Monday, January 30, 2012

Youth unemployment crisis on the table at Davos

This past weekend, world leaders at the World Economic Forum in Davos, Switzerland confronted the issue that just won't go away: youth unemployment. Troubling statistics abound with the youth unemployment rate having hit 46.6% in Greece, 30.7% in Portugal, 23% in the United States and nearly 50% in Spain. Youth unemployment is a serious problem and as the International Labour Organization outlined in a report last week is a problem with deep long-term socio-economic, political and cultural consequences; however, the bulk of the action in response to this problem seems to be lip service rather than concrete policy responses.

Commentators at Davos, speaking on a panel entitled "Averting a Lost Generation", traced the problem of youth unemployment to a variety of factors, such as slack demand for workers on a global and national scale was advanced as the overarching problem, the lack of pro-employment policies from governments, education and training programs that aren't responsive to the changing needs of the global economy, cultural issues which can see segments of domestic populations shut out of labour markets due to discrimination and the lack of communication between stakeholders in society (i.e. private enterprise, public sector institutions, academia).

So what are the policy fixes that need to implemented to address youth unemployment? The panel at Davos considered a range of fascinating policy responses, including the deployment of positive discrimination (i.e. employment equity) forcing companies to hiring youth people, the need for companies to actually train young people in the skills necessary for work and whether regulatory interventions into the labour market like minimum wage and mandatory retirement impact on youth unemployment, and how the dignity of work is valued and measured as a social good.

For more on the youth unemployment crisis, check out my recent article on the ILO's ideas on the necessary public policy responses or what's happening domestically in Canada in relation to youth joblessness or what problems exist structurally in Ontario's labour market. I've also come across a number of interesting articles discussing what has been on the table at Davos, see: here, here and here. Finally, check out the video from the Davos panel on youth unemployment below, see: 

Friday, January 27, 2012

Disruption, change and the future of legal education: an interview with Jordan Furlong

I'm excited to share with you an interview with Jordan Furlong. He's a lawyer, legal futurist and a partner with the global consulting firm Edge International; furthermore, he runs the Law21 blog, which covers the changing nature of the legal services industry domestically and internationally. Over the years I've always found Jordan's analysis to be cutting edge, poignant extremely interesting. My interview with Jordan covers a number of areas in relation to the state of the labour market for young lawyers, the possible changes to the articling process in Ontario and the future of the legal profession. The interview appears below.

A.L: You've argued that the current model of legal education in North America is unsustainable. With the growing disconnect between what is being taught in law schools and the realities of the profession something clearly has to give. In your opinion what has to change within the academy?

J.F: Honestly, I'm not sure the legal academy as currently structured can reasonably be expected to summon or withstand the change required. The law school model is too longstanding, too entrenched and too inertia-prone. These are highly centralized, ritualistic and self-reproducing institutions; they can only be what they are, and it's not realistic to suppose they can become something very different. To be a relevant factor in the future legal marketplace, law schools would need to turn over much of their faculty, reform much of their curriculum, and reconsider the necessity of much of their physical infrastructure, including libraries and classrooms. When you get to talking about that degree of change, you come to conclude that what you need isn't a renovation, but a new greenfield build. There will still be a place in future, I should add, for a traditional sort of law school; there just won't be nearly as many of them as there are now.

A.L: In the United States there has been a sustained attack on the current model of legal education with a series of high-profile articles in the New York Times, U.S. Senators questioning the motivations of the American Bar Associations and the rise of the "scamblogger". Do any of the core criticisms leveled at American legal education hold true in Canada?

J.F: Canada has roughly one-tenth the number of law schools as the U.S., tuition even at the most expensive schools here hasn't approached what's charged by their American equivalents, and the job market for new lawyers here hasn't collapsed the way it has in the U.S. So I don't think we'll see the same firestorm of criticism here for at least a few more years yet. But the fundamental underlying complaint about US schools does have resonance here: that law schools are not especially concerned with the law practice careers their graduates pursue. There is still, to a pretty astonishing degree, a belief among many law professors that schools are academic institutions first and foremost, which frankly is difficult to reconcile with the tuition they charge. That is not a sustainable belief in a changing legal market, and schools that fail to recognize and act on that are going to run into trouble sooner than later.

A.L: What's your assessment of the labour market in Ontario (and Canada) for recent law school graduates and recent calls to the bar? What issues are driving the articling crisis?

J.F: For the next year or so anyway, that market should remain relatively robust - the economic crisis has had a relatively glancing impact on Canada so far and I'm not aware of any Canadian law firms in remotely serious financial straits. I'm far less sanguine about our economic prospects throughout the balance of this decade, however, and with any kind of serious downturn will come equally serious pressures on lawyers and law firms. 

I'm not convinced there's an "articling crisis," at least in the way most people have been discussing it. Even with the growing number of students unable to find articles, the placement rate in Ontario is something like 88%. Contrast that with the U.S., where full-time first-year lawyer employment is hovering around 65% and might actually be lower. As I've written before, some (but by no means all) law grads who fail to find articles do so on merit. Full articling employment, it will become increasingly clear, was an accident of history and generational currents; articling, for as long as it remains with us, will probably average about a 75-85% placement rate. In pure market terms, that's not bad; but since articling is a prerequisite to practice, it's also obviously unacceptable. That's the real crisis facing articling in future: it cannot continue to be a sine qua non for passing the bar if not everyone can get a position. Unless the law society can somehow find a way to guarantee full articling employment -- and I can't think of any way in which they could do that - articling will have to lose its mandatory status sooner or later, which will call into question its entire purpose.

A.L: The Law Society of Upper Canada launched the Articling Task Force last year; they're currently consulting the profession about a number of possible changes to the articling process. This isn't the first time in recent memory that the Law Society has undertaken an examination of the articling process with previous efforts not bringing about much in the way of change. What's your assessment of whether the Articling Task Force will recommend significant changes to the articling process?

J.F: I can't really speak to what the Task Force is considering and I wouldn't want to speculate about its conclusions ahead of time. I will say that this task force faces challenges that its predecessors did not: those committees were often only considering "what if" and "wouldn't it be better if we could" types of reform discussions. This task force is facing challenges that are not theoretical or aspirational, but practical and visceral. The market for legal talent is changing; expectations about the training and competence of lawyers are changing; the underlying economics of law practices are changing. Articling lies directly in the path of all these oncoming storms.

A.L: The consultation report has put forward five different options for the articling process; these options are: status-quo; status-quo with quality assurance; replacing the pre-licensing transition requirement with a post-licensing transition requirement; a choice of a practical legal training course or articling; or, only a practical legal training course.  Which option(s) do you think best balances out the needs of the profession, students and the public interest?

J.F: Well, the status quo isn't working very well right now and will work even less well in future. Beyond that, it's difficult to say. None of the other options is terrible, but none is perfect either, which means that whatever route is chosen will have its merits and will face its criticisms. You have to look at it from the law society's point of view, which is that its mandate is to govern the profession in the public interest: that's its priority, and the interests of students and law firms will necessarily be secondary. I think that if our primary interest in the lawyer admission process is to maximize the effectiveness of initial professional development (IPD, if you like, in contrast to ongoing CPD throughout a lawyer's career), then the eventual solution needs to be systematic, accessible, fairly administered and transparently evaluated. That sure isn't articling, but it could be a practical legal training course.

In my perfect world, we'd have "teaching law firms," like teaching hospitals where interns treat low-income patients under the supervision of experienced doctors and in affiliation with a respected university. The legal profession equivalent would be a law firm operated not to turn a huge profit, but to stay in business as senior law students and young lawyers serve low-income clients with a range of legal issues under the supervision of experienced practitioners, again in conjunction with a respected university. That would help solve a wide range of problems in our profession, from new lawyer training to access to justice, and I'd love to see a university without a law school (or even with one) launch a program like that. Maybe an enterprising group of lawyers, academics, and private-sector financiers could get together over the next few years and start planning that sort of innovation. 

A.L: The legal profession is an industry in upheaval. In ten years the profession won't look the same. What advice do you have for young lawyers starting out?

J.F: If you don't have some knowledge of and experience with running a business - cash flow, accounting, marketing, customer service, etc. - try your best to acquire some. That sure doesn't mean summering in a big firm, but it could mean assisting a sole practitioner or small firm, to get a first-hand sense of the demands of enterprise. Every lawyer in future will effectively be a solo and will be responsible for the financial success of their own practices; best to get a head start on that learning curve now.

The generation now entering the profession was raised to believe they should follow their passion and do what they love. My advice is slightly at variance with that: do something you're good at, and not only will you be more likely to succeed career-wise, chances are you'll come to love it anyway. This is going to be a challenging decade, and few of us will have the relative luxury of pursuing passions that don't necessarily have the ability to pay the bills. Hop aboard whatever train is heading in the right direction and hang on; you can find the right seat for yourself down the line.

Nobody - not law professors, not lawyers, not clients - has any idea what the legal profession of the future is going to look like. All we know is that it very likely will not much resemble the one these people spent their careers in. Be as open to change as you can manage, and take advantage of all the tools - from advanced technology to mobile platforms to social media - that the modern profession gives you. But remember as well that there are some standbys that are 100% reliable in the new legal marketplace: caring about your clients and putting their interests first; carrying yourself with professional decorum and according others dignity and respect; leaving the profession better than how you found it. Beyond that: work hard, stay cheerful, and enjoy the ride.

Thursday, January 26, 2012

ILO states global youth jobs crisis isn't improving

The International Labour Organization recently released its annual Global Employment Trends report, it's a great snapshot of the state of labour markets around the globe. There are a lot of references to the plight of unemployed young people and the findings are profoundly disturbing. The report is quite blunt, stating that "A continuation of current trends risks further undermining the already dim prospects and aspirations of the world's youth, sowing the seeds for continued social unrest and further weakening global economic prospects."

This post is going to cover off the main points in Chapter 2 and Chapter 3 (which contains a regional labour market synopsis) of ILO report about the situation relating to the global youth labour market. Then we'll examine Chapter 4 which contains the public policy responses that the ILO suggests to address the continuing global jobs crisis.

There's not much by way of a silver lining in the report. 75 million young people remain out of work globally, which translates into an unemployment rate of 12.7% (a jump from 11.7% in 2007). The hardest hit regions for youth unemployment are in developing and emerging economies. That being said, in the wake of the recession the largest declines in youth employment occurred in the advanced industrialized economics with the unemployment rate jumping from 12.5% to 17.9% over this period; particularly, youth in the European Union were perhaps hardest hit. Another troubling indicator is that youth now comprise 23.5% of the world's working poor with many young people who are working get by on part-time positions and temporary contracts (this would seem to confirm Guy Standing's thesis about the development of a global precariat class).

With recent events such as Occupy Wall Street, the Arab Spring and the British riots it's unsurprising the ILO suggests that the continuing deterioration of the youth labour market will drive distrust of the current political and economic order - which is code for social stability. Beyond these concerns there is an underlying theme in the report that suggests that high youth unemployment is extremely damaging to long-term prospects for labour market and economic growth; furthermore, there also the issue of economic scarring arising from long-term unemployment that can have corrosive effects of the span of a life-course.

The ILO lays out a number of public policy responses that could be deployed to address the jobs crisis in the final chapter of the report. Overall the ILO supports continuing stimulus spending to bolster job creation as there has been a poor economic recovery in advanced industrialized economies that can be partially traced back to initial stimulus measures in the immediate wake of the 2008 crash that targeted the financial sector rather than the real economy.

The ILO suggest four main policy responses: global policy coordination to use monetary policy responses in a coordinated fashion to prevent further deterioration of global economic conditions; repair and regulation of the financial system, the ILO argues that reforms increasing safety margins in domestic and stricter rules on the flow of global capital are necessary; additional stimulus that targets the real economy is needed to address faltering employment creation and the ensuing weak income growth; and, finally the report warns about the dangers from austerity measures in the face of looming demographic pressures posed by an aging population.

That's all. For some additional context about the situation facing young people in Canada, take a look at my recent post about the youth labour market prospects in Canada for 2012 or my recent interview with Tom Zizys about Ontario's labour market. Below I've posted a video where Ekkehard Ernst, Chief of the ILO's Employment Trends Unit, discusses the implications arising from the report, see:

Monday, January 23, 2012

Is Canada's real youth unemployment rate topping 20%?

It's clear that the youth labour market in Canada has been deteriorating for a number of years. The actual dimensions of the this problematic trend are rarely discussed in the media, politicians or the people who control the levers of public policy. Last week Andrew Jackson, the chief economist of the Canadian Labour Congress, penned a short commentary about the youth unemployment rate in Canada. 

Using alternative measures of the unemployment rate from Statistics Canada (which are better indicators as they also consider labour force dropouts and workers forced to work part-time instead of full-time), Mr. Jackson traces the incredible damage that the recession wrought on the youth labour market in Canada. He states 'the "real" for young workers compared to 2007 has been stunning: up 4.3 percentage points from 15.4% to 19.7% (from 16.2% to 21.0% for young men, and from 14.4% to 18.2% for young women.) The "real" youth rate has slipped only a touch from the high of 20.3% in 2009.'

A host of indicators (employment rate, labour market participation rate and employment rate) show a sustained decline in the job prospects for young people in Canadian society, yet the only public policy response we've been hearing is silence. Young people are being forced to obtain higher credentials (with opportunity, financial and debt servicing costs) simply to maintain a tenuous foothold in the labour market. The strategic decision to focus on post-secondary education at the expense of labour market development is turning into dangerous public policy blunder.

What we're seeing in the youth labour market (which I've argued is the 15-34 age demographic) is a steep rise in precarious employment (i.e. internships, contract and temp work), economic scarring from the most recent recession, failure to launch syndrome via delayed adulthood and putting off the achievement of significant life milestones. These trends are going to have significant impacts vis-a-vis demographics, economic growth and labour markets going forward, but we've seen little official acknowledgment that these trends even exist - let alone innovative policy fixes that might address labour market insecurity, economic instability in the middle-class or the inequitable taxation of young people via tuition fees.

These problems aren't going away and as I've previously indicated I suspect that they will grow worse over the short to medium term. For some additional perspective on youth labour market issues take a look at some interviews I've recently done, see: here, here and here.

Thursday, January 19, 2012

Hello privacy! Ontario Tort law gets a sorely needed update

Employees in Ontario don't have much in the way of privacy rights, although one can argue that there's an implied duty of good faith in employment contracts under which privacy falls. While there are a smattering of statutes that cover privacy in certain situations (i.e. healthcare, dissemination of personal information), these laws haven't created a free standing right to privacy for employees in Ontario and there remains a large gap. This situation is problematic as young people are taking to the Internet in greater numbers and posting vast amounts of personal information online (often with horrible results).

Enter Jones v. Tsige, a decision released yesterday by Ontario's Court of Appeal which overturned a 2011 Superior Court decision penned by Justice Kevin Whitaker. The Court of Appeal created a tort of intrusion upon seclusion. This is a case where one Bank of Montreal employee, Winnie Tsige, accessed the financial information of another bank employee, Sandra Jones, 174 times over the span of four years. Ms. Tsige was in a relationship with Ms. Jones ex-husband and for unknown reasons wanted to snoop on financial information.

This decision is a badly needed development as legislatures across Canada have been hesitant to address privacy rights in a meaningful way that brings them in line with the realities of the information age. Often Courts are unfairly described as being activist, but this decision shows how the judges often have to bridge the gap between legislative stagnation and the realities of daily life. While this decision is great to have, much more needs to be done to address the privacy deficit in Ontario in areas such as social media, pre-employment Google searches and the intersection of human rights and privacy.

For additional analysis of this decision, see: Doorey's Law Blog has an article about the most recent decision and commentary on the lower Court's reasoning; Lisa Stam posted an article on her blog; and, David Fraser has written a great post over at the Canadian Privacy Law Blog. I would expect additional and more comprehensive commentary to appear shortly as people have time to digest the decision. I'll be posting additional information on my Twitter page so follow me and keep up with this developing issue.

Update: some great analysis on the case is starting to appear. Michael Power, one of Ontario's leading privacy experts, has posted a great analysis on his website; uber-blawger Omar Ha-Redeye has written an article about the case for Slaw; and, not to be outdone, David Doorey has written a blog post covering off the workplace law implications arising from the OCA decision in Jones v. Tsige.

Monday, January 16, 2012

Ontario's labour market, public policy and globalization: an interview with Tom Zizys


Today I'm thrilled to be sharing an interview with Tom Zizys. Tom is a noted labour market expert, former civil servant and a current Metcalf Fellow at the Metcalf Foundation. He holds a lot of the answers into what's holding back the transformation and development of Ontario's economy and workforce. We had a wide-ranging discussion that covered the long-term seismic shifts that have occurred with the economy, the structural flaws within the labour market, the social location of young people within workforce and what sort of policy responses might be necessary to fix the economy. Tom has conducted research into a range of labour market issues. You can find a couple choice reads from Tom here and here; furthermore, he was recently part of a great panel discussion on The Agenda discussing Ontario's labour market pains. The interview appears below in its entirety; enjoy and please share it with your friends, family and co-workers.

A.L.: Starting in the 1980s Ontario’s economy start to experience some seismic shifts. Could you describe what sorts of changes have occurred? What trends are we seeing here?

T.Z.: What Ontario experienced is similar to what most advanced economies experienced in the 1980s and beyond. A number of factors came together that facilitated increased globalization and thus greater competition. Prominent among these factors were the IT revolution and sharply reduced communications and transportation costs. Changes in financial regulations greatly enhanced the mobility of capital, and increasingly companies measured their performance not on long term growth but rather their quarterly results, that is, their stock prices. This severely shortened the time horizons for corporate decision-makers. The political climate also changed, government and its rules and regulations were seen as a problem, and various public benefits and protections were scaled back. And as the global economy opened up, new competitors emerged and cheaper labour flooded the world’s labour market. All these factors transformed our labour market.

A.L.: There are some fundamental flaws in Ontario’s labour market with growing polarization through the development of a two-tiered labour market, a hollowing out of the middle-class, the ascendancy of income inequality, the growth of precarious employment and the existence of a skills mismatch. You’ve previously argued that Ontario’s labour market is dysfunctional; how did we arrive at such a haphazard and fragmented system?

T.Z.: With all these shifts in the global economy, the over-riding concern of employers was to stay competitive, and the easiest way to do so was by reducing costs (as opposed to the more difficult but more rewarding strategy over the long term of improving productivity), with the major expenditure being staffing costs. So, in a short period of time, the notion of life-time employment was done away with, the idea that a person would typically be hired for life, or would work for two or three employers at most throughout their lifetime. If there was no lifetime employment, there was less incentive to invest in a worker, who may not be around tomorrow. This reduced the practice of grooming employees for higher level positions, having them advance up career ladders. Instead, people were hired from the outside, based on their credentials, on an as-needed basis. Entry-level jobs no longer were the starting point of a career, they became dead-end positions, and employers could make them casual jobs, or contract them out, or hire temps, all for the purpose of reducing costs. This coincided with a hollowing-out of the middle-level positions, whose functions were split into high-end jobs and low-end jobs, resulting in a two-tiered labour market.

A.L.: There are numerous deficiencies and contradictions in Ontario’s labour market at present; the current system handsomely rewards an elite few, while the rest of workforce faces stagnant or declining wages. What are the long-term implications for social stability, economic prosperity and social justice?

T.Z.: As growing polarization is being experienced across most developed countries, the issue is attracting more attention and study. The most illuminating research has been done by Richard Wilkinson, who examines industrialized countries by their rate of income polarization and compares the incidence of a host of social problems. His findings are that advanced economies that have higher rates of income polarization also have higher rates of mental illness, violence, imprisonment, teenage births, obesity, drug abuse and poor educational performance of school children, among other problems. 

The prosperity we experienced in the 1950s and 1960s was in part related to strong consumer demand, a consequence of having an affluent middle class. Increased polarization of income reduces the purchasing ability of a larger part of the population, which weakens our economy. And if a large portion of the population does not benefit from the way the current economy operates, they will have no incentive to support policies that uphold or advance the present economic set-up.

A.L.: The recession damaged the economic prospects of young Canadians. From economic scarring to delayed adulthood to precarious employment there will be profound impact going forward. At the same time, youth are facing crippling debt from student loans, a dismal job market and a difficult transition from school into the workforce. What do you think the long-term implications of recession will be on young people?

T.Z.: There is definitely cause for concern. Even pre-recession, there is a reason why the labour market outcomes of youth and newcomers were often singled out in the media – being the ones entering the labour market, they have been most affected by the change in the hiring and career advancement paradigm (older workers in manufacturing, on the other hand, have been greatly affected by structural changes in our economy). 

With the recession, first hiring slows down and then stops, so again, those entering the labour market are most affected. Then the layoffs start, and typically those first in are more likely to be let go, so again, youth and newcomers – their unemployment numbers rose disproportionately during the recession. Then, as employers start hiring again, with so many unemployed to choose from, there is a tendency for those with more experience to be hired more quickly – again, youth are at a disadvantage. Those youth who come out of school just as a recession hits may find it especially hard to get work in their field. After a year or two in a tight labour market, even when employers start hiring again, those youth are  competing for work with more experienced individuals who had been laid off, as well as more recent graduates who do not have to explain a one or two year gap in their resume. That’s the kind of scarring that creates a cohort of youth who end up having to play catch-up in the labour market for years after the recession.

A.L.: The growth of internships as a form of employment in Canada is a great example of the structural problems young people face within the labour market. Unpaid internships are quickly replacing entry-level jobs, generally flout workplace laws and are a form of precarious employment. How has the growth in the use of internships by employers detrimentally impacted on the career paths of young people?

T.Z.: In principle, the concept of an internship is a good idea, the notion that one can gain some work experience and learn on-the-job as a step toward recognition as an accomplished worker in the field. Many professions formally rely on a highly structured process for this stage of career development: the medical profession (where I believe the internship model was first developed), through articling in law, as well as apprenticeships in a wide range of trades. 

What is troublesome is, firstly, the practice of unpaid internship, and secondly, the concern that for many the internship experience actually does not involve any real skills development for the intern. These two concepts are related: one might accept the implicit contract where an individual acquires some marketable skill by working for free, but if no skill development is taking place, and in fact if the intern is doing work for an employer that actually is of value to the employer, then it seems to me that the question to ask is: we have minimum wage laws, don’t we? If there is no learning that takes place, then how is that supposed to advance a person’s career? If the point is you have to offer free labour to improve your chances to get a job down the road, then that sounds to me like someone is being taken advantage of.

A.L.: While it’s clear that deep structural problems exist within Ontario’s labour market there hasn’t been a coordinated policy response. Why aren’t the various stakeholders (government, employer, post-secondary institutions) working together? What public policy solutions would you suggest to fix Ontario’s labour market?

T.Z.: I think the main reason for the lack of a coordinated policy response has been that we have not fully accepted how the changes in our labour market have changed what kind of labour market programs we need. So long as people could step onto a career escalator, that is, get an entry-level job and work their way up in the firm, then the right policy response to unemployment was helping the unemployed overcome any barriers preventing them from getting a job. This is a supply-side response. 

Nowadays, we need to anticipate what employers need in real time, which includes not only qualified workers but linking training with actual jobs. This is what workforce development, as opposed to employment services, needs to be about. Most current policies and programs, and the institutions delivering them, are fixated on a supply-side approach. To change this, we need a very deliberate acknowledgment that our policies have to adapt. To make that happen means bringing together those stakeholders who recognize that the current policies and programs are not serving the unemployed and are not serving employers. I think there is enough disillusionment in the system for a broad-based coalition to emerge which could advocate for a workforce development system in this province.

Saturday, January 14, 2012

Obama takes a step towards addressing the precarious nature of internships

Washington's most famous intern.
Most people would agree that Washington, D.C. is awash in corporate money, but a little known fact about inside the beltway is that the town runs off of the unpaid labour of interns. As this is the time of year when a lot of internship positions start being recruited for I was happy to see that the Obama administration might be starting to take the plight of interns seriously

Recently, the Federal Internship Improvement Act was introduced into Congress; the bill contains a number of a measures, including consistent monitoring mechanisms, adoption of best practices in relation to managing interns and expanding the number of interns that get transferred into full-time positions. This is a positive development as it's a concrete policy response to a type of employment that's has been growing in prominence over the past thirty years in the U.K, the U.S. and Canada.

The issue of internships has been getting a lot of attention as of late with the class action lawsuit against Fox Searchlight Pictures and the publication of Ross Perlin's Intern Nation (which contains a fabulous chapter about the unpaid internship scam in D.C.). What we haven't seen though is any sort of policy or enforcement response from Canadian jurisdictions to misclassification of employees as interns and rampant violations of employment standards. Perhaps this move by the Obama administration will spur some action in Canada, but I won't hold my breath. For more of my articles on internships in Canada, take a look: here, here, here and here; also, NPR has a great article and radio documentary up about unpaid internships, check in out here.

Thursday, January 12, 2012

Precarity, protest and possibility: an interview with Manny Ness

Immanuel Ness is a labour activist, college professor and noted author. He's speaking this Friday (January 13, 2012) at an event called: Strategizing the Resistance - A Conversation with Manny Ness; it's free and begins at 6:00 pm at the Steelworkers Hall at 25 Cecil Street. The event is being put on by the Greater Toronto Workers' Assembly as an introduction to their winter strategy session. These events are highly recommended as both will give invaluable insights into the state of radical labour organizing in Toronto and beyond.

I recently had the chance to ask Manny Ness some questions about his most recent academic work and the current state of resistance to neoliberalism. His answers provide an illuminating portrait of the global struggle for change amid uncertain times and a critical assessment of the state of organized labour in North America. Many of the themes that get discussed are poignant given the realities of Canadian political culture in 2012 and the contradictions that are quickly bubbling to the surface in our economy. The interview appears below, see:

Manny Ness
A.L.: Over the past three decades we've seen the formation of a global precariat; your body of work focuses on labour issues and migrant workers. What's behind the exponential growth in the use of migrant workers in the advanced economies in North America and Europe? 

M.N: The expansion of migration to the Global North and within the Global South is an extension of the current phase of global capitalism. Since 1975 to 1980, imposing neoliberal economic order in the Global South through removing currency controls, doing away with tariffs, and stripping social safety systems has more and more increased the size of the global precariat.  In the contemporary era of capitalist globalization, neoliberal policies have been obligatory on countries seeking to inclusion in the world political economy.  

The consequence of opting out from neoliberalism was exclusion from the global political economy and isolation, which was prevented by capitalist classes in every country.  Even countries that steered clear of free market policies were ultimately forced to adopt them to take part in external trade.  Only those states that had significant petroleum reserves like Venezuela could deviate from the dogma of neoliberal political economy—and then only at risk of potential political and military destabilization from the US and its allies.  The socialist or even Keynesianism alternative of the post-war era was patently not an option. 

The global precariat has expanded still further through the creation of the World Trade Organisation, NAFTA, and the enlargement of the European Union, which resulted in deepening poverty among hundreds of millions of workers and peasants throughout the world, creating permanent precarious and mobile labour forces, and reducing living standards and the quality of life for most people throughout the world.  

The result of capital’s inexorable search for profit at any cost has been the creation of a global precariat and environmental disaster for many who have been forced to move from their places of origin as part of an international migrant labour force.  Peasants have lost land through the commodification of farming and workers have lost jobs through the outsourcing of manufacturing to low-wage labour markets that produce goods in modern factories.  Service and public sector jobs, the mainstays of middle-income workers, were not exempt from the effort to reduce wages and working conditions.  The economic stability of workers in public sector enterprises were undermined through privatization and the comprehensive elimination of often essential services like health care, education, and public transportation.

The displacement of workers capacity to earn a living wage is forcing them to search for new jobs away from their hometowns and in many cases overseas.  Given that that the WTO, World Bank and IMF and other multinational institutions view migrant labour as a resource, they argue that when workers earn wages abroad, they contribute to their economies in source countries through remittances.  In many countries, foreign workers are the major source of GDP!  This view is further impoverishing workers in home countries and also migrants who live in shantytowns, suffer from disease and poor health care, and do not have education.   Today more than 200 million workers live outside their countries of origin and more live away from their hometowns, creating mass poverty, lack of job security, and high unemployment.  It is important to note that the policies are not only undermining migrant labour , who form part of the working classes where they work, but also native-born workers, who must compete with low-wage labour, creating a generalized system of super-exploitation.

A.L.: Your new book, Guest Workers and Resistance to U.S. Corporate Despotism, addresses the use of guest workers by American corporations. Is the organized labour movement doing enough to address the plight of migrant workers in the United States? Are the traditional trade Unions well suited to respond to the needs of migrant workers or do new forms of workplace representation need to be explored? 

M.N.: Yes, US corporations are employing guest workers most extensively than any other country, and the trend is also advancing in North America and Europe as a means to cut labour costs and eliminate unions.  Traditional trade unions are absolutely incapable countering guest worker programs, nor staunching the decline of wages and working conditions among their members due to their status as representatives of the organised working class.  Traditional labour unions have always sought to protect the industries where their dues-paying members work.  As a result, the bar has been lowered from seeking to advance the interests of workers as a class through building a radical labour movement to organisations that represent the interests of their members as interest groups.  

Politically electing liberal officials to office has been the mark of success for labour unions rather than advancing the class interests of workers in the political arena.  But even then, trade unions have come to recognise power as having a union official appointed to government office or even having the opportunity to meet regularly with the president or prime minister.  If that is the bar of success, labour is doomed to fail and liberal politicians will consider them reliable allies that do not require much in return.  Thus, organised labour is responsible for lowering the bar and this translates into a generalized anaemic working class in North America.

The status of traditional unions has now diminished so dramatically from delegates for labour to the intermediaries of the working class to capital and the state. In this role, unions have diminished rank and file democracy, made a sham of the collective bargaining process, and failed to reverse the capitalist offensive destroying unions through lock outs, and outsourcing of jobs to lower-wage locations.  In fact, the current crisis reveals that the majority of traditional labour unions more frequently reflect the economic and political interests of capital rather than the class interests of their members.  Labour unions do not at all represent the interests of former members or prospective members.  So it should be no surprise that labour unions have declined in influence—and this decline will accelerate unless labour unions recognize that they must go beyond interest representation to social movement unionism. There is no surprise Collective bargaining is less effective than ever in defending workers from wage cuts, intensification of labour and worse than ever.  Labour unions are not interested in the notion of working class solidarity: an injury to one is an injury to all. 

Indeed, as the economic crisis demonstrates, many unions prefer layoffs to engaging in serious and militant collective bargaining, including challenging corporate absolutism at the workplace and in the community.  They are either disconnected from their rank and file or domineering over their members.  In the former, they are not interested in union democracy and member participation and thus do not even have a comprehensive system of representation, as the SEIU does when they outsource representation and grievances to call centres.  In the latter, they control their members through a top-down shop steward system — imposing their will on members and punishing all dissenters, as is the case with the United Auto Workers in the US. 

Unions are only interested in organizing precarious workers to increase membership and often do not improve wages and conditions.  So I consider the need for new forms of representation inevitable in the current period as conditions of the majority of workers grow difficult and precarious.  It is probably that new forms of unions that do not engage in collective bargaining will emerge and grow alongside traditional unions that benefit only a few.

As for as migrant workers, organised labour in North America and Europe have returned to their nativist roots that they seemed to jettison a decade ago when they recognized that immigrants comprised a large and growing share of the labour markets in industries where they have the most success in organising. Yet at the same time, organised labour has failed to organise immigrant workers at a rate that they have projected.  And when immigrants are organised, they are typically not directly involved in campaigns led by mega-unions like the SEIU that care more about membership and dues than tangibly improving the conditions of workers.

A.L.: In 2011 we saw numerous mass protests by young people (i.e. OWS, Spain's Indigent movement, the Arab Spring) on a range of issues. What is your sense of these protests and do you see new forms of resistance emerging from these movements?

M.N.: We must be careful to differentiate the political protests and the causes and forces that have propelled them as the objectives are different.  But what we cannot fail to recognize is that the 2011 protests share a common fundamental cause:  neoliberal capitalism has been applied throughout Europe, the Arab world, and North America, East Asia, South Asia, and beyond. In fact, throughout Europe workers are challenging state cutbacks and economic austerity that disproportionately hurts workers through factory and public occupations and mass insurrections and uprisings.  

In North America, 2011 was marked by unprecedented protest by working class youth through the Occupy movement.  In China, mass worker strikes and unrest and opposition to the privatisation of state-owned companies has forced the state managers to engage in Keynesian stimulus policies.  In India, workers have occupied Suzuki-Murati works, the nation’s leading auto manufacturer while rural workers continue to organise against the expropriation of land.  The year 2011 represents a worldwide mass echo of Argentina 2001-02 when the working class forced the government into exiting the world financial system rather than continue to play by its unfair rules that only contributed to greater crisis.

The protests have also been directed at traditional parties, which like unions, have embraced neoliberal capitalism and do not demonstrate a tangible difference in their policies.  The struggles have had a tangible effect in decelerating the extension of neoliberalism to every fragment of society.  While traditional political parties have not embraced these movements, they have sought to co-opt them for their own benefit.  But in the absence of a political alternative in the political arena, we can consider the Occupy movements a major victory for working people who are discontented with electoral politics. As a consequence the insurgencies and protests of 2011 reflect the frustration of the working class that has no representation.  After years of banging our heads against the wall, Occupy opened a fissure by exiting the traditional system and finding a voice beyond the traditional system.   

Occupy uncovered the reality that the majority of workers are excluded from direct union representation —whether due to government policies prohibiting working class organisations or union indifference.  Moreover Occupy challenges neoliberal policies that have destroyed communities and prevented meaningful democracy that is necessary for survival.  The betrayal and treachery of the state, capital, and traditional unions of the 99 per cent in all countries was finally met with a comprehensive challenge that will only intensify.  Occupy was the panic alarm for the upper classes who had to resort to government officials to demolish the public assemblies and encampments through brute force and still could not crush the spirit of the movement and its unquestionable return. 

A.L.: Young people in advanced economies are facing dim economic prospects in the wake of the recession and for the most part there has been a lack of ameliorative public policy responses from governments. Are we seeing the strategic abandonment of youth as governments implement austerity agendas at the expense of any notion of intergenerational equity? 

M.N.: Without question, young people have been most left most exposed to the economic crisis. They recognise that in all likelihood they will not have the opportunity to succeed or fail in the new economy.  The attack against youth has been catastrophic.  Children have suffered disproportionately from banks foreclosing on their parents’ homes, unemployment among working-class youths and young adults are significantly higher than adults.  Hopes for the future have been dashed by the erosion of access to higher education as tuitions have climbed sharply and beyond their reach.  What is tragic is that young people must give up experiencing what should be their most gratifying part of life just to survive.  

Yes, youth have been abandoned, but this neglect does not seem a strategic decision but because of the fact that governments take them for granted as dispassionate, apolitical, and apathetic to the world as they seek to find meaning and purpose.  Do government officials deliberately assault youth because they are young?  I don’t think so.  But government and corporate leaders recognize that they can seize on the vulnerabilities of young people without consequence.  Achieving intergenerational equity has often been used as a means to cut programs for the elderly.  Yet I think the attack on pensions and social security is also an attack against the young who are thinking about survival more than retirement.  Governments are just as willing to go after the elderly—and when they do—the young will suffer equally?  

Young people are in fact not self-absorbed and don’t want to see their parents and grandparents mired in poverty either.  If the elderly are poor without government benefits, who will sacrifice a portion of their lives who care for them?  Who will have to contribute their income to support them?  Yes, the government is pitting generation against generation, but the end result is that most people’s economic position is determined by their class background and young people suffer poverty as part of families and communities.

Wednesday, January 11, 2012

Universities and the unpaid internship scam

This is just a short post about a critical part of a paper on the legal status of interns I'm currently reworking for publication. Previously, I've written about how universities are a key actor in perpetuating the exploitative and precarious nature of unpaid internships. The dynamics of the interplay between students, universities and employers are beginning to become clearer as more attention is paid to this issue. Unpaid internships are becoming an increasingly critical part of the youth labour market amid a deteriorating hiring outlook and given the difficulty that students are having transitioning from school into the workforce.

In December, Internsheep posted a response from York University to an inquiry about why York's Career Centre was advertising illegal internships. York's (non)response essentially passed the buck back to Ontario's Ministry of Labour and the Canadian Association of Career Education and Employers. This confirms that the practice at Canadian post-secondary institutions of pushing students into situations where they are forced to provide unpaid labour to employers.

Going stateside, the Village Voice has published an excellent article exploring the linkages between unpaid internships and universities. Last year when it appeared the U.S. Department of Labor might actually start enforcing the provisions relating to internships under the Fair Labor Standards Act, a group of thirteen university presidents wrote a letter asking the government not to enforce the law. In the United States, unpaid internships are a major source of revenue for universities which make students pay tuitions while they're providing unpaid labour to employers - pretty insidious.

That's all, I have to get to my job. If you want to read more about unpaid internships, see: here, here and here

Friday, January 6, 2012

Precarity, public policy and the youth labour market in Canada

But, no one will.
Statistics Canada has released the unemployment figures for December 2011 and there's some interesting trends relating to young workers. Employment among youth, aged 15 to 24, declined for the third straight month (see, December: -17,000; November: -18,000; October: -14,600). This is further evidence of the continuing deterioration of the youth labour market which hasn't recovered the jobs lost during the last recession.

Miles Corak, an economist at the University of Ottawa, wrote a great article examining the hidden trends behind the latest figures. He states "Canadians in their prime working years (the 25 to 54 year olds) have just barely rounded the corner, but most importantly the situation for the young has not improved at all. A quarter of a million 15 to 24 year olds lost their jobs between September 2008 and August 2009, but by the end of 2011 only about 15,000 were recovered." 

Although I haven't looked at the data, I'm sure higher unemployment rates exist for workers in the 25 to 29 and 30 to 34 demographics as well. Statistics Canada, in my opinion, uses an outdated concept of youth (ie. 15 to 24) that doesn't accurately reflect realities like higher life expectancy rates, increased time in post-secondary education (i.e. credentialism) and generally the concept of delayed adulthood.

The unemployment figures from the fall point to the existence of dangerous aftershocks from the last recession such as economic scarring, lower career earnings, precarious employment and long-term joblessness. There hasn't been any form of public policy response to address the massive job losses that young people have experienced; incredibly, Human Resources Minister Diane Finley even blamed young Canadians for having "chosen never to get a job".

Aside from welfare and student loans there aren't many government income programs that young people can readily access to provide financial assistance in the face of dismal private and public sector hiring. Young people generally can't access EI due to restrictions on qualifying and aren't eligible for other programs like CPP, OAS and pensions, all of which are use age or decades spent working as qualifying mechanisms.

What we're seeing is a "failure to launch" of epic proportions as young Canadians now live in the parental home longer (or return to it), delay starting relationships and can't take the jump into full adulthood due to financial barriers. One can't blame them either, as it's difficult to build a life working endless contract gigs, unpaid internships or dead-end minimum wage jobs. 

We need innovative public policy solutions at the federal and provincial levels that address the dysfunctional nature of Canada's labour market and the long ignored contradictions that are inherent in it. That's not happening at present and we're seeing the fruits of sustained neglect around labour market policy as young people get left behind by the economy. 

Previously, I've argued that what's occurring is a strategic abandonment of young people within Canadian society; in the face of clear evidence that youth are suffering and amid a lack of response from government my thesis of strategic abandonment is gaining credence. It seems that boomer politicians and economists intend on balancing the books on the backs of youth through austerity measures and at the expense of any notion of intergenerational equity.

That's all for now. Next week we'll delve into the policy responses that are needed to address the structural labour market problems that young people face.

Thursday, January 5, 2012

Income inequality, youth and political inaction: a recipe for disaster?

Economic inequality has been in the news over the past few days as the Canadian Centre for Policy Alternatives (CCPA) has released their annual report highlighting the massive disparities between executive compensation and the wages of regular workers. Income inequality is a persistent problem in Canada and one that is growing at a rapid rate

In the wake of globalization and financial capitalism Canadian society has developed an economic system predicated on excessive compensation for an elite few and stagnating or declining wages for the vast majority of workers. Consider that in the period between 1980 and 2005 the median earnings for workers in Canada rose by just $53.00 annually. The developments of the past thirty years bode poorly for long-term social stability, economic prosperity and sustainable growth. 

The events of the last year have shown that the fault-lines are being drawn amid little political action to address the underlying issues driving income inequality. Be it the Occupy movement, the English riots or the Arab Spring - young people around the world are demanding change to an economic system that has abandoned them and left them toiling in uncertainty, precarity and hopelessness.

I've culled some resources to give additional perspective on income inequality in Canada and possible public policy responses which could be implement given enough political will or pressure. David Doorey has written numerous posts outlining regulatory changes that could address inequality, see: here, here and here. The Organization for Economic Cooperation and Development released a comprehensive report on income inequality in advanced economies in December, it can be found here. The CCPA has an ongoing initiative called "Growing Gap" that traces developments related to income inequality in Canada, check it out here. Finally, Linda McQuaig and Neil Brooks published a book last year entitled "The Trouble with Billionaires" which traces how the perverse concentration of economic power is bad for everyone; below I've attached an interview with Ms. McQuaig where she discusses the book.

Tuesday, January 3, 2012

What does 2012 hold for the youth labour market in Canada?

With the new year in full swing it's time to assess whether the job prospects of young people are set to improve. This post is going to examine the current economic realities, analyze what's behind the trends and explore what might be in store for the youth labour market in 2012. 

Early indications for 2012 aren't particularly encouraging with TD Economics and Scotia Capital predicting GDP growth rates between 1.7% and 1.9%, these are sharply lower than Minister of Finance Jim Flaherty's prediction of 2.2% contained in the fall economic update. The pressure on the Canadian economy is being driven by continuing economic uncertainty in Europe arising from the sovereign debt crisis and a weak American recovery in the wake of the 2008 financial crisis. These pressures will continue to put a damper on private sector hiring and when combined with government austerity programs, which will reduce public sector hiring, the youth labour market doesn't appear to be in for a rebound this year.

The economy isn't entirely to blame for the current situation though. Deeper structural factors are driving youth unemployment in Canada, such as the absence of mandatory retirement, older workers wanting to beef up their portfolios in the wake of the recession, the severe shortage of entry level positions, the impact from globalization and the growth of precarious employment characterized by contract positions and internships. These trends related to the labour market, economics and demographics aren't good news for young people in the short term as they point to continuing depressed job market; however, if you jump forward a few years to 2015 the labour market will begin to improve as boomers begin to exit the workforce in greater numbers.

The current situation should be assessed for what it is: a serious threat to the long term economic prospects of the current generation. There's a lost generation being developed in Canada as life's milestones get pushed further back, economic scarring occurs and the impact from years of precarious employment takes hold. Although this situation could be addressed through a variety of policy or regulatory responses, none have been forthcoming over the past four years. 

The youth labour market continues to deteriorate with young people left to fend for themselves amid a poor economy and with a the social safety net that's predicated on assisting those who once had full employment (i.e. EI, Second Career) or older persons who receive income supplements (i.e. CPP, OAS). There's a complete absence of intergenerational equity within Canadian society at present as young people are taxed through high tuition fees and interest on student loans or face exploitation in the labour market via unpaid internships, dead-end service industry jobs or revolving-door contract positions. This is patently unfair situation with the baby boomers gaining enormous wealth at the expense of the generations coming after it.

So that's my assessment of the prospects for the youth labour market in 2012. For some additional analysis, check out my interview with Sylvain Schetagne of the Canadian Labour Congress or this interview with Guy Standing.