
Neo-liberalism in action
Earlier, I posted a couple of rants about how I hated working at Target during the Christmas Sale 2 week period. There I railed against certain aspects of it which I thought were influenced by neo-liberalist economic ideology espoused by Uncle Sam.
During the last term of the Howard government, Australia came under intense attack from neo-liberalism. This happened when the Howard government gained rare control of both houses for the first time in decades after the 04 elections. As a result, Howard tried passing WorkChoices, a set of very neo-liberal industrial relations policies.
I believe that Howard’s rhetorics and expectations that WorkChoices would increase the flexibility for employees and employers to design their own contracts are incredibly naive and unrealistic. Already, Australia’s ’socialist tendencies’ are considerably less pronounced when compared to other developed countries such as France or Germany. Strikes aren’t frequent occurrences, and even when they happen, they are usually quite accommodating and those unions provide skeleton crews to continue to man vital posts. Militant unionism are only a tiny minority in the national union body, and they are repeatedly marginalised by both sides of politics (yes, by Labor too).
One of the key ideologies underlying WorkChoices is that it sidelines unions in the contract bargaining between employees and employers. The Liberals argued that employees and employers knows best what each want from each other, and trade unions are an unnecessary party in these deliberations. However, especially for blue-collared workers, their bargaining powers are considerably less compared to their employers. Hence coming together in the form of a union is the only way they can compensate for their power disparity in these bargaining rounds to protect their wages, benefits and working conditions. Without unions, employers will easily steamroll over the concerns of a single employee in those areas. Here, the adage ’strength in unity, death in disunity’ holds very true. The Lib’s introduction of the AWAs seeks to eliminate the influence of unions in those deliberations.
Right now, as a result of Howard’s 11 years of gradual neo-liberalisationism, the workplace of Australia is increasingly becoming more casualised. This means that many jobs are on a ‘we’ll call you when we need you’ basis. Although this might be a neo-liberalist’s wet dream, it isn’t as erotic for the working-class. The casualisation of the workplace has resulted in unpredictable shifts and hours of work for them. These workers would also be subjected to an unpredictable income flow.
I used to be a bit critical towards the Australian restriction imposed on businesses to operate only between 9-5pm. However, my recent experience has persuaded me towards that camp now. True, extending the operating hours for shops is beneficial to consumers. But till what end? There has to be a balance with this. The employees in those shops are humans too. They need time to socialise, to rest, and to enjoy life in general. To swing too much towards consumer convenience (as well as employer profitability) is unfair. Constantly getting the late shift is no fun, I can tell you that. It restrict one’s social life. Luckily, Australia still hasn’t gone full ‘Asian’ in this regard atm. Its adoption of a one day a week late night shopping is a good compromise, IMO.
WorkChoices also seeked to eliminate penalty rates and worker’s prerequisite conditions. These aims are just blatant transferences of power to employers and pandering towards its voting bases. Penalty rates are fine as they are, which if I’m not mistaken are 1.5x for Sunday and after 5pm shifts, and 2x for public holidays. These are traditionally rest days for most Aussies but it’s cool if businesses want to continue to earn more profits during these times. They just have to pay their workers more for trading in their rest days to slave away on those days. It was this issue that played a big part in the ACTU and Labor campaigns against WorkChoices in the 07 election, which ultimately contributed to their victory over the Liberals.
WorkChoices have also transferred minimum wage setting powers from the National Wage Cases at the Australian Industrial Relations Commission (AIRC) to the newly created Australian Fair Pay Commission. Again, this body is just another unashamed attempt by the Libs to exercise their neo-liberal ideologue and has almost nothing to do with necessity as the AIRC has performed its role well in the past. I am not a diehard supporter of the minimum wage. Instead, I am a supporter of proper welfare net for the disadvantaged in society. Hence I’m open to other methods of achieving this. John Lee and Rajan seem to be big supporters of the income tax credit method of achieving this. After perusing it for a bit, I don’t really see why it seems so enticing to them. Basically, this model just transfers the tax burden towards the poor from businesses to the government, which in extension to the public taxpayers. Plus the increased complexity of this method will surely increase the cost of administering it.
The problem I feel with neo-liberals and such is that they tend to view the workforce as merely another commodity, when it so isn’t the case. Workers can never just be viewed as something which which companies can obtain and discard subject to economic conditions, however enticing this idea may be to the neo-libs. This is because there are serious flow on effects with those actions that adversely affect workers. The welfare of families are at stake when a worker is sacked. Societal ills could then easily follow suit. Therefore, increased consideration before the sacking of workers is, IMO, essential.
Of all the WorkChoices aims, I can say that I only agree with one. This is the exemption of companies with fewer than 101 employees from unfair dismissal laws. I guess this is because I can’t stand over-whining spoilt lousy workers who tries to screw their bosses with large payouts and costly termination processes. So sue me.
One of the simplest reasons why I’m not a supporter of neo-liberalism is the same reason why I’m not a supporter of communism: The examples of countries where they’re implemented leaves a lot to be desired. The USA is undoubtedly the champion of neo-liberalism. There, unions are castrated. Big businesses flourish. Minimum wage is peanuts.
And the results of all that? The emergence of the ‘working poor-class’, people who hold 2 or 3 minimum wage jobs (hooray, employment flexibility!). Ummn, doesn’t that kinda give us a clue as to how accurate their ‘minimum wage’ definition is?? A society where there exist a big and growing income disparity among its people. Where big corporations have undoubtedly demonstrated that they are incapable of ’self-regulation’, putting the neo-liberal’s beliefs of this to shreds. True, the USA is still the no. 1 economic power in the world, but what’s the point of that if the majority of its people don’t get a decent piece of the pie?
The mere fact that there are 3 major US presidential candidates on both sides of politics: Edwards and Obama for the Dems and Huckabee for the Reps, which based their campaign platforms on championing the interests of the ‘little guys’ says a lot about the very unequal wealth distribution in that country.
I take a look at the Human Development Index (HDI) ranking and what do I see? The top 10 countries consist of 5 strongly social democratic countries: Iceland, Norway, Sweden, Switzerland and France, with the rest consisting of countries with nominal social democratic traditions: Australia, Canada, Netherlands, Ireland and Japan (strong government intervention and partnership policies).
And where’s the great proponent of neo-liberalism on this list? The largest and strongest economy in the world is merely at no. 12. Unimpressive.
And therein lies the greatest flaw in neo-liberalism: Too much emphasis on profit generation at all cost and not near enough effort on wealth redistribution. This results in the formation of a ’super-rich’ class which merely reinvest their considerable wealth as capital to further accumulate more wealth, generating an impenetrable and under-taxed ‘wealth cycle’. The middle-class there have little chance of breaking into this ‘financial heaven’ due to insufficient income accumulation, while the working-class have nothing to look forward to except further exploitation of their labour in return for pitiful wages. Factor in the extra ‘barriers’ that the rich class have constructed to perpetuate their position in society: private schools, private healthcare services, exclusive suburbs, costly university fees, and you have a society that’s clearly divided into 2 (like what Edward has pickup up on in his ‘Two Americas” speech).
So do we really want to live in a society like this? My answer to this is a big, resounding “NO, THANK YOU“. I’ll take my $12/hour minimum wage, welfare safety net, union-involved social democratic country any day instead, thanks.