Life under Capitalism

Germany’s tax scandal: an opportunity for the left

Life under Capitalism, socialism
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Germany is currently in the grip of a tax scandal, after it became known that hundreds of wealthy Germans, including Deutsche Post CEO Klaus Zumwinkel have been using Liechtenstein as a tax haven:

It is rapidly becoming one of the largest economic scandals ever in Germany’s post-World War II history. As many as 900 wealthy Germans — many of them well-known — might be involved. Berlin may have been shorted up to 4 billion euros in taxes. And the accusatory finger is pointing increasingly at what many feel is rampant greed among of many of Germany’s top earners — and at a handful of banks and foundations in the tiny principality of Liechtenstein that help the affluent hide their assets.

With dissatisfaction at Germany’s current righwing government already high, The International Herald Tribune sees the tax scandal as a chance for the left to gain ground in local elections:

The jury is still out on how the scandal will unfold politically. Just two weeks ago, the Left Party, an amalgam of former East German and radical Westerners that sharply criticizes the unchecked power of big business, made a strong showing in two state elections. Next week, German voters in the city-state of Hamburg go to the polls, and conservatives fear a blowout if the public seizes on it as a chance to vent frustrations about tax evasion and what it seems to symbolize. Hamburg could end up as another victory for the left.

In a good leftist tradition the Left Party immediately shot itself in the foot when a representative in the parliament of Lower Saxony put forth her views on former East Germany, saying the Stasi had been necessary to protect the country from “reactionary forces” and that the Berlin Wall had been built to keep West Germans from crossing into the East. Which did use to be the official DDR explenation for these things, but it seems a bit silly to still believe this almost twenty years after the fall of the wall…

Free rice

Life under Capitalism
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Free rice is another of those charitable websites, where your jumping through hoops is rewarded by a tiny donation to a good cause. Usually this involves pushing buttons, but the people behind this site have been smart enough to make a proper game out of it. You’re asking to guess the meaning of an uncommon word and if you guess right, you get to donate ten whole grains of rice to the UN! The longer you get it right, the harder it gets of course. It’s a very addictive game to those of us who are fond of words and vocabulary anyway, playing on the innate geeky loving of learning and competitiveness.

Nevertheless, it still reminds me of China Miéville’s short story “An End to Hunger” with its sarcastic putdown of such sites. If the people behind it are so concerned with ending world hunger, surely there are more effective ways of doing so? Because this way, it’s only a p.r. gimmick, a way for the companies sponsoring the site and the people playing the game both to parade their own goodness.

Does that mean you shouldn’t play their game? Not as long as you know it is a game, a put-on.

Linky, linky

2008 US election, Life under Capitalism
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The post over at Crooked Timber about how Americans now have worse teeth than a decade ago is interesting. Interesting, in that the discussion in the comments tries hard to avoid the simple truth as to why that is: lack of dental insurance. Too scary perhaps.

Meanwhile, The Guardian reports on vulture capitalism, the practise of buying up third world debts then suing the country in question in an European or American court for the debt plus interest. Many of such funds are based in London and it probably won’t surprise you either that some of these funds have ties to highlevel US politicians…

Lawyers, Guns and money is worried about Giuliani, who has stuffed his campaign chockful with the nuttiest of neocons. Personally I don’t doubt he would be a disaster as president for America, but for the rest of the world he might be the better choice than a more competent candidate like Clinton. Because whoever becomes president will always be someone willing to use US military force abroad, and somebody a little bit nutty might be opposed more and earlier.

Does that make sense? Perhaps not.

Kettle Chips succesful in union busting

Life under Capitalism, Unions
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Two weeks ago I blogged about Kettle Chips being unhappy about the threatening unionisation of their workers, to the point of hiring an American unionbusting company. Well, it seems this has paid off, as the Kettle Chips workers voted 2-1 against joining the Unite union:

Workers at Kettle Foods, the upmarket snack maker, have voted against union recognition at its Norwich factory after the company called in US union busters.

Factory and office workers voted 206 to 93 in a ballot, not to join the Unite union. The decision was welcomed yesterday by the company, owned by private equity group, Lion Capital, but it was greeted with dismay by the union and Richard Howitt, the local Labour MEP.

The food firm employed Omega, a subsidiary of US union busters the Burke Group, based in Malibu, California, to dissuade staff from joining the union.

The reporting of the battle in the Guardian led to two campaign groups – Boycott Kettle Crisps for Attacks on Workers, and Boycott Kettle Chips: the anti-union snack – being set up on the internet site Facebook. These have attracted nearly 800 people in Britain, Australia and the US.

The union is blaming the campaign against them for the result, but they’ll have to evaluate their own campaign as well. Why could they not convince these workers to do something that should be so evidently in their self interest? These battles will not go away anytime soon, as more companies will follow the example of Kettle Chips and use unionbusters to make sure their workers don’t organise. The unions better have their tactics ready.

Kettle chips: not as wholesome as you think

Life under Capitalism, Unions
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It’s an old story. A supposedly wholesome company which takes good care of its workers and which takes pride in presenting a benign image to its customers, is less than happy when its workers want to unionise. This time it’s the people behind Kettle chips who object:

It says it has had to seek advice from “a number of sources” to fight what it considers are union experts in organising recognition campaigns. It did not comment directly on employing Omega Training, part of the Burke Group. The company does not want to recognise a union. It said: “We are very proud of our workforce and continue to believe passionately that direct engagement with employees in the spirit of mutuality is in the best interests of our employees and shareholders.”

A spokesman added: “All our employees enjoy a secure salary (the lowest of which is 25% above the minimum wage); we have a 38-hour week with 25 days’ paid holiday per annum increasing with service, and we offer a blue-chip benefits package that includes 100% sick pay … and a profit-sharing bonus that is open to all employees. We’re not sure what Unite the union wish to do for our employees.”

The union is baffled why the company is so determined to block recognition. Miles Hubbard, Unite’s eastern region organiser, said: “They are a good company with a decent record so we cannot understand why they are being so aggressive about union activity. We were called in by the workers when they did not receive annualised payments for overtime.”

What both sides in this dispute talk around is the simple fact that with an union, the workers at Kettle chips no longer have to depend on the company’s goodwill to be treated right, but have a powerful weapon to force management to do the right thing. At the moment, “direct engagement with employees in the spirit of mutuality” may be “in the best interests of our employees and shareholders”, but what if the interest of employees and shareholders clash? Without an union, the workers at Kettle chips would be at the mercy of the company. Unions are like insurance: you may not need them now, but it pays to have it for when you do need it.

If Kettle chips or its parent company were really as benign as they say they are, they would not be threatened by this unionising attempt. But like many a patriarchal company before them(Remember Whole Foods?), they want to be generous to their employees on their terms, on bended knees and dependent on the company.

Hattip: Avedon