by Anne Archist
So, the workfare debate has remained in the headlines since my last post on it… That’s interesting, as I didn’t think there would be quite this much public anger over the proposals – if anything, I thought most people would just ejaculate DailyMailisms in the direction of anyone who dared to question a system of transitory, mandatory, unpaid labour. The government has been in a right flap over the campaign against workfare, resorting to a whole host of amusing tactics, with some degree of cooperation from third parties. I’ll give a run-down of some of the controversy with relevant links, and then move onto the question of the government’s real misdirection tactics.
A comedy of ostriches
First there was the hilarious claim by Chris Grayling that the SWP had “hacked” his email account. Apparently he told the Daily Mail that “‘Somebody used my email address to lodge a formal complaint with Tesco. This campaign has got fake activity”. He also told the BBC: “Let me give you an example, my own e-mail address was hacked by this organisation and used to lodge a complaint with Tesco, so I don’t accept the scale of the campaign is very large “. This was given short shrift, and he toned it down to the bizarre and vague assertion that his account had been “used in the campaign”.
After that nonsense, there was the question of Datasift research into the debate. Newsnight’s article on workfare suggested that the research had measured the hashtag #welfaretowork; if this is in fact the case, they are obviously idiots because most people are using #workfare. Datasift claim they included #workfare in their research, but I have my doubts as to how true this is. Perhaps this will be clarified in some way, but at present they seem to have deleted some or all of the tweets where they claimed they had included #workfare – several can be seen on google cached versions of pages but not on the actual twitter streams themselves. I have no idea why this might be so.
So where do we stand?
So far, so typical. Apparently nobody’s talking about it, those that are don’t understand it, those that do aren’t bothered by it, and those campaigning against it are – without exception – trots (which, I take it, are alien creatures something like this). This is the sort of masterful Machiavellianism we have come to expect from subtle statesmen like Chris Grayling. The outcome of all of this is that after companies threatening to pull out, protests and so on, the government have amended the rules so that people will no longer be sanctioned if they pull out of the work experience.
The spin on this change is that it’s all ok now because everyone taking part in the scheme is doing so voluntarily. The unspoken implication here is that it’s therefore none of anyone else’s business. I think this is a deliberate tactic of misdirection (combined with prioritising the demands of corporations over those of citizens/workers/consumers).
The real problems
The government’s workfare schemes have serious and systematic problems that cannot be put right by ensuring that the schemes are voluntary. Participants are likely not to be in a position to make an informed and uncoerced decision about whether it’s worth working for free, due to a combination of government propaganda, poor ‘economic literacy’ among the general population and Jobcentre lies (they have been known to tell people schemes are compulsory when they’re voluntary, etc).
Even if all the participants take part entirely voluntarily, this still poses a problem for the rest of us, since it puts downward pressure on the terms and conditions of everyone else – if firms can acquire free labour based on the hope of future work, they are less likely to take on more staff, raise the wages of those they already have, etc. Labour-market competition will drive down wages in the private sector, which will probably then increase the public/private divide, leading to more conflict and hostility towards public sector pay and conditions, thus indirectly eroding them via increasing public support for the government doing so.
More harm than good?
This question of less staff being taken on brings us on to the next problem, which is that the scheme may actually make unemployment worse. The data released so far suggests that participants are on JSA longer on average than non-participants, and that dreaded beast “common sense” suggests that workers will create less jobs if free labour is available than they would otherwise. The notion that workfare would alleviate unemployment is based on the idea that a noticeable chunk of unemployment in this country is caused by a lack of basic employment experienced at an unskilled level. This seems simply unrealistic - I find it hard to envisage a situation in which employers are throwing their hands up in despair because they refuse to employ people who haven’t sat behind a checkout.
Are loads of huge corporations sitting around twiddling their thumbs saying “Oh golly, we’d love to employ someone to fill this role in the company, but none of them has shelf-stacking experience, so I guess we’ll just have to wait however long it takes until someone comes up who has”? I find that very hard to believe. If they’re not, then the work experience itself isn’t really going to help. It merely means that a company that would otherwise employ someone with no experience will be employing somebody with some experience. And this assessment makes sense – how does providing more people with experience create jobs?
Recall that there are less jobs available than there are people looking for work. Part of this is because our economy assumes a natural rate of unemployment, of which possibly more in a future post. But nevertheless this means that even if everybody who was looking for work had exactly the skills, contacts, experience, etc they needed to find a job, there would still not be enough to go around. The fact that more skills are available in the economy doesn’t cause employers to want to employ more people; even a highly skilled labour force doesn’t mean full employment, and there is a massive difference between genuine work skills and generalised unskilled work experience.
On that note, it’s important to understand the difference between slating the work experience scheme and being against training for the unemployed in general. Work experience and skills training are different things; the work experience programme is about putting mostly unskilled young workers into unskilled roles for a short period of time in the hope that this will, in the words of the right wing, “get them out of bed in the morning”. I’m not saying this won’t help anybody – I can see how a voluntary agreement to try to do some work every week over a period of time might help someone suffering from depression and so on. But I can’t see it having a positive effect overall because it fails to impart real shortage skills; being a graphic designer, a computer programmer, an electrician or a doctor is not comparable to having spent ages in Poundland making items go ‘beep’ and cleaning up on aisle 5 in Tesco.
The conservative motto
Finally – and I think this has been somewhat understated by the campaigners against workfare due to their focus on the fact that taxpayers are subsidising private firms, etc – there should be a principled opposition to unpaid labour of this kind. The public debate about workfare represents an opportunity to forge an alliance around the issue of unpaid work; it would certainly include claimants and interns – it may also include workers in relation to unpaid overtime and even housewives and feminists of the Wages for Housework persuasion, etc.
In relation to workfare and interns, we should be arguing the point that if you run a for-profit company and you have someone work for you, the fact that you are ‘providing them with experience’ is not an excuse for not paying them; all work ‘provides people with experience’, but we still pay unless the person doing it is young or has a history of unemployment. This is straightforward exploitation of people’s vulnerability in the labour market. Providing someone with genuine training, as I have said, is not the same as throwing them into an unskilled job for a few weeks.
People don’t necessarily have to be paid to learn useful new skills that employers are demanding and finding a shortage of, but they should certainly be paid to work. There may of course be exceptions in very specific circumstances like genuine volunteering via charitable or political organisations, but if you are creating value that will be appropriated for profit, I see no reason why you shouldn’t receive a wage for doing so. The very least the government could do if they’re not willing to introduce the minimum wage on the programme (although there have been suggestions that it legally applies), or even the apprentice rate for the minimum wage, is make the employers pay the JSA and any expenses directly to the claimant rather than subsidising big business with free labour at the taxpayer’s expense.
There is already an ongoing struggle to get the minimum wage actively applied to interns, but so far there has been little success. Given that companies in some industries habitually rely on several unpaid interns at a time in order to function properly, this is often not the philanthropic provision of training on the job to some lucky apprentice, it is the use of those desperate to break into an industry as free labour to grease the cogs. In fact, apprentices are actually paid, although less than other workers. Socialists often struggle with the incentive structure of capitalism and take a stand on the basis of justice. This isn’t necessarily a bad thing, but I can see a case from an economic and politically pragmatic point of view for perhaps conceding that the apprentice rate should apply to interns and jobseekers on work placements, rather than the full minimum wage.
If people continue to be distracted by the question of whether schemes are compulsory or semi-compulsory or presented as compulsory or whatever, though, they will miss the important questions about remuneration and the wider efficacy of the programme. Personally I don’t think there would be such a big problem with making a scheme compulsory if it was paid, whereas a voluntary but unpaid scheme still raises my hackles. And that’s precisely the point – the government are trying to divert us from the real issues here by purposefully misconstruing the public outcry and leading us down a dead-end path for the sake of preserving corporate subsidies and holding down working class wages and conditions.