Lang Yan, China Study Group
While I was walking around the Shanghai World Expo on a weekday a couple of weeks ago I met a group of workers from a nearby clothing sweat shop. Their company had sent them to the Expo for the day (for which they had to trade their only day off, Sunday). They were too tired to enjoy the Expo as they worked 14 hours a day, six days a week. While this may seem like a nice gesture on the part of the company, the workers also explained that the company was moving much of their production to another building that week, because a worker burned much of the factory down after not being paid on time. I heard this story just as the news of the Foxconn suicides began to break into the media and shortly after that the Honda strike began.
Within public discussion, the Honda wildcat strike has transformed the meaning of the Foxconn suicides. Early interpretations of the Foxconn suicides tended to argue that the suicides should either be understood as individual psychological issues and as copycat suicides, on the one hand, or a result of the particularly brutal and alienating conditions at Foxconn, on the other. Some marshaled statistics to show that there were no more suicides at Foxconn than the social average when one considers the size of Foxconn (for example, see Tom Holland “Why there’s less to the suicides at Foxconn than meets the eye” and Michael R. Phillips “Foxconn and China’s Suicide Puzzle Workers: may not be taking their own lives for the reasons everyone thinks”). Statistics average out, in other words, the social difference of the militarized factory space; Foxconn was treated as a normal social space, a city. (For a discussion of suicide rates and Foxconn, see EastSouthWestNorth #19. Notable also is that the Chinese rate of suicide for people 15 to 34 is quite high. See Suicide main cause of death in 15 to 34-year-olds.)
Analysis of the social and work conditions at Foxconn also appeared. The particularly militarized and alienating work environment at Foxconn is a result of capital’s relentless drive to lower assembly costs and the Asian subcontracting regime; reform-era China and the CCP have been a willing partner in that effort. Activists and scholars have argued that Foxconn is one of the worst factories in terms of it labor regime, with a very long (usually about 70 hours) work week (since the pay structure means that workers must work a lot of overtime) and a very rapid assembly line. Foxconn was able to become the world’s largest assembly company exactly because of its harsh Taylorist production process, which cuts up the process into highly regimented movements, its ability to intensify labor exploitation and its repressive management style (See this article by Andy Xie for some analysis and background on the Taiwanese management style). There are reports that Foxconn initially responded to the suicides by pushing workers to sign contracts that they would not commit suicide, and stating that their families would not receive compensation if they did. It went so far as to state that suicide harmed Foxconn’s reputation.
But the successful Honda wildcat has changed the discussion. The suicides and the strike are being put into the context of changing labor relations in China, with many now arguing that Chinese labor is at a turning point.
For example, NPR’s Marketplace (Honda, Foxconn workers demand more power) argues that a “labor shortage in China is empowering workers to demand better wages and treatment at their workplaces….” In a discussion of the Honda strike, Reuters notes that “[s]ome other foreign companies have begun to address workers’ discontent over pay and working conditions. Taiwan’s Hon Hai Precision Industry Co Ltd for instance plans to raise salaries by about a fifth at its Foxconn International unit, maker of Apple Inc’s iPhone, as it struggles to stop a spate of suicides and quell public anger.” Foxconn has said that it will raise base salaries by 30% now with more raises to come in the near future. Clearly this wasn’t only caused by the suicides, however. Foxconn was planning a salary increase earlier in the year in response to the difficulty hiring workers due to labor shortages.
The Honda strike (workers’ demands included wage increases from about 1,500 yuan (less than $220 US) to about 2,300 yuan ($337 US) for higher paid workers) is likewise getting more press than any other worker action in recent years.
China’s economic stimulus has given large subsidies for car sales, and car manufactures are attempting to rapidly increase production in China. Honda plans to add a third to its Chinese production by 2012. But its integrated production process is vulnerable to strike activity. This is particularly true of transmission plants, which are highly automated and expense to construct. Thus they are usually put in the most stable regions, notes the New York Times. But the stability of the Chinese working class is now in doubt. According to the Wall Street Journal:
“The strike has exposed unexpected vulnerabilities in Honda’s China supply chain. Because of the relative absence of labor unrest in China, Honda makes do with only one source of transmissions there, the Foshan factory that supplies roughly 80% of demand, according to Mr. Fujii. The rest are brought in from Japan. Typically, Honda insists on at least two suppliers of parts, partly to protect against any industrial action that might cripple production.”
While quick to tamp down any political interpretation of the workers’ activity, the New York Times argues that in the beginning the state allowed media coverage of the strike because it wants to push up internal demand. On the other hand, the China Daily (in an article now taken off their website) used the strike to editorialize that the Chinese state needs to do more to raise the wages of workers. Since the end of the strike, Chinese media coverage has continued while broadening its analysis. At the same time, the government seems to be increasing its efforts at raising the wages and internal consumption. This follows several years of increased investment for rural China, which means there is less pressure for peasants to migrate out for work.
Broader Implications: First question looking forward:
What does this mean in terms of the changing Chinese political economy? A few points: Increasing wages in China could help rebalance the global economy. As their wages increase Chinese workers will be able to spend more (the wage share of GDP fell from 56.5 percent in 1983 to 36.7 percent in 2005). A rise in internal demand will mean a drop in the savings rate in turn forcing a rise in the savings rate in the US. This will likely also mean inflation, which is already a problem with the huge Chinese stimulus, yet inflation is also another way–other than a direct change in the exchange rate–for the Chinese state to rebalance its trade relationship with the US. The power of the export manufacturers in China seems to have been able to keep the state from changing the exchange rate to any great extent, but inflation might help take care of this for the state. Of course inflation will eat into wage increases and possibly lead to more social unrest. Meanwhile, the Beijing government announced on June 3rd that it was raising the minimum wage by 20% in response to inflation–the past few years it was raised about 10% per year. Other regions are following suit.
The June 7th issue of The Economic Observer (Jingji guancha bao) has articles on the labor situation noting that both the Honda strike and the situation at Foxconn are symptoms of a broader change going on in the Chinese labor market. One article argues that China has reached the “Lewisian turning point”. Arthur Lewis argued in 1954 that, for a period of time, developing countries could rely on rural surplus labor to keep wages from rising. This would allow them to industrialize without wage inflation. But once rural surplus labor is absorbed by the industrial economy and the labor market unifies wages will begin to increase more rapidly. The influential economist Cai Fang has been predicting this shift for some time, and in 2007 edited a volume on the turning point called “The Coming Lewisian Turning Point and its Policy Implications.”
Arthur Kroeber argued in the March issue of China Economic Quarterly that China’s cheap labor regime was coming to an end and that wage inflation will drive up the consumption share of GDP. In the planning for the 12th Five Year Plan, the CCP itself emphasizes this rebalancing and the important role that raising the wage share of GDP should plays in the process. At the same time, some commentators seem to be taking this argument a bit too far. Andrew Peaple states that “the dynamics of China’s economic development are moving inexorably in favor of the country’s workers.” While this will change the shape of the Chinese economy, its effect on capital will be mixed. Higher wages will mean more consumption, helping many companies as much as it hurts. But the assembly and clothing industry in the Southeast will be hit hard, as those plants are both more easily moved to other, cheaper-wage countries and have thinner profit margins. It is too early to say what this transition (of the Chinese economy and of the Chinese labor process) might mean more globally.
A second question looking forward:
Does the Honda strike indicate increasing self-activity of the working class in China? Certainly the example of the success of workers in the Honda strike in winning some wage increases (initially about 24% but in the end much more) might spread to other workers in China. Also, the strike itself was very highly organized, leading to the participation of about 1,900 workers (including a large number of low-paid interns). The workers seemed split, however, when gave in to a lower wage increase than initially demanded. The People’s Daily reports that the hold out group was involved in a confrontation with representatives of the state union, the ACFTU. (The local ACFTU seems to be playing a more conservative role–by protecting Honda–than even the state-run media.) The World Socialist Website details the attempts by the company to split the workers by putting pressure on the interns to sign no-strike pledges in return for smaller wage increases. According to The China Daily, the strikers also demanded changes in work conditions, more transparency in company finances (this seems like a reflection of the history of worker democratic involvement in enterprise management in China), and a change in union representatives. The New York Times points out that workers complained that Japanese employees at the Honda plant make about 50 times that of Chinese workers. It is likely that nationalism has also played a role in how this strike has been reported in China. Most of the workers held out, however, and the agreement reached will lead to high wage increases. Kroeber talking Reuters stated that “Foreign investors have been lulled into a false sense of security that China has a docile work force. There’s nothing intrinsically docile about the Chinese labor force. There was a period when everything was kind of fine; now we are entering a period of more constraint.” Following the Honda strike, workers at a Hyundai factory near Beijing went on strike, but returned to work after they were immediately promised wage increases. Over 5,000 textile workers in Pingdingshan, Henan have been out on strike since May 14th at a factory privatized in 2006.
As the WSWS notes of the Honda strike:
The strike is a sign of sharpening class tensions in China amid the worsening global economic crisis. While China’s economic growth rate continues to be high, propped up by huge stimulus spending, the gulf between rich and poor is widening. Last year there were 98,568 labour disputes filed in Chinese courts, up 59 percent on the previous year. Most disputes, however, were not reported.
It remains to be seen, however, how successful the CCP’s attempt at economic transition will be. We need to know how much of China’s growth and job creation is due to the stimulus and how sustainable it is. The unsustainable property market is creating an investment bubble. Just as likely as transition to a consumer-based economy, inflation could lead to stagflation once the property bubble bursts and the initial affects of the stimulus wear off. The real question is what then for the activity of the Chinese workers. They are clearly learning important lessons now. The fundamental question is whether their new found strength will lead to a break from the domination of capitalist accumulation or not.





Doing In-Against-and-Beyond Labour
John Holloway
(1)
At the heart of the social movements of recent years, at least in their more radical variants, is a drive against the logic of capitalist society. The so-called social movements are not organised as parties: their aim is not to take state power. The goal is rather to reverse the movement of a society gone mad, systematically mad. The movements say in effect “No, we refuse to go in that direction, we refuse to accept the mad logic of the capitalist system, we shall go in a different direction, or in different directions.”
The anti-capitalist movements of recent years give a new meaning to revolution. Revolution is no longer about taking power, but about breaking the insane dynamic that is embedded in the social cohesion of capitalism. The only way of thinking of this is as a movement from the particular, as the puncturing of that cohesion, as the creation of cracks in the texture of capitalist social relations, spaces or moments of refusal-and-creation. Revolution, then, becomes the creation, expansion, multiplication and confluence of these cracks.(1)
How do we conceptualise this sort of revolution? By going back to a category that was of central importance for Marx, but has been almost completely forgotten by his followers. This is the dual character of labour, the distinction between abstract and concrete labour.
The social cohesion of capitalism against which we revolt is constituted by abstract labour: not by money, not by value, but by the activity that generates the value and money forms, namely abstract labour. To crack the social cohesion of capitalism is to confront the cohesive force of abstract labour with a different sort of activity, an activity that does not fit in to abstract labour, that is not wholly contained within abstract labour.
(2)
This is not a dry theoretical point, for the starting point for considering the relationship between abstract and concrete labour is and must be rage, the scream. This is empirically true: that is actually where we start from. And also, rage is key to theory. It is rage which turns complaint into critique because it reminds us all the time that we do not fit, that we are not exhausted in that which we criticise. Rage is the voice of non-identity, of that which does not fit. The criticism of capitalism is absolutely boring if it is not critique ad hominem: if we do not open the categories and try to understand them, not just as fetishised expressions of human creative power, but as categories into which we do not fit, categories from which we overflow. Our creativity is contained and not contained in the social forms that negate it. The form is never adequate to the content. The content misfits the form: that is our rage, and that is our hope. This is crucial theoretically and politically.
(3)
In recent years, it has become more common to cite Marx’s key statement in the opening pages of Capital. “this point [the two-fold nature of the labour contained in commodities] is the pivot on which a clear comprehension of Political Economy turns” (1867/1965:41). After the publication of the first volume, he wrote to Engels (Marx, 1867/1987:407): “The best points in my book are: 1) the two-fold character of labour, according to whether it is expressed as use value or exchange value. (All understanding of the facts depends upon this. It is emphasised immediately in the first chapter).”
It is important to emphasise this statement, against the Marxist tradition which buried it for so long, and with quite extraordinary success. It is important to emphasise it because it takes us to the core of Marx’s critiquead hominem, understanding the world in terms of human action and its contradictions. The two-fold nature of labour refers to abstract and concrete or useful labour. Concrete labour, according to Marx, is the activity that exists in any form of society, the activity that is necessary for human reproduction. Arguably, Marx was mistaken in referring to this as labour, since labour as an activity distinct from other activities is not common to all societies, so it seems more accurate to speak of concrete doing rather than concrete labour. In capitalist society, concrete doing (what Marx calls concrete labour) exists in the historically specific form of abstract labour. Concrete labours are brought into relation with other concrete labours through a process which abstracts from their concrete characteristics, a process of quantitative commensuration effected normally through the medium of money, and this process of abstraction rebounds upon the concrete labour transforming it into an activity abstracted from (or alienated from) the person performing the activity.
(4)
It is thus the abstraction of our activity into abstract labour that constitutes the social cohesion of capitalist society. This is an important advance on the concept of alienated labour developed in the 1844 manuscripts: capitalist labour is not only an activity alienated from us, but it is this alienation or abstraction that constitutes the social nexus in capitalism. The key to understanding the cohesion (and functioning) of capitalist society is not money or value, but that which constitutes value and money, namely abstract labour. In other words we create the society that is destroying us, and that is what makes us think that we can stop making it.
Abstract labour as a form of activity did not always exist. It is a historically specific form of concrete doing that is established as the socially dominant form through the historical process generally referred to as primitive accumulation. The metamorphosis of human activity into abstract labour is not restricted to the workplace but involves the reorganisation of all aspects of human sociality: crucially, the objectification of nature, the homogenisation of time, the dimorphisation of sexuality, the separation of the political from the economic and the constitution of the state, and so on.
(5)
If we say that revolution is the breaking of the social cohesion of capitalism and that that cohesion is constituted by abstract labour, the question then is how we understand the solidity of that cohesion. In other words, how opaque is the social form of abstract labour? Or, rephrasing the same question in other
words, is primitive accumulation to be understood simply as a historical phase that preceded capitalism? If we say (as Postone (1996) does) that labour is the central fetish of capitalist society, then how do we understand that fetish?
Marx, in the passage quoted above, refers to the dual character of labour as the key to an understanding of political economy. He does not refer just to abstract labour but to the dual character of labour as abstract and concrete labour, and yet the commentaries that focus on this point concentrate almost exclusively on abstract labour, assuming that concrete labour (concrete doing) is unproblematic since it is entirely subsumed within abstract labour, and can simply be discussed as productivity. This implies that primitive accumulation is to be understood as a historical phase that was completed in the past, effectively establishing abstract labour as the dominant form of concrete labour, thus separating the constitution of capitalism from its existence. It implies the understanding of form and content as a relation of identity in which content is completely subordinated to form until the moment of revolution. This establishes a clear separation between the past (in which concrete doing existed independent of its abstraction) and the present (in which doing is entirely subsumed within its form), effectively enclosing the analysis of the relation between concrete doing and abstract labour within the homogenous concept of time that is itself a moment of abstract labour. This takes us inevitably to a view of capital as a relation of domination (rather than a contested relation of struggle) and therefore to a view of revolution as something that would have to come from outside the capital relation (from the Party, for example).
However, it is not adequate to understand the relation between abstract labour and concrete doing as one of domination. Rather, abstract labour is a constant struggle to contain concrete doing, to subject our daily activity to the logic of capital. Concrete doing exists not just in but also against and beyond abstract labour, in constant revolt against abstract labour. This is not to say that there is some transhistorical entity called concrete doing, but that in capitalist society concrete doing is constituted by its misfitting, by its non-identity with abstract labour, by its opposition to and overflowing from abstract labour.
This means that there can be no clear separation between the constitution and the existence of the capitalist social relations. It is not the case that capitalist social relations were first constituted in the period of primitive accumulation or the transition from feudalism, and that then they simply exist as closed social relations. If concrete doing constantly rebels against and overflows beyond abstract labour, if (in other words) our attempt to live like humans constantly clashes with and ruptures the logic of capitalist cohesion, then this means that the existence of capitalist social relations depends on their constant reconstitution, and that therefore primitive accumulation is not just an episode in the past. If capitalism exists today, it is because we constitute it today, not because it was constituted two or three hundred years ago. If this is so, then the question of revolution is radically transformed. It is not: how do we abolish capitalism? But rather, how do we cease to reconstitute capitalism, how do we stop creating capitalism? The answer is clear (but not easy): by ceasing to allow the daily transformation of our doing, our concrete activity, into abstract labour, by developing an activity that does not recreate capitalist social relations, an activity that does not fit in with the logic of the social cohesion of capitalism.
(6)
This might seem absurd, were it not for the fact that the revolt of concrete doing against abstract labour is all around us. Sometimes it takes dramatic proportions when a group like the Zapatistas says “no, we will not act according to the logic of capital, we shall do what we consider important at the rhythm that we consider appropriate.” But of course it does not have to be on such a large scale: the revolt of doing against abstract labour and the determinations and rhythms that it imposes upon us is deeply rooted in our everyday lives. Pannekoek said of the workplace that “every shop, every enterprise, even outside of times of sharp conflict, of strikes and wage reductions, is the scene of a constant silent war, of a perpetual struggle, of pressure and counter-pressure” (2005:5).(2) But it is not just in the workplace: life itself is a constant struggle to break through the connections forged by abstract labour to create other sorts of social relations: when we refuse to go to work so that we can stay and play with the children, when we read (or write) an article like this, when we choose to do something not because it will bring us money but just because we enjoy it or consider it important. All the time we oppose use value to value, concrete doing to abstract labour. It is from these revolts of everyday existence, and not from the struggles of activists or parties that we must pose the question of the possibility of ceasing to create capitalism and creating a different sort of society.
(7)
Not only is there a constant revolt of concrete against abstract labour, but there is now a crisis of abstract labour. Abstract labour cannot be understood as something stable: its rhythms are shaped by socially necessary labour time. Since abstract labour is value-producing labour and value production is determined by socially necessary labour time, there is a constant redefinition of abstract labour: abstract labour is a constant compulsion to go faster, faster, faster. Abstract labour constantly undermines its own existence: an activity that produced value a hundred (or ten, or five) years ago no longer produces value today. Abstraction becomes a more and more exigent process, and it becomes harder and harder for people to keep pace with it: more and more of us misfit, and more and more of us consciously revolt against abstract labour. Abstraction becomes an ever greater pressure, but at the same time it becomes a more and more inadequate form of organising human activity: abstraction is not able to channel effectively the activities of a large part of humanity.
The dynamic of abstraction comes up increasingly against a resistance that splits open the apparently unitary concept of labour and poses the struggle against abstract labour at the centre of anti-capitalist struggle. Anti-capitalist struggle becomes the assertion of a different way of doing, a different way of living; or rather, the simple assertion of a different way of doing (I want to spend time with my friends, with my children, I want to be a good teacher, carpenter, doctor and work at a slower pace, I want to cultivate my garden) becomes converted into anti-capitalist struggle. The survival of capital depends on its ability to impose (and constantly redefine) abstract labour. The survival of humanity depends on our ability to stop performing abstract labour and do something sensible instead. Humanity is simply the struggle of doing against labour.
(8)
It is in the context of the crisis of abstract labour that the discussion of abstract labour acquires importance. It is important, that is, if we focus not just on abstract labour, but on the dual character of labour, the antagonism between doing and labour. If we focus just on abstract labour and forget concrete doing, then we just develop a more sophisticated picture of capitalist domination, of how capitalism works. Our problem, however, is not to understand how capitalism works but to stop creating and recreating it. And that means strengthening doing in its struggle against labour.
It is not theory that brings about the splitting of the unitary concept of labour. The splitting of the unitary concept has been the result of struggle. It is a multitude of struggles, large and small, that have made it clear that it makes little sense to speak just of “labour”, that we have to open up “labour” and see that the category conceals the constant tension-antagonism between concrete doing (doing what we want, what we consider necessary or enjoyable) and abstract labour (value-producing, capital-producing labour). It is struggle that splits open the category, but theoretical reflection (understood as a moment of struggle) has an important role to play in keeping the distinction open.
This is important at the moment when there are so many pressures to close the category, to forget about the antagonism the category conceals, to dismiss the notion that there could be some form of activity other than abstract labour as silly, romantic, irresponsible. In capitalist society, access to the means of production and survival usually depends upon our converting our activity, our doing, into labour in the service of capital, abstract labour. We are now at a moment in all the world in which capital is unable to convert the activity of millions and millions of people (especially young people) into labour, other than on a very precarious basis. Given that exclusion from labour is generally associated with material poverty, do we now say to capital “please give us more employment, please convert our doing into labour, we will happily labour faster-faster-faster”? This is the position of the trade unions and many left political parties, as it must be, for they are organisations based on abstract labour, on the suppression of the distinction between labour and doing. Or do we say “no, we cannot go that way (and we do not ask anything of capital). We know that the logic of faster-faster-faster will lead to ever bigger crises, and we know that, if it continues, it will probably destroy human existence altogether. For this reason we see crisis and unemployment and precariousness as a stimulus to strengthen other forms of doing, to strengthen the struggle of doing against labour.” There is no easy answer here, and no pure solution, because our material survival depends, for most of us, on subordinating our activity to some degree to the logic of abstraction. But it is essential to keep the distinction open and find ways forward, to strengthen the insubmission of doing to labour, to extend the rupture of labour by doing. That is the only way in which we can stop reproducing the system that is killing us.
John Holloway is a Professor in the Instituto de Ciencias Sociales y Humanidades of the Benemérita Universidad Autónoma de Puebla in Mexico. His publications include Crack Capitalism (Pluto, 2010),Change the World Without Taking Power (Pluto, 2005), Zapatista! Reinventing Revolution in Mexico (co-editor, Pluto, 1998) and Global Capital, National State and the Politics of Money (co-editor, Palgrave Macmillan, 1994).
Notes:
(1) For a development of this argument, see my forthcoming book, Crack Capitalism.
(2) I take the quote from Shukaitis (2009:15).
References:
Holloway, John (2010) Crack Capitalism (London: Pluto Press)
Marx, Karl (1867/1965), Capital, Vol. 1 (Moscow: Progress Publishers)
Marx, Karl (1867/1987), ‘Letter of Marx to Engels, 24.8.1867’, in Karl Marx & Friedrich Engels, Collected Works vol. 42 (London: Lawrence & Wishart), p. 407
Pannekoek, Anton (2005) Workers’ Councils (Oakland: AK Press)
Postone, Moishe (1996) Time, Labour, and Social Domination: A reinterpretation of Marx’s critical theory(Cambridge: Cambridge University Press)
Shukaitis, Stevphen (2009) Imaginal Machines: Autonomy and Self-Organisation in the Revolutions of Everyday Life (New York: Autonomedia)