Multinational corporations and jobs

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User offline. Last seen 1 year 29 weeks ago. Offline
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So in my history class, we're in the final chapter of the textbook and it mentions multinational corporations.

My teacher said "Sure a lot of you kids think these corporations are bad because of what you hear about the way they treat their workers, but atleast they have jobs. They wouldn't have jobs if the corporations weren't there."

I was going to respond somewhere along the lines of "Well, these large corporations make it so that these people aren't able to develop their own industries and provide their own needs." but I wasn't exactly sure I knew what I was talking about.

So are multinational corporations really beneficial to their communities when they claim that they atleast provide jobs?

rkn
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Hmm on a similar line - i wonder which is better for job security etc. a large company employing 500 people in an area, or several small companies employing 500 people in an area?

Joseph Kay's picture
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watch 'the corporation' - its available to download with bittorrent from www.chomskytorrents.org

you could point out that the same could be said of slavemasters - since after blacks had been kicked off their lands they should be grateful for subsistence from massa, regardless of their conditions.

From an anarchist point of view, it's not a choice between unemployment and work but between shit, alienating capitalist jobs and self-managed work/play in a directly democratic society. Though this stuff sets teachers' alarm bells ringing in the US doesn't it? or is California less homeland security/gestapo'd? wink

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Yeah, typically cali and northeast districts aren't so crazy. My teachers don't get too worked up if I go on an anarchist rant in government or history class. It also helps to know more than your teacher. Normally they're too embaressed to counterpoint and they just move on.

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hi sup. if you're frrom CA, please visit the north america board here!

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Joseph K. wrote:
watch 'the corporation' - its available to download with bittorrent from www.chomskytorrents.org

you could point out that the same could be said of slavemasters - since after blacks had been kicked off their lands they should be grateful for subsistence from massa, regardless of their conditions.

From an anarchist point of view, it's not a choice between unemployment and work but between shit, alienating capitalist jobs and self-managed work/play in a directly democratic society. Though this stuff sets teachers' alarm bells ringing in the US doesn't it? or is California less homeland security/gestapo'd? ;)

oh yeah I've seen that movie, but I saw it in my early days of figuring things out when I probably couldn't have understood it too well.

California does seem a lot more gestapo'd out to me than a lot of the other states. Alot of things are illegal to possess here which arent in the other states, even the ones close by.

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Supaskyka wrote:
oh yeah I've seen that movie, but I saw it in my early days of figuring things out when I probably couldn't have understood it too well.

well its like 3 hours long so fair enough! its not at all anarchist (they suggest better laws to control corporations rather than abolishing them/turning them into networks of worker-run firms), but it does list a lot of the stuff wrong with them.

In my experience, actually, i've had an easier time working for a multinational corporation than small businesses because its so big and bureaucratic i can get away with allsorts (like posting on libcom), and theres also more of a sense of 'us and them' with workers and bosses. Obviously the important choice isn't between little ang big capitalists, but between capitalism and anarchism/libertarian communism red n black star

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A good case study is the fruit industry. Del monte uses the mass-spraying of hugely powerful pesticides and herbicides to make sure the plants need attending by fewer people, and uses intensive monoculture farming practices which kill local plant/animal life, lead to diseases in newborns of all species (including humans) etc and eventually render the ladn unusable, atwhich point they fuck off somewhere else. They're also directly or indirectly responsible for the paramilitary killings of people trying to undo such harmful practices.

This results in Del Monte, a company which produces around 15% of the global output of bananas alone, oficially employing 17,600 people (9,800 seasonal) total for all its businesses, while the Australian Banana Growers’ council produces 1% (using more labour-intensive, but less environmentally damaging methods to farm) and has 2,000 members (ie. farmers, employing various numbers of people).

To increase its output to the same levels as Del monte would require a membership number of around 30,000, and a workforce of several times that, without taking into account the fact that bananas are only one string in Del Monte's bow. Of course the number or people not officially on payroll (and thus not given any rights, large numbers of which are children) for Del Monte is likely to be higher than the official numbr suggests, but I wonder, would your teacher condone child exploitation as 'much needed jobs'?

So no. Multinationals don't create jobs.

Freedom did a big expose of Del Monte which Libcom republished Hereif you want more info on that.

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Hi

Quote:
Multinationals don't create jobs.

They do in the UK. There are three tiers in the economy, Government, big firms (with Government contracts, consumer goods manufacturers or other large scale capital intensive operations) and SMEs.

Generally speaking the SMEs serve the big firms, and the big firms get Government credit and contracts on the condition that they spend it on UK SMEs and employees.

Love

LR

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I'd still argue in that case that they are merely fulfilling a function demanded by (this) society. In the west multinationals are more regulated but fundamentally the tenet is the same, they take areas in which a product (be it services, manufacture, whatever) has been asked for and control it, but in terms of jobs inevitably their economies of scale will cut rather than raise the number of people employed in the pursuit of that function. In terms of straight job creation, the inefficiences of small businesses are numerically better employers than the consolidation of large ones.

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Hi

Hmmm. You’re right.

Quote:
"Sure a lot of you kids think these corporations are bad because of what you hear about the way they treat their workers, but atleast they have jobs. They wouldn't have jobs if the corporations weren't there."

This is based on the idea that you’re given a job like some kind of favour or reward for good behavior. Why should people have to slave for foreign owned companies for the sake of an income? They should reap the full value of their labour.

Quote:
i wonder which is better for job security etc. a large company employing 500 people in an area, or several small companies employing 500 people in an area?

Job security depends on what you do, not who you work for. Big employers are in a better option to offer redeployment, often involving relocation, and are more likely to be able to afford better redundancy arrangements and be under pressure to comply with middle class notions of social obligation.

Big firms are also more likely to be involved with robust markets, like Banking and Civil Construction, with a high cost of entry, which can offer security.

But then a small firm with a well established customer base amongst larger companies offers as much security, as long as they maintain the contract. It’s a complicated question to answer, consider the effect of the Longbridge closure on its suppliers and the effect on Deliphi of GM’s losses in the U.S.

Love

LR

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Course that's also an argument against multinationals as an overall source of stability in an economy, should they come under threat for whatever reason. If one small company goes under the collateral damage is limited, and largely manageable for associates. If a large company closes a major operation, it will drag others down with it due to dependence (monopoly custom). While a multinational entity is undoubtedly more robust on its own terms, the vulnerability of the communities it bases in should the worst occur is made exponentially larger.

Joined: 28-09-04
Supaskyka wrote:
My teacher said "Sure a lot of you kids think these corporations are bad because of what you hear about the way they treat their workers, but atleast they have jobs. They wouldn't have jobs if the corporations weren't there."

It's a false dichotomy, based on the epithet "beggars can't be choosers". It is also depicts the corporations as altruistic missionaries, when in reality the exporting of labour to the Third World benefits them far more than their employees therein. The fact is that the creation of EPZs represents a development of capitalism that's motivated by profit, not human benevolence, and as such, it's hardly unacceptable that workers in sweatshops should battle for better conditions.

Joined: 28-09-04
Joseph K. wrote:
In my experience, actually, i've had an easier time working for a multinational corporation than small businesses because its so big and bureaucratic i can get away with allsorts (like posting on libcom), and theres also more of a sense of 'us and them' with workers and bosses.

And they have figured that it's (generally) more cost-effective to obey labour laws than ignore them. They've realised it's easier to reverse/change labour laws for their benefit at its debating stage...

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My teacher said "Sure a lot of you kids think these corporations are bad because of what you hear about the way they treat their workers, but atleast they have jobs. They wouldn't have jobs if the corporations weren't there."

First of all, it's neither the case that MNCs are simply 'bad' or 'good'. Just as with capitalism in general, there are bad things and good things about MNCs. One good thing about them is that they raise (though do not optimise) materialise living standards for many people. Bad things are that they treat people like slaves, and occasionally kill them.

It's an open - and possibly meaningless - question to ask whether things could have developed any differently; i.e. if we could have reached the current level of technological/industrial/social advancement without MNCs as the most powerful institutions of capitalism.

The reason that MNCs are able to 'give' jobs to others is because they have a monopoly over the capital which creates jobs. Since your position - I guess - is that access to capital should be democratically organised, you're saying that no one should have to rely on being 'given' a job.

In other words, I guess, you should point out that your critique of MNCs is a practical one, which proposes their replacement; which says that the current mode of economic organisation in the world is not the final one. Your criticism is grounded there, and is opposed to accepting the status quo just because there are some good things about it - though it does not deny that good things about the status quo are not the product of historical conditions, including MNCs.

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Multinationals don't create jobs, workers do. Workers create the means of production needed to work. If multinationals can buy them, it means that they must already exist. Even in a market economy, workplaces which make machinery could advance the MoP to a group of workers in return for future payment rather than getting money from capitalists. All capitalists do is appropriate the MoP and restrict access to it (because property gives them the right) thereby actually reducing the possible amounts of jobs.

The "you wouldn't have a job without them" argument is based on the misconception that the TNCs provide aything in a meaningful sense, when it is workers who create everything needed for jobs. It is also based on the idea that the shareholders etc have the right to stop people from using the factories if they themselves are not physically and completely using them themsleves. Providing jobs ie.e giving permission means nothing if you don't think they have the right not to give permission.

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sam_frances wrote:
Multinationals don't create jobs, workers do. Workers create the means of production needed to work. If multinationals can buy them, it means that they must already exist. Even in a market economy, workplaces which make machinery could advance the MoP to a group of workers in return for future payment rather than getting money from capitalists. All capitalists do is appropriate the MoP and restrict access to it (because property gives them the right) thereby actually reducing the possible amounts of jobs.

The "you wouldn't have a job without them" argument is based on the misconception that the TNCs provide aything in a meaningful sense, when it is workers who create everything needed for jobs. It is also based on the idea that the shareholders etc have the right to stop people from using the factories if they themselves are not physically and completely using them themsleves. Providing jobs ie.e giving permission means nothing if you don't think they have the right not to give permission.

Very true. Under capitalism you also need permission to work whether you want to or not. You may have many useful qualities but if companies don't recognise your worth they count for little, you can't exchange your labour.

Basically the situation we have now is government existing in large part to support companies especially multinationals. Unfortunately many people still believe that government exists to ensure their wellbeing. The fools.

red n black star

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To play devils advocate for just a few seconds it is fair to say that capitalism is highly creative and creates new industries and therefore new jobs - this was a point even spelled out in the Communist Manifesto.

Yes, corporations provide a lot of employment and are innovative in business methods, driven as they are by profit. We are where we are now, and what with the advances made in science and technology it no longer need be true that capitalism alone need be the engine of job creation.

I go along with the line of the mutualists that finds that markets in themselves are not bad and that trade is a vital social mechanism - however the millions of third world workers at the bottome of the capitalist, corporatist food chain are not involved in trade, they are involved in wage slavery.

The problem to me rests on how to keep the drive of product innovation (not necessarily equal to making consumer crap) with a bottom up mutual economy that involves workers meaningfuly - the point has already been made that corporatism is utterly destructive of small enterprises - not just in the thrid world but in all major cities.

London and Britain are currently failing to counter the dominance of supermarkets and high street retailers and the incredibley negative effect this is have on small chop keepers, leading to shop closures and clone high streets ... you know the drill.

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sam_frances wrote:
Multinationals don't create jobs, workers do. Workers create the means of production needed to work. If multinationals can buy them, it means that they must already exist. Even in a market economy, workplaces which make machinery could advance the MoP to a group of workers in return for future payment rather than getting money from capitalists. All capitalists do is appropriate the MoP and restrict access to it (because property gives them the right) thereby actually reducing the possible amounts of jobs.

The "you wouldn't have a job without them" argument is based on the misconception that the TNCs provide aything in a meaningful sense, when it is workers who create everything needed for jobs. It is also based on the idea that the shareholders etc have the right to stop people from using the factories if they themselves are not physically and completely using them themsleves. Providing jobs ie.e giving permission means nothing if you don't think they have the right not to give permission.

^ What he said

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Quote:
The "you wouldn't have a job without them" argument is based on the misconception that the TNCs provide aything in a meaningful sense, when it is workers who create everything needed for jobs.

It's true that everything is created by workers (using capital etc.). But the workers who take any given jobs are not the same ones who create the capital used in those jobs. The sense in which MNCs provide jobs is very meaningful for the people who get those jobs. This can easily be seen by asking what would happen if the MNCs didn't ship over the capital to whatever country is in question.

The point is to separate this (which is a fact about how things are) from what could be, and to recognise that the fact that we even have to talk in this way demonstrates how out of control and fucked up things are.