The Value of Forestry Workers
By Peter Ewart & Dawn Hemingway
Monday, June 08, 2009 03:45 AM
By Peter Ewart & Dawn Hemingway
It is part of popular mythology that the captains of industry and finance like Donald Trump and David Rockefeller are the true creators of value and wealth in our society. Some even suggest that, from their genius, all the material benefits of society flow, and, as a result, they are often treated in the media and by politicians as virtual gods.
Even when the financiers of Wall Street swindle, loot, and steal, and bring down a calamity on the world economy, as was done with the recent sub-prime mortgage crisis, the politicians in the U.S. Congress reverently kneel down and kiss their rings, and open up the public treasury to them. After all, as one Congressman recently put it, “the banks own Congress.”
On the other hand, manufacturing workers, whether in steel, auto, forestry or other sectors, get no such treatment. Far from it, they are often portrayed as the “villains” of the piece, like the auto workers were in the recent auto industry crisis.
With their wages, benefits and pensions, manufacturing workers are presented as a troublesome and expensive “cost of production” that these wonderful financiers and captains of industry must put up with, along with other “costs of production” such as fuel, machinery, taxes, and interest payments.
To create wealth, to save the company, to save the world, these workers must agree to major concessions by having their wages slashed, benefits and pensions eliminated, and jobs lost in massive layoffs and shutdowns. If they resist, they are labeled obstacles to progress and the “greater good,” as represented, of course, by the captains of industry and the titans of Wall Street.
The forest industry in Canada is no different. Today, this industry is highly concentrated and monopolized with the bulk of production in the hands of a few giant monopolies and multinationals.
These days, more often than not, the major investors in these mega-companies do not even have a forest industry background, but rather are financiers of one kind or another. Jim Pattison, who is CEO of the Jim Pattison Group, and is the biggest shareholder in Canfor Corporation, is one example. Marty Whitman’s New York based Third Avenue Management, which is a hedge fund, is another, being the biggest shareholder in Catalyst Paper, the province’s largest pulp and paper company, as well as a major shareholder in Canfor.
These financiers do not run the operations of these companies. Instead, they have “hired hands” to carry out those functions.
Strangely enough, for these financiers, who often have vast pools of capital to draw upon, the current severe economic downturn is a time of “opportunity” when they can increase their domination of the industry; then use their monopoly power to extract major concessions from workers, contractors, suppliers and government, shut down capacity, as well as eliminate smaller competitors. Thus, the economic crisis itself becomes a useful weapon to be used against all and sundry. But are these financiers really creators of wealth or are they destroyers?
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To answer that question, we need to examine how economic “value” and “wealth” itself is created.
How does a piece of lumber or plywood or any other product acquire “value”? The establishment economists and media pundits rarely, if ever, talk about this issue.
However, if we look at the classical economists who first examined this question, whether they were capitalists, such as Adam Smith or Ricardo, or communists, such as Karl Marx and Freidrich Engels, there is a broad agreement. Labour acting on nature, i.e., raw materials, is the creator of value, is the source of wealth creation in the production process. That logger harvesting the tree, that equipment operator transporting the logs, that mill worker processing the lumber, that woodworker fashioning the cabinet, and so on down the line – these are the people who, through the magic of the labour process, create the value of the commodity.
From this value created by workers, wealth is extracted and siphoned off, whether it be company profits, revenue for reinvestment in machinery and equipment, government taxes, interest and so on. Indeed, this wealth creates much of the foundation for our forestry-based communities, as well as society itself. That being said, to the extent that each participates in the production process, owner operators, contractors, and small business people also contribute to the creation of this value.
So where does that leave financiers like Jim Pattison and Martin Whitman? The fact is that they may own the company but they don’t create value. Indeed, they are the ones who are incidental and non-essential. If they disappeared from the equation, and there was some other form of ownership, be it public, cooperative, non-profit, etc., workers would still be creating value. The captains of industry may come and go, but the one constant for value creation is labour.
Workers in the forest industry in British Columbia are among the most highly productive in the world. They have a wealth of skill, experience and knowledge that they bring to the production process. Given all of this, one should expect that they would be seen by the financiers and government as key players to be preserved, nurtured and maintained as invaluable assets and fountains of wealth creation. But that is not the case. The financiers who dominate the global economy today view workers as if they were no more important than a piece of Kleenex to be tossed out a boardroom window.
Indeed, it one of the strangest paradoxes of our time that those sectors of society which create the most actual value, have the least economic and political power. While those who create the least, have the most.
At a time when major concessions are being demanded of workers, when the direst catastrophes are being threatened unless they submit, it is useful for us all to keep in mind that it is these workers who are the source of wealth, it is they who are the creators of value, it is they who are the very salt of the earth.
Peter Ewart is a college instructor and writer whose email is: peter.ewart@shaw.ca . Dawn Hemingway is a university professor and writer whose email is: hemingwa@unbc.ca. Both are based in Prince George, British Columbia.
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