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Global Transformation of the Contemporary Labour Market for Merchant Navy Seafarers: Case Studies of Filipino, South African

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Global Transformation of the Contemporary Labour Market for Merchant Navy Seafarers: Case Studies of Filipino, South African Global Transformation of the Contemporary Labour Market for Merchant Navy Seafarers: Case Studies of Filipino, South African and British Seafaring Labour Markets. Shaun D. Ruggunan University of KwaZulu- Natal, South Africa, Durban, 2008 i The research for this thesis was made possible by a Thuthuka grant from the National Research Foundation. Submitted in fulfillment of the requirements for the degree of Doctor of Philosophy in the School of Sociology and Social Studies, Faculty of Humanities, University of KwaZulu- Natal, Howard College Campus, Durban, South Africa. 11 DECLARATION I, .Shaun Ruggunan declare that: (i) The research reported in this thesis, except where otherwise indicated, is my original research. (ii) This thesis has not been submitted for any degree or examination at any other university. (iii) This thesis does not contain other persons' data, pictures, graphs or other information, unless specifically acknowledged as being sourced from other persons. (iv) This thesis does not contain other persons' writing, unless specifically acknowledged as being sourced from other researchers. Where other written sources have been quoted, then: a) their words have been re-written but the general information attributed to them has been referenced; b) where their exact words have been used, their writing has been placed inside quotation marks, and referenced. (v) Where I have reproduced a journal publication of which I am an author, I have indicated in detail which part of the publication was actually written by myself alone and not by other authors, editors or others. (vi) This thesis does not contain text, graphics or tables copied and pasted from the Internet, unless specifically acknowledged, and the source being detailed in the thesis and in the References sections. 27 November 2008 iii Global Transformation of the Contemporary Labour Market for Merchant Navy Seafarers: Case Studies of Filipino, South African and British Seafaring Labour Markets. Shaun D. Ruggunan Submitted in fulfillment of the requirements for the degree of Doctor of Philosophy in the School of Sociology and Social Studies, Faculty of Humanities, University of KwaZulu- Natal, Howard College Campus, Durban, South Africa. IV Abstract The central aim of this thesis is to investigate how and why labour markets are formed in specific ways under contemporary global capitalism. This thesis achieves this through a sociological analysis and explanatory account of the contemporary transformation of merchant navy seafaring labour markets for Filipino, South African and British seafarers. The study is centrally concerned with four questions relating to the restructuring of these labour markets. These questions are: 1. How has the labour market for seafarers been reshaped? 2. How has the restructuring of shipping capital facilitated this process process? 3. What has the role of labour been in this restructuring process? 4. What other labour market institutions contribute to this restructuring? Answering these four questions allows me to achieve the central aim of my thesis which is to investigate how and why labour markets are formed in specific ways under contemporary global capitalism. In answering these questions this thesis makes three theoretical interventions in industrial sociology. Firstly, this work offers a substantially different account of labour markets that advances a more fully social explanation of labour market formation that does not consider the social as a 'factor' or an 'add on' as does classical and neo classical economics (and some strands of economic sociology) but a significant shaper of global labour markets. Secondly, it fills a gap in theorising the agency of organised labour under global capitalism. The thesis demonstrated how the agency of organised labour and the importance of locality or place should also be accorded primacy in arguing how labour markets are produced. Thirdly in making my own assertions about the creation and decimation of working classes under capitalism, I draw on three detailed case studies of seafaring trade unions, capitalist and state strategies in the shaping and transformation of contemporary labour markets for seafarers and therefore demonstrate the fallibility of the 'race to the bottom' thesis using contemporary research and data. TABLE OF CONTENTS Acknowledgments Dedication List of Figures List of Tables List of Acronyms Chapter One Introduction: The Puzzle of the Transformation of Seafaring Labour Markets in the Merchant Navy from 1970 1.1 Introduction 1.2 Arguments of the Thesis 1.3 The Scope of the Chapters Chapter Two Contemporary Capitalism and Labour Markets 2.1 Introduction 2.2 Capitalism and its Modes of Regulation 2.3 Understanding Crisis 2.3.1 Arrighi's Perspective of Overaccumulation 2.3.2 Marx and the Falling Rate of Profit 2.4 Capitalism and Labour Markets 2.4.1 The Classical School 2.4.2 The Neo-classical School 2.5 Fordism as a Mode of Regulation 2.5.1 The Fordist Labour Market 2.6 The Crises of the Fordist Mode of Production 2.6.1 The Globalisation of Fordism and the Decline of the Fordist High Wage 2.6.2 Fall in Productivity Rates 2.6.3 Fall in Profit Rates 2.6.4 The 1973 Oil Crisis 2.6.5 The Collapse of the Bretton Woods System and the Emergence of the Eurodollar Currency Market 2.7 The Emergence of a Post Fordist Mode of Regulation 2.7.1 Ameliorating Factors in the Tendency of the Rate of Profit to Fall 2.7.2 Post Fordism as a Mode of Regulation 2.8 Post Fordism and the Labour Market 2.8.1 The Labour Process and Functional Flexibility 2.8.2 The Flexible Organization 2.8.3 The Casualisation of Work and its Implications for the Labour Market 2.8.4 Labour Cost Flexibility 2.8.5 Employment Flexibility 2.8.6 The Growth of Temporary Employment Agencies 2.9 Conclusion Chapter Three Research Methodology: A Realist Approach 3.1 Introduction 3.1.1 A Note on the Philippines 3.1.2 Map of Research Locations 3.2. Realist Ontology and Epistemology 3.2.1 Realism and Dialectical Logic 3.3 Realist 'Designs' and Methods 3.4 Critiques of Realist Ontology, Epistemology and Dialectic Reasoning 3.4.1 The Positivist Critique 3.4.2 The Anti-Positivist Response 3.4.3 The Relativist Critique and a Response 3.5 Positivism, Realism, Postmodernism and Objectivity 3.5.1 The Distinction and Conflation Between Objectivity and Objectivity2 Research viii 4.5 South African Seafarers in the Global Labour Market - 144 - 4.6 British Seafarers in the Global Labour Market - 152 - 4.7 The Implication of Flexible Labour Markets for Seafarers -158- 4.8 Conclusion Chapter Five - 164 - Accumulation Strategies in the Merchant Navy - 164 - 5.1 Introduction - 164 - 5.2 The 1973 and 1979 Oil Crises and its Impact on Merchant Shipping - 165 - 5.2.1 Fuel Costs and its Impact on the Industry - 171 - 5.2.2 The Collapse of the Tanker Trade and the Oil Crises - 172 - 5.3 The Impact of Banking on the Industry - 176 - 5.4 The Tendency Towards FOC Shipping -181- 5.4.1 FOC Shipping and Labour Costs -189- 5.4.2 The Case of Unicorn Shipping - 191 - 5.5 Changes in Organisational Structures of Shipping Companies - 195 - 5.6 The Impact of New Technologies on a Diverse Industry - 204 - 5.6.1 Ships from the Liner Trade - 206 - 5.6.2 Container Ships and New Technologies - 207 - 5.6.3 Ro - Ro Ships and New Technologies - 209 - 5.6.4 Ships for the Dry Bulk Trade and New Technologies - 210 - 5.6.5 Tankers (The Liquid Bulk Trades) and New Technologies -211- 5.7 Conclusion Chapter Six - 217 - The Role of Organised Labour in the Restructuring of the Global Labour Market for Seafarers. -218- 6.1 Introduction -218- 6.2 The ITF as a Global Force of Labour - 218 - 6.3 Unionising South African Seafarers: The South African Transport and Allied Workers Union (SATAWU) - 225 - 6.3.1 The Maritime Section of SATAWU - 228 - 6.3.2 SATAWU and the ITF - 229 - 6.4 Unionising Filipino Seafarers: Associated Maritime Officers IX and Seafarers Union of the Philippines (AMOSUP) - 232 - 6.4.1 Understanding AMOSUP's Style of Unionism - 233 - 6.4.2 The Caciquismo System - 233 - 6.4.3 The American Repression of Filipino Trade Unions - 236 - 6.4.4 The Marcos Era and its Impact on Trade Unions - 241 - 6.4.5 The Post Marcos Era and its Impact on Trade Unions - 243 - 6.4.6 The Current Context of AMOSUP - 245 - 6.5 The ITF and AMOSUP: Globally High Wages versus Local Employment Security? - 252 - 6.6 Unionising British Seafarers - 256 - 6.6.1 Strategies of the National Union of Marine, Aviation and Shipping Transport Officers (NUMAST) - 258 - 6.6.2 The National Union of Rail, Maritime and Transport Workers (RMT) - 260 - 6.6.3 NUMAST and RMT Strategies Within the ITF -261 - 6.7 Conclusion Chapter Seven - 268 - The Role of State Institutions in Shaping the Labour Market for Seafarers - 268 - 7.1 Introduction - 268 - 7.2 The State - 269 - 7.3 The Philippine Overseas Employment Agency (POEA): Producing and Managing Global Labour Markets - 274 - 7.4. Maritime National Authority (MARINA) - 281 - 7.5 Maritime Training Council (MTC) - 283 - 7.6 South Africa: Managing Local Labour Markets - 285 - 7.6.1 Transport Education and Training Authority (TETA) and SAMSA- 287 - 7.7 The United Kingdom: A Reversal of Fortune - 293 - 7.7.1 Provisions of the British Tonnage Tax Scheme - 294 - 7.7.2 The Failure of SMART to Create Employment - 297 - 7.7.3 The Government Strategy to Seek Alternative Shore Based Maritime Employment for Ratings and Officers - 302 - XI Acknowledgements Writing this thesis was a lonely and sometimes frustrating process, and I would like to acknowledge and thank various friends, funders and colleagues who made it bearable and cheered me all the way to the end.
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