Wednesday, November 17, 2021

British Columbia

Over 500 pipeline workers stranded behind Wet'suwet'en clan blockades, Coastal GasLink says

Gidimt'en Clan members want to evict pipeline project from

traditional territories

A blockade set up by the Gidimt'en Clan in 2019 to stop access to pipeline workers. The blockades erected this week have cut off more than 500 workers, Coastal GasLink says. (Contributed/Gidimt'en Yintah Access)

Coastal GasLink says more than 500 pipeline workers are stranded after a Wet'suwet'en Nation clan set up three blockades along the only access road to two work camps in a remote part of northern B.C.

The company says supplies at the camps will run out in the coming days, water is begin conserved, and workers won't be able to reach medical care in an emergency because of the "illegal blockades."

"Unlawful actions ... have put our people in danger," Coastal GasLink said in a statement.

On Sunday, the Gidimt'en Clan of the Wet'suwet'en Nation told Coastal GasLink it would enforce the eviction of pipeline workers from its traditional territories near Houston, B.C., about 1,000 kilometres northwest of Vancouver. 

According to the Gidim'ten Clan, an enforcement notice, issued at 5 a.m. PT Sunday, provided an eight-hour window for CGL workers to leave before the access road was blocked.  

Jennifer Wickham, media co-ordinator for the Gidimt'en checkpoint, which monitors access to part of the territory, says the route on the Morice River Forest Service Road is now impassible for all vehicles, including supply trucks.

Wickham said the blockades were set up to halt Coastal GasLink's plans to drill under the Wedzin Kwa (Morice River).

B.C. Minister of Public Safety and Solicitor General Mike Farnworth said the blockades have "put at risk emergency access and the delivery of critical services" to hundreds of Coastal GasLink workers.

In a written statement Monday, Farnworth said the blockades are endangering dialogue and "good faith commitments" between the Office of the Wet'suwet'en and the province, and also breach a court injunction against blocking access to pipeline worksites.

"The right to protest does not extend to criminal actions," Farnworth said.

WATCH | Minister Marc Miller says discussions over Coastal GasLink pipeline are at "critical junction"

Crown-Indigenous Relations Minister Marc Miller says the federal government is in discussions with Indigenous community members to ease tensions over the Coastal GasLink pipeline. 2:00

Coastal GasLink says it is "committed to dialogue" and notes the pipeline project is fully authorized and permitted by government and has the support of all 20 elected band councils across the pipeline route. 

But Wet'suwet'en hereditary chiefs have opposed the project, saying band councils do not have authority over land beyond reserve boundaries.

Coastal GasLink installs pipe along its planned 670-kilometre route from northeastern B.C.'s gas fields to an LNG export terminal in Kitimat, B.C. (Coastal GasLink)

About 5,000 workers working across northern B.C. are halfway through the construction of the $6.6-billion pipeline.

It's designed to carry natural gas obtained by fracking in northeastern B.C. to a $40-billion LNG terminal on the province's North Coast for export to Asia.

The blockades set up this week are on the same disputed land that made international headlines in early 2020.

That's when several Wet'suwet'en hereditary chiefs and their supporters blocked access to Coastal GasLink pipeline worksites, sparking a nationwide discussion about who gets a say in resource development on land claimed as traditional territory.

The high-profile standoff led to RCMP raids to dismantle the blockade, which in turn sparked rail blockades across the country in support of the hereditary chiefs' cause. 

A protester stands between Mohawk Warrior Society flags at a rail blockade in Tyendinaga, near Belleville, Ont. in 2020. The protest was one of numerous rail blockades across Canada in solidarity with the Wet'suwet'en hereditary chiefs opposed to the LNG pipeline in northern British Columbia. (Lars Hagberg/The Canadian Press)
Coastal GasLink pipeline is blockaded in
 new trouble for project

Robert Tuttle, Bloomberg News


Investors need to know that Coastal GasLink's project will not be successful: Wet’suwet’en spokesperson

Sleydo’, Wet’suwet’en spokesperson for Gidimt’en Checkpoint, discusses safety concerns from British Columbia's Public Safety Minister and Solicitor General, Mike Farnworth, on the Coastal GasLink blockades. Sleydo’ says resolution to this conflict will come when Coastal GasLink's pipeline production team exits Wet’suwet’en territory and ceases construction. Sleydo' notes that ample time was given for employees to exit the territory after they passed on an eviction notice, but the company did not tell their employees to leave.

Protesters erected blockades to prevent construction crews from reaching TC Energy Corp.’s natural gas pipeline project in the latest setback for the British Columbian project.

Three blockades on a forest road have isolated accommodations for 500 workers building the Coastal GasLink conduit intended to haul gas to a planned coastal export terminal, according to a TC Energy statement. The protest began Sunday when members of the indigenous Wet’suwet’en community demanded that work crews vacate the group’s territory, according to a separate press release.

“Work on Coastal GasLink continues along the 670 km project corridor,” TC Energy said in an emailed statement. “Construction activity around the protest areas and blockades is paused for safety reasons.”

Costs for the project have escalated over the past couple of years amid frequent protests as well as pandemic-driven work restrictions. The budget inflation, in turn, has fueled friction between TC Energy and backers of the LNG Canada export project over which companies should bear the increased costs.

The latest action by members of the Gidimt’en Clan of the Wet’suwet’en comes almost two years after a similar blockade sparked nationwide protests that put rail shipments of grain, propane, lumber and consumer goods in jeopardy and slowed the economy.


There is no room for compromise with TC Energy on this project, Gidimt’en spokeswoman Sleydo’ said in a BNN Bloomberg TV interview.

“This project does not have consent to go through our territory and it will not proceed,” she said. “People must realize that they cannot walk over indigenous people anymore.”
WORKERS POWER!
Activision Blizzard workers call for CEO departure


Wednesday, 17 Nov 2021


A walkout and a call for Activision CEO Bobby Kotick to leave the company came in the wake of a Wall Street Journal report that he has for years been looped into reports of abuses that included an allegation of rape, but did not share all that he knew with the board of directors.
— AFP

SAN FRANCISCO: The chief of Activision Blizzard on Tuesday defended his handling of harassment complaints as a group of workers at the video game company called for his departure.

A walkout and a call for Activision CEO Bobby Kotick to leave the company came in the wake of a Wall Street Journal report that he has for years been looped into reports of abuses that included an allegation of rape, but did not share all that he knew with the board of directors.

Some 150 workers took part in a walkout at the California company, joined by colleagues who halted working remotely in solidarity, according to posts shared at an Activision Blizzard workers alliance account at Twitter.

"It's past time for Bobby (Kotick) to step down," read a tweet by the @ABetterABK account.

The Activision Blizzard board voiced support for Kotick's leadership in a message responding to recent stories in the media.

"The board remains confident that Bobby Kotick appropriately addressed workplace issues brought to his attention," it said in a post at the company website.

An Activision spokesperson responding to an AFP inquiry said the Journal story presented a "misleading" view of the company and its chief executive.

"Instances of sexual misconduct that were brought to his attention were acted upon," the spokesperson told AFP.

"At Mr. Kotick's direction, we have made significant improvements, including a zero-tolerance policy for inappropriate conduct."

The California-based maker of Call of Duty has been hit by employee protests, departures, and a state lawsuit alleging it enabled toxic workplace conditions and sexual harassment against women.

Kotick defended himself in a release, saying the article on Tuesday "paints an inaccurate" image of him.

"Anyone who doubts my conviction to be the most welcoming, inclusive workplace doesn't really appreciate how important this is to me," Kotick said in the release.

Activision early this month said it was delaying eagerly-awaited sequels to its hit Diablo and Overwatch franchises as it deals with upheaval due to workplace conditions.

"In recent months, we have taken actions that resulted in the departure of a number of individuals across the company," chief operating officer Daniel Alegre said on an earnings call.

"As we have worked with new leadership at Blizzard, and within the franchises themselves, particularly in certain key creative roles, it has become apparent that some of the Blizzard content planned for year will benefit from more development time to reach its full potential."

The company recently announced measures intended to strengthen anti-harassment protections.

Kotick has apologised and asked the board to slash his pay to the California legal minimum of US$62,500 (RM261,050) until the panel "has determined that we have achieved the transformational gender-related goals." – AFP
Students staging lockout at U of M admin building as strike continues
University of Manitoba staff hit the picket line after failed negotiations with university administration (Mason Depatie, CTV News)


Kayla Rosen
CTVNewsWinnipeg.ca 
Editorial Producer
Updated Nov. 15, 2021 

WINNIPEG -

A group of students is standing outside the doors of the University of Manitoba administration building on Monday to prevent administration staff from entering the building.

In a news release, Students Support UMFA (SSUMFA) said the group will be staging the lockout from 6 a.m. to 12 p.m. at the building located at 66 Chancellors Circle.

“Administrators at the University of Manitoba are afraid to stand up against government interference,” said Travis Hunnie a SSUMFA organizer.


“If administrators are willing to let that get in the way of our learning, then we are going to show them that we can get in their way, too."

Members of the University of Manitoba Faculty Association (UMFA) went on strike at the beginning of November following months of failed negotiations with the university’s administration. UMFA is asking for what it describes as a fair salary offer, saying it will help with recruitment and retention of faculty members.

SSUMFA said its Monday morning protest is a result of the administration refusing to offer a fair deal.

“We as students of the University of Manitoba unequivocally stand with UMFA and support their right to strike and protest,” said Jaron Rykiss, a student from SSUMFA.

“We demand that the administration meet the faculty and offer a new deal, one that supports the faculty and values their efforts accordingly.”

CTV News Winnipeg has reached out to the university for comment.

In a statement, the university said a small group of its bargaining team met with UMFA representatives on Saturday to clarify the numbers and calculations that make up the university’s and UMFA’s offers.

“UMFA confirmed that the university has calculated the actual cost of the proposals accurately, although there continues to be disagreement on how to report those numbers,” the statement said.

The U of M noted that both parties will be back at the bargaining table on Monday as they continue mediation and work towards a new collective agreement. The university added it will be tabling an updated monetary offer.

Mediation resumes between U of M and UMFA

Mediation has resumed between the University of Manitoba and the Faculty Association as the strike nears the two-week mark.

Hollywood's IATSE Votes to Ratify Its New Contract, But Controversy Remains

The vote avoids an unprecedented strike action threatened by the union last month, but not all members are satisfied.


By James Whitbrook
Monday 5:20PM


Photo: Katalin Vermes/Netflix

After simmering tensions between studios and one of the biggest unions in the industry that threatened potential strike action last month, IATSE has ratified a new union contract after months of negotiations. But the vote also exposes just how divided IATSE’s members were over the new deal, which critics say doesn’t go far enough in protecting workers on set.

Variety reports that the new deal—which provides 54-hour weekend rest periods and a minimum of 10-hour turnarounds between shifts for all members, a 3% annual raise with increased pay for lowest-payed union members, and increases to pension and health plan funds—was voted on by 72% of the International Alliance of Theatrical Stage Employees’s union members. However, in spite of IATSE leadership painting the deal last month as a “Hollywood Ending,” voting on the new contract was incredibly close.

The Area Standards Agreement—the part of the contract that covers 23 local union shops across America—was voted for by 52% percent of members. The Basic Agreement—covering 13 West Coast-based IATSE locals—was actually voted against, with 50.4% of votes against the deal and 49.6% voting yes. However, as IATSE votes operate on a delegate system—akin to the way the Electoral College vote is used in U.S. politics—both agreements were ratified: 256 delegates voted for on the Basic Agreement, to 188 against, with the Area Standards Agreement going much closer with 103 for and 94 against.

“From start to finish, from preparation to ratification, this has been a democratic process to win the very best contracts,” IATSE International President Matthew Loeb said in a statement to press today (via Variety). “The vigorous debate, high turnout, and close election, indicates we have an unprecedented movement-building opportunity to educate members on our collective bargaining process and drive more participation in our union long-term.”

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In early October, 90% of IATSE members voted overwhelmingly to support strike action after the union’s ongoing contract negotiations had broken down. It brought a heightened public awareness to the harsh conditions faced by workers who help bring the biggest movies and TV shows to life, many of whom face incredibly long hours and little residuals for their work, especially in the world of streaming service productions. However, after IATSE penciled in strike action to begin on Monday, October 18, a last-minute deal reached the day beforehand saw the union back down

But while from the outside, and for Hollywood studios at least, disaster seemed to be averted, many IATSE members have spent the past month vociferously criticizing the deal, saying that its gains did not go far enough with the hindsight that the union had overwhelmingly pushed to leverage strike action as a negotiation tactic. Criticisms of the now-ratified deal noted that the contract doesn’t punish productions that overrun and cancel lunch breaks harshly enough—with only new punishments coming in after eight consecutive hours without a break and no changes to a previously-established six-hour penalty mark. Other criticisms noted that there were also missing streaming residuals for the updated pension and health plans, which had been a major target of criticism in the wake of the vote for strike action.

Those IATSE members have made their dissatisfaction clear in today’s vote results, with such a divided membership highlighting that gains made in the new deal aren’t enough for a large number of workers. However, that dissatisfied base is now unlikely to be able to secure more benefits for a while: a new round of bargaining on the contract won’t begin until 2024.


IATSE Members Approve New Contract By Razor-Thin Margin

November 15, 2021 

LOS ANGELES (CBSLA) – Thousands of Hollywood workers in the International Alliance of Theatrical Stage Employees union have approved a new contract, but only by a razor-thin margin.

The IATSE confirmed Monday that members approved a new three-year deal by a slim margin of just 50.3% voting yes, and 49.7% voting no. The deal was reached with the Alliance of Motion Picture and Television Producers, the group which represents all major film and television companies.

The IATSE reports that turnout for the ratification vote was 72%.

The IATSE represents Hollywood TV and film workers like editors, camera operators, set designers, grips, electricians, make-up artists and graphic artists across the U.S. and Canada. The IATSE has a membership of about 63,000, with an estimated 47,000 of those based in the L.A. area.

The ratification vote was conducted among the union’s 13 locals on the West Coast, for the basic agreement, and with 23 locals elsewhere on the area standards agreement.

“From start to finish, from preparation to ratification, this has been a democratic process to win the very best contracts,” said IATSE International President Matthew Loeb in a statement. “The vigorous debate, high turnout, and close election, indicates we have an unprecedented movement-building opportunity to educate members on our collective bargaining process and drive more participation in our union long-term.”

After bargaining for months, the two sides reached a tentative deal in mid-October, just two days before IATSE members would have walked off the job in what would have been a historic strike that likely would have shut down Hollywood.

Issues at stake included higher pay, better working conditions, stronger benefits and residuals from streaming services.

The IATSE said the new deal includes retroactive wage increases of 3% annually, improvements in pay and conditions on streaming productions, observance of the Martin Luther King Jr. holiday and a rest period of 10 hours between daily shoots, and 54 hours on weekends.

The vote also followed about three weeks after the shooting death of cinematographer Halyna Hutchins on the New Mexico set of the film “Rust,” which sent shockwaves through the industry and also raised serious questions about safety and gun rules on film and television sets.

Some members had publicly said they would vote no, claiming the contract falls on short on providing basic safety measures. Last Thursday, about two dozen IATSE workers and supporters gathered outside the Dolby Theatre in Hollywood to express their opposition to the proposed contract. Some said it does not sufficiently improve working conditions, particularly in regard to long hours and on-set safety.

(© Copyright 2021 CBS Broadcasting Inc. All Rights Reserved. City News Service contributed to this report.)

IATSE declares contract ratified, even though majority voted against it

Hong JianGabriel Black
WSWS.ORG
a day ago

The International Alliance of Theatrical Stage Employees (IATSE) announced Monday the ratification of its sellout labor agreement with Hollywood producers, despite the fact that the majority of its membership voted against it. The agreement covers over 60,000 workers central to film and television production.
I
ATSE picket (Source: Twitter/@southafricanone)

The “Basic Agreement” was voted down by 50.4 percent “No” to 49.6 percent “Yes” among the general membership. However, because IATSE uses an undemocratic electoral college-like “delegate system” in its contract votes, the union declared the contract passed by a margin of 256 voting “Yes” to 188 “No.” For the second, “Area Standards Agreement,” the delegate vote was 103 “Yes” to 94 “No.”

The narrow passage of this Memorandum of Agreement (MoA) is a culmination of the union’s efforts over the last six months to oppose, isolate and betray the struggle of film production workers. After being forced to work without a contract by the union for months, 98 percent of the membership, pushed to the brink by the inhuman conditions which pervade set-life, voted to strike at the beginning of October. Although IATSE eventually issued a 10-day strike notice, it continued working behind closed doors with the Alliance of Motion Picture and Television Producers (AMPTP) to avert a strike, which was called off at the last minute when the current deal was announced.

With consummate hypocrisy, IATSE declared to the press that it had arrived at a “Hollywood ending.” In truth, the contract was a rotten deal which did nothing to address the core demands of the workers.

The deal does nothing to eliminate the short turnarounds between shifts which leave workers exhausted, continues the so-called “Fraturdays” (working Friday through early Saturday morning), includes a 3 percent annual pay raise equivalent to a 3 percent wage cut with current inflation at 6 percent, and no guarantees of sufficient time to break for food and rest during a production shoot.

IATSE pressed forward with the sellout contract even after the tragic death of Halyna Hutchins in an accidental on-set shooting, which stemmed from the very conditions IATSE workers have been fighting against.

These maneuvers are part of a wider campaign by all unions to sabotage an “autumn offensive” in which the working class is attempting to fight back against decades of wage stagnation and unsafe working conditions.

The IATSE playbook was borrowed wholesale over the weekend by the health care unions at Kaiser Permanente, who called off a strike by 32,000 workers at the hospital chain in Southern California and a separate strike by 2,500 pharmacists in Northern California this weekend, both of which had been scheduled to begin Monday. The new contract in Southern California contains paltry 2 to 3 percent wage increases and a regressive attendance bonus, which discourages nurses from taking contractually allotted sick days.

On Friday, the UAW announced it was forcing a re-vote on virtually the same contract at John Deere which workers had rejected two weeks ago, in a bid to end the monthlong strike by 10,000 workers. Significantly, the announcement came only one day after charges were filed against yet another corrupt UAW official, who embezzled $16 million, which he blew on casinos in Detroit.

Workers know that conditions are more favorable now than they have been in decades for them to fight against these concessions. But the corporate-financial oligarchy, which has been making more money on the stock market than ever before over the course of the pandemic, is relying principally on the services of the unions to disrupt and betray this movement.

This is part of a broader strategy of the Biden administration, who dispatched two cabinet members to picket lines last month, to bolster the unions as a form of police guardianship over the working class. At the same time, the courts have granted several injunctions against pickets across the country, and the Biden administration has been publicly floating the idea of using the National Guard to relieve port congestion on the West Coast.

After the announcement of the tentative agreement, IATSE workers angrily took to social media to denounce the leadership, forming rank-and-file meetings to call for a “No” vote. As one worker wrote in response to IATSE’s announcement, “The Big Production and Streamers Bosses are breaking cigars with Union Bosses right now!”

When IATSE International President Matthew Loeb contemptuously told workers, “From start to finish, from preparation to ratification, this has been a democratic process to win the very best contracts,” workers responded angrily.

“Everyone leading IATSE should be ashamed of themselves,” wrote one. Another said, “I call shenanigans on that vote margin as well as turnout.” And another, “WILDCAT STRIKE.”

Earlier this week a veteran film and television worker, a member of IATSE, told the World Socialist Web Site, “There are two enemies: AMPTP and the IATSE leadership. ... IATSE leadership has and is still actively working to try to keep the rank and file away from each other, which is super disturbing. They are blocking all kinds of movement and coordination among the rank and file. Some in leadership are spreading misinformation about the contract and the vote. It’s very chilling how they are trying to manipulate us.”

IATSE workers must draw the necessary conclusions from this struggle. The fight of film and television workers is not over. But workers must respond to this betrayal by preparing for the next phase. Workers need new organizations, independent of and in opposition to the IATSE bureaucracy, to provide themselves with a forum for free and democratic discussion to prepare a common strategy and appeal for support from the rest of the working class, without fear of reprisal or constant gaslighting.

This means that IATSE workers must form independent rank-and-file committees, as John Deere Workers, educators, Amazon workers and others across the country have done. They have already played powerful roles at DeereVolvo TrucksDana and other struggles over the course of the year in mobilizing opposition to union treachery.

The World Socialist Web Site calls on film and television workers who agree with this perspective to contact us. We will do everything within our power to help workers as they form such committees, including connecting them to other such rank-and-file committees around the world, including among autoworkers, educators and health care workers.
Companies Investing in Robots, Automation Is Good News for Employees, Economy
by Angela
November 14, 2021


LONG READ

Even as the health side of the pandemic slowly improves, the US economy remains in a strange place

Labor markets are tight, and a record percentage of respondents in a monthly Gallup poll of Americans said this was a good time to find a quality job. But despite the strong job market, the public is overall not satisfied with the state of the economy. In the same Gallup poll, most respondents said the economy was “only fair” or “poor.”

But lurking under the challenging transitions are encouraging signs that America’s economic outlook may get better once the pandemic is fully in the rearview mirror and supply chains are no longer strained. One such sign is the fact that businesses are using what they learned from the COVID-19 era to become more efficient and get better at doing more with less.

Perhaps one of the most visible examples of businesses learning from the pandemic is in how we eat out. When you sit down at the table, you may be asked to scan a QR code and pull it up on your phone instead of being handed a paper menu. Once you pull up the menu, it’s shortened and streamlined. And once you’ve finished up your meal, another QR code may allow you to pay your check online, without having to flag down a server or wait for a paper receipt.

These changes are not just about reducing the risk of virus spread — but also about boosting productivity. Servers who don’t have to come to your table as many times per meal can serve more tables. Nobody needs to print, distribute, retrieve, or clean menus. A trimmed-down menu doesn’t require stocking as many ingredients, and the items can be made with fewer kitchen staffers.

Even fast-food restaurants, whose business models are already designed to be more labor-light than full-service restaurants, are taking advantage of the pandemic to accelerate the shift toward online ordering and push customers to take out instead of eating in, which reduces the need for staff to take orders and clean tables.

These changes all make restaurants more efficient — allowing them to take in more customers and, in turn, make more money. And if customers find them acceptable, that means they’re likely to stick around well after the pandemic is over. And it’s not just restaurants that are going full speed ahead with changes to their business operations. Airlines are leaning into booking and rebooking through their apps to reduce the need for staffed call centers, medical practices are embracing telehealth visits for patients, retail outlets are pushing customers toward more efficient online ordering, and many industries are allowing more workers to work permanently from home.

Businesses have been punched in the mouth by the pandemic — health restrictions, a tight job market, a supply-chain crunch — and are responding by jumping into the future.

These new technologies and more efficient operations don’t mean companies reap only bigger profits, and they certainly don’t mean that workers are going to get screwed over by robots taking their jobs. These changes hold the key to a faster-growing US economy and higher paychecks for Americans — if we can make sure the gains are divided evenly.

The benefits of forced experimentation

While the pandemic is an extreme case of adapting to sudden changes, it’s not the only time that workers and businesses have been forced to reinvent their habits.

In 2014, a subway strike in London forced large numbers of commuters to find alternative routes to work. For most workers, this was simply a pain, and when the London Underground returned to normal operations, they returned to their normal commuting patterns. But in a 2017 paper, the economists Shaun Larcom, Ferdinand Rauch, and Tim Willems found that 5% of strike-disrupted commuters permanently adopted a new way of getting to work.

Why? Well, it appeared they’d never thought very hard about whether there was a better way to get to work, and they found one only when they were forced to look for it.

The pandemic had a similarly disruptive effect on our lives. Most pandemic-driven disruptions are bad for the economy, and when we can go back to normal, we will. But sometimes, we’ve found — businesses have found, workers have found — the new way of doing business is better than the old way. That’s a silver lining, a benefit we get to keep even after the pandemic is over.

Sometimes, as is the case with the mRNA vaccines developed by Pfizer and Moderna, we are getting the benefit of accelerated investment in a useful technology. Sometimes, it’s because businesses have been pushed to streamline how they operate — either to cope with the pandemic itself or with the difficulty of hiring workers as we’ve come out of the pandemic.

And sometimes, it’s because customers have been forced into flexibility: People have been forced to adapt to new systems that they otherwise would have found too onerous or confusing. Phone-ordering technology in restaurants isn’t new, but customers are increasingly resigned to the idea that they have to learn new technologies and download new apps to order. So firms have more latitude to ask customers to be partners in trying new things, even things that customers may have found annoying or arduous in the past.

Personally, I had never used a QR code before the pandemic. Now, like everyone else, I need to use them frequently. This forced adaptation makes it easier for businesses to roll out labor-saving processes that rely on a customer to know how to use such a code.
Learned efficiency

In August, sales at restaurants and bars in the US were 8.8% higher than they were in January 2020, before the start of the pandemic, up to $72 billion a month from $66 billion on a seasonally adjusted basis, according to the US Census Bureau. Yet the number of employees working at these businesses was 7.2% lower, a drop from 12.2 million to 11.4 million, also seasonally adjusted, according to the Bureau of Labor Statistics.

In other words, restaurants and bars are bringing in a lot more money than they were before the pandemic, even with fewer workers — in fact, they are getting about 17% more sales per worker than they did before this mess started. (And apparently not because they’re adding more hours to their existing workers’ schedules — the average worker in leisure and hospitality was working only 1% longer a week, according to data from the Bureau of Labor Statistics.)

Now, a significant chunk of that increase in sales is because restaurants and bars are charging customers more. Prices at these sorts of places in August were up more than 7% from January 2020. But even when you strip out the price hike, labor productivity — the formal term for getting more output per hour worked by an employee — still gained about 10% in less than a year. Isn’t that remarkable?


Restaurants have adopted new technology — like paperless menus and online bill pay — to make workers more productive and service more efficient.

It’s all the more impressive because some COVID-19-driven changes were harmful for productivity. Spacing tables out farther, installing plexiglass barriers, and having to clean surfaces more often all ate up more man hours without adding to sales — therefore causing productivity to decline.

Admittedly, some of these changes, such as the elimination of printed menus, are already starting to go away as businesses move off a pandemic footing. Even though going back to the old ways may be more work, some of these changes may be annoying for customers — sometimes, you simply want to be handed a menu instead of having to pull out your phone and click through three screens to see which drinks are available.

But some of these changes are here to stay, which means a permanent change in the relationship of the restaurant business and its employees — one that should mean permanently higher productivity, lower prices for consumers, and, if the job market remains strong, higher hourly wages for workers.

Higher productivity benefits workers and consumers when the overall economy is strong

Higher productivity makes it possible for businesses to raise wages. If a business is making more money because of a new technology or a streamlined service, it’s more likely to do what it takes to keep the lights on and bring in the increased revenue. If that means boosting employees’ pay a bit so things keep running smoothly, so be it. For similar reasons, productivity gains also make it possible for businesses to sell products at lower prices or improve products without raising the price.

But how the gains from increased productivity are divided — among workers, customers, and owners — depends on the broader economy.

The distribution tends to be according to who has power in the market: If labor is scarce, wages will have to rise to incentivize people to take jobs; if consumers have many options, there is pressure to keep prices low to bring people in; if people are wary of investing in businesses, investors can demand businesses keep the money for themselves in the form of higher profits.

Currently, employees have the bulk of the power. The labor market is tight — firms are trying to keep up with the sudden spike in customers and fill jobs, but with fewer available workers, businesses are having to pay up to recruit employees. This means the gains from productivity are more likely to be passed down to workers.


CUSTOMERS ARE WORKERS AFTER WORK

Customers, meanwhile, are feeling the pinch of rising inflation. As people spend their pent-up savings from the pandemic, businesses are struggling to keep up and raising their prices to make the profits they need (though customers tend to also be workers, so they’re likely to come out ahead on net). If businesses were not finding ways to raise productivity, they’d have to charge customers even more.

If the job market stays hot, workers can demand larger paychecks and come out on top even as companies invest in new productivity-enhancing systems.

A cooler overall economy would reduce the benefits to workers and give companies less incentive to innovate and raise productivity. We saw this when the labor market was weaker. Employees did not have the flexibility to simply walk away and find another job. Businesses could instead hire another person on the cheap or overwork staff instead of investing in boosted productivity or sharing any gains with their employees.

1933


Whether the increased revenue from these productivity gains keeps making it to employees or businesses go back to simply pocketing the income will come down to how the economy is managed — particularly by the 
Federal Reserve


As it stands, the Fed has kept interest rates low and instituted a series of programs that have allowed the economy to heat up and the labor market to stay tight — helping workers reap the gains from the productivity boost. But how long the central bank can sustain its pro-worker stance and allow employees to reap these gains comes down to another question: Just how well can the Fed manage inflation?

The monetary conditions — most importantly, low interest rates — that foster higher wages can also push up prices, and the Fed’s support is one of the factors that has pushed inflation above the central bank’s long-run goal of 2%. Ideally, the further relaxation of pandemic-related restrictions and the easing of the supply-chain disruptions should help inflation cool off, but there are also worries that the price hikes could lead the Fed to increase interest rates and diminish workers’ power.

A key question is whether these factors that push down inflation will come fast enough for the Fed to wait for them.
How much could pandemic innovation boost productivity?

The pandemic-driven productivity boost is a win for not only labor but also the US economy overall. Before the pandemic, productivity growth had been disappointing for decades, with new technologies failing to produce substantial gains. While the early signs are that this time may be different, economists are wary to declare the issue solved.

Productivity growth was robust in the first two quarters of this year: over 4% in the first quarter and more than 2% in the second quarter, which easily outpaced the 1.2% average for the decade after the global financial crisis, according to Bureau of Labor Statistics figures. (In the summer, Heather Long wrote a useful story for The Washington Post about what this could signal for longer-run productivity gains.) But then the third quarter was terrible, with labor productivity falling 5% amid the Delta wave.

Productivity often goes up in times of economic distress because more junior workers and workers in lower-productivity industries are more likely to lose their jobs, which leaves behind a workforce that is smaller but more productive on a per-worker basis. Sometimes, as the labor market returns to normal, those lower-productivity employees are rehired, and productivity growth recedes.

As customers get used to new ways of doing business — such as ordering online and picking up in quick “to-go” lines — productivity gains could stick around even as the economy gets back to “normal.”

El Pollo Loco

Still, this time, analysts at McKinsey and Goldman Sachs are expecting a boost in productivity gains to stick around.

Goldman forecast “a 4% boost of productivity levels relative to trend” — that is, added US productivity growth of 1.3% a year from 2020 to 2022, which would set a permanently higher baseline that allows the economy to grow even faster. It attributed these gains to three broad categories: shifts toward more efficient online retail and e-commerce, efficiencies from businesses cutting down on in-person work, and inefficient businesses going bust and new, more efficient competitors taking their places.

McKinsey’s forecast is similar, adding 1% to productivity growth in the US and six large European countries each year through 2024. It cited the same factors as Goldman, as well as automation, telemedicine, and artificial intelligence.

While the question of whether faster productivity growth sticks around is an open one, there has been something about the past two years — and the quickly changing approaches to work and technology we experienced — that has been clarifying.
Thank God the robots are taking our jobs

For a couple decades now, there’s been a reductive conversation about automation and the job market, as though machines are going to put people out of work and leave them penniless. This was the premise of Andrew Yang’s campaign for the Democratic presidential nomination: The government would need to send people monthly checks because robots were coming to take your job and make it increasingly impossible to make a living by working.

But what you can see in the economy right now — with the combination of strong wage growth, a large number of job openings, rising productivity, and shifts toward automation — is that machines and workers are not just substitutes but also complements.

When machines replace human workers, they make the economy more productive and efficient. Businesses produce more income that can then be paid to employees, who go on to spend their higher paychecks on other products and services, which will be produced by a combination of machines and human workers. Jobs are lost but jobs are also created — and those new jobs are, on average, more productive and support higher wages.

This requires the right mix of policy from the Fed and others to ensure that the gains are simply captured by investors in the form of higher profits, but if things line up with the current economy — with power in the hands of employees and businesses passing along the gains — the productivity boom could be a huge boost for American workers and the economy as a whole.

When restaurant orders are taken by computer, that means serving each customer is less work and each worker can do more service, which makes higher pay possible. When employees work from home two days a week, that’s less demand for transportation services, but it also means fewer hours spent commuting and more time available for some combination of work and leisure. When you can change your airline reservation in the app, that reduces the labor cost to sell an airplane ticket and makes lower prices possible, which means consumers have more money left over to buy other products and services.

These are all positive changes. And my hope is that, as we continue to emerge from the pandemic, and as we continue to shed our labor-intensive business practices, we retain our greater openness to new, better, and more efficient ways of doing business — such as the widespread adoption of autonomous vehicles — recognizing that these changes can benefit all of us, when we are willing to adjust and learn.

  • https://medium.com/@MichaelMcBride/did-karl-marx-predict-artificial...

    2017-11-18 · However, in the great battle of Man vs. MachineMarx shockingly sides with… the machine. He makes a profound prediction on the future of automation, and one that it would be useful for us to ...

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  • Marx and the Machine – non.copyriot.com

    https://non.copyriot.com/marx-and-the-machine

    2019-09-17 · Marx and the Machine. With the reference to the phylogeny of machines, which ranges from complex tools to machines driven by motors to automatons, Marx always combines a genealogy of technology shaped by capital and thus clearly sets himself apart from a transhistorical theory of the evolution of technology. Marx writes: „Work is organized ...

  • Marx and the Machine - ZoLAist's Diary

    zolaist.org/wiki/images/a/a8/Marx_and_the_Machine.pdf · PDF file

    Marx and the Machine. As an aside in a discussion of the status of the concepts of economics, Karl Marx wrote: "The handmill gives you society with the feudal lord; the steam-mill, society with the industrial capitalist. 


  • Whilst the development and application of machinery within the productive process was a revolutionary step forward, Marx begins Chapter 15 of Capital on “Machinery and Large-Scale Industry” by explicitly stating the purpose of the application of such machinery on a capitalist basis: to increase the profits of the capitalists.

    www.socialist.net/marx-s-capital-chapters-15-the-machine.htm