Title: Social Policy, Inequality and Neoliberalism: The Breakdown of the Postwar Settlement
1Social Policy, Inequality and Neoliberalism The
Breakdown of the Postwar Settlement
2The Franchise From a privilege to a right
- At the time of Confederation, the vote was
generally restricted to white males over the age
of 21 who met various property or income
qualifications. - From 1867-1885 eligibility was determined in by
the provinces. Again from 1898-1920 the provinces
determined eligibility but with some federal
oversight. - Property and income based restrictions were
gradually eliminated by 1920.
3Electorate as Percentage of Population
- In the first three elections after Confederation
(1867-1874) between 11 and 12 of the population
was eligible to vote. - From 1887-1917 between 20-30.
- From 1917 to 1921, the electorate went from 28
to 51 of the population. - The lowering of the voting age in 1970 added some
2 million Canadians to the electorate.
4Source http//www.sfu.ca/aheard/elections/histor
ical-turnout.html
5Class Struggle and Political Reform
- Farmers Siege of Ottawa, 1910
- Winnipeg General Strike, 1919
- Formation of Progressive Party, 1920
- Formation of Communist Party of Canada, 1921
- Turmoil of the Great Depression formation of
Social Credit party, formation of the Cooperative
Commonwealth Federation, On-to-Ottawa Trek and
the Regina Riot. - Rise of industrial unions, 1930s and 40s.
6CCF
- Co-operative Commonwealth Federation (Farmer,
Labour, Socialist), formed in 1932. - In 1933 it produced, as a statement of
principles, its Regina Manifesto. - As a social democratic party, it was influenced
by the British Labour Party, but it also had a
very strong origins amongst agrarian interests,
particularly in Saskatchewan. - Initially, trade union involvement was basically
non-existent, but there were members of small
socialist and labour parties along with social
democratic academics. - CCF becomes NDP, 1961
7The Labour Movement in Canada
8Labour Movement
- Four major waves of working-class resistance and
labour militancy when the labour movement
expanded its membership and its goals - the 1880s,
- the end of First World War,
- during and after the Second World War,
- and the decade after 1965.
9Development of unions in Canada
- Until 1872, union activity was illegal in Canada.
Yet workers had formed unions and went on strike
regardless. - By the 1830s and 40s, larger towns and cities in
British North America saw the rise of craft
unions organized around specific trades such as
printers, carpenters, shoemakers, tailors,
cabinet makers or other skilled workers. - In the 1850s and 60s, some local craft unions
began affiliate with the emerging national
organizations in the United States. Thus
beginning the growth of international unions
across North America.
10The Nine-Hour Movement of 1872
- Early in 1872 a meeting in Hamilton launched the
movement which spread across southern Ontario and
Quebec, with workers creating local Nine-Hour
Leagues. - Thousands of workers in Hamilton, Toronto,
Brantford, Stratford, London, Oshawa, St.
Catharines, Sarnia, Guelph, Kingston, Montréal,
and Halifax went on strike to secure the
nine-hour day. - It included printers at the Globe newspaper in
Toronto owned by George Brown, a prominent
Liberal and arch rival of Sir John A Macdonald.
When his employees joined the strike, Brown had
them charged for engaging in a seditious
conspiracy.
11The Nine-Hour Movement of 1872
- In response, 4,000 workers demonstrated to
protest the arrests of the striking printers. - This led to the Trade Unions Act which legalized
union formation. However, it did not require
employers to recognize unions or engage in
collective bargaining. - In 1876, federal legislation granted some legal
room for picketing. - A national labour organization, the Trades and
Labor Congress of Canada (TLC) was established in
1886.
12Knights of Labor
- The 1880s were a decade of unprecedented
working-class militancy, centred in the emergence
of an organization called the Noble and Holy
Order of the Knights of Labor, a body different
from the trade unions inasmuch as it sought to
bring all workers into one grand organization
(Palmer, 1992 120). - We mean to uphold the dignity of labor, to
affirm the nobility of all who earn their bread
by the sweat of their brow.
13Knights of Labor Tactics
- The leadership of the Knights spoke of class
co-operation rather than class struggle and
tended to dislike strikes, but the Knights were
involved with most of the major labour struggles
and strikes of the 1880s and early 1890s. - The Knights actively engaged in electoral
politics from the early 1880s. - The Knights organized some of the first Labour
Day celebrations in Canada, e.g. Toronto, 1882.
14Winnipeg General Strike, 1919
- metalworkers struggling for union recognition
asked for support, as a result some 25,000-30,000
workers went on strike, strike lasted 6 weeks. - Essential services were maintained during the
strike as authorized by the Central Strike
Committee. - the North-West Mounted Police fired into a crowd
killing two strikers.
15Winnipeg General Strike, 1919
- Workers in other cities struck in sympathy with
Winnipeg. - Victoria, Vancouver, New Westminster, Prince
Rupert, Calgary, Edmonton, Medicine Hat, Prince
Albert, Regina, Saskatoon, Brandon, Port Arthur,
Toronto, Montreal, and Amherst, Nova Scotia, all
saw general strikes called to support the workers
in Winnipeg and to protest the arrests of strike
leaders.
16Industrial Unionism
- The great watershed was the 1940s. Before that
point, almost every effort by various labour
movements to win a permanent place in Canadian
industrial and political life was beaten back by
hostile employers and a generally unsympathetic
state. - It was only during and immediately following
World War II that unions made the breakthrough
that allowed them to operate, within a tightly
controlled framework, in most mass-production,
resource, and transportation industries (Heron,
1996 xviii).
17Industrial Unionism
- breakthrough for industrial unionism in the
manufacturing sector came in 1937 with the strike
for union recognition at the GM plant in Oshawa. - 1943, one in three union members in the country
was on strike.
18Rise of Institutionalized Collective Bargaining
- 1944 Privy Council Order PC 1003
- established a process to allow workers to certify
a union, - once a union was certified the employer was
obligated to recognize the union, - it also established grievance-arbitration
procedures which involves a mechanism for the
resolution of grievances without resort to strike
action - banned strikes during the life of a collective
agreement, banning sympathy or solidarity strikes
19Rise of Institutionalized Collective Bargaining
- 1945 Ford Windsor strike workers blocked the
plant with cars arbitration and Justice Ivan
Rand came up with what has been known as the Rand
formula all members of bargaining unit pay dues,
but does not compel them to be members of the
union, union dues to be paid automatically by
check-off
20Postwar bargaining system
- institutionalized the labour movement,
incorporated them into the system. - Grievance procedures meant that disputes were
settled by professionals rather than rank and
file membership - institutionalized procedures rather than
mobilization or strikes - union leaders were pushed to police their own
members to prevent them from striking during the
term of the collective agreement - Cold War era of the 1950s meant that Communism
and radicalism in general was suppressed by
government, business and unions.
21Rise and Fall of the Postwar Settlement in Canada
- End of WWII ushers in era of Keynesian demand
management, development of welfare state and
institutionalized collective bargaining regime. - Economic turbulence of the 1970s and the
corporate response turns the tide in the
direction of ne-liberalism.
22The Shift to Keynesianism
- Great Depression of the 1930s
- War economy, 1939-45
- Foreign models Franklin Delano Roosevelt
(1933-45) in USA, Labour Party government
(1945-51) in Britain. - Prestige of our good ally, the Soviet Union!
- Rise of the CCF
- Rise of industrial unionism
23Rise of the Postwar Settlement in Canada
- 1943 Report on Social Security in Canada
- 1945 White Paper on Employment and Income commits
the government to goal of high and stable levels
of employment - 1946 Rand Formula collective bargaining
24Labour Militancy in the 60s and 70s
- There was a significant burst of labour militancy
in the late 60s up until the mid 70s, led by
young workers, often rebelling against their own
union leadership as well - Canada had more strikes and more workers on
strike than any advanced capitalist country other
than Italy about a third of these were illegal
wildcat strikes - Late 60s also saw the beginning of the
unionization of the public sector. - In 1972, Quebecs public sector workers engaged
in a public sector general strike, perhaps the
biggest strike (and among the most radical) in
Canadian history.
25The Growth of Social Programs
- Old Age Pensions (1927)
- Blind Persons Allowance (1937)
- Unemployment Insurance (1941)
- Family Allowances (1944)
- Old Age Security (1951)
- Hospital Insurance (1957)
- Canada Pension Plan (1966)
- Canada Assistance Plan (1966)
- Guaranteed Income Supplement (1966)
- Medical Insurance (1968)
- U.I. expanded (1971)
26The Backlash Business Militancy and Social
Conservative Movements
27Onset of Inflation () in Canada
- 1971 2.9 1982 10.9
- 1972 4.7 1983 5.7
- 1973 7.8 1984 4.4
- 1974 10.8 1985 3.9
- 1975 10.8 1986 4.2
- 1976 7.5 1987 4.4
- 1977 8.0 1988 4.0
- 1978 9.0 1989 5.0
- 1979 9.1 1990 4.8
- 1980 10.2 1991 5.6
- 1981 12.4 1992 1.5
28Rising Unemployment () in Canada
- 1967 3.8 1987 8.8
- 1969 4.4 1989 7.6
- 1971 6.2 1991 10.3
- 1973 5.5 1993 11.4
- 1975 6.9 1995 9.6
- 1977 8.0 1997 9.2
- 1979 7.5 1999 7.6
- 1981 7.6 2001 7.2
- 1983 12.0 2003 7.6
- 1985 10.6 2004 7.2
29The International ContextAmerican Leadership
Challenged
- The Nixon shock, the US ends the convertibility
of the US dollar to gold, 1971 - OPEC oil embargo and oil crisis, 1973
- The United States withdraws from Vietnam, 1973
- proposals for a New International Economic Order,
1974 - Iranian Revolution, 1979
30The Backlash
- The combination of
- domestic social movements,
- international economic turbulence
- and international political uncertainty
- led to a social and political backlash against
the welfare state and the rights of labour.
31Corporate militancy
- The period from the mid-1970s onward has been
described by some as class politics (or class
war) from above, as the business sector has
aggressively mobilized to defend their interests
in Canada and elsewhere.
32The Backlash American Right-wing Populism
- Barry Goldwater, Republican presidential
candidate, 1964. - Ronald Reagan, Governor of California, 1967-75.
- Richard Nixon elected US president, 1968.
33The Backlash The Christian Right
- The rise of the American religious right in the
1970s. - groups like The Moral Majority.
- leaders include Jerry Falwell and Pat Robertson.
- issues such as abortion are central to the
backlash.
34The Backlash Corporate Organizing
- American
- Business Roundtable, 1972
- International
- International Chamber of Commerce, 1919
- Mont Pelerin Society, 1947
- Bilderberg Conference, 1954
- World Economic Forum, 1971
- Trilateral Commission, 1973
- Trilateral Commission Report The Crisis of
Democracy 1975
35Trilateral CommissionThe Crisis of Democracy
- In recent years, acute observers on all three
continents have seen a bleak future for
democratic government (1975 2). - The image which recurs in these and other
statements is one of the disintegration of civil
order, the breakdown of social discipline, the
debility of leaders, and the alienation of
citizens (1975 2). - This pessimism about the future of democracy has
coincided with a parallel pessimism about the
future of economic conditions (1975 3).
36The Crisis of Democracy
- Changes in the international distribution of
economic, political, and military power and in
the relations both among the Trilateral societies
and between them and the Second and Third Worlds
now confront the democratic societies with a set
of interrelated contextual challenges which did
not exist in the same way a decade ago (1975
4).
37The Crisis of Democracy
- The problems of inflation, commodity shortages,
international monetary stability, the management
of economic interdependence, and collective
military security affect all the Trilateral
societies (1975 4-5). - Given the relative decline in its military,
economic, and political influence, the United
States is more likely to face serious military or
diplomatic reversal during the coming years than
at any previous time in its history (1975 5).
38The Crisis of Democracy
- in recent years, the operations of the
democratic process do indeed appear to have
generated a breakdown of traditional means of
social control, a delegitimation of political and
other forms of authority, and an overload of
demands on government exceeding its capacity to
respond (1975 8).
39The Crisis of Democracy in the United States
- Samuel P. Huntington on the dangers of the
democratic upsurge of the 1960s - The vitality of democracy in the 1960s raised
questions about the governability of democracy in
the 1970s (1975 64).
40The Crisis of Democracy in the United States
- The essence of the democratic surge of the 1960s
was a general challenge to existing systems of
authority, public and private. In one form or
another, this challenge manifested itself in the
family, the university, business, public and
private associations, politics, the governmental
bureaucracy and the military services (1975
74-75).
41The Crisis of Democracy in the United States
- People no longer felt the same compulsion to
obey those whom they had previously considered
superior to themselves in age, rank, status,
expertise, character, or talents. (1975 75).
42The Crisis of Democracy in the United States
- At the end of the 1950sabout three-quarters of
the American people thought that their government
was run primarily for the benefit of the people
and only 17 percent thought that it primarily
responded to what big interest wanted. These
proportions steadily changed during the 1960sBy
the latter half of 1972, only 38 percent thought
that government was run for the benefit of all
the people and a majority of 53 percent thought
that it was run by a few big interests looking
out for themselves (1975 78).
43The Crisis of Democracy in the United States
- some of the problems of governance in the United
States today stem from an excess of democracy. - Neededis a greater degree of moderation in
democracy (1975 113).
44The Crisis of Democracy in the United States
- the effective operation of a democratic
political system usually requires some measure of
apathy and noninvolvement on the part of some
individuals and groups. In the past, every
democratic society had had a marginal population,
of greater or lesser size, which has not actively
participated in politics. In itself, this
marginality on the part of some groups is
inherently undemocratic, but it has also been one
of the factors which had enabled democracy to
function effectively (1975 114).
45The Crisis of Democracy in the United States
- Marginal social groups, as in the case of the
blacks, are now becoming full participants in the
political system. Yet the danger of overloading
the political system with demands which extend
its functions and undermine its authority still
remains. Less marginality on the part of some
groups thus needs to be replaced by more
self-restraint on the part of all groups (1975
114).
46The Crisis of Democracy in the United States
- We have come to recognize that there are
potentially desirable limits to economic growth.
There are also potentially desirable limits the
indefinite extension of political democracy
(1975 115).
47The Backlash in Canada
- In Canada, the backlash was, to some degree,
delayed. While 1968 saw the victory of Nixon in
the US, Canada experienced Trudeaumania in the
same year. - Still, the Canadian corporate elite would engage
in a similar process of organizing as occurred
elsewhere.
48Institute for Political Involvement
- A Report on the Prospects for Increased
Involvement of Business People in the Canadian
Political System. April 1978. - The premise of the enquiry is that the
business-government relationship is generally
ineffective and frequently counter-productive,
while the political component of the relationship
has remained neglected and unexaminedthe process
of public policy formulation would benefit from
greater business participation (1978 1).
49Institute for Political Involvement
- To be credible, the private sector must
demonstrate its capacity to develop practical
solutions to pressing national problems,
particularly in identifying workable alternatives
to further government actions (1978 4).
50James Gillies. 1981. Where Business Fails
- James Gillies on the failure of business in
Canada to play an effective role in the public
policy process. - As Canada entered the last two decades of the
twentieth century, the interrelationship between
business, particularly between the chief
executive officers and directors of large
corporations, and the federal government was, at
best, strained (1981 1).
51Where Business Fails
- In Canada, from Confederation until after World
War II, the goals of society and the corporation
have been perceived to be much the
same...Consequently, until the 1960s there was
relatively little criticism of corporations
there was a congruence between the public and
private sector (1981 18).
52Where Business Fails
- According to CEOs, the reasons for the
deterioration of business relations with Ottawa
during the 1970s fall into two broad categories
first, the failure of business to have sufficient
impact in the determination of the public
interest and, second, the failure of the
government to operate effectively (1981 29).
53Where Business Fails
- the planning and execution of an effective
business-government relations strategy must
become a highly professional activityCorporate
management must understand how governments make
decisionsThey must devise corporate strategies
that are pro-active and include political action,
public debates, massive educational programmes,
advocacy advertising, and other activities and
costs that many corporations have assiduously
avoided (1981 139).
54Canadian Council of Chief Executives (CCCE)
- Founded in 1976 as Business Council on National
Issues (BCNI). CCCE 2001. - composed of the chief executive officers of 150
leading Canadian enterprises, widely recognized
as Canada's most influential business
organization. - The companies they lead collectively administer
C3.2 trillion in assets, have annual revenues in
excess of C750 billion. - Thomas d'Aquino was the CEO and President of the
BCNI/CCCE for 28 years, on January 1, 2010 he was
replaced by John Manley, the former cabinet
minister during the Chrétien government.
55Business Organizations
- Canadian Chamber of Commerce (CCC), 1925
- Canadian Federation of Independent Business
(CFIB), 1971
56The Backlash Corporate and Advocacy Think Tanks
- Conference Board of Canada, 1954
- C.D. Howe Institute, 1973
- Fraser Institute, 1974
- Atlantic Institute for Market Studies (AIMS),
1994 - Montreal Economic Institute, 1999
- Frontier Centre for Public Policy, 1999
57The Backlash Neoliberal Citizen Groups
- National Citizens Coalition, 1967
- Canadian Taxpayers Federation, 1990
58The Backlash Conservative Foundations
- corporate or family foundations that donate money
to non-profits - corporate foundations are set up at arms length
from corporation to engage in good works - family foundations are set up by wealthy families
and individuals to provide funding to causes - these foundations have been important pools of
resources to fund think tanks - e.g. Donner Foundation, John Dobson Foundation
59The Backlash Socially Conservative Groups
- Alliance for the Preservation of English in
Canada, 1977 - REAL Women, 1983
- Focus on the Family Canada, 1983
- Catholic Civil Rights League, 1985
- Reform Party, 1987
- Defend Marriage Coalition
60Crisis of Keynesianism
- economic difficulties, a crisis of public finance
(rising public sector deficits and debt), and
concerns about global competition provided the
context for the shift away from Keynesianism and
toward neoliberalism. - Foreign models Margaret Thatcher (1979-1990) and
Ronald Reagan (1981-1989).
61End of Keynesianism
- In 1979, the American govt turned to high
interest rates to squeeze inflation and the Bank
of Canada followed, these high interest rates led
to the most significant economic recession since
the 1930s, but it served the purpose of squeezing
inflation and disciplining labour.
62Canadian Govt Response
- Restraint imposed on labour, especially public
sector workers. - Anti-Inflation Program (wage and price controls)
1975-1978 - Public Sector Compensation Restraint Act (6 and
5 program) 1982-1984
63Federal Govt Response
- Monetary Restraint
- From 1975 onward, Canadas central bank, the Bank
of Canada, was committed to monetary restraint. - Particularly in the 1980s, the Bank of Canada
followed the lead of the US Federal Reserve in
using high interest rates to defeat inflation.
64Federal Govt Response
- Restraint imposed on transfers to provinces
- Established Programs Financing (EPF) block
funding arrangement replaced cost-shared programs
for health and post-secondary education, 1977
65Major Privatizations by Federal Government
- de Haviland 1986
- Canadair 1986
- Teleglobe 1987
- Canadian Development Corporation 1987
- Air Canada 1988
- Petro-Canada 1991
- Nordion International 1991
- Telesat 1992
- CNR 1995
- NavCanada 1996
66Federal Govt Response
- Massive spending cuts,
- especially in 1995 budget.
- Canada Health and Social Transfer (CHST)
- replaces EPF and
- Canada Assistance Plan (CAP)
67Federal Govt Response
- The 1995 federal budget marked a fundamental
shift in the role of the federal state in Canada
- (McBride, 2005 106).
68Social programs in retreat
- Corporate interests have mobilized to advocate
neo-liberal policies including - free trade agreements,
- the deregulation of foreign investment in Canada,
- tax cuts,
- the privatization of public services, and
- reductions in social spending.
- Successive federal governments have responded by
restraining social spending and attempting to
reduce the role of the state in the economy.
69Canada in comparison
- Canadians tend to compare ourselves with the US
and point to stronger social programs and public
health care, but compared to other rich developed
countries, Canada spends relatively little on
social programs and has a relatively high degree
of social inequality. - In 2007, UNICEF ranked Canada 12th among 21 rich
countries in child well-being. - http//www.unicef.org/media/files/ChildPovertyRep
ort.pdf
70Corporate Restructuring
- At the same time that the state was engaged in
this shift to neoliberalism employers were
responding through economic restructuring to deal
with the labour militancy and the economic
turbulence. The corporate sector responded by - re-organizing workplaces,
- speeding up production,
- introducing new technologies in a process
described as lean production, - they also investing internationally,
- and moved to support trade and investment
liberalization.
71Growing Inequality under Neoliberalism
- From 1946 to 1980, family incomes grew at all
points in the distribution, so incomes shares
remained roughly unchanged, and median family
incomes and living standards rose rapidly. In the
1981 to 2006 period, when the gains from growth
went to the top end of the distribution, real
incomes for most families stagnated (Osberg,
200817). - After 1995, ongoing changes in transfers rapidly
reduced the redistributive role of the Canadian
state (Osberg, 2008 30).
72Growing Inequality under Neoliberalism
- Declining unionization, a lower minimum wage,
higher unemployment, less social insurance
protection and more openness to international
competition probably interact strongly in their
impacts on inequality. If so, they should be
viewed as a policy package, to contrast with
the policy package of the period before 1980
(Osberg, 2008 34).
73Conclusion
- Canadians tend to consider their society to be a
kinder, gentler, more egalitarian version of the
United States. - However, the more generous welfare state in
Canada only emerged in the 1960s. And by
international standards, Canada looks more like
the US than different. - By the 1980s, many of these programs were
beginning to be whittled away. In the mid-1990s,
Canadian governments made a serious shift to
fiscal restraint.
74Wal-Mart Nation Tales from the Big Box Wars
- Documentary, 43 min long, available from York
University library. - Discusses Wal-Mart
- and working conditions in their stores,
- and working conditions among suppliers,
- and local economies,
- the environment and consumption patterns.