalization’ is a highly controversial and contested concept. There is no universal consensus on its conceptual meaning. There are controversies, not only in defining the term but also in explaining its significance because whether the individual accepts it or not, each definition is informed by a given theoretical paradigm, a given historical context, certain normative perspectives, defined ideals and specific political interests. It is the contention in this paper that globalization represents the contemporary mode of exploitation of the working class.  In other words, it represents the contemporary capitalist surplus accumulation mode, which is dominant to a greater or lesser extent across the world, depending primarily on the degree to which the working class has been defeated locally.

 

Capitalist commodity production regularly takes place in an arena that is structured by power relations between states internationally (Wallerstein, 1979). However, the dominant arena is the class struggle and the extent to which the working class has been fundamentally (but not permanently) defeated – as in the US and the UK. In other words, the exploitation of the working class by the capitalists, international and national, is a necessary condition for the reproduction of world capitalism.

 

Hoogvelt (1997:15) explains that the coordination of the capitalist system neither takes place in a spontaneous nor peaceful manner, which deals fairly to all players:

‘At all times, and at all levels, the ‘invisible hand’ is guided and steered by politics and power, and that it always, and indeed cumulatively so, ends up in concentration of wealth and prosperity for some people in some places, while causing abject misery, poverty and appalling subjugation for a majority of people in most other places. (Hoogvelt, 1997:15)

Historically, the first capitalist countries, called the ‘core’ states, which gained historical upper hand, protected and assisted, with gunboat diplomacy and other forms of political coercion, their own capitalists in imposing world market relations in the periphery and shaping these to their own advantage. However, by no shred of imagination is it implied that workers in the core capitalist nations are partakers in the exploitation of the periphery countries. It is important notwithstanding to appreciate that globalization seeks to restructure the world economy, including national economies, in the interest of international capital. From this perspective, globalization is viewed as a dynamic that is bound up with the pattern of European (and increasingly US (in the 20th century) and Chinese (now) - capitalist development, which demands with threats of sanctions that:

 

…every set of social arrangements must establish its position in relation to the capitalist West… it must relativize itself.  It must be said that in increasing sectors of the World this relativization process involves a positive preference for Western and capitalist possibilities (Waters, 1995: 3-4).

 

But then, what is accumulation model?  ‘Accumulation’ refers to the valorization nature or self-expanding value of capital.  Accumulation model therefore refers to the dominant way in which capitalists in the leading branches of economic activity make their profits (Hoogvelt, 1997:45).  It also refers to the particular type of leading innovation or invention, which is introduced in one industry first before spreading to the rest.  (Amin, 1975). Profit-making and profit maximization are the key concerns in any accumulation model - profit being the primary goal, the defining criterion or characteristic of capitalist production system. It is therefore imperative to present a sketch of the previous accumulation models (in the history of world capitalism) up till the present.

The periodisation below is related to Nigeria as a typical African country, based on a modification of periodisation of the history of core-periphery relationship presented by Hoogvelt (1997:17).

PERIODISATION OF CAPITALIST DEVELOPMENT AND EXPANSION, AND THE MODE OF SURPLUS TRANSFER FROM THE PERIPHERY TO THE CORE

Date
Historical Phase
CORE-PERIPHERY RELATIONSHIP
1500-1800
Mercantile Pre-competitive Phase
Transfer of economic surplus through looting, plundering disguised as trade, and direct slave trade.
1800-1960
Colonial Phase
Transfer of economic surplus through resource-bondage, characterized by unequal terms of trade inherent in the imposed international division of labour.
1960-1977
Early post-colonial phase
Transfer of economic surplus through unequal terms of trade and technological rents.
1977-1985
Late post-colonial or the crisis phase
Transfer of economic surplus through debt-peonage.
 
1986 - ???
Globalization Phase
Economic debt-equity swap, liberalization and privatization policies – the age of unprecedented immiserization of the people.

 

As indicated above, profit-making and maximization are the key concerns of capitalist production system. Globalisation should therefore be seen as a term that captures the latest form in which capitalist multinational corporations, capitalist governments and the international supranational organizations (political, economic and financial) which are controlled by them seek to restructure the whole global economy in order to facilitate outright looting of resources and extraction of profit from the labour power of the working class.

Globalisation means global spread of brutal exploitation, primitive accumulation and immiserisation of the working class on a scale never before experienced in history. From the standpoint of looking at capitalism purely as an exploitative system, the definition of imperialism offered by Lenin fits the definition of globalization – ‘a special stage in the development of capitalism’, ‘the highest stage’ or ‘the latest stage’ so far of capitalism. From the point of view of the former colonial world, Alex Callinicos (1994) conceptualization of imperialism equally fits globalization – continuation of the domination, throughout history of industrially weak countries by stronger states or as the latest policy pursued by the Great powers in formally subordinating most of the rest of the world to their rule. 

 

 

Monocropping and Monotasking in Globalisation

Thandika Mkandawire’s (2007:7) monocropping and monotasking, which characterize the World Bank/IMF policy framework for African States, can be used in explaining the essence of globalization. Monocropping has to do with the perception that there is only one optimum toward which all countries must move and only one policy is good enough to attain that end. In this regard, the idea of promoting the private sector as a policy is central to economic globalization. Monotasking is concerned with assignment of only one task to institutions. In this aspect, all institutions are assigned the task of encouraging or attracting (mainly) foreign investments, reinforcing property rights, promoting competition – virtually everything has to be harnessed to the task of safeguarding private property. Even the judiciary is assigned the task of protecting private property.

 

FROM CAPITAL VALORIZATION TO CAPITAL DECOMPOSITION AND ACCUMULATION BY DISPOSSESSION

Whereas profit-making under capitalism should arise from the self-expansion of capital through investment and re-investment, engendering increased employment, today, capital decomposes bringing in its wake, mass unemployment (as it did in the 1930s and to a lesser extent in the early 1980s). Karl Marx’s description of the manner in which capital penetrates the globe in search of profit is aptly applicable to what is termed ‘globalization’. To understand globalisation from the point of view of the world’s labouring masses is to see it in the context of the several methods adopted to ‘drive beyond every spatial barrier to conquer the world for its market and profit’. Some of the primitive methods of wealth accumulation, which are adopted in the age of globalization with a view to attempting to solve the profit crisis are highlighted below. But at the level of ideas, they are not new. Neoliberalism was a minority view eg of the Chicago school of economics in the 1960s.  The defeat of the working class in Chile allowed them the first opportunity to try out their ideas in practice with mass privatization including of the state pension scheme.

Privatisation as a Solution to Declining Profit

The most historic face of globalization is the universal implementation of privatization policy as a globalized product. In this case, it is simply looting. In majority of the cases, as made clear in an analysis of official reports by the privatization agency, the Bureau of Public Enterprises (BPE), many of the purportedly sold enterprises have not been paid for. (Aborisade, 2006). In other cases where payments might have been made, the enterprises were sold at ridiculously low prices. For those of them who do not close down production of goods and services after purchase of public enterprises, privatization means that while the new capitalist owners spend little or nothing on fixed capital, land, buildings, and machinery, they are in a position to earn super profit.

 

Privatization is one of the elements of what David Harvey calls ‘accumulation by dispossession’. (Harvey, 2005:159). It is a form of ‘primitive accumulation’ – not based upon free and fair market exchange or capital-labour relations, which creates valorization of capital but rather extra-economic coercion - which remains one of the market economy’s persistent and permanent tactics (Perelman, 2000). 

Monopoly as a Likely Solution to Declining Profitability

Entrenchment of private monopolies is another way by which globalization seeks to solve the problem of declining profit. There is the goal of replacing public monopolies with private monopolies in critical sectors of the economy. The private monopolies charge more or less the same rates and conspiratorially avoid competition that may drive any of them out of the market. In that way, they make super profits in the process of ripping off consumers and earning the wealth which should have been earned by public enterprises for the common good.

Trade Liberalization as a Likely Solution to Falling Profitability

Trade liberalization is another way by which the industrially strong economies compel the opening up of the industrially weak ones. They want to be able to have free, unhindered access to inputs (in the form of primary raw materials) cheaply and return outputs such as manufactured goods. Having compelled and conspired with their agents who control political power in the periphery countries to adopt liberalization policy, many multinationals engage in the manufacturing of ‘goods for export’, which are below the standard of those consumed in the North.

Jonathan Neale (2002: 207-208) shows for example, how the bulk of the 300-page North American Free Trade Agreement (NAFTA) is ‘devoted to exceptions, mostly so that parts of US capitalism don’t have to compete’.

Removal of Subsidies as a Solution to Falling Profitability

Another way by which pro-globalisation forces seek to solve the profit crisis is to ask governments in the periphery capitalist states to remove subsidies on strategic goods and services and raise their prices so that investors in those areas of the economy may make more profit. A good example is the perennial increases on the prices of petroleum products in the domestic market in Nigeria based on encouraging the private sector to invest in private refineries and/or buy existing public ones. While subsidies are discouraged in the periphery capitalist states, the core capitalist states retain them. For example, the UK spends $7billion annually on supporting agriculture, though lower than what obtains in Europe, US and Japan. The entire industrial world put together spend $1bn a day as agricultural subsidy.

 

Indeed, there is a contradictory development in which pro-privatization forces in Nigeria who argue against subsidies for public enterprises influence the making of laws that compel the state to give subsidies to privatized enterprises to provide strategic goods or services. For example, the Power Reform Act provides that private suppliers of electricity who may buy the state-owned electricity agency are to be subsidized to supply certain categories of poor people. In other words, antagonists of subsidies want to be beneficiaries of subsidies.

 

Commodification as a Solution to falling Profitability

For the sake of profit from any source and regardless of effects on human lives, globalization also represents the stage of rabid commodification of all aspects of life, including recreational facilities and social services generally.

 

By commodification, we mean a situation in which everything is reduced to a product to be sold and bought for profit.  Capitalist investors put pressure on the state to privatize sectors of the economy, such as hospitals, schools, and so on, where they may not have to make much capital investment before they begin to reap profit from existing facilities. Their concern is money and profit. That access to strategic goods and services is a fundamental right is not a consideration in the age of globalization. Commodification of every aspect of life is now the rule.

 

Commercialization. Under commercialization, the objective of public parastatals changes to having to make a profit like a private business. Hence, subsidies are often removed or reduced from certain categories of public enterprises not yet sold so that economic prices may be charged in the name of commercialization. Charges are either introduced or increased on the goods or services being produced. Commercialization has the likelihood of poor people not being able to access social services such as hospitals, schools or being unable to meet basic bills as a result of soaring cost of living. Commercialization is often an initial step to full privatization. Removal or reduction of subsidies is often used to undermine the capacity of public enterprises, as a prelude to rationalizing commercialization or privatization to frustrated consumers.

 

Contracting out/Outsourcing

Contracting out or outsourcing is a situation in which a particular service or good that had previously been provided by the state is handed over to a private company. This may also involve management contracts in which the management of an enterprise is contracted out to a private company while whatever is declared as profit is shared between the state and the management contractors. In the context of contracting leasing, the enterprise is to be run purely on commercial or profit basis; the concern is not provision of the good or service based on need. Private companies also engage in outsourcing when operations considered non-core are awarded to contractors who then employ labour either on casual or contract basis. Contracting out or outsourcing has the implication of cutting costs, particularly on the long run, because, the employer will not have responsibility for retirement benefits, including pension.

 

 

 

Public-Private Partnerships (PPPs) or Joint Ventures

PPP refers to joint funding or management of an enterprise by the state and the private sector. Though such partnerships take various forms, in all of them, the preoccupation of the private partners is to make or maximize profit. Joint venture projects are a common feature in many sectors of the economy under globalization. It also, like contracting out/outsourcing, has the implication for cost-cutting as the state frees itself from the responsibility for employing those working in the joint ventures and paying pensions, and so on. Those working in the joint ventures are thus left to the whims and caprices of the private employers who tend to fix pay and conditions of service arbitrarily as opposed to adopting the framework of collective bargaining.

Stoppage of Goods or Services Provisioning

Another form of privatization is when the state stops providing a service or good in expectation that the private sector will exploit the opportunity or fill the vacuum. The failure of the state to provide sound social services such as housing, health care, water, education, transportation, and so, or their epileptic supply is a form of privatization because it is often done deliberately in order to encourage, facilitate or justify private sector participation. Thus, in the context of Nigeria, the rulers who swore to uphold the Constitution which mandates the state to provide free education, from cradle to grave, according to section 18 of the Constitution, are now owners of private schools, from nursery to university levels.

 

Intense Exploitation as a solution to Declining profits

 Intense exploitation is another way by which globalization seeks to solve the problem of declining profitability. This consists of:

 

  • Setting high targets for Managers and other categories of staff in the banking industry, accompanied with the constant threat of sack, which result in extreme stress for staff. At a stage, the bank unions castigated the practice of banks distributing condoms to newly employed young female graduates with a view to protecting them from STDs while sleeping with male Business Executives in the search for deposits. One female Branch Manager once told this author that she could never encourage any of her children to work in the banking industry, on account of degree of stress in the industry.
  • Increased working hours and payment of more or less the same rate of remuneration.
  • Spending less on safety thus making work environment more hazardous
  • Mass lay-offs and re-employment of a portion of those laid off on casual, temporary or contract basis, with all the attendant negative implications on job security
  • Opposition to unionization and promotion of deunionisation

 

Monstrous Violence against the Working Class as a Ruling Class Solution to falling Profitability

One hallmark of capitalism in the phase of globalization is the strengthening of the apparatus of coercion. With all the frenzied call for privatization, there has been no call for privatization of the state and particularly the security arms. As John Rees (2001:6) puts it,

Internationally, the state remains indispensable in underpinning the activities of multinationals. There are no proposals, even from the most hysterical free marketers, to return to the infancy of the capitalist system, when ….corporations like the East India Company would employ their own troops. Armed action or the threat of armed action by the state remains the last resort for every capitalist corporation whose markets or production facilities are endangered by international rivals, be they states, other corporations or restive foreign populations unconvinced of the virtues of the free market’

 

Thus, the US government, representing the interests of the US corporations, declares that force will be adopted to enforce the market system world-wide:

The lessons of history are clear: market economies, not command-and-control economies with heavy hand of government are the best ways to promote prosperity and reduce poverty. Policies that further strengthen market incentives and market institutions are relevant for all economies (US National Security Strategy, 2002)

 

But in case of resistance or reluctance to adopt pro-business policies anywhere in the world, then force will be used:

While the United States will constantly strive to enlist the support of the international community, we will not hesitate to act alone. It is time to re-affirm the essential role of American military strength. We must build and maintain our defenses beyond challenge (US National Security Strategy, 2002)

 

The monstrous military face of globalisation declared by the US government is also being demonstrated in Nigeria. Hence, the then Lagos State Commissioner of police, Young Arabamen, told the panel of the Nigerian Senate Committee on Petroleum Resources investigating the killings of protesters by the police during a nationwide strike against increases in the prices of petroleum products that ‘… we have legal right to kill…’. He went further:

 

We were very prudent and humane about the management of the crisis because if we relied on the law, we would be justified to have done otherwise; but for the uniqueness of that strike. We have legal right to kill and we chose not to exercise our right’

(Nigerian Tribune, 24 July 2003:3).

 

It should be recalled that not less than 28 persons were killed during the said strike. The casualty would have been more if the police were to have exercised their right!

 

The point therefore is that the traditional role of the state to repress the poor strata of the society who do not own property in protecting the barefaced profit interest is strengthened unabashedly under globalization.  For, it is admitted that the ‘legal right’ of security agents to kill is not a creation of ‘globalisation’, that tendency is only strengthened. The 1999 Constitution of Nigeria provides exceptional circumstances when the fundamental right to life may be violated. One of the exceptional circumstances is in the course of suppression of riot:

 

‘A person shall not be regarded as having been deprived of his life in contravention of this section if he dies as a result of the use, to such extent and in such circumstances as are permitted by law, of such force as is reasonably necessary –

(c ) ‘for the purpose of suppressing a riot’

(Section 33 (2) (c)

 

Under Globalisation: Rule of Law is Rule of Capital, in Defense of Profit

Under globalization, the myth surrounding rule of law is formally removed and rule of law is openly and formally declared as rule of capital. As Mkandawire (2007:9) points out, monotasking has sought to reduce the functions of the judiciary to the task of protecting private property. According to a World Bank lawyer, judicial reform is part of a larger effort to make the legal systems in developing countries and transition economies more market friendly. (Messick, 1999:118, cited in Mkandawire, 2007:9).

 

One of the ways by which the policy of privatization is imposed on society by force is the control of the judiciary to dispense ‘justice’ from the standpoint of capital.  To ensure that the Nigerian judiciary plays a role supportive of successfully imposing privatization policy, the World Bank and the Nigerian privatization agency had to organize a training programme for the judiciary. One of the stated goals of the training programme was ‘to put the courts in a better position to handle cases connected to the privatization programme and to handle such matters in a speedy and efficient manner’ (BPE, Annual Report, June 2000 – June 2001:42). In a paper, the then Chief Justice of Nigeria, Justice Uwais, declared:

One crucial and important role of the Judiciary in the privatization programme is to ensure that the programme has credibility…the most significant role of the Judiciary in the privatization programme is in the readiness and preparedness of the Judiciary to provide effective protection of law to investors, speedily and efficiently. Any suspicion that the judicial system will be incapable or unwilling to give such protection is fatal to any privatization programme, particularly where the enterprise concerned demands huge injections of investments (Uwais, 2000:14)

 

There is no pretension, under globalization, that the judiciary is a class judiciary, to protect primitive accumulation by dispossession. This, in spite of the fact that the Constitution, which the judiciary should interpret and defend unequivocally provides against privatization:

The State shall direct its policy towards ensuring –

 

(a) that the economic system is not operated in such manner as to permit the concentration of wealth or means of production and exchange in the hands of individuals or of a group

(1999 Constitution of the Federal Republic of Nigeria, Section 16(2)(c )

 

Some Implications of Globalisation Policy on the Private Sector

The neoliberal globalization policy does not just affect the public sector. It has implications for the private sector as well. For example, the Association of Food, Beverage and Tobacco Employers (AFBTE) laments that ‘liberalising importation of finished products into Nigeria has meant a death knell for many companies and remains a serious threat to the industry’ (AFBTE, 2006 Report: 8).

With a view to achieving profit expansion, a new approach to organizing production is being promoted and implemented. This is referred to as Lean production or Workplace restructuring. Emphasis is placed on labour market flexibility, meaning that employers should be allowed to exercise management prerogatives in terms of not being required to strictly observe laws that are in favour of the working class such that standards and conditions (wages, working hours, and so on) are allowed to be varied from enterprise to enterprise and sector to sector. The neoliberal perspective has brought such concepts and practices as down-sizing, right-sizing or rationalization. In the context of such stressful circumstances, demands are placed on employees to be more internationally competitive, being able to do new or different jobs, often referred to as multi-skilling.

 

The overall implication of the foregoing is additional pressure on the workers to produce more goods within the same or shorter timeframe based on reduced workforce and less budget. The concern is to restrain the rights of the working class and reduce the responsibility of the employer to the worker so as to provide an avenue for profit expansion. This is the reasoning behind the new pension reform, for example. A reading of the 2006 (Annual) Report of the Association of Food, Beverage and Tobacco Employers (AFBTE) strikingly reveals the focus of the employing class, as far as pension and gratuity are concerned. The focus is to reduce the ‘financial liability of companies’ and ‘arrest the spiraling growth of the liability of employers and make the scheme sustainable and realizable’ (AFBTE 2006 Report: 48). Hence, instead of employers being required to ‘Pay As You Go’, there is a change in perspective that employees are to ‘Keep As You Go’, as far as pension schemes are concerned.

 

Opposition to Unionization

In the interest of keeping down wage bills and maximizing profit, there is a mounting hostility to unionization, under globalization. The rule in the privatized enterprises tends to be ban on trade union membership and activity. In new tertiary institutions of learning being set up, unions as well as strikes are purportedly outlawed. For example, Governor Olagunsoye Oyinlola of Osun State in his inaugural speech at the take off of the Osun State University,  outlawed strikes and by extension, unions. (Saturday Sun, 22 September 2007:11).

 

PROPOSED POLICIES TO DEAL WITH THE THREATS AND NEGATIVE EFFECTS OF GLOBALIZATION: Action Programme

The Role of the State

First, there is a need to understand that the crisis of globalization, as reflected in the downside effects, is a reflection of a monumental contradiction between private ownership and the vast opportunities for wealth creation on a world scale. The International Labour Organization (ILO) has estimated that only about 2 per cent of the world GDP committed to social good would abolish poverty on the face of the earth. What stands in the way of allocating a mere 2 per cent of the world GDP is the priority given to the protection of the greed of a few for profit rather than the need of the overwhelming majority. The lack of concern for the welfare of ordinary people is also shown graphically with the UN Council meeting which admitted that MDGs would not be met in Africa.  It needs $70billion compared to $700billion that Bush wants to give to the US bankers. Also, the occupation of Iraq is expected to cost more than $1,000 billion. In spite of pervasive poverty in Nigeria, Nigeria has foreign reserves of over $63 billion, idling away in the US, rather than being committed to developmental needs and material poverty.

The foregoing shows that the economic system based on private ownership cannot take the world forward.  There is a need to eliminate the chaos and antagonism among individual capital owners, nations, international and regional economic groupings.  This is possible only if production is organized to meet the needs of the whole world populations, rather than for the greed of a few for profit. To this extent, the state, not the private sector, must be seen as the engine of economic growth. The epochal unprecedented development in the world today is the conspiracy to hijack the state from even serving minimally the interests of the ordinary people to serving just the interest of big business, the interest of profit.

 

Arising from the above arguments, the basic needs listed below should be recognized as fundamental rights. Advocacy built around them could help to encourage the self activity of the labouring masses, ensure real economic development and a major reduction in the all pervasive globalisation-induced poverty currently found in many less developed countries.

Employment Security

Trade unions should consider adopting the following policies:

  • Employers must be compelled to open the books for inspection by workers and their representatives, though unions must also engage in independent research on the companies, their income and expenditure profile.
  • Employers, the state and the private sector, should be made to link the state of the economy to levels of employment by adopting the policy of increased appointments based on higher productivity and profits.
  • A campaign for reduced number of working hours should be undertaken at the level of central labour organizations so that more of the unemployed hands can have opportunity for employment on the basis of increased leisure time for workers.
  • Making it more costly to retrench than to retain workers on their jobs could discourage arbitrary layoffs. This is achievable by campaigning for enhanced terminal benefits and higher pension liability on the part of the employer.

 

Increased investment in education and health:

  • Free education at all levels, including books, subsidized meals and hostel accommodation in tertiary institutions
  • Free health, including medicines
  • Free anti-retroviral (ARV) medicines to fight HIV/AIDS
  • Free water (at least 50 litres per person per day)

 

Basic income and commodities

  • A basic income grant – a realistic, minimum living wage, pension or unemployment benefit.
  • Stabilisation of basic food prices relative to minimum wages or wage indexation – wages rising as inflation rises
  • Free electricity up to a prescribed minimum limit per person per day
  • Subsidized public housing and opposition to sale of government housing units and evictions

  • Re-introduction of agricultural marketing boards (providing interest free credit to farmers and stable prices for their produce)
  • The right of all workers to join and organise effectively in trade unions

 

 

Improved Capacity of the State to Manage the Economy:

  • An end to privatisation and commercialisation of parastatals and other government bodies; no more outsourcing or public private partnerships (PPPs)
  • Establishment of Public-Public Partnerships, nationally and internationally, involving collaboration between public agencies.
  • An end to retrenchments in all government departments and parastatals.
  • Nationalisation, without compensation, of all major companies that have been privatised; confiscation of all wealth acquired through corruption by public officers.
  • A ban on all public officials patronizing private education and health services; all public officials, their families and relatives to use public utilities.

 

Workers’ and Civil Society Power

The workers of Argentina have taught the world working classes and the independent civil societies of what needs to be done in the face of protracted crises of the inability of the ruling classes to manage society and guarantee basic needs. Under the heat of pervasive factory closures, particularly around 2001 when there was an economic meltdown and social explosion, the option of factory occupation, workers’ take over and management of enterprises compellingly became a necessity. This was of course made possible with the active, unwavering and constant support of the communities. This perhaps points to the future alternative to globalization as globalization-induced crises bite harder in the coming period.  Earlier, Workers of the Lucas Aerospace, a company heavily involved in arms production had shown how trade unions should be prepared to put forward alternative plans in the face of crises in the economy and society, rather than just being restricted to wage issues or payment of terminal benefits when jobs are taken. As Wainwright & Elliot (1982:1) put it, trade union shop stewards in Lucas Aerospace - 

 

‘drew up a detailed plan for socially useful products and new forms of employees development. They put forward the plan as an alternative to redundancy and to arms production. In doing so, they demonstrated in a most practical way how people without any official power might reverse both the drive towards militarism and the growth of unemployment’.

The comments of a British worker provide justification for the above measures:

There is talk of crisis wherever you turn. I think we have to stand back from that crisis for a few moments and see where we are in relation to it. For it is the present economy that has a crisis. We don’t. We’re just as skilled as we were; miners can still dig coal, bricklayers build houses, and we can still design and produce things’ – Mike Cookey, a British engineer in Lucas Aerospace, an arms producing company.

(Cited in Wainwright and Elliot, 1982: 7).

 

Conclusion

The challenges of globalization to the working class are numerous as they are enormous. However, the negative consequences of globalization cannot be reversed without the conscious self-activity of the working people to resist attacks on their rights and strive to change the world in their interest. As a scholar activist, Went (2000), has aptly put it, the critical challenge is a realization that action by living, breathing social forces can transform even the most seemingly inextricable economic and political situation. The ultimate challenge is that the working class works out what Bond (2007:1) calls strategic resistance – organizing industrially and politically, locally, nationally, regionally and globally to change a world based on the principles of globalization, where the riches of the world are monopolized by a few. Another world, where the riches of the world are shared by all, is not only possible; it is indeed, a necessity. But the attainment of this change is conditioned on the continued self activity of the poor and the dispossessed. That fighting to defeat globalization and all its attendant negative consequences is attainable can be seen in the reversal of the sale of unity schools (Federal Government owned secondary schools) and the establishment of committees, which include labour representatives to review sale of some key public enterprises, including the refineries. (See for example, Saturday Sun, 22 September 2007: 11). Similarly, for over five years now, the price of petrol per litre has not been raised – thanks to mass resistance!

 

 

References

Association of Food, Beverage and Tobacco Employers. (2006).Annual Report, 2006.

Bond, P. (2007). Volatile Capitalism and Global Poverty. Paper presented to the SANPAD Poverty Challenge Conference, June.

Harvey, D. (2003). ‘The “New” Imperialism: On Spatio-temporal Fixes and Accumulation By Dispossession,’ in L. Panitch and C. Leys (eds). The New Imperial Challenge: Socialist Register 2004. London: Merlin Press and New York: Monthly Review Press

Harvey, D. (2005) A Brief History of Neoliberalism, New York: Oxford.

Messick, R. E. (1999). ‘Judicial Reform and Economic Development: A Survey of the Issues.’ The World Bank Research Observer, 14:1, pp. 117-136.

Mkandawire, T. (2007). ‘Institutional Monocropping and Monotasking in Africa.’ Paper presented at the Guy Mhone Conference on Public Sector Reforms in Africa organized by CODESRIA in Zomba, Malawi, 22 – 24 August 2007.

Wainwright, H. & Elliot, D. (1982). The Lucas Plan: A New Trade Unionism in the Making? London: Allison and Busby Limited.

Waters, M.  (1995). ‘Globalization’  London: Routledge.

Went, R. (2000). Globalization: Neoliberal Challenge, Radical Responses. London: Pluto Press with IIRE.

 

 



[1] Paper presented at the Workshop organized by the Food, Beverage and Tobacco Senior Staff Association (FOBTOB) on Friday, 21st to Saturday, 22nd May 2010  at Eastgate Hotel, Plot C11, Ugwu-Orji, Okigwe Road, Owerri, Imo State.

Comments

Popular posts from this blog

THE IMPERATIVES OF JUSTICIABILITY OF SOCIO-ECONOMIC RIGHTS IN NIGERIA: AN ANALYSIS OF CHAPTER II OF THE 1999 CONSTITUTION AND JUDICIAL ATTITUDES

  Outline The following outline has been adopted in discussing this topic: ·          Introduction ·          What are the provisions of Chapter II of the Constitution of the Federal Republic of Nigeria (CFRN ) 1999? ·          The essence of the Chapter II provisions ·          Two Schools of Thought on Chapter II ·          The non-justiciability constitutional provision ·          The pro-justiciability provisions o    The constitutional pro-justiciability provisions o    Statutory pro-justiciability provisions: The African Charter on

GRATUITY AND RETIREMENT BENEFITS AND THE PENSION REFORM ACT 2004

Femi Aborisade Senior Principal Lecturer Department of Business Administration & Management Studies The Polytechnic, Ibadan & Centre for Labour Studies (CLS) Email: aborisadefemi@yahoo.com   Introduction Internationally, pension reform has been a common feature of public sector financial reforms since the 1990s. According to the OECD (2007), in Europe , the reforms have led to increased retirement age but a reduction in terminal benefits. Similar reforms have been embarked upon in the developing countries resulting in throwing poorer segments of the society into harsher economic conditions as responsibilities for old age care are transferred from the state to the individuals. Within the context of pension reforms on a global scale, this paper critically examines Nigeria ’s Pension Reform Act 2004. Though the particular interest of this workshop appears limited to provisions relating to gratuity under the Act, it is assumed that participants wo...

ON CREATION AND/OR RECOVERY OF GRAZING RESERVES BY THE FEDERAL GOVERNMENT

There is no justifiable legal basis for the project of the Federal Government to recover or create grazing reserves across NIGERIA. That project can only be attained by military violence against unarmed people. It is therefore a declaration of avoidable war against the peaceful Nigerian people. It would create and fan embers of mutual ethnic hatred, conflict and avoidable bloodshed. I call on ordinary people to reject and resist the grazing reserves project of the Federal Government. All 36 state Governors, nationally and regionally, have resolved that open grazing is unsustainable. It causes avoidable bloody clashes between herders and farmers. Rather, ranching should be embraced. I do not see how the Federal Government can achieve it's project of creating or recovering grazing preserves across Nigeria.  Firstly, the Grazing Reserves Act of 1964 was limited to the Northern Region; it was not applicable to the other regions. Secondly, section 1 of the Land Use Act vests land owners...