IN any business there
are two components that are needed: labor and capital. No business venture can
take off the ground if there is no capital. There should be raw materials,
land, machinery, technology and money to start a business. At the same time
labor is needed to process the materials, to run the machines, to apply the
technology. This labor is in turn paid by capital. There are some currents of
thought, like communism, that view these two components as adversarial. They
take advantage of one another so they necessarily clash against each other. But
this need not be so because they need one another. No matter how much money one
has, no business venture can get off the ground without laborers. No matter how
many and skilled the laborers are, they will not be able to work without
someone who can put up the capital to run the business and to pay them. The two
components are needed and are important.
But which of the two is
more important? From the humane point of view, labor has priority over capital.
Why? Because labor is people while capital is money and things. People are more
important than money. Because in any business venture the laborers are more
than those who provide the capital, so the needs and the welfare of the many
should get more consideration than those of the few. Because usually the
laborers are poorer than those who provide the capital. Therefore, more
consideration and protection are to be given to labor.
Is this happening now in
the present dominant economic system in the country and in much of the world?
No! The government gives more concessions to draw in capital, especially
foreign capital (the so-called Foreign Direct Investment), to set up businesses
in the country, and many times at the expense of the local laborers. Thus, to entice
capitalists, the wages are kept low, the rights of workers to self-organize are
curtailed, humane conditions of work are weakly enforced, and the security of
tenure of workers are denied them. The reason why millions of workers are not
regularized in their work is that the capitalists do not want to give the
benefits due to regular workers such as sick leave, vacation leave, eventual
retirement pension and the like. But more especially, they do not like the workers
to organize themselves into labor unions for mutual protection and to demand
what is due to them. This present system of favoring the rich over the poor,
the few over the many, and often, the foreigners over the local people, is
unjust and not humane. It will not bring about peace and well-being in the
country.
In a way, however, there
is reason why the capitalists distrust labor unions. There are also abuses on
the part of labor union leaders who are led by the ideology of class struggle.
They believe that laborers necessarily should struggle against the capitalists
and eventually supplant them. With this ideology, the laborers are incited to
go against the capitalists and at times unreasonable demands to the current
state of the business venture are being asked for. Eventually the business
closes down and the workers are out of work. Poor workers! They are not only
being used by the capitalists but also by their labor leaders.
There should be a another
option of doing business. This is the worker cooperative. The workers
themselves put up the capital and run the business. They themselves provide the
labor in the same business that they own. They do not need unions because they
are already self-organized and the business is theirs. They cannot struggle
against themselves. Because they own the business, they do their work well; any
profit from the business comes back to them. They make themselves grow with the
growth of their business.
This way of doing
business—the worker cooperative way—is yet in its fledging and struggling stage
in the Philippines. The government does not understand it and has weak laws to
support and encourage it. Many workers are not able to grasp the idea that they
can also be owner workers. Their frame of mind is that they are just plain
workers. The labor union leaders do not like this because many of them are
programed by the ideology of class struggle and they cannot apply class
struggle in worker cooperatives since the idea of one class against another
disappears; the worker class is at the same time the capitalist class. The
capitalists do not like worker cooperatives. They see them as rivals to their
businesses and to their need of workers. The worker cooperatives have yet a
long way to go but it is a viable way to reconcile labor and capital.