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BUSM4559WorkinaGlobalSocietyTopic3student.pptxBUSM4559 Work in a Global Society
Topic 3 – Industrialisation, Deindustrialisation and Regeneration
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Last Week
The changing nature of the corporation
Outsourcing, offshoring and franchising
Financialisation
Work and employment outcomes
Inequality
Objectives
Explore Australia’s developmental trajectory
Analyse the impact of this trajectory on business, workers and communities
Case studies
Burnie, Tasmania
Detroit
Industrialisation of Southeast Asia
Creative Destruction and Global Industrialisation
A.R. Heathcoates and Co. Steelworks, Sheffield, UK
Shoe factory in Vietnam producing shoes for Nike
Australia’s Developmental Trajectory
Early Settlement (pre 1900)
Exports to UK
Settlement pattern of dispersed port cities
Distance from core economies
Nation building through Federation (1900)
Tariffs protected manufacturing
Move from low wage agriculture to high wage manufacturing
Full employment
Small wages gap
Living wage
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Australia’s Developmental Trajectory
Nation Building (1901-1983)
Protected industries – typically British owned
Australian branch plants (protected by tariffs)
Most populous states (NSW, Vic and SA) industrialised
WA, Qld and Tas continued to rely on agriculture and resources
1970s this model unsustainable
Declining terms of trade
Whitlam Govt (1972-74) cut tariff protection – loss of manufacturing jobs
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Australia’s Developmental Trajectory
Global Integration (1984-2000)
Solution - trade liberalisation, financial deregulation, openness to foreign investment and market oriented domestic policies - $ floated which made local exporters more globally competitive
But
Weak local inter-firm linkages
Patchy national markets
Lack of global integration of firms
Issues of scale, firms too small to compete
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Australia’s Developmental Trajectory
Minerals exporting, financialisation (2000 - )
Expansion of mining
Currency appreciation
Increased standard of living
Multi-speed economy
Uncertainty about how to deal with manufacturing
Knowledge jobs
Structural factors still remain
(Weller and O’Neill, 2014)
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Burnie - Tasmania
Town of 3000 people
Deepwater port
Service town
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The Town was APPM, APPM was the Town
Town expanded
1945 = 10,000 people
1988 = 20,000 people
1939
530 employees
1960s 3,500 employees
400 women
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APPM and Welfarism
Company strongly integrated into the community
Company provided benefits
Doctor
Dentist
Canteen
Sporting clubs
Picnic
Cooperative industrial relations
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Decline and Dispute
1970-80s
Decline
Aging machinery
Falling tariffs
Relatively high labour
requirements
Job losses
1990s
Taken over by North Broken Hill
Dispute 1992
Further job losses
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APPM Demolition
Closed 2010
Buildings demolished 2012
Town leaders pushed for
Demolition
New post-industrial future
Burnie a “tourism mecca”
Ambivalence
Buildings eyesore
Supported my family
Pollution and industrial
diseases
Strike –camaraderie and
division
the town as becoming a “tourism mecca”
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The Replacement
Bunnings
Local leaders - Symbol of a new future
Local people
APPM demolition the price of progress
Loss of well paid jobs
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A Post-Industrial Future
Pulp and Paper Trail
Tourist attraction
Gift to the town
600m walk
APPM history
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Disadvantage and Renewal?
Profound disadvantage
Lowest 30% of Local Govt Areas
Low levels of education
Low levels of literacy and numeracy
High levels of long term unemployment
High levels of sole parent families
http://www.theaustralian.com.au/news/features/what-prospects-do-burnies-young-unemployed-really-have/story-e6frg8h6-1227024011118
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Deindustrialisation - Doveton
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Deindustrialisation - Detroit
Car Industry
1950 – 295,000 manufacturing jobs
Today less than 27,000
78,000 abandoned homes
Population has declined by 63% over the last 60 years – 1.3m people have left
Over 50% unemployment
About 1/3 Detroit’s 140 sq miles is either vacant or derelict
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Deindustrialisation - Detroit
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Deindustrialisation - Detroit
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Deindustrialisation - Detroit
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Deindustrialisation - Detroit
Deindustrialisation - Detroit
The Jefferson Mack Neighbourhood
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Deindustrialisation - Detroit
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Deindustrialisation - Detroit
http://www.modeldmedia.com/features/10-years-urban-ag-091415.aspx
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Industrialisation in Southeast Asia
Industrialisation of Southeast Asia has been rapid but varied.
Expanded with countries embracing market-based economy
Deeper integration into global capitalist economy
Beneficiaries of offshoring by Western firms and the establishment of global production networks by multinational corporations.
Government foreign investment incentives: Export Processing Zones
Cheaper labour costs
Free trade agreements with high-income economies (e.g. US, Australia, Canada).
Proximity to strategic and growing markets (e.g. China).
Industrialisation in Southeast Asia
Cambodia/Vietnam: light industry (textiles, garment and footwear), food manufacturing and some electronics that relies on low skill assembly
Employs a high percentage of women:
“In 2008, more than 85% of factory workers in the export processing zones (EPZs), industrial zones and joint-ventures [in Vietnam] were young female migrant workers (between 18 and 30 years of age)” (Tran and Norlund, 2014: 153).
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Industrialisation in Southeast Asia: The Case of Thailand
Industrialisation in Thailand and the growth of wage labour
Note: In 2009 less than half of Thailand’s labour force worked for a wage
Source: Charoenloet, 2015: 135
Industrialisation in Southeast Asia: The Case of Thailand
Source: Charoenloet, 2015: 135
Industrialisation in Thailand and changing employment opportunities
Industrialisation in Southeast Asia
Opportunities and challenges
Significant and rapid wealth creation but inequality is on the rise in many countries.
“The Vietnamese government continues to face the dilemma in fulfilling the goal of a ‘civilized and equitable’ society” (Tran and Norland, 2014: 158).
Improved job opportunities which are taking families out of poverty but exploitation and unsafe working conditions are ongoing problems.
Advanced manufacturing offers improved and higher skilled jobs but may reduce employment opportunities (see topic 4).
Rapid industrialisation has enabled the growth of fantastic cities with consumer opportunities but often at a social and environmental cost.
Key Concepts and Essay Questions
Concepts
Deindustrialisation
Urban agriculture
Tariffs
Questions
What are the causes of deindustrialisation?
How has restructuring and deindustrialisation impacted on workers, communities and business?
Has the period of mass production industrialisation been an exception?
What are the prospects for regeneration and what, if any, form may it take?
What has industrialisation meant for work and employment in Southeast Asia?
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References
Barton, R (2015) ‘”Good Riddance to the Stinkin’ Place”: Deindustrialisation and Memory at Associated Pulp and Paper Mills in Burnie, Tasmania’, Labour History, 109: 149-67.
Weller, S and O’Neill, P (2014) ‘De-industrialisation, financialisation and Australia’s macro-economic trap’, Cambridge Journal of Regions, Economy and Society, 7: 509-26.
Tran, A. & Nørlund, I. (2015) ‘Globalization, industrialization, and labor markets in Vietnam’, Journal of the Asia Pacific Economy 20:1, 143-163
Charoenloet, V. (2015) ‘Industrialization, globalization and labour force participation in Thailand’ Journal of the Asia Pacific Economy 20 (1): 130-142
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