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Chokepoint democracy: Workers capitalize on global system weak spots

Chokepoint democracy: Workers capitalize on global system weak spots

In his book Carbon Democracy Timothy Mitchell attempts to explain the rising and falling political power of the working class in terms of the evolution of the world’s energy system. The first fossil fuel, coal, required hoards of men (and it was almost exclusively men) to bring it to the surface, get it to market, and bring it to its final users.

Since coal was the largest fossil fuel energy source for human societies from the early days of the Industrial Revolution until the 1950s and its extraction employed a large number of workers who over time unionized, strikes among coal workers severely impacted energy supplies. Those strikes riveted the attention of the authorities and the public as the health and economic well-being of society was at stake.

The rise of oil as the world’s dominate energy source changed all that. Oil required many fewer workers to bring it out of the ground and distribute it. Oil production utilizes pumps and pipelines instead of people to move fuel. The decline of the power of coal miners followed in the wake of oil’s rise. Oil did not similarly empower workers because so much of the system to extract and refine it runs automatically and can often be overseen temporarily by a few management personnel in the event of a strike or work stoppage.

Fast forward to today and we see for the first time in a very long time, workers in a variety of industries are showing renewed political and economic power as a variety of causes have created a labor shortage. Strikes are spreading across the United States and include workers in (not surprisingly) health care, manufacturing (farm implements, food), food service, public transit, building trades, and coal mining…

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What Happens After A Mega Corporation Raises Its Workers’ Wages

What Happens After A Mega Corporation Raises Its Workers’ Wages

Earlier today, McDonalds announced that it would become the latest company to raise hourly pay for 90,000 workers by more than 10% and add benefits such as paid vacation for its restaurant workers. Specifically, starting in July, MCD will pay at least $1 per hour more than the local legal minimum wage for employees at the roughly 1,500 restaurants it owns in the U.S. The increase will lift the average hourly rate for its U.S. restaurant employees to $9.90 on July 1 and more than $10 by the end of 2016, from $9.01 currently. Finally, McDonald’s also will enable workers after a year of employment to accrue up to five days of paid time-off annually.

With this announcement, McDonalds joins the following companies which have likewise raised minimum wages in recent months:

  • WalMart
  • Aetna
  • Gap
  • Ikea
  • Target
  • TJ Maxx

Surely this is great news for the workers of these above companies, as some of the massive wealth accrued by corporate shareholders may be finally trickling down to the lowliest of employees, right? As it turns out, the answer is far from clear.

As the following WSJ story released overnight, here is what happens when mega-corporations such as WalMart and McDonalds, whose specialty are commoditized products and services and have razor thin margins, yet which try to give an appearance of doing the right thing, raise minimum wages. They start flexing their muscles, and in the process trample all over the companies that comprise their own cost overhead: their suppliers and vendors.

Take the case of WalMart: the world’s biggest retailer “is increasing the pressure on suppliers to cut the cost of their products, in an effort to regain the mantle of low-price leader and turn around its sluggish U.S. sales.”

 

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Olduvai IV: Courage
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Olduvai II: Exodus
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