I was listening to a debate on 640AM Toronto radio the other day between financial guy and Mr. Happy Capitalism, Lou Schizas, and Ken Lewenza, the head of the Canadian Auto Workers union. They carried on the usual boring debate - Lou said Canadian unionized wages are low because that's all the market will bear and Ken said that it was unfair that CEO salaries are so high relative to the rank and file worker. Back and forth they went, without addressing what in my mind is the real issue.
As I see it, the 1% vs 99% debate comes down to simple economics. The high paying middle income jobs have been exported to lower wage countries (the 99%), while the scarcer and more skilled jobs remain in North America and earn substantial salaries (the 1%). It occurred to me that the North American labour movement is misdirecting their attention. Rather than focusing on the 1% while more and more of their jobs are leaving the country, the unions, and environmentalists and human rights advocates for that matter, should be working towards higher wages, improved labour conditions and basic human rights in the countries where the middle income North American jobs are going.
The unions, environmentalists and human rights advocates are busy attacking what's left of the North American economy, while China, India and the other BRIC countries grow at close to 10%. China and India are not part of the Kyoto process. In China workers have little in the way of human rights. So while the disgruntled workers and their leadership occupied most major North American cities in 2011, jobs continued to go to lower cost markets.
So, what's to be done, if fighting over the remaining scraps of the North American economy is not the answer?
I think that its time for the North American union movement to move on and grow up. Unionized workers in North America have the best working conditions in the world. What they don't have is demand for their labour skills because they can't compete globally at current wage demands.
The North American labour unions should take the fight to the real enemy - low paying labour in the developing world. Its time for the unions to organize and speak out on behalf of the workers who are taking their North American brethren's jobs. Rather than fighting over whether the CEO gets paid to much, why not fight for improved wages, labour conditions and human rights in the developing world. Imagine if Chinese factories had to meet the labour red tape that exists in North America. Imagine if Chinese factories had to meet the same environmental protection legislation that exists in North America. Imagine if workers in developing countries had basic human rights - such as freedom of speech and the right to vote. Their labour costs would rise and their competitive advantage would evaporate.
It is high time that the labour movement realize that they are fighting the wrong enemy. Their North American employers have nothing more to give if they are now fighting over whether their boss is being paid too much. They are rearranging the deck chairs on the Titanic, while their jobs continue to flow out of the country. Its time that the union leadership earn its pay and lead a global fight for fair wages, working conditions and human rights. The ultimate beneficiaries will be the North American worker, who will no longer have to compete with one hand tied behind their backs.
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2 comments:
Interesting perspective, the problem is that if wages were the same in countries like China and India naturally the cost of goods to the consumer would be substantially higher. The effect of that would be decreased consumer demand resulting in less employment for the 99%.
Robert: That's true. However, higher wages in the developing world would mean higher wages here, with the result that consumers would be able to afford the higher priced goods. Its morally wrong to taken advantage of low prices if they are on the backs of foreign workers.
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