4 ms·
It's a great point you make above, and reflects a lot of a wave of change in our country over the past 40 years. The analysis of meat packing goes one level dee
by BoiledCabbage 5y ago
It's a great point you make above, and reflects a lot of a wave of change in our country over the past 40 years. The analysis of meat packing goes one level deeper and according to the US govt has an additional cause:
> Industry consolidation has been accompanied by important changes in labor relations in meatpacking. In 1980,
46 percent of workers in the meat products industry
were union members, a figure that had remained stable
through the 1970’s. Most unionized slaughter plant
workers belonged to the United Food and Commercial
Workers (UFCW) union, whose base wage rate was
$10.69 an hour in 1982. In that year, many unionized
firms began to press for large reductions in base wages, to $8.25 an hour, consistent with what was being
offered in non-union plants. The union at first acceded
to wage cuts, but by 1984 adopted a strategy to vigorously contest them, in the view that large wage cuts at
older unionized plants only postponed plant closings.
Between 1983 and 1986, there were 158 work stoppages in cattle and hog slaughter plants, involving
40,000 workers. There were lengthy strikes, plant closings, and deunionizations at some ongoing and
reopened plants.14 By 1987, union membership had
fallen to 21 percent of the workforce, and has remained
at that lower level through the most recent data (1997);
wage reductions were imposed in most plants, and
wages have risen only modestly since then.
> Declining unionization coincided with changes in
slaughter plant demographics. Immigrants, primarily
from Southeast Asia, Mexico, and Central America,
make up large and growing shares of the workforces at
both hog and cattle slaughter plants.
There was a structural shift in power between workers and corporations. Unions representing the worker who had pushed for those higher wages were fairly systematically pushed out of power. The loss of power of unions is what led to the low wages. The use of immigrant labor is just the particular method companies went about implementing it, but if there hadn't been people immigrating it still would've been forced low wages by the corporations. This is evidenced by the fact that the low-wages began in the non-union corporations.
A lot of people look at this same situation and mistake the cause for the effect. The cause of the situation was a huge shift in power away from workers to corporations via the loss of union power. The particular manifestation of how corporations used that power was by changing who they were hiring, but to be clear even without immigrants, wages would've still fallen as they already were doing. Ie if unions had negotiated and maintained a minimum wage of $10 or $12 it's irrelevant where the people they're hiring come from.
1. https://www.ers.usda.gov/webdocs/publications/41108/18003_aer785d_1_.pdf?v=41061 https://www.ers.usda.gov/webdocs/publications/41108/18003_ae...
- qwytw 5y agoIt's not obvious to me that huge growth in immigration starting the mid/late in 1970's accompanied with the increase in international trade were not the main reasons why labor unions lost most of their power. As soon as companies were able to bypass the unions by hiring "cheap" immigrants or by altogether moving/outsourcing manufacturing to other companies they were doomed. While outsourcing was probably not the most significant factor in the meat packaging industry (or food/agriculture industries in general) the decrease in high-paying jobs with low entry barriers in other manufacturing sectors still allowed companies to decrease wages. I don't really see how any attempt to prop up the unions without introducing prohibitive tariffs would have resulted in anything but American companies becoming totally uncompetitive (this mostly happened anyway, though...).
- bobthepanda 5y agoImmigration relaxation actually starts in the ‘60s so it doesn’t quite match up with your timeline. https://en.m.wikipedia.org/wiki/Immigration_and_Nationality_Act_of_1965 https://en.m.wikipedia.org/wiki/Immigration_and_Nationality_... We do have an example of an industry that was protected by tariffs: https://en.m.wikipedia.org/wiki/Chicken_tax https://en.m.wikipedia.org/wiki/Chicken_tax. For the most part Volkswagen, Toyota and friends are still doing fantastically in the US.
- qwytw 5y agoVolkswagen & Toyota are doing great however their workers are being paid less in real terms than they would had been in the 1970s despite modern car factories being significantly more productive. And this is not surprising because they are competing with workers currently working other industries which are not protected by tariffs. According to https://www.migrationpolicy.org/programs/data-hub/charts/immigrant-population-over-time https://www.migrationpolicy.org/programs/data-hub/charts/imm... immigration didn't start growing until ~1970 and it increased significantly in the 1980's and later.
- bobthepanda 5y ago