Poshing The Proletariat: As we enter the third decade of the twenty-first century, the question for New Zealand politicians is a simple one. Will workers’ expectations of fair treatment erode faster than their rising political determination to find someone to follow and something to blame? Significant sections of the United States’ and the United Kingdom’s working-classes have already answered this question by following along behind populist politicians – Donald Trump and Boris Johnson – who are only too happy to blame “illegal immigration” and/or “the free movement of peoples” for their troubles.
I NEVER BELIEVED it was possible, and, in a way, I’ve been
proved right. Workers who have grown up in, or hearing about, the “old” New
Zealand, would never consent willingly to accept the wages and conditions of
“Third World” workers. Being paid a decent wage and treated fairly by your
employer are expectations deeply ingrained in the New Zealand worker. Enormous
pressure is required to secure the abandonment of such expectations. The
consequences: economically, socially, politically; are potentially quite
significant – and dangerous.
Expectations of fair treatment arrived here with the very
first wave of European migrants. Samuel Parnell, a carpenter, insisted on an
eight-hour day and, in colonial conditions of acute labour scarcity, he got it.
That scarcity: New Zealand’s small population more-or-less guaranteeing a
sellers’ market in labour power; underpinned this being “God’s own country” for
the ordinary working person for nearly a century. From 1894 until 1991, or,
more specifically, from the Industrial Conciliation and Arbitration Act to the
Employment Contracts Act, the collective strength of the New Zealand
working-class was nurtured and protected by the New Zealand state.
During that century it became an accepted part of
working-class life that wages would be sufficient to raise a family in, if not
luxury, then relative comfort. State house construction kept rentals low.
Cheap, state-provided and/or guaranteed loans put private home-ownership well
within the reach of most working-class families. A world-class health and
education system made it possible for the children of workers to move up into
professional and managerial occupations. Those with entrepreneurial flair could
set up their own businesses. The country’s comprehensive welfare system meant
that personal misfortune or commercial misjudgement did not automatically
result in financial misery.
New Zealand’s was as solid a social-democratic society as
any to be found elsewhere in the world. It could not, however, withstand the
sudden and enormous expansion in the quantity of labour available to global
capitalism which accompanied the opening up of the People’s Republic of China
and the demise of the Soviet Union and its Eastern European empire. Over the
course of a single decade, what had been a sellers’ market for labour in the
Western economies became a buyers’ market. Workers who valued themselves too
highly saw their employers’ businesses relocated to places where the labour was
cheaper – much cheaper – and trade union protections non-existent.
The economic and social consequences of globalisation in the
West have been evident for some time. Not only here in New Zealand, but all
across what used to be called the “First World”. Factory closures; mass
lay-offs; depopulation; urban decay: these were just the start. In their wake
came the social pathologies of homelessness, drug addiction, domestic violence
and the pernicious expansion of organised crime. What had been proud
working-class communities simply imploded. Those who could escape, got out.
Those who couldn’t, rotted from the inside out.
Not that there wasn’t still a lot of work to be done in the
First World. Much to the frustration of employers, however, expectations of
fair reward and treatment proved to be astonishingly resilient. Once strong and
proud working-class towns and cities were an unconscionably long time dying.
The answer to this irksome longevity of working-class pride was the same in New
Zealand as elsewhere: import workers with lower expectations.
Maintaining a steady downward pressure on workers’ incomes
by means of increased immigration was especially important in New Zealand where
profits have for so long been underwritten by low wages. Indeed, this system,
supported for nearly three decades by both Labour- and National-led
governments, has produced industries in which the imposition of a “living wage”
would render an alarming number of individual businesses uneconomic.
As we enter the third decade of the twenty-first century,
the question for New Zealand politicians is a simple one. Will workers’
expectations of fair treatment erode faster than their rising political
determination to find someone to follow and something to blame? Significant
sections of the United States’ and the United Kingdom’s working-classes have
already answered this question by following along behind populist politicians –
Donald Trump and Boris Johnson – who are only too happy to blame “illegal
immigration” and/or “the free movement of peoples” for their troubles.
For the present Coalition Government, raising the minimum
wage was a very good start. Now it needs to cut immigration – to the bone.
This essay was originally published in The Otago
Daily Times and The Greymouth Star of Friday, 3 January 2020.