Benjamin Spies-Butcher

When Labour Makes a Difference: Union Mobilization and the 2007 Federal Election in Australia

In advanced democracies, unions influence industrial relations through collective action and law. They also maintain influence in politics through their alliances with labour parties. But the weakness of some labour movements, most apparent in falling membership, raises questions about their capacity to shape future industrial relations policy, reach voters and maintain their party alliances. Drawing on literature in industrial relations and political sociology, this article provides a framework for understanding how the Australian union movement successfully campaigned against the conservative Howard governments labour laws called WorkChoices. We characterize the union movements campaign — Your Rights at Work — as a form of political organizing that responded to both shifting state strategy and the limits of traditional defences constituted by industrial action, legal protection and reliance on the Labor Party. Political mobilizations produce different kinds of impacts. Given that the campaign relied on a sophisticated electoral strategy, we analyse Australian Election Study (AES) 2007 data to assess its impact on voters and on activism. We find that the campaign increased the salience of industrial relations to voters, that union activism jumped in the lead‐up to the election, and that unionized voters voted against the government in record numbers. While this article primarily assesses electoral impact, we offer brief perspective on the movements impact on policy and politics in the conclusion.

Market Society: Growth, accumulation and crisis

IN THE PREVIOUS chapter we discussed the character of the commodity-based production system that underpins market societies. The ability of such societies to generate substantial and long-term economic growth is one of their most striking and impressive features. Economic growth has transformed our way of life, leading in many countries to a material standard of living unprecedented in history. When growth is high the economy seems to work well, delivering profits, higher incomes and jobs. However, economic growth sometimes falters. Periods of low growth, or ‘recession’, can lead to wider economic crises giving rise to unemployment, hardship and social misery which can also generate more serious society-wide crises. Managing the cycles of economic growth and decline has therefore become a central preoccupation of governments. In this chapter we consider the nature of economic growth and how it is measured and potential problems generated by growth in affluent societies. We also examine some of the different understandings of growth and the political implications of such analyses. Finally, we address the periodic crises that are a feature of capitalist economies as well as the relationships between economic growth and political legitimacy.

States, politics and welfare

THE STATE PLAYS a central role in economic life. It creates the rules in which markets operate and produces some goods and services directly. The state also facilitates private sector production and service provision through financial support. It redistributes income, both directly through taxes and transfer payments and indirectly through regulating wages and industry. It also performs many functions that help reproduce the economy, such as establishing education and health systems and governing the use of the environment. In all of these ways the state is a key economic institution of market societies. This chapter is concerned with the interrelated economic and political developments of the capitalist state. Having arisen from the uncertainties of medieval conquest and war, the state has been shaped by challenges to its legitimacy arising from the periodic economic crises and conflicts discussed in Chapters 3 and 4. There remain diverse attitudes towards the state and different understandings of what the state is which have, in turn, influenced what states do. We look at how states differ across time and between countries and the recent effects of neoliberalism.

Market Society: Family, environment and sustainability

THE PREVIOUS CHAPTER focused on work and consumption as two aspects of life most clearly identified with the economy. Traditionally, the study of economics evolved around the notion of the economy as a closed and discrete system with little attention paid to the broader social and ecological systems in which production for the market takes place. The natural environment was seen as a relatively limitless source of raw materials and an equally limitless destination for waste products. Non-market production occurring within the household was largely ignored as were the broader affective and reproductive functions of the family which raised, socialised and supported the workforce of (largely male) paid workers. In recent decades this neglect has begun to change due, in part, to real changes in the economy. The limits of natural resources, the damaging effects of pollution and the large-scale entry of women into the workforce have all challenged the assumptions supporting Fordist production. This has prompted examination of issues like environmental behaviours, childcare, working hours and volunteer work. Such preoccupations also stem from social movements which have questioned our understanding of the environment and the family and raised important questions about the sustainability of our economic system. In this chapter we consider how economists have sought to incorporate these concerns into existing frameworks of economic analysis. We also consider an alternative reproductive framework in which market-based commodity production is located in the broader social and environmental systems that constitute a large part of our everyday experience.

Market Society: Inequality, distribution and conflict

THE LAST TWO chapters have explored key aspects of economic production. The market system is built on the commodity form and markets act as a coordinating mechanism, allocating commodities for consumption and between different uses in production. This coordinating role of the market has also been extended to the factors of production – land, labour and capital – making them ‘fictitious commodities’ and thus creating a ‘market society’. The market system has proven to be highly productive with accumulation expanding the range, quality and quantity of goods available. Material living standards have also been lifted for many people. This process sometimes breaks down, creating hardship during periods of economic recession. For some people, this hardship is a persistent feature of their everyday lives, even through periods of economic growth. This is because the proceeds of growth are unevenly distributed. Analysing economic production is therefore only part of the story in understanding market society. Looking at economic distribution is also an important and necessary counterpart in understanding and evaluating a commodity-based system. Historically, inequality was an essential part of how market society was constituted and such societies continue to be marked by pronounced inequalities in the distribution of economic resources. In this chapter we explore the nature of inequality and how it is measured, as well as how the onset of capitalism changed the nature of inequalities. The resulting patterns of distribution have also been highly contested as the values of modernity inspired many people to challenge the fairness of market distributions. We therefore also examine the struggles over economic distribution because such conflicts have profoundly reshaped the evolving character of market societies.

Market Society: Introducing market society

MUCH OF OUR everyday life revolves around markets. This is because markets are central to the way contemporary society organises the production and distribution of goods and services. Our work comes through a labour market. We find our accommodation through a housing market. Our food, clothes and entertainment are largely purchased in markets. Even markets we have little direct knowledge or experience of can have a profound impact, as became evident in 2007 when the subprime mortgage market collapsed. Although many people had never heard of the complex financial markets and instruments associated with the ‘global financial crisis’, its implications were immense. People lost jobs and homes, and rumours emerged that whole national economies might collapse because of the severe disruption to the market processes at the heart of the economy. Markets are clearly important to the economy, but they are only part of what is in fact a complex institutional system. Governments also play a central role in the economy. Despite decades of economic restructuring purportedly aimed at reducing state activity in the economy, governments continue to establish and regulate markets. They provide services, redistribute income and are directly involved in production. Other institutions are also central. Much trade and most production do not take place directly in markets but within and between firms, particularly large corporations. While corporations operate within markets, their size and structure give them considerable power to shape both their internal production process and their external environment.

Market Society: Markets, risk and globalisation

MARKETS ARE MORE central to capitalism than to previous ways of organising the economy and are themselves a form of regulation. We have already seen how through commodification much of life becomes subject to the competitive pressures of markets. Because most people earn their income and purchase many of the goods and services they need through markets, the price mechanism is central to our lives. Since the 1970s markets have become even more central as state policies around the world have been transformed under the influence of neoliberal politics. Globalisation and policies of privatisation, deregulation and marketisation mean that many aspects of life that were not previously coordinated through the price mechanism are now subject to it. Whereas states use law and regulation to exert direct control over the economy, market prices create incentives that ‘regulate’ and influence our behaviour. Thus, economists often talk about markets providing ‘decentralised’ rather than ‘centralised’ forms of decision-making. Market incentives also involve a greater degree of uncertainty than is typically the case with direct state regulation because they allow greater flexibility in behaviour and outcomes. A key feature of market societies is therefore the presence of risk. In this chapter we look at the increase in risk and other changes resulting from economic restructuring and explore key theoretical perspectives that seek to explain both the forces driving restructuring and its implications.

Market Society: Work, consumption and quality of life

IT IS AS WORKERS and consumers that most of us directly experience the economy. Waged work is central to market society. It gives us meaning, provides income and fosters the division of labour that helps generate growth. This led many to see modern economies as ‘work societies’, while more recent changes to the nature of work have led others to argue that consumerism dominates our lives. Here we explore the development of the mass production model of Fordism, and the more flexible, diverse and precarious work arrangements that followed. We also look at the link between work, leisure and consumption and the growing role consumerism plays in our lives. Finally, we examine what this means for our quality of life. WORK AND SOCIETY Many early theorists of capitalism argued that the nature of work defined the new economic system. An important issue was how changes in the world of work shaped both the economy and everyday life.

Market Society: Civil society, community and participation

IN THIS THIRD part of the book we have discussed how market society is experienced. We examined the world of work and consumption and areas of life that are often seen as ‘outside’ the economy, even though they support its reproduction. In this chapter we focus on civil society. Unlike families, work and the natural environment, which existed in various forms prior to the development of capitalism, many view civil society as a uniquely modern development – but one that provides a space outside the bureaucratic imperatives of the state and the profit motive of the market. It is a space where values are formed, debated and contested and, therefore, where the very operation of market society itself is shaped. However, the nature and significance of civil society and its relationship to the capitalist economy is contested. In this chapter we explore three different understandings of civil society and how such ideas can be applied to different contemporary debates: first, the classical liberal perspective oriented around free exchange between individuals; second, the model built by social liberals and communitarians which focuses on social cohesion and building community; and, third, a perspective developed by critical theorists which views civil society as a place of conflict and struggle over the values and organisation of society. We also consider the role of social movements, the changing nature of participation and the relatively recent trend of transferring welfare responsibilities from the state to civil society.

Market Society: Firms, corporations and competition

IN THE PREVIOUS two chapters we discussed how states and markets shape peoples behaviour. We now turn to the business firm, which is the basic unit of production in capitalism but also an important vehicle of regulation. It occupies a privileged position in market societies because the resources needed to produce economic goods and services are privately owned. This means that private decisions taken by firms have social consequences. They regulate the flow of economic commodities available for purchase through their decisions about what, and how much, to produce. Firms also directly regulate the working life of their employees although workers’ experience of such ‘discipline’ varies enormously. This is because the ‘firm’ itself comes in many shapes and sizes, including sole traders, partnerships and corporations. The incorporated firm is now the dominant form of business organisation and many have evolved into large-scale enterprises. The large corporation has played a significant role in the growth of the global economy and the transformation of market societies. In this chapter we examine the historic character and evolution of the business firm and the mechanisms which enabled the rise of the corporation. This includes considering different theoretical perspectives that seek to understand the nature of the firm as a key economic institution and its role in social and economic life. We examine how the firm regulates the workplace ‘internal’ to itself as well as the broader economic, social and political environment. We therefore examine key organisational aspects of the business firm that stem from the contradictory nature of control and cooperation in the production process. In turn, we also consider the firm in its global context and the ways in which the corporation exercises power socially and politically.