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Corporate Watch: The Unemployment Business

Corporate Watch | 23.04.2010 16:34 | Other Press | Workers' Movements | Sheffield

The latest issue of the Corporate Watch Newsletter is out. The double issue looks at the 'unemployment business'; its protagonists, ideological, political and economic premises and how it is being utilised by the New Labour government to dismantle what’s left of the welfare state. Examining the old and new benefit and employment regimes, it also provides new details and figures about the winners and losers, or the private contractors and their victims. The full text of the articles can be read online or downloaded at  http://www.corporatewatch.org/?lid=3572 .

Corporate Watch newsletter #45-46
Corporate Watch newsletter #45-46


Editorial

It has almost become a self-evident truth that unemployment has been growing progressively over the last two decades, both in scale and in its significance for social and economic policy. How and why are often ignored but a vast industry to ‘manage’ this ‘crisis’ has developed. From flourishing private companies, such as A4e, contracted by the Department for Work and Pensions to deliver what Jobcentre Plus has apparently failed to achieve, through tens of subcontracted employment services providers, to a growing sector of so-called voluntary organisations that depend on this reserve army of unemployed people to source their ‘slave’ workforce. This double issue of the Corporate Watch Newsletter takes a look at this relatively new ‘unemployment business’; its protagonists, ideological, political and economic premises and how it is being utilised by the New Labour government to dismantle what’s left of the welfare state.

The ‘unemployment crisis’ has certainly been exacerbated by the recent economic downturn, with many employers going bust, but that’s not the whole story. Many big businesses have also exploited the current climate to push for compulsory redundancies. More importantly, the recession and the rising number of jobless people have been skilfully employed by politicians and government officials. By introducing new schemes and increasingly coercive measures to ‘help’ the unemployed get back into the job market, they have put yet another nail in the welfare state’s coffin.

The first article, The Welfare Crisis, discusses these deployments in more detail, providing some historical background on New Labour’s welfare reforms. Two other articles take an in-depth look at the New Deal programmes, both old and new, which have been at the core of these reforms, providing some new details and figures about the winners and losers, or the private contractors and their victims. The voluntarism business is discussed in depth in a separate article, again with some interesting details and figures. These are complemented by a shorter article on prison slave labour, which bears striking similarities to the increasingly coercive benefits and employment system, both in how it is working out and in the reasoning behind it.

Readers may notice, or be annoyed by, the rather excessive use of inverted commas in most of the articles. This is because one of the aims of this issue is not only to demystify the business jargon used to talk about employment and benefits, but also to pause and question the official terms and euphemisms that have come to be used by almost everyone without much questioning. To that end, we have included a list of the most common words and terms in this ‘benefits newspeak’, along with their real meanings.
Our other aim of this issue is to highlight how the reformed welfare system is being used by the state and the market for social control. During interviews conducted for the purpose of producing this newsletter, one of the “Jobcentre victims,” as he described himself, commented: “If they gave the money they spend on finding work for people to those people [on the dole], there wouldn’t be a crisis, would there?” No, there probably wouldn’t but, of course, it’s not only about money. Keeping people busy with work or looking for work also serves another political agenda: preventing time for politics, uninstitutionalised creativity and other ‘dangerous’ activities.

With all the talk about ‘flexibility’, people nowadays appear to have less freedom to choose what they really want to do, particularly those with less marketable skills. Forcing people to do whatever is available on the job market to survive means subjecting them to ruthless market mechanisms (everyone seems to accept terms like the ‘labour market’ as normal!). We have included an article about the rather small-scale acts of resistance by the unemployed and benefit claimants, but we are aware that much more could, and should, be done. We hope this issue is a useful contribution to this growing movement.


Other articles in the issue

p3 - The Welfare Crisis: Political deployments of the unemployment 'crisis'
p5 - Who Benefits from the Benefits System?
p8 - Flexible Deals
p10 - Voluntarism or New Slavery?
p12 - CW's Guide to Benefits Newspeak
p13 - Reclaiming Welfare
p14 - Captive Labour
p15 - Campaign Spotlight: Hackney Unemployed Workers
p16 - Babylonian Times

Corporate Watch
- Homepage: http://www.corporatewatch.org

Comments

Hide the following 5 comments

Who?

23.04.2010 17:29

"There have recently been a number of scandals and investigations into alleged fraud and misconduct by private companies contracted to deliver employment services. In May 2008, for instance, the DWP had been investigating A4e and at least two other undisclosed training providers for fraud for over a year."


Crosby Training springs to mind. But that is not an open mind.

Kinglake House


working links

23.04.2010 22:43

were also exposed as a right bunch of arseholes

*


Sally Army worldwide

24.04.2010 11:45

Look forward to reading this - also worth mentioning is the christian connection and Blunkett's mates teh Salvation Army ( planning on rolling out 30 hour work slavery schemes alongside their bullshit 'motivational' spoeakers being paid to train 'negatiove attitudes / blame mentalities" )

On Welfare To Work


great article/briefing but.....

25.04.2010 12:16

This is a truly excellent detailed and useful analysis of the role, scope and nature of the 'unemployment business and the profits made by these often corrupt training agencies and the ideological basis of NL's welfare reforms (and the other main parties) from which they benefit enourmously. With 'work for dole' pilots already underway and the main parties promising even more draconian 'reforms' it is avery timnely document.

However, while it its great to see this on IM's central column. the lack of interest fromn the activist/left community in favour of more 'sexy' issues (just see what the benefit gigs were for this month!) is glaring and some user led welfare groups have folded though lack of support, with say, youth unemployment at rates not seen since the 80s' this is clearly unsustainable and more focus is definitely needed in this area.

past caring...


know your enemy

27.04.2010 16:03

Yes, excellent article - a good analysis of the shit that some of us have been through. I liked the comment about A4e "improving people's lies".

Couple of questions to the author(s):
1. What info do you have on the attempts of "providers" to force people into "unsuitable" jobs? How much room for maneuvre is there? I once told the JobCentre that I was looking for "farmwork" meaning frit picking etc) and they "offered" me a job as a bull tamer
2. I didn't really buy the argument that all this hassle was designed (in part) to disrupt unemployed people's political activities. A by-product for a few, but surely not a significant motivating factor beyond the desire to generally subject us all to the discipline of "the working routine".

Finally to 'past caring' poster: if you want to give up then fine, but a new unemployed workers group is being set up in Sheffield I hear. See Indymedia for details

cast paring


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