Work and Unemployment as Social Issues Harley D. Dickenson Group Members: Joe, Jun (Benny), Stephanie, Justin.

Work and Unemployment as Social Work and Unemployment as Social IssuesIssues

Harley D. DickensonHarley D. Dickenson

Group Members:Group Members:

Joe, Jun (Benny), Stephanie, Joe, Jun (Benny), Stephanie, JustinJustin

Main ArgumentMain Argument

““Unemployment is Unemployment is appropriatelyappropriately understood as a understood as a social issuesocial issue – – and not just as a and not just as a personal personal problemproblem””

Let’s examine this further…Let’s examine this further…

Personal ProblemPersonal Problem – “one whose – “one whose causes and solutions lie within the causes and solutions lie within the individual and the individual’s individual and the individual’s immediate environment” – immediate environment” – text pg 2text pg 2

Social ProblemSocial Problem – “one whose causes – “one whose causes and solutions lie outside the and solutions lie outside the individual and his or her immediate individual and his or her immediate environment” – environment” – text pg 2text pg 2

……so what is Dickenson’s so what is Dickenson’s point?point?

Basically that “unemployment is Basically that “unemployment is largely a consequence of largely a consequence of contradictionscontradictions in the nature and in the nature and organization of employment, or the organization of employment, or the characteristics of work processes in characteristics of work processes in modern capitalist societies.”modern capitalist societies.”

Is this accurate?Is this accurate?

Dickenson examines this Dickenson examines this issue in four parts:issue in four parts:

1.1. By arguing that the specific nature of capitalist By arguing that the specific nature of capitalist class relations creates the circumstances within class relations creates the circumstances within which unemployment emerges as a major social which unemployment emerges as a major social issue. (Rise of Capitalist Mode of Production)issue. (Rise of Capitalist Mode of Production)

2.2. By showing how the pursuit of employer interests By showing how the pursuit of employer interests results in unemployment. (Labour Process results in unemployment. (Labour Process Theory) (Division of Labour and Work)Theory) (Division of Labour and Work)

3.3. By examining some of the ways in which the By examining some of the ways in which the transformation of work results in changes to the transformation of work results in changes to the structure of the economy and the nature of both structure of the economy and the nature of both employment and unemployment.employment and unemployment.

4.4. By offering a solution.By offering a solution.

Let’s take a closer look at each…Let’s take a closer look at each…

1. Rise of Capitalist Mode of 1. Rise of Capitalist Mode of Production Production

Individuals rely on employment Individuals rely on employment income for survival and few, if any, income for survival and few, if any, alternatives exist. alternatives exist.

THUS,THUS,wage earners are dependant upon wage earners are dependant upon employers for jobs, income, and employers for jobs, income, and survival.survival.

Much social policy is directed toward Much social policy is directed toward achieving this end.achieving this end.

cont…cont…

……contcont With the rise of industrialization With the rise of industrialization

in Canada an increasing in Canada an increasing proportion of the population proportion of the population transforms into members of transforms into members of thethe wage earning class.wage earning class.

This, in turn, translates into an This, in turn, translates into an increasing number of individuals increasing number of individuals in, and entering into, the labour in, and entering into, the labour force. force.

cont…cont…

……contcont

*Chart for visual effect only. Does not represent actual Canadian economic growth*Chart for visual effect only. Does not represent actual Canadian economic growth

EffectEffect - As economic growth fluctuates, - As economic growth fluctuates, individuals entering the labour force are individuals entering the labour force are exposed to varying shifts in labour market exposed to varying shifts in labour market conditions, skill requirements, and conditions, skill requirements, and developing technological changes.developing technological changes.

cont…cont…

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EconomicGrowth

……contcont ResultResult – “different categories of – “different categories of

people, such as women, the people, such as women, the young, the elderly, and young, the elderly, and members of ethnic minorities members of ethnic minorities perform different types of jobs perform different types of jobs under different working under different working conditions, for different levels of conditions, for different levels of pay and with different pay and with different consequences. Such as, a consequences. Such as, a different probability and duration different probability and duration of employment.”of employment.”*sociological perspective*sociological perspective

2.Labour Process Theory2.Labour Process Theory Rooted in CapitalismRooted in Capitalism

Meaning that the capitalist mode of production and Meaning that the capitalist mode of production and accumulation is dominant.accumulation is dominant.

Capitalism relies on the Capitalism relies on the relationship between (at least) 2 relationship between (at least) 2 classes of individuals:classes of individuals:

I.I. CapitalistsCapitalistsII.II. Working Class Working Class

cont…cont…

……contcont

I.I. Capitalist – Capitalist – Those who control the means Those who control the means of production. They own or control all the of production. They own or control all the necessary inputs, exclusive of labour, needed necessary inputs, exclusive of labour, needed to produce goods and services. to produce goods and services.

II.II. Working Class – Working Class – Members of the Members of the population who do not own any means of population who do not own any means of production and who sell their labour power for production and who sell their labour power for wages and salaries to those who control the wages and salaries to those who control the means of production.means of production.

However, this relationship is However, this relationship is inequitably balanced…inequitably balanced…

……Although these parties are Although these parties are

mutually dependent, the working mutually dependent, the working class is economically, socially, class is economically, socially, and politically subordinate to the and politically subordinate to the capitalist class.capitalist class.

The primary objective of The primary objective of capitalist production is to earn capitalist production is to earn profits for business owners…profits for business owners…

……How? Cost reductions and How? Cost reductions and

increased productivity increased productivity

1.1. Absolute ReductionsAbsolute Reductions in the costs in the costs of production – reduction in wage of production – reduction in wage and salary rates/ reducing work and salary rates/ reducing work hourshours

2.2. Relative reductionsRelative reductions in the costs in the costs of production – increasing worker of production – increasing worker productivity/ decreasing cost per productivity/ decreasing cost per unitunit

This translates into what is known as…This translates into what is known as…

……The Capitalist Division of The Capitalist Division of Labour and WorkLabour and Work

Breaking down any given process into Breaking down any given process into its constituent tasks.its constituent tasks.

Increased wage labourers doing simple Increased wage labourers doing simple repetitive tasks.repetitive tasks.

Efficiency and FlexibilityEfficiency and Flexibility

Consequences…Consequences…

……reducing individual skill level reducing individual skill level and reducing wages paid to and reducing wages paid to workers.workers.

Lower skilled workers are left Lower skilled workers are left with fewer opportunities outside with fewer opportunities outside of the firm or industry in which of the firm or industry in which their skill is required…their skill is required…

STRUCTURAL STRUCTURAL UNEMPLOYMENT?UNEMPLOYMENT?

……contcont

ResultResult – workers become – workers become unemployed, underemployed, unemployed, underemployed, deskilled, unmotivated, discouraged, deskilled, unmotivated, discouraged, and may no longer seek employment and may no longer seek employment (therefore no longer included in the (therefore no longer included in the unemployment rate).unemployment rate).Also, consumer purchasing power is Also, consumer purchasing power is affected.affected.

We are now going to dramatize We are now going to dramatize some of the main elements of The some of the main elements of The Capitalist Division of Labour and Capitalist Division of Labour and Work…Work…

Mr. Weeds ToysMr. Weeds Toys(sole proprietor)(sole proprietor)

HHAPPY GAPPY GOO LLUCKUCKYY TOYS INC.TOYS INC.

3. The Changing Nature of 3. The Changing Nature of Employment and UnemploymentEmployment and Unemployment

A decline, both relative and real, in A decline, both relative and real, in the goods producing sector of the the goods producing sector of the economy since WWII.economy since WWII.

An increase in the service producing An increase in the service producing sector of the economy.sector of the economy.

An increase in self-employment.An increase in self-employment. Growth in part-time employment.Growth in part-time employment. Individuals working more than one Individuals working more than one

job.job.

cont…cont…

……contcont Increased labour-force participation Increased labour-force participation

by married women.by married women. Decrease in mean wages for most Decrease in mean wages for most

demographics.demographics. Two-tier wage structures.*Two-tier wage structures.* Poor job quality – Poor job quality – job-poor growthjob-poor growth**** The “hollowing out of the middle The “hollowing out of the middle

class” (larger gap between rich and class” (larger gap between rich and the poor).** the poor).**

*Belcourt, Bohlander, Snell; *Belcourt, Bohlander, Snell; Human Resources ManagementHuman Resources Management****Burke;Burke;Canadian Public Policy in an Age of Global CapitalismCanadian Public Policy in an Age of Global Capitalism

cont…cont…

Economic insecurity**Economic insecurity** Just-in-time employment for a Just-in-time employment for a

just-in-time economy**just-in-time economy** Increase in the number of Increase in the number of

employment agencies.employment agencies.

What does this all mean?What does this all mean?

Is there a solution?Is there a solution?

What does this all mean….What does this all mean….(in a nutshell)(in a nutshell) Individuals (workers) are forced to enter Individuals (workers) are forced to enter

into a wage relationship with capitalists and into a wage relationship with capitalists and endure the cyclical nature of economic endure the cyclical nature of economic growth while balancing infinite attempts to growth while balancing infinite attempts to restructure, relocate, and phase out higher restructure, relocate, and phase out higher paying jobs as capitalists search for profits paying jobs as capitalists search for profits and competitive advantage. Neo-liberal and competitive advantage. Neo-liberal politics compliments this type of behaviour politics compliments this type of behaviour by capitalists and workers are left to work by capitalists and workers are left to work harder, longer, and for less money than harder, longer, and for less money than before, or enter the labour force before, or enter the labour force themselves as capitalists which themselves as capitalists which perpetuates the problem. Capitalists are perpetuates the problem. Capitalists are forced to bring cheaper products to the forced to bring cheaper products to the market place in order to facilitate reduced market place in order to facilitate reduced purchasing power and therefore this entire purchasing power and therefore this entire cycle continues to accelerate. cycle continues to accelerate.

4. Dickenson’s Solution4. Dickenson’s Solution

““The solution to The solution to the problem of the problem of unemploymentunemployment resides in the resides in the political realm, and will require a political realm, and will require a transformationtransformation of the interests of the interests underpinning economic decision underpinning economic decision making and resource making and resource mobilization and allocation.”mobilization and allocation.”

Not much of a solution, eh!Not much of a solution, eh!

cont…cont…

What’s this guy really suggesting?What’s this guy really suggesting?

What about organized labour? Is it What about organized labour? Is it dying?dying? (take a look at the handouts) (take a look at the handouts)

Is unemployment really a Is unemployment really a problem? problem? (take a look at the handouts)(take a look at the handouts)

For this last question we For this last question we conducted a little survey…conducted a little survey…

We surveyed 20 York Region We surveyed 20 York Region

employment agencies (of which employment agencies (of which there are no less than 50), and there are no less than 50), and posed these questions…posed these questions…

A.A. Would you say it is more difficult to Would you say it is more difficult to find work in general, or workers to find work in general, or workers to fill positions? fill positions?

B.B. Would you say it is more difficult to Would you say it is more difficult to find quality work (good wage, job find quality work (good wage, job security etc.) or quality workers security etc.) or quality workers (reputable, responsible, eager to (reputable, responsible, eager to succeed etc.) to fill these succeed etc.) to fill these positions?positions?

ResultsResults

5 of the respondence found that there were 5 of the respondence found that there were no discernable differences between either no discernable differences between either group in either question. Basically they group in either question. Basically they suggested that it was more an issue of suggested that it was more an issue of time-of-year.time-of-year.

All of the other respondence answered All of the other respondence answered both questions in the same manner, 6 of both questions in the same manner, 6 of which replied that work was more difficult which replied that work was more difficult to find and the rest (the majority) found that to find and the rest (the majority) found that finding workers was indeed most difficult. finding workers was indeed most difficult.

So, what does this mean?So, what does this mean?

What about labour unions?What about labour unions?

Here are some questions to Here are some questions to contemplate…contemplate…

Does the decline in private sector Does the decline in private sector unionization reflect anything other unionization reflect anything other than simply a change in the rights than simply a change in the rights and powers of unions as described and powers of unions as described by Dickenson?by Dickenson?

Do people reject unionization Do people reject unionization because maybe the labour market is because maybe the labour market is not that bad after all?not that bad after all?

Has inequity within unions set in just Has inequity within unions set in just as the rest of society? as the rest of society?

Are people no longer feeling the Are people no longer feeling the need to bargain collectively?need to bargain collectively?

1. Discussion Questions1. Discussion Questions

DickensonDickenson: “Unemployment is : “Unemployment is appropriatelyappropriately understood as a understood as a social issuesocial issue – and not just as a – and not just as a personal problempersonal problem””

According to Stats Canada (refer to handouts) According to Stats Canada (refer to handouts) employment is on the rise; according to our survey employment is on the rise; according to our survey there is plenty of employment out there; and there is plenty of employment out there; and according to our own experience, employment is according to our own experience, employment is not difficult to find? Is this really a social issue or are not difficult to find? Is this really a social issue or are people just becoming overly selective and unable to people just becoming overly selective and unable to adjust to a changing world?adjust to a changing world?

Should people focus more on improving their skills Should people focus more on improving their skills and increasing their level of education away from and increasing their level of education away from the workplace?the workplace?

Is complacency the real culprit?Is complacency the real culprit?

2. Discussion Questions2. Discussion Questions

““The solution to The solution to the problem of the problem of unemploymentunemployment resides in the political resides in the political realm, and will require a realm, and will require a transformationtransformation of the interests of the interests underpinning economic decision underpinning economic decision making and resource mobilization making and resource mobilization and allocation.”and allocation.”

Do you agree with Dickenson’s Do you agree with Dickenson’s solution, in that, is it plausible?solution, in that, is it plausible?

What is he suggesting; a radical What is he suggesting; a radical restructuring of the world economy?restructuring of the world economy?

Prize Question!!!Prize Question!!!

Dickenson describes Dickenson describes Relative Relative reductionsreductions in the costs of in the costs of production as:production as:

AA - reduction in wage and salary - reduction in wage and salary rates/ reducing work hoursrates/ reducing work hours

BB – the relationship between – the relationship between capitalists and the working classcapitalists and the working class

CC - increasing worker productivity/ - increasing worker productivity/ decreasing cost per unitdecreasing cost per unit

DD – Labour force exclusion – Labour force exclusion

And the answer is….And the answer is….

CC - increasing worker - increasing worker

productivity/ decreasing cost per productivity/ decreasing cost per unitunit