A Global Strategy for Labor

Abstract

The rules of the global market were established to protect the interests of investors at the expense of workers and they shift benefits to investors, costs to workers. Globalization is measured by the interests of investors. But 20 years of investor protectionism show that growth has slowed and equality has gotten worse. The purpose of neo-liberal policies has been to discipline labor to free capital from having to bargain with workers over gains from rising productivity. But such bargaining is the essence of a democratic market. Uncontrolled globalization puts government's domestic policies on the side of capital. In an economy whose growth depends on foreign markets, rising domestic wages make it harder to compete internationally. There has been a general deterioration of labor's position relative to capital's. A global marketplace implies a global politics, and the real work happens when representatives of multi-national business privately negotiate the rules. Labor must change the framework in which the investor class pursues its interest across borders, while workers are constricted by borders. Labor unions are critical; they can deny the human resource necessary for profits. The strike is the ultimate threat to investors. One solution: a "grand bargain" linking development with broadly increased living standards connected to planning for sustainable development to create a global social contract. Workers have advantages: they are the majority and they are indispensable.