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King Ludd’s throne

Over at LewRockwell.com Blog, Karen De Coster recently posted about Ford’s Camaçari assembly plant in Brazil, taking it as an opportunity to complain about the way union thugs [sic] run Ford’s business in Estadounidense assembly plants, and how Ford may have trouble introducing a similar manufacturing model in U.S. plants because the UAW is hesitant. Other than noting that the stories are little more than a couple of glorified Ford Motor Company press releases, passed off as journalism by the Detroit News, I don’t have anything in particular to say about the set-up Camaçari, or for that matter about Ford Motor Company or the UAW. (I consider the both of them to be brontosaurs of state capitalism — massive, slow, stupid, and probably doomed to extinction.) But I do want to mention De Coster’s boilerplate complaints against labor unions, and what they presuppose.

De Coster, like lots of other anti-union libertarians, claims that unions are economically harmful because they’re toxic to efficiency and flexibility. The idea is that organized workers will tend to use their organization to oppose advances like automation, technological upgrades, flexible job duties, and reorganization of processes for greater efficiency. Partly because union contracts tend to preserve old job descriptions in amber, to better mark off each worker’s turf, and partly because organized workers will use their coordinated bargaining power to oppose anything that reduces organized workers’ hours or introduces new, not-yet-unionized (or differently-unionized) jobs into the shop. I don’t necessarily find this complaint very persuasive. But. hell, let’s grant most of it, for the sake of argument. Suppose that a union like the UAW does tend to block upgrades for greater efficiency and flexibility. If that’s true, why is it true? Because the unionized workers don’t own the means of production.

It’s no surprise that there would be conflicts between the interests of the workers and the interests of the boss and board when it comes to innovation in shop-floor technology or processes. For a wage laborer, sometimes new technology and new processes mean easier and better work to do; often they mean that your hours will be cut or you’ll lose your job entirely. In any case they will be deployed and integrated into the flow of work according to what the boss finds most useful; they may very well result in you, as a wage laborer, getting stuck with speed-ups or harder work.

None of this is a decisive argument against innovations in shop-floor technology or processes; sometimes things have to change, and change can be hard. But it is a natural source of conflicts between labor and capital. When workers are organized — and when the goals of the organized workers are limited to eking out the highest hourly wages and benefits, the most reliable hours, and the easiest conditions, that they can get within the existing ownership structure and business model of the corporation, through stage-managed labor actions, back-room negotiations with the boss, and multiyear fixed contracts, while the boss and the board keep ahold of final control over conditions on the shop-floor and most or all of the residual profits from any efficiency improvements, what you’ll tend to see is a perpetual collision between a small but powerful coterie of managers and owners, who have every reason to try to shove new processes and technologies down their employees’ throats, to the extent that they can get away with it, and a consolidated mass of workers who have little reason to care about starving themselves lean in order to fatten profits that don’t go to them. Why should workers want to do more work faster, or to take on more flexible job descriptions, if they only stand to lose hours or subjected to speed-ups for their trouble? Both workers’ livelihoods and process efficiency get caught in the crossfire.

But the business model offered by that small coterie, and the union organizing model offered by that consolidated mass aren’t the only business models or union organizing models on offer, and the fact that they are so prevalent in American heavy industry today is the direct result of a series of political decisions and a system of government economic regimentation that allowed that business model and that organizing model to shove alternatives out of the way. Alternatives like that offered by the Industrial Workers of the World and other state-free wildcat unions, which called not for a fair day’s wage for a fair day’s work, but rather for abolishing the wage system, and replacing it with worker ownership of the means of production, coordinated through decentralized, participatory unions.

If the workers themselves jointly own the means of production, then the union has no reason to sandbag efficiency upgrades: if organized workers keep most or all of the residual profits then they have every reason to want more flexible job descriptions, more efficient processes, and greater integration of labor-saving technology. Maybe it’ll mean fewer hours of labor; but since the worker keeps the increased profits, the reduction of hours is a net gain rather than an economic blow. And if workers make agreements amongst themselves as to the conditions of their own labor, they have little reason to want their specific role in the shop written on tablets of stone, and little reason to fear new processes or technology which they are free to take up or not to take up on their own terms and at their own pace, rather than as dictated by a chain of command.

De Coster trashes the UAW for responding to the incentives that the wage system presents for their workers; but rather than getting rid of the UAW, the better solution would be to quit the griping and change the incentives. There is no natural connection between labor organizing, on the one hand, and Luddism or labor-contract sclerosis, on the other. It’s a matter of the artificially rigidified economics of state-subsidized corporate capitalism, and the artificially narrowed vision of the state-patronized establishmentarian labor movement. The only reason that centralized, state capitalist corporations like Ford find themselves confronting top-heavy establishmentarian unions like the UAW over efficiency upgrades is that the both of them have conspired — with the active patronage and regulatory encouragement of the United States federal government — to sustain a business model in which the vast majority of workers have no stake in, and thus little or no natural interest in, the efficiency of the shop, and little or no control over how new processes or new technology, if implemented, will affect the hours and conditions of their labor.

The solution isn’t more ruthless corporate union busting; the solution is to strike at the root of the problem, by abolishing the government economic regimentation that sustains both establishmentarian unionism and state capitalism. If the UAW is cut free from the smothering patronage of the State, and becomes what union so often were before the Wagner/Taft-Hartley era — a wildcat industrial union, free to play hardball and free to set its sights not just on negotiated wage and benefits settlements, but on the unionized workers themselves owning the shop, the machine and the tools — then King Ludd’s throne will crumble out from under him, and you’ll soon start to see unions that not only accept, but champion innovations in technology and industrial processes. If workers own the shop, why wouldn’t they want to increase their own efficiency? After all, they get to keep the difference.

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No, seriously, I could swear the water in this pot is getting a little hotter… (#3)

Posturing macho warrior cops in Chicago, Miami, Palm Beach County, Montana, and Johnson City, Tennessee are all now starting to carry AR-15 or M4 assault rifles with them on ordinary street patrols, for all those tactical situations that they expect to find themselves in.

Throughout the 1990s, Washington, D.C. had more of its residents killed by police officers than any other city in the United States. Now the D.C. metropolitan police department has ordered 500 AR-15 assault rifles, which they will begin issuing to inner-city patrol cops to start carrying on the streets this summer. I guess so they can more effectively shoot 14 year old black bike-thieving suspects in the back of the head.

Do you feel safer now?

(Via Manuel Lora 2008-05-10.)

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Free Riders

Governments — local, state, and federal — spend a lot of time wringing their hands about the plight of the urban poor. It’s never hard to find some know-it-all with a suit and a nameplate on his desk who has come up with a government program that will eliminate, or ameliorate, or at least contain, the worst aspects of grinding poverty, especially as experienced by city folks, and especially as experienced by black people, brown people, immigrants, or other people marked for the special observation and solicitude of the State bureaucracy. Depending on the frame of mind, these programs may be more aimed at doling out conditional charity to deserving poor people, or they may be more aimed at bringing more at-risk poor people under the surveillance of social workers and medical experts, or they may be more aimed at beating recalcitrant poor people up and locking them in cages. (Most programs involve a combination of at least two, and possibly all three.) But one thing that they will never, ever do is just get the fuck out of the way and let poor people do the sort of things that poor people have done from time out of mind to help themselves scratch by.

There are too many ways to list them all here. But one notable example is the way in which city governments constrain and control taxi cabs. In principle, anyone who needed to make some extra money could start a part-time cab service with a car they already have, a cell phone, and some word of mouth. That’s good money for honest labor providing a useful service to willing customers, all under the direction and control of a single independent worker, who can put as much or as little into it as she wants to in order to make the money she needs. And so what do the statesman in city governments do? They create tightly regulated, tightly restricted cartels on taxi service, impose arbitrary numerical limits and financial barriers to entering the cartel, and hit anyone they catch operating outside of the cartel with exorbitant fines or jail time.

One of the worst offenders is New York City, in which all taxi service are regulated by a central city commission, and the city enforces an arbitrary cap on the number of taxi cabs that can pick up passengers off the street. The licenses (medallions) for serving willing customers without John Law punching your head are closely controlled by the city government; a handful of new ones are occasionally auctioned off by the city, and existing ones can be bought and sold by existing license holders — usually at a cost measured in the hundreds of thousands of dollars. Lots of poor people have a car laying around that they could use; not a lot have a few hundred thousand dollars.

Just in case those expenses and legal barriers to entry weren’t enough, I find that Mayor Bloomberg has decided that your taxi needs high-cost high-tech GPS and payment systems — whether or not you, as a driver, wants to lay out the time, money, and lost work to install and maintain it, and whether or not you, as a rider, want to pay the fares needed to cover the expense. Why would they need that? Well, hell, why not? Bloomberg knows what you need or want to pay for better than you do, anyway.

Right after Labor Day, a slew of New York City taxi drivers protested plans to roll out credit- and debit-card payment systems in the back seats of all 13,000 medallion cabs.

They feared they would lose money on tips if passengers didn’t pay in cash.

But proponents, including Mayor Michael Bloomberg, outnumbered the protesters.

Supporters say the ongoing program will better serve customers and actually help bring in more money for cabbies.

— Investor’s Business Daily (2007-09-06): Wireless, Cashless Payments Come To The World Of Taxi Drivers

So, thanks to the supporters, the cabbies will be treated like imbeciles who do not know how to conduct their own business, and also like conscripts who do not have any say in the conditions of their own labor. Well, in any case, somebody is sure to get a sweet deal:

It certainly will help bring in more revenue for San Jose, Calif.-based VeriFone Holdings (NYSE:PAY) PAY. The company is a leading maker of point-of-sale terminals and wireless systems.

VeriFone — in partnership with MasterCard’s MA PayPass — was the first firm approved to provide the wireless systems in New York’s cabs. The systems make use of an ATM-style interface to accept credit and debit fare payments.

The company’s back-seat screen monitors also deliver news, weather and tidbits on restaurants, night life, hotels and other attractions. An extra bonus: Like billboards, they bring in revenue-generating ad money.

Every year, we find a free ride on a new segment of the economy that is going electronic, said Doug Bergeron, VeriFone’s chief executive.

— Investor’s Business Daily (2007-09-06): Wireless, Cashless Payments Come To The World Of Taxi Drivers

In this case, it is a free ride indeed. Who needs to actually go out and sell a product when you can get government cartels to force clients to come to you?

I wish the independent cab drivers well. If Bloomberg shoves this corporate welfare screwjob through, I would encourage them all to go on a permanent strike from officially-licensed cab driving. New York City already boasts a vibrant and growing fleet of gypsy cabs, and an influx of new labor and resources into the counter-economy would be something to welcome.

(Link thanks to Austro-Athenian Empire 2007-09-07: Unto Him Who Hath.)

Further reading:

Well, thank God #5

I’ve been meaning to take note of the Directors’ Guild’s recent triumph over insurgent customers for a few days now:

A federal judge has issued final cut to studios, ruling that companies that snip out potentially offending material from movies for home viewing violate copyright laws.

Businesses that edit sex, profanity and violence out of DVD and VHS copies in an appeal to some viewers’ tastes are illegitimate, said Richard P. Matsch of U.S. District Court in Denver.

Four companies that do so must stop and turn over their copies of expurgated films to Hollywood’s major studios.

Audiences can now be assured that the films they buy or rent are the vision of the filmmakers who made them and not the arbitrary choices of a third-party editor, Directors Guild of America President Michael Apted said in a statement.

The studios and several prominent directors — including Steven Spielberg, Robert Altman and Steven Soderbergh — have been fighting movie sanitizers in court since 2002, saying that retailers such as CleanFlicks had no right to copy and distribute their own versions.

Retailers asserted that their cleaned-up copies made fair use of the movies under copyright law and that they bought one copy of the original for each modified version they rented or sold. That ensured more sales and exposure than such movies would have received had they not been edited to be more wholesome, the retailers argued.

We’re disappointed, CleanFlicks Chief Executive Ray Lines said. This is a typical case of David versus Goliath, but in this case, Hollywood rewrote the ending. We’re going to continue to fight.

As many as 90 video stores nationwide — about half of them in Utah, where CleanFlicks is based — purchase movies from his company, Lines said.

The owner of the four CleanFlicks shops in Utah County, Daniel Thompson, told the Deseret Morning News of Salt Lake City: I think it’s ridiculous that you can’t watch a movie without seeing sex, nudity or extreme violence. I don’t understand why they’re trying to keep that in there.

The dispute is about artistic integrity, said Apted, who directed Coal Miner’s Daughter.

Directors put their skill, craft and often years of hard work into the creation of a film, he said in the statement. So we have great passion about protecting our work, which is our signature and brand identification, against unauthorized editing.

— Roger Vincent, Los Angeles Times (2006-07-10): Sanitizers of Home Video Lose in Court

My God, it’s a good thing we have the federal courts there to stand athwart our DVD players shouting No! If the judicial branch of the government weren’t there to keep customers from going around watching films any old way they want–if the federal judiciary weren’t there to force Mormon families to look at boobies and guns the way the Directors’ Guild authorized them to do–then who would? It’d be mere anarchy!

The latest technological weapons may have been taken out of the hands of viewers, but it is still a dangerous world for artistes. Viewers will find all kinds of improvised devices for skipping over sex and violence. Perhaps with faith and perserverance the Directors’ Guild can convince the courts to further protect their artistic vision, by having all the fast-forward buttons in America stuck in place with super-glue.

(Hat tip to Tom Woods at the LRC Blog.)

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