Should socialists opppose free trade? A response to an Alliance activist

With the signing of the recent FTA with China, the debate over the issue of free trade has been reignited among workers and left-wing political activists in New Zealand.

Many left union officials and members of political parties such as the Alliance have argued that immigration controls and tariffs must be retained to protect NZ jobs and businesses from being undercut by foreign competition.

By contrast the Workers Party strongly believes that this kind of economic protectionism is a poison which only serves to divide the international working class and encourages illusions in the “progressive” nature of local capitalists. We argue that the solution to NZ companies closing down production and laying off workers is not protectionism, but instead a militant union-led campaign to occupy all those businesses threatened with closure and keep them running under workers’ control.

Below we reprint an interview from 2004, in which Workers Party and Spark editorial board member Don Franks responds to a series of questions from an Alliance Party activist on the question of free trade and the approach that the left should take towards it:

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Modern New Zealand unions – “fighting blindfold”?

Philip Ferguson

It’s not often that leading trade union officials in New Zealand speak openly about the exploitation of the working class, let alone about the surplus-value created by workers and expropriated by employers. Therefore, when such speeches are made, it’s useful to analyse what is being said, why, and what the political implications are for trade union activism.

Last November, Robert Reid, the national president of the National Distribution Union, one of the few left-leaning unions, made such a speech at a gathering organised by the Trade Union History Project to commemorate the life of the late Rona Bailey, a longtime New Zealand communist.

In the speech, Reid recalled being part of Marxist study groups with Rona Bailey and learning about surplus-value. Reid then rightly noted that “without an appreciation of Marxist economics or political economy, we have no understanding of how wealth is created and expropriated in the 21st century. This leaves, in many cases, the modern trade union movement fighting blindfolded.”

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Redundancy – how do unions measure up?

Don Franks

The article “Who moved my job?” in the April issue of The Spark eloquently voices a worker’s experience of redundancy threats. How can workers fight back against this blight on their lives?

Organised workers threatened with redundancy look to the union they belong to. It would make sense for all the unions in the country to have an agreed overall strategy against redundancy.

Such a document does exist. The New Zealand Council of Trade Unions (CTU) policy book, copyright 2006, sets out an approach to redundancy for all unions.

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Who moved my job?

Rachel Tay

2007 did not get off to an auspicious start at Dynamic Controls. Fraud and subsequent law changes in America and the high Kiwi dollar led to low sales. This in turn led to low orders, leaving most of the factory staff in Christchurch with little to do for the first three months.

Staff that had been with the company for a while were aware that with all Invacare’s (the US-based parent company) competitors already in China, and Invacare having shifted respiratory production to China some two years previously, this state of affairs could not continue.

The first blow fell in early April with the announcement of five redundancies from the factory floor. Any job loss is painful, but we thought we’d got off lightly, until May 16.

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Australian Labor Government looks to preserve most of Howard’s industrial reforms

In November last year the Australian Labor Party was elected to office on a tidal wave of opposition to the previous Howard government’s industrial reforms, which had threatened to scrap award conditions as well as undermine collective bargaining rights.

However, just like the New Zealand Labour Government’s introduction of the Employment Relations Act shortly after their election in 1999, the ALP’s proposed new industrial legislation actually promises to change very little for workers, as the following report from the Socialist Party of Australia makes clear.

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