A School of Labour Workshop Maureen Hynes & Kathryn Payne mhynes@georgebrown

1. Globalization A School of Labour Workshop Maureen Hynes & Kathryn Payne mhynes@georgebrown.ca kpayne@georgebrown.ca

2. Outcomes • Understand the evolution of “free trade” • Recognize and describe the effects, particularly local effects, of free trade • Identify the range of opposition strategies in place around the world • Be familiar with further resources on free trade & globalization

3. Defining globalization • Globalization is the world-wide integration of finance, markets, production and the management of labour. • It is a process by which large corporations extend their domination of resources, markets and labour… • … facilitated by governments and international bodies such as the International Monetary Fund and World Trade Organization.

4. Origins of Free Trade deals • Post World War II: 1945 meeting at Bretton Woods, New Hampshire, to set up World Trade Organization (WTO) • First purpose was to rebuild Europe • Later -- loans to developing countries for infrastructure & militarization • High levels of interest charged to countries in economic south

5. Context for current situation • Free trade deals enormously protested • Failure of free trade deals because of opposition by developing countries • Country-to-country deals • Secrecy • “Atlantica” and “TILMA” (Trade, Investment, Labour Mobility Agreement) • “Integration”….

6. “Deep integration” Security and Prosperity Partnershipsigned by Bush, Fox & Martin in 2005 • Focused on “harmonizing” security, trade, economic and resource policies • Massive standardization of health care and environmental standards (cuts out 400 environmental laws) • Allows the 3 countries to negotiate as one bloc in the WTO • “We’re becoming a bloc, like the EU, but without the safety standards” (Barlow)

7. But… • No consultation, no public debate -- not passed by Parliament • “A continental resource pact” -- electricity, gas, oil, water, food safety, regulation of toxic substances • Loss of control of our resources (like softwood lumber) • Push towards privatization of health care • Compatible immigration security measures • The North American Competitiveness Council (10 CEO’s) has been asked to reduce the 300 recommendations to 30 workable ones

8. Some key components of globalization • Privatization • Deregulation • Tax cuts then cuts to social services, health care, education • Downward pressure on prices • Security and military expenses • Easy movement of capital, but  • Restrictions on movement of people (migrant workers = commodity)

9. Deregulation Reduces the number of laws covering safety issues for consumers and eases regulations for how industries do their work • Water – Walkerton • Cdn Food Inspection Agency & US FDA • Drug safety – Cdn Health Protection Branch • Federal Protections for Canadian Wildlife • Aviation safety • CanCon rules for satellite radio • Canadian Auto Pact (between US & Japanese mfrs) signed in 1965, ended by WTO in 2000 • Backing away from Kyoto Accord • Tuition fees deregulated!

10. Privatization (Publically-funded and run resources are transferred to the private, for-profit sector) In Ontario there are now 25 “P3” (public-private partnership) hospitals • A U.S. corporation built and ran a P3 superjail in Penetanguishene for 5 years – study compared it to publicly-run jail found public jail had better security, health care and reduced re-offending rates.

11. Cuts to services • Employment insurance (from 75% of workers covered in 1990 to only 37% in 2000) • Cuts to social assistance • School Board cuts • Cuts to federal funding for literacy programs (9 million need literacy help) • Status of Women funding • Eliminate national childcare program • Wildlife protection cuts, Sept 07

12. Downward pressure on prices • Subsidies to farmers in the U.S. leads to “dumping” of corn in Mexico • Slate mining in China and Newfoundland • The Wal-Mart policy for suppliers • “Race to the bottom” for labour costs – Increasing numbers of low-wage jobs

13. Security & military spending • Permanent residents’ card with computer chips • Biometrics – voice, eyes, fingerprints • New role for Canadian military • Increased investment in military hardware and war

14. Regulation of movement of people • Guestworkers – a growing global presence (2003 ILO estimates: 120 million worldwide) • India, Mexico, the Philippines: “remittance” economies • Not just agricultural workers, but also nursing homes, semi-skilled trades • But removing benefits and legal protections for them (e.g., unions)

15. What can we do? • Brainstorm!