As Chinese Premier Arrives for Australia Visit, Rally Demands that China’s Pro-Working Class Housing Policies Be Implemented Here in Australia
Campaign Activates to Drive Down the Unaffordable Rents in Australia
16 June 2024: Literally millions of Australia’s working poor, old-aged pensioners and unemployed workers are being driven into hardship by soaring rents and house prices. Therefore, to re-activate with new urgency a campaign to drive down Australia’s unaffordable rents, a rally and march was conducted yesterday to demand the measures needed to drive down rents. The action called for a massive increase in public housing and for the measures needed to release into the housing supply the vacant homes of the ultra-rich. The protest was organised by Trotskyist Platform and the Australian Chinese Workers Association.
Many of the measures needed here are being successfully implemented by the socialistic Peoples Republic of China to ensure adequate housing for her lower-income workers, younger workers and aged and disabled pensioners. That is why yesterday’s rally was timed to coincide with the visit to Australia of China’s premier, Li Qiang. As the call-out for yesterday’s rally put it:
“We demand that instead of delivering hypocritical lectures to China over `human rights’ and spending huge resources in a provocative military buildup targeting China, the Australian regime starts implementing China’s pro-working class housing policies. Australia’s super-rich ruling class are happy to take huge amounts of China’s money from their exports to China, we demand that they also take China’s `Houses are for living, not for speculation’-policy home!”
Yesterday’s action began with an introduction by rally emcee, Yuri Gromov, who is also the editor of TheSpark – the journal of Trotskyist Platform. The following were his introductory remarks (all the speeches quoted in this article have been edited for publication):
“We are gathering here today on the stolen land of the Gadigal people of the Eora Nation to fight against the unaffordable rents and house prices in Australia.
“The housing affordability crisis indeed highlights the intense current and historic racist oppression that Aboriginal people face. The last census showed that the rate of homelessness for First Nations People was eight times higher than for the rest of the population.
“The lack of affordable housing and rental accommodation is hurting nearly all working class people. According to the Australian census in 2021 more than 122,000 people were officially homeless. Everyone can see from observing the streets that homelessness has surged since then. For every homeless person and for many more on the verge of becoming homeless, skipping meals and postponing essential medical and dental consultations is commonplace. Parents are faced with a terrible choice: not pay for a child’s school excursion or not to pay rent.
“The Sydney median rent is now $770 per week – 87% of the minimum wage for a full-time worker! Many younger workers are not able to get full-time work and so can’t afford rent. The rental crisis is also hurting older working class people. Many who are now living in caravans and cars are middle-aged and older single women.
“The lack of affordable accommodation is causing more domestic violence against women – many women in abusive relationships have no choice but to remain where they are to just keep a roof over their (and their children’s) heads.
“This crisis is a result of the failure of the so-called `free-market’ system. Profit-driven developers know that they can make more profit building extravagant homes for the wealthy than homes affordable to the poor. So, while the rich have many homes to buy up for themselves, there is a huge shortage of homes that working class people can afford to rent or buy.
“That is why we need public housing. Which is exactly what Australian governments of all stripes have been busy selling off. The proportion of people in public housing in Australia is now less than 3%. This proportion is half what it was 25 years ago. And this privatisation of public housing has been taking place whether it is the Liberals, the ALP or an ALP-Greens coalition in office.
“With so little public housing left, private landlords can jack up rents because tenants have nowhere else to go. So, we are here today to demand an end to all selloffs of public housing and, instead, call for a massive increase in public housing. With Australia’s capitalist government only serving the big end of town no matter which party is in office, we know that the only way we are going to win these demands is through mass struggle. Today’s rally is part of building for the type of mass class-struggle action that we need.
“With the rental crisis so severe, people need immediate relief even before more public housing can be built. Therefore, we call for measures to force the super-rich to release their vacant homes into the housing supply. The last census showed that 10% of Australia’s dwellings were unoccupied. Many of these are homes the super-rich keep just for speculation or as multiple vacation homes. Such housing speculation by the wealthy is encouraged through generous tax concessions that the government gives for negative gearing and capital gains. We say that these tax concessions should be ended and the public money that’s saved should be diverted into public housing. We demand a ban on people owning more than three homes. That way the ultra-rich will be forced to release many of their vacant homes into the housing supply.
“Ruling class commentators say that such restrictions on the `free market’ and a focus on public housing is impractical. They say that it is outdated and that it goes against the laws of economics. However, there is a huge problem with that kind of argument. For Australia’s biggest trading partner and the number one economic success story of the 21st century, that is the Peoples Republic of China, actually does have a focus on public housing and measures to reduce housing speculation. Indeed, the official name of China’s housing policy is: `Houses are For Living, Not for Speculation.’ Under this policy many parts of China restrict the amount of homes that the wealthy can own. In her capital Beijing, for example, only residents of the city can buy homes and are restricted to owning two homes per individual or family plus an additional home in the far outer suburbs.
“Moreover, socialistic China has focused on providing public housing for her lower-income people. More than one out of every four homes in China is now public housing. By contrast, just one out of every 36 homes in Australia belongs to the public housing stock.
“In just a few hours time, the Chinese premier Li Qiang will land in Australia for a high-profile visit. In the lead-up to the visit, the Australian media have been attacking China over supposed aggression and supposed `human rights violations’. We demand that instead of making such lying attacks on China, Australia’s capitalist rulers implement China’s pro-working class housing policies here. Working class people in Australia desperately need this.”
The rally was then addressed by Chairman of the Australian-Chinese Workers Association, David Chen:
“The Australian Chinese Workers Association is proud to be one of the endorsers of this action to fight for lower rents and lower housing costs. I want to acknowledge that we are gathering here on the stolen Aboriginal land of the Gadigal People of the Eora Nation.
“Rents have now reached unbearable levels for working class people. Even in working class Granville in Western Sydney, an area that I am familiar with, the median rent for a two bedroom apartment is now $500 per week. That is nearly 60% of the minimum wage for a full-time worker! Like our fellow working class Australians of all ethnicities, ethnic Chinese workers in Australia have been suffering under these increasingly unaffordable rents and housing costs. Like many other workers in this country, many Australian Chinese workers are not using heaters during the cold winter to be able to pay rent.
“The solution to these problems is obvious. We need to force governments of all stripes to massively increase public housing. Secondly, we need to release into the housing supply the huge number of homes that the ultra-rich keep unoccupied for speculation. To do this, we must insist that the super-rich be banned from owning more than three homes.
“Do not let politicians and media tell you that this is not practical. I want to share our experience as immigrants from China. In our home country, the government has focused on public housing over the last sixteen years. Moreover, to ensure that homes go to those who need them rather than being kept by the wealthy for speculation, most parts of China have policies restricting how many homes the rich can own. For example, in Guangzhou, the biggest city in the southern Guangdong province that I am from, people can own at most two homes. Moreover, in this mega-city, more public housing is now being built than private housing.
“So, such measures are indeed very realistic. But with Australian governments serving only the ultra-rich big end of town, they are not going to implement the policies that we need to lower rents unless we force them to. So Australian working class people of all ethnicities must unite to fight for a massive increase in public housing and a ban on people owning more than three homes. We in the Australian Chinese Workers Association pledge to do all we can to support this crucial struggle.
Rally emcee Yuri Gromov then provided additional detail on socialistic China’s pro-working class housing policies:
“China’s push on public housing began around 2008 and saw the state provide 70 million new public housing dwellings in the space of a decade. This included both low-rent public rental housing and low-cost public housing which was sold to lower-middle income occupants for a 70 year period and which the occupants could only sell back to the state.
“Today, China is making a renewed push to increase the amount of public housing. Most of the new public housing will be public rental housing. According to the 2021-2025 Five Year Plan, which China is ahead of schedule to meet, 6.5 million new public rental housing dwellings are being provided to house 20 million people. Even accounting for China’s big population, this is a further huge boost to public housing in China. Proportionate to population it is the same as if 375,000 people were to be granted public housing in Australia within five years. That is dozens of times more than what the Albanese government is even promising to provide.
“Notably, a recent Chinese government announcement made a few weeks ago stated that Chinese local governments and state-owned enterprises would begin aggressively buying up excess private housing and turning them into public housing. This is the direct opposite of the privatisation of public housing that Australian governments have been ruthlessly engaged in.
“China’s policies to stop housing speculation go beyond just the restrictions on the number of homes that people can buy. For example, China’s banks are not allowed to providing housing loans to people who already own two homes. Moreover, depending on the city, laws are made to discourage the purchase of second homes. Thus, in China’s biggest city, Shanghai, people seeking to buy a second home must pay a 35% deposit on the price, much higher than the deposit needed for people buying a first home.”
Next to address the demonstration was Trotskyist Platform central committee member, Samuel Kim. He has personally felt the sharpness of Australia’s rental affordability crisis, with his landlord recently putting up his rent by around 25% in one hit. Samuel Kim began his speech by detailing the suffering caused by rising rents: “Sisters and brothers, today over 400,000 women over 45 are at risk of homelessness according to the Housing for the Aged Action Group.”
The Trotskyist Platform representative then outlined a class-struggle strategy to fight for lower rents:
“Let’s make the rich sell off their excess homes! Housing is for living in, not for speculating! Australian billionaire Mike Cannon-Brookes owns $350 million worth of property – consisting of several unoccupied lavish mansions and holiday homes. That is why we in Trotskyist Platform demand that any dwelling owned by a household with more than five million dollars worth of property assets, and is unoccupied for more than two months within a year, should be confiscated and turned into public housing.
“But how are we going to win these demands? The Liberals, Far-Right parties and Teals/independents openly serve rich property speculators. Many of these politicians themselves own multiple properties. The ALP for its part always bows to this big end of town. And these ALP politicians also own multiple properties – Albanese personally once owned four properties and Tony Burke and Linda Burney both own five properties. The Greens do offer more for renters. But the Greens’ plans are not exclusively for public housing but will see public money handed over to private landlords for so-called “affordable housing”– money that should be used to build up public housing. Moreover, because the Greens accept the dominance of the capitalist economy, the Greens never deliver on their progressive promises.
“The only way we are going to win the measures needed is through mass struggle that can force the ruling class to grant us concessions. We must especially mobilise the industrial power of the union movement in this struggle. When governments attempt to sell off public housing this should be stopped through protest occupations – like the 6 August 2017 occupation of a block in Millers Point by leftists, trade unionists and other supporters of public housing. Similarly, we should build towards mass direct actions to requisition the unoccupied housing of the ultra-rich into the public housing stock. We should build a true workers party to organise such militant struggles and to build a class struggle fight for the conversion of all gig jobs into secure, permanent ones.
“If we are to succeed in such struggles, we must oppose the ruling class’ attempts to scapegoat migrants. It is a complete lie that migration is to blame for rising rents. After all the steepest rent rises were in 2021 when there was absolutely zero migration due to COVID travel restrictions. To stop the ruling class getting itself off the hook through diverting people’s frustrations onto others, we must go out of our way to defend the targeted groups. We must call for the full rights of citizenship for all migrants, refugees and international students. We must demand that the refugees imprisoned in PNG and Nauru be brought here and freed. And we must oppose all racist scapegoating of Aboriginal people.
“Sisters and brothers, the right to housing is one of the most basic of human rights. Yet the capitalist regime in this country, which poses such a threat to this right, also claims to be the guardian of `human rights’. In the lead-up to the Chinese premier Li Qiang’s visit, which will begin shortly, the ruling class media and politicians have been calling on Albanese to attack China forcefully over `human rights’ when he meets Li Qiang. But Albanese has no right to! For socialistic China does a far better job in ensuring housing for its masses than the capitalist rulers here. Thus, to ensure that the homes built there go to the masses, many parts of China have restrictions on the amount of homes that the rich can own. For example, in China’s biggest city, Shanghai, families and individuals are restricted to owning at most two homes. Furthermore, China has focused on providing public housing for her lower-income people. Today about 2.5% of housing in Australia is public housing, whereas in China it’s over 25%.
“So, actually, we say that it is Li Qiang who should be condemning the Australian regime for its appalling human rights failure – its failure to provide housing for all its people. And while he is at it, he should also demand that Australia’s capitalist rulers stop participating in Israel’s genocide of Palestinian people, stop its state forces from killing Aboriginal people in custody and free Australia’s four political prisoners.
“The differences in housing policy between Australia and China indeed highlight why our rulers constantly attack Australia’s biggest trading partner. For Australia’s capitalist rulers fear that the working class masses here will be inspired by socialistic China’s policies to start demanding China-style, pro-public housing policies in this country … and eventually to demand socialism as well!
“To be sure, pressured by a capitalist-dominated world and by the existence of capitalists within China, China’s transition to socialism is still unfinished, uncertain and deformed. Recently, under pressure from struggling privately-owned developers, Chinese cities have loosened, somewhat, anti-speculation policies. We say that there must be no loosening. Instead, the remaining major capitalist developers should be nationalised. There is no room for profiteers in a sector so connected with people’s well-being. This must be part of a broader program to further strengthen China’s socialistic public sector.
“For working class people here, it is important that China’s pro-working class housing direction and public sector-dominated economy remain in place. For the existence of that socialistic system strengthens our struggles for a housing and economic system in Australia that will finally look after working class people’s needs. That is why it is in the interests of working class people in Australia to oppose all the political, propaganda and military attacks against socialistic rule in China. Let’s oppose the U.S. and Australian regimes’ massive military buildup targeting China and its provocative naval missions in China-claimed waters in the East and South China Seas.
“It is important to know that Red China is able to provide large amounts of public housing for her people not only because of her policies. Her state is able to fund public housing because her economy’s most profitable sectors like energy, finance and mining are in public hands rather than being owned by wealthy tycoons. And because the majority of China’s big developers are state-owned, rather than profit-centred, public housing budgets actually go into providing public housing rather than into the pockets of wealthy capitalist contractors. Meanwhile, the fact that all China’s major banks are publicly owned means that these banks readily provide credit for public housing projects. So, a key part of fighting for the massive increase in public housing that we need here is to fight for the nationalisation of the banks and for the confiscation of Australia’s big construction and mining companies and their transfer into public hands. That in turn poses the need to struggle for an overall system based on collective ownership of the economy under the control of a workers government.
“The struggle for such a system that will meet the needs of all and not just the wealthy few will be built up through mass struggles for what working class people need right now. So, sisters and brothers: let’s work hard to build up a class struggle fight for a massive increase in public housing, for a ban on the ownership of more than three homes and for the confiscation of the unoccupied homes of the ultra-rich.”
Protesters then conducted a lively march through the streets of Sydney from Chinatown to the QVB. During the march we chanted: “More Public Housing!”, “Houses Are for Living – Not for Speculation!” and “Public Housing for You and Me – Just Like in the PRC!”.
Outside the QVB Building, in front of a large bronze statue of Queen Victoria, that symbol of brutal British colonial power, rally emcee Yuri Gromov reiterated that the lack of affordable accommodation in Australia has nothing to do with immigration:
“The ruling class and the politicians, the media and the commentators who serve them are trying to get their capitalist system off the hook by blaming migrants. But more migrants means more people to build homes and more people to pay taxes to pay for building new homes. Migrants are not to blame for the housing crisis. Our working class sisters and brothers from all around the world are part of the solution. The rental crisis is caused by the failure of the capitalists and their so-called `free market’ system to meet the housing needs of the multicultural masses. The blame sits squarely on the shoulders of the pro-capitalist, pro-speculation policies of our governments and the massive selloff of public housing undertaken by successive Australian governments of all stripes.”
The final speaker at the action was activist Peter Butler, who has been fighting for decades for affordable rents and housing justice as a community worker, researcher and as a tenant himself. Peter Butler outlined how he saw the consequences of when local public housing estates around Campbelltown began to be sold off to private developers around the 1990s. He described the terrible effect this selloff had on many tenants, who then had nowhere to live. This was the result of neo-liberal policies, when housing became a source of profit, rather than a basic human right necessary for people’s security. Since then, things have gotten worse, with homelessness increasing, along with rental costs and shortages. Sydney is now the second-most expensive city in the world!
Now, a volunteer at a community food van, Peter Butler described the impact he has seen Australia’s rental affordability crisis have on many of his clients, with increasing pressure, especially on the most vulnerable. By comparison, in China, public housing is a common government provision.
Peter Butler noted that on the way to the rally, he saw several homeless people in the cold and rain, begging on the streets. He asked rhetorically: “Where would you rather live – in a secure apartment, even if it was small, or out on the streets?” Peter Butler insisted: “We need to return to more government provision of public housing for these people, instead of the emphasis of housing for the profit of a few.”
In his concluding remarks, rally emcee Yuri Gromov explained that: “the only way that we are going to win the housing policies that we need is through mass, class-struggle action. Today’s rally was aimed at building towards the type of action needed.” Indeed, the June 15 rally received much sympathetic interest from bystanders and passersby – many of whom stopped to pick up leaflets and listen to speeches. The demonstration was also sympathetically covered by an article in the Australian Chinese-language newspaper Sydney Today and re-published in Chinese-language news sites in Canada and China.
Buoyed by the spirited nature of the June 15 demonstration and the impact that it had, Trotskyist Platform and the Australian Chinese Workers Association have vowed to intensify their campaign to fight for lower rents. We intend to organise follow-up actions to demand a massive increase in public housing, a ban on the ownership of more than three homes and other measures to forcibly release into the housing supply the multiple homes kept vacant by the ultra-rich.
Photo above: Not only have the rates of bulk billings by GPs dropped over the last few years, over a much longer period, the average out-of-pocket costs paid by patients for GP visits have been soaring. Photo credit: RACGP
UNVEILING CAPITALIST EXPLOITATION: A CALL FOR REVOLUTIONARY HEALTHCARE REFORM IN AUSTRALIA
FOR TRULY FREE, UNIVERSAL PUBLIC HEALTH CARE IN AUSTRALIA
27 April 2024: Australia’s healthcare system is now facing a critical juncture marked by the exploitation of public health, aged care, and the National Disability Insurance Scheme (NDIS) budgets by capitalist tycoons. We call for nothing less than a class struggle strategy consisting of the expropriation and socialisation of this country’s natural resources – which will fund a truly public healthcare system. Such measures, alongside bringing all healthcare services themselves into public hands, will ensure a healthcare system that provides free and universal healthcare, aged care and disability care for all.
This forms part of our strategy to combat the attacks by Australia’s ruling class – and the attacks of ruling classes throughout the capitalist world – on workers’ living standards; which the capitalist rulers have been assaulting through slashing real wages and jacking up the cost of living, eroding job security, undercutting access to bulk billing GPs and through undermining the nominally free, universal healthcare systems that countries like Australia claim to provide.
THE CRISIS IN HEALTHCARE
Despite the existence of Medicare, the out-of-pocket expenses for specialist fees, surgeries, essential medicine, and dental care continue to mount, leaving many Australians burdened with hefty bills. Even some tests and scans essential for very ill people – like advanced MRI scans needed for diagnosis of cancer patients – now cost hundreds of dollars in out of pocket expenses. The COVID-19 pandemic exposed the gaps in the healthcare system with a disproportionate impact on those unable to afford private insurance. Long waiting times for essential treatments, like knee replacement surgery, further exacerbate the inequality within the healthcare system.
Working class people living in rural areas are being especially hit hard by the lack of truly free, universal public health care in this country. People living in many Australian rural regions have no access to bulk-billing GP services in their town, sometimes having to travel up to one hour out of town to access a bulk-billing GP. A 15 to 20 minute private billing GP consultation leaves patients $90 out of pocket (the gap between the cost and what Medicare covers)! Even a script over the phone costs $20. With food, electricity and other prices having already risen sky high, already squeezed rural workers, unemployed workers and pensioners are being ground down by these medical costs and the fact that like, in the rest of the country, dental costs are not covered by Medicare. Moreover, it is precisely those who need free medical care the most – those on the lowest incomes or who are seriously ill – that have the least access to the private transport often needed to travel long distances to reach a bulk billing doctor. Moreover, with petrol now regularly costing more than $2 a litre, the fuel costs of actually travelling to a bulk billing doctor is itself steep.
CAPITALIST EXPLOITATION IN AUSTRALIA’S HEALTHCARE SYSTEM
The burgeoning out-of-pocket expenses for essential healthcare services can be traced back to the predatory practices of capitalist tycoons. Sonic Healthcare’s Michael Boyd and Chemist Warehouse owners Jack Gance and Mario Verrocchi are among those profiting massively from public funds allocated to health, aged care and NDIS. This exploitation has led to compromised services, increased costs for the public and the perpetuation of an unequal healthcare system.
POLITICAL INACTION AND THE ELUSIVE QUEST FOR A TRULY PUBLIC HEALTH SYSTEM
The right-wing Liberals make little secret of their wish for still greater privatisation and the further implementation of anti-working class “user pays” mechanisms for all social services. However, despite widespread acknowledgment of the flaws within the healthcare system, the ALP and the Greens also have no genuine commitment to the cause of establishing a truly public health system. Of course, neither party wants to trumpet this. Indeed, both the ALP and Greens verbally proclaim absolute loyalty to Medicare. That healthcare should be a free, publicly provided service is a principle supported by the ALP’s working class base and the Greens’ main support base amongst university students and other progressive-minded educated youth and middle-class professionals. But the truth is that while the ALP has been in office and when the Greens have been part of coalitions or de facto coalition governments with the ALP at federal or state level, their policies have been complicit in enabling the erosion of public ownership and control of health, aged care and disability care. This is in many ways little surprise. As parties that uphold the political order through which the capitalists rule, both the ALP and Greens have facilitated the privatisation that the capitalist economic system and the big-time capitalist exploiters demand in the era of fast-decaying, late-stage capitalism. It was the Hawke-Keating Labor governments that sold off the formerly publicly owned Commonwealth Bank and Qantas. Meanwhile, federal and state ALP governments have been just as complicit as the conservatives in the sell-off of public housing throughout this country over the last 25 years. As for the Greens, when they were part of a de facto coalition with Labor administering the federal government from 2010 to 2013, they helped oversee the final privatisation of Telstra begun under John Howard’s Liberals.
A CLASS STRUGGLE STRATEGY: EXPROPRIATION AND SOCIALISATION OF NATURAL RESOURCES
To address the systemic issues plaguing Australia’s healthcare system, a class struggle strategy is necessary. This strategy involves expropriation – the collective reclaiming of resources – and the socialisation of Australia’s natural wealth. By redirecting the profits generated from the mining, oil/gas and power sectors, currently flowing into the coffers of capitalist oligarchs, and dismantling the existing capitalist-driven structures, society will easily be able to fully fund a range of social services, including free and universal health care, aged care, disability care – and childcare! Secondly these services themselves should be brought into the administration of the state rather than profit-driven private entities. That way all public funds can be directed into the provision of these services vitally needed by the people rather than a big chunk of them being diverted into the pockets of capitalist profiteers.
CONFISCATING AUSTRALIA’S WEALTH: MINING PROFITS AND BEYOND
Mining profits in Australia have reached unprecedented levels, with billionaires like Gina Rinehart and Andrew Forrest amassing vast fortunes. A class struggle strategy calls for the confiscation of these profits, challenging the capitalist ‘neoliberal’ narrative that has allowed a select few to benefit disproportionately. This requires the collective effort of Australia’s working class to redistribute the nation’s wealth, prioritising the collective needs of the people over the interests of a privileged few.
CREATING A WORKERS’ STATE: DEMOCRATIC CONTROL AND PUBLIC OWNERSHIP
We argue for the establishment of a workers’ state, founded on democratically elected working class councils. This state would wrest control from the hands of capitalist oligarchs and bring essential service sectors – including healthcare, aged care and disability care – as well as the commanding heights of the economy into public ownership. The collective wealth generated through this approach would be harnessed to ensure free, quality services for all, dismantling the structures of inequality characteristic of capitalist society.
THE URGENCY FOR REVOLUTIONARY HEALTHCARE REFORM
As out-of-pocket expenses continue to burden the people, the urgency for revolutionary healthcare reform becomes daily more apparent. The fight for truly free and universal healthcare, aged care and disability care is not just a demand for improved services but a revolutionary push for systemic change that prioritises the collective needs of the people over the interests of a privileged few.
In conclusion, the call for revolutionary healthcare reform in Australia resonates with the urgent need to address capitalist exploitation within the healthcare system. This requires transformative change, amounting to revolutionary political action designed to end a system that allows capitalist tycoons to steal public funds – and a class struggle strategy involving the expropriation and socialisation of Australia’s natural resources.
The battle for truly free and universal healthcare, aged care and disability care is not just an aspiration; it is a demand for a more equitable, inclusive, and compassionate healthcare system that serves the interests of the many, not the few.
Above photo, 24 October 2023: Couriers Please drivers and supporters rally outside the company’s Western Sydney depot on the eve of the workers submitting a petition to the bosses demanding their rights. The workers are threatening industrial action if their demands are not met.
Brave Gig Workers Take a Stand
Support the Drivers Standing Up to the Bosses of Couriers Please!
27 October 2023: Sydney drivers working for Couriers Please are taking a brave stand against their exploitation. Two days ago, nearly fifty drivers sent their bosses a petition demanding improved working conditions. Fed up that the company has been arrogantly dismissing their grievances, workers are now threatening industrial action. These drivers are amongst the increasing number of workers in Australia who are employed in gig-type arrangements in sectors like food delivery, taxi/ride-sharing, courier and cleaning. Although workers in these sectors toil away for bosses, they are often not classed as employees. Instead their bosses engage them as “contractors” or “franchisees”. This allows the corporate owners to avoid paying workers annual leave and sick pay while ensuring that those that work for them do not have even the modest protections available to employees. With no job security, business owners very often rip-off gig workers at an even more extreme rate than they exploit other workers.
Bosses play up to these “contractors” the – in truth very remote – possibility that they too could eventually build up enough financial resources to themselves hire and exploit other workers. This is in order to instill an individualistic outlook amongst workers. This helps the bosses separate workers from each other – a goal that is also facilitated by the bosses paying each “contractor” differently depending on output. The bosses’ goal is further advanced by the fact that in such “contractor” arrangements, workers are not even technically employees of the same firm. By dividing workers from each other, the capitalist bosses make it harder for workers to unite together to stand up for their rights. Thus it takes particular resolve for gig worker “contractors” or “franchisees” like the drivers at Couriers Please to indeed take a stand. They deserve and need the backing of all class conscious workers and all supporters of workers rights.
Intense Exploitation
Before even starting work, Couriers Please drivers have to “buy” a “franchise” from the company – that is the “right” to service an area for the company! Currently the company is advertising the sale of such “franchises” for $15,000 to $25,000. Yet while engaging their drivers as “franchisees”, the corporation imposes on them all the usual obligations of employees. Drivers have to wear the company’s uniform and brandish the company’s logo on their vehicles. Most tellingly, drivers are obliged to conduct deliveries for the company five days a week. If they do not, they are often effectively fined because they have to pay any amount that the replacement driver hired by the company delivers below a set amount. Yet while having all the obligations of employees, Couriers Please drivers have none of the protections available to employees and all the obligations of a franchisee. Thus drivers have to provide and service their own vehicle, pay for fuel use and pay for all the different insurances that they need. All this combined with the poor amount that Couriers Please pays drivers means that, after expenses, most of the drivers receive very low net hourly incomes. Meanwhile, the company imposes financial penalties on drivers if they fail to meet “On Time Performance” (OTP) delivery targets that are so unreasonable that two-thirds of drivers constantly struggle to meet them. A survey found that half the drivers were working more than 50 hours per week and beginning their shifts around 3 or 4am.
The pressure to meet delivery targets, low net pay, long hours and unnatural daily start times combine to cause high stress and a poor lifestyle for many drivers. Three years ago, a Courier’s Please driver died due to the extreme fatigue of his job. Since then life has become even harder for drivers. Fuel prices have surged, as has general inflation, thus greatly increasing drivers’ operating costs. In contrast, the company has increased its margins by lifting the price that it charges customers for delivery of non-standard-sized items – but the drivers’ payment has not been lifted.
Company Set to Slash Legally-Mandated “Safety Net”
There are some modest legal rights available to courier drivers formally employed as “contractors”. A NSW Industrial Relations Commission determination mandates a minimum “safety net” payment that a “contract” courier must receive over each two month period. It consists of the “safety net” hourly rate multiplied by the number of hours worked by the driver. If the driver receives less gross income than this “safety net” over a two month period, their boss must top up the drivers payment until the “safety net” is met. However, this “safety net” is so low that, even with it, one-third of Couriers Please drivers, after paying vehicle expenses, were receiving less net income than Australia’s minimum wage! When the “safety net” was finally raised in 2022 for the first time in 15 years (!), it gave just a 40% rise from the 2007 level to be phased in over three years. This is despite 2025 prices predicted to be nearly 60% higher than 2007 levels. In other words, the state has significantly cut the “safety net” in real terms since 2007.
Yet, the amount that Couriers Please pays drivers for deliveries is so low that more than half the drivers surveyed relied on the “safety net” to top up their incomes. Now, Couriers Please is suspending paying the “safety net” for the November-to-December period. They dishonestly claim that drivers don’t need it, because they will make in excess of it in a peak period. If this were actually true they would have no need to axe it! It is the company’s announced axing of the “safety net” that is the biggest cause of drivers’ moves to fight for their rights. Aside from demanding the restoration of the “safety net”, the drivers’ other key demand is for an increase in the payments that drivers receive for deliveries – accounting for the increased prices that Couriers Please are charging their customers for some deliveries. The drivers also demand an end to the punitive OTP system of financial penalties and demand an increase in their oil subsidy. They point out that Couriers Please has actually reduced this oil subsidy even as fuel prices have surged.
Australian Chinese Workers Association Steps Up to Help Courier Drivers Organise Their Resistance
The existence of a “safety net” for “contract” couriers is the result of the efforts of the Transport Workers Union (TWU). However, the TWU leadership has thus far failed to mobilise the union’s immense industrial muscle to win courier drivers truly decent conditions or to compel companies to employ drivers in secure, wage-paying jobs (as opposed to as “contractors” or “franchisees”). Moreover, at Couriers Please in Sydney in particular, TWU officials have thus far done little to stand by the drivers in recent years. As a result, several of the drivers taking a stand had earlier quit the union after having previously been members. Many of the other rebel drivers never joined the TWU upon hearing from their co-workers of its failure to stand up to the bosses. Recently, when the drivers standing up to the company – now unfortunately mostly non-union members – shared their intention to resist with the TWU delegate at Couriers Please, the latter sought to discourage any struggle by claiming that it would be futile and result in the rebels copping heavy financial penalties. Dismayed, the drivers turned to a community group, the Australian Chinese Workers Association (ACWA) for support. Although the company’s drivers are of various ethnicity, thus far the overwhelming majority of the drivers standing up to the company are immigrants from China. The ACWA is an organisation that links ethnic Chinese workers with the broader Australian workers movement. It also helps Chinese workers defend their legal and social rights against discrimination, while supporting broader progressive causes. Thus the ACWA is an ally of Australian unions and not a competitor. However, on this occasion, it was compelled to step into the void created by the TWU’s indifference to the Couriers Please drivers’ plight and carry out the work that the TWU ought to have been doing.
After receiving an appeal from the drivers, the ACWA carried out surveys of drivers to accurately determine their actual working conditions. They organised drivers to elect an Industrial Action Guidance Group to direct their struggle. The ACWA then helped drivers to assemble a petition of their demands to submit to Couriers Please management.
Protest Stands with the Drivers Fighting for Their Rights
After being contacted by the drivers, the ACWA in turn appealed to ourselves in Trotskyist Platform to organise support for the drivers to coincide with their petition submission and their threat of strike action. So, in the afternoon before the petition was submitted on Wednesday morning, a spirited demonstration was held at very short notice outside Couriers Please’s Western Sydney depot in solidarity with the drivers’ demands. Drivers’ representatives were joined by supporters of Trotskyist Platform, the ACWA and other supporters of workers rights. Chanting, “Support the Drivers, Fighting for Their Rights” and “The Workers United Will Never Be Defeated”, demonstrators carried banners and signs like, “Couriers Please Profits and Oil Prices Are Soaring. Raise Payments and Fuel Subsidies for Drivers!” Tuesday’s action met with overwhelming sympathy from drivers going in and out of the depot. Many either tooted their horns in approval of the rally or waved and gave a thumbs up to the protestors.
This drivers struggle has great significance. Since this is a rare case of gig workers being able to organise resistance to their own exploitation, a victory could inspire resistance from other workers hired on bogus “contractor” arrangements. Trotskyist Platform fights to not only improve the rights of gig workers but stands for the conversion of all gig jobs into secure jobs where workers will be engaged as employees rather than “contractors”. As signs carried by drivers at Tuesday’s rally indicated, it is the aspiration of many Couriers Please drivers themselves to have their jobs converted into secure, wage paying jobs. This is essential to reducing the level of exploitation of those currently engaged in the gig economy and to protecting these workers from the great insecurity of gig work. It is also crucial for another reason. By separating workers and promoting the self-centred, small business-person outlook, the hiring of workers as “contractors” undermines workers unity. It therefore undercuts the struggle to build working-class resistance to capitalist exploitation. The fight to convert gig “contract” jobs into secure, employee jobs is thus an essential part of today’s struggle to build a militant workers movement. The workers movement must demand laws forcing companies who hire any particular individual “contractor” for more than, say, fifteen gigs in a month, or more than fifty jobs in a year, to offer these “contractors” secure, wage-paying jobs as employees of the company.
Turn Our Unions Into Organisations of Militant Working-Class Resistance!
Tuesday’s rally boosted the morale of the rebelling workers, flung at the bosses a sample of the wider support that the workers struggle will inspire and popularised the struggle amongst other Couriers Please drivers. Another key purpose of Tuesday’s protest was to try and shame the leadership of the TWU into doing what they ought to be doing: standing resolutely with courier drivers against the attacks of the greedy corporate owners.
Although we understand why the drivers standing up to Couriers Please are not part of the TWU, we are nevertheless strongly encouraging them to join the union immediately. Being in the union gives them an opportunity to appeal for support from the union’s ranks – that is from other transport and courier sector workers. This will be especially crucial if the drivers go ahead with strike action. Union truck drivers and other workers are much more likely to respect a picket line of striking courier drivers if they know that the picketers have shown – by paying to join the union – that they are not only willing to stand up for their own rights but to stand in solidarity with other workers in the industry.
However, joining the TWU does not mean that the drivers should submit to the agenda of its pro-ALP, leadership. Drivers should maintain their elected Industrial Action Guidance Group and ensure that this body retains ultimate control over the struggle. Should they join the TWU, the rebel drivers should be ready to regularly send large delegations into the union office in order to pressure TWU officials to mobilise the union’s industrial muscle behind their struggle. To help with such efforts and to win solidarity action in support of their fight, the drivers will need to appeal to the ranks of the TWU (and other unions) that are employed in other companies – especially those working in the highly profitable FHM group of companies (including efm Logistics, BagTrans, Niche Logistics, GKR Transport and Spectrum Transport) that is owned by the same Singapore Post corporation that owns Couriers Please. Given that Couriers Please and FHM form the most lucrative part of Singapore Post’s operations, joint action by workers employed by these companies can put immense pressure on their bosses to accede to workers demands.
However, the pro-ALP union bureaucrats are highly adept at corralling union ranks away from militant struggle strategies. If the militant Couriers Please drivers join the TWU, as we hope, then in the face of the arguments that TWU officials would inevitably throw out to discourage intransigent industrial action, it will be a challenge for the militants to maintain the allegiance of the more wavering drivers who signed the petition, let alone win over broader union ranks. To prevail, the leaders of the struggle will need to be armed with both a very clear understanding of what is wrong with the program of our current union leaders and what is the alternative program that the union movement needs.
The main reason that our current union officials discourage militant industrial action is because they think that while particular practices and bosses need to be resisted, in the “big picture”, workers interests are best served by accepting the overall domination of society by rich capitalists and the regime that serves them. They either argue that this is actually desirable – in the case of more right-wing bureaucrats – or claim that the capitalists are too powerful to challenge. Thus the current union heads seek to limit union struggle to that which is compliant with the restrictive anti-strike laws and industrial courts of the capitalist state. Their main strategy is to elect Labor and then encourage these ALP governments to make as much pro-worker reform as possible without decisively upsetting the powerful capitalists – which isn’t much! Thus, when Labor is in office, like right now in both NSW and federally, union officials are especially reluctant to unleash industrial action. This entire “strategy” of collaboration with the capitalists has been a disastrous failure! Following it, the pro-ALP union tops have allowed business bosses, over the last four decades, to both greatly increase their exploitation of workers and drive a big chunk of the workforce into insecure gig jobs. Still, these officials delude themselves that their strategy is in their ranks’ best interests. This is in good part because by subordinating the workers to the capitalist order, the pro-ALP union tops gain a respected social position within elite circles as loyal-to-the-system “rebels”. Moreover, many union heads are careful to ensure that their actions remain within limits tolerable to the ruling class because they want to leave the door open to future lucrative careers as corporate executives or mainstream politicians (as in the case of long-time TWU secretary and now Labor federal senator Tony Sheldon).
To ensure that the maximum force is mobilised behind their struggle, the leaders of the Couriers Please drivers struggle and their supporters will need to convince other drivers and sections of the broader working-class that everything significant that the working-class has ever won has been through resolute industrial action and other mass actions. That all bureaucratic organs in capitalist societies – from the police to the courts to the industrial relations commissions – are subordinate to the interests of the capitalist class. This is the case whether the regime is administered by conservative governments or social-democratic Labor Party-type ones. Therefore, contrary to the strategy of pro-ALP union tops, the working-class cannot expect to win significant gains through the benevolence of the capitalist state or its courts no matter which party is in office – the more so in this era of frequent capitalist economic crises. To those who say that workers must limit demands in order to ensure that companies remain highly profitable so that they will not layoff workers, we must say that we must instead fight to improve workers rights across industry so that companies with the worst working conditions cannot undercut other operations. We must explain that the way to fight for jobs is by forcing companies to maintain a greater number of workers than is most profitable for them. And to those who say that such an agenda, in the “big picture”, would cause economic collapse, we must reply that if the ultra-rich corporate bigwigs cannot run their companies in a way that ensures both decent working conditions and jobs for all without collapsing, this only proves the need to eventually rip the economy out of their hands. In short, the fight to mobilise the maximum force behind the Couriers Please drivers struggle must be accompanied by a struggle to promote a new agenda for our workers movement: one that insists that the working-class must not restrict its struggle to what is tolerable by the capitalists but must fight unyieldingly for what it actually needs, on the way to an ultimate “big picture” goal of the collective ownership of the economy by all the people under workers rule.
Immigrants from Mainland China Energise Australia’s Workers Movement
The Couriers Please drivers struggle is not the first time that immigrants from mainland Peoples Republic of China (PRC) have been at the forefront of workers struggle. In February 2021, largely Chinese immigrant drivers working for British-owned food delivery company Hungry Panda unleashed Australia’s first ever strike by gig workers. Organised in the TWU, their weeks of stopworks and protests won them modest but important gains. In November 2012, 180 bus drivers who were “guest” workers from China waged Singapore’s first strike in 27 years! So why do migrant workers from China, even when on precarious employment arrangements, have a great propensity to struggle? The reason is that in 1949 China had a massive revolution that brought workers to power. To be sure, the complete victory of the working class over the capitalists is still far from complete in China, or even certain, and there remains capitalists of some influence there. Nevertheless, people growing up in the Chinese workers state are immersed with the sense that workers ought to be treated with respect. This is reinforced by the fact that, very opposite to capitalist Australia, PRC courts – and sometimes even police – are known to usually favour workers in disputes with private business owners. So when Chinese workers migrate abroad they bring that workers don’t have to put up with crap spirit with them.
A particular reason that Chinese immigrant gig workers are unwilling to cop extreme exploitation is that they may be aware of the measures that the PRC has taken to defend gig workers’ rights back in China. In July 2021, the PRC decreed new rules compelling food delivery companies to ensure that delivery workers receive at least the local minimum wage, provide their workers social insurance and considerably relax the times that workers have to make a delivery (the latter being equivalent to forcing Couriers Please to greatly weaken its hated OTP system). The measures had such an impact that they caused the rich owners of China’s biggest food delivery platform, Meituan to immediately lose $A56 billion in share value! However, unlike here, where opposition from wealthy corporate owners is able to weaken or postpone any mooted pro-worker measures that would harm their interests, the PRC state went ahead with the new measures and is extending them to other sectors. Therefore, the workers movement must force Australia’s regime to retreat from its role in the Western capitalists’ drive to destroy the PRC workers state and must instead compel it to implement PRC-style anti-poverty measures here – like decreeing guaranteed minimum wages and social insurance for all gig workers.
Some courier drivers are non-citizens. They would be able to struggle even more resolutely if they were not shackled by the restriction of rights that non-citizens face. Moreover, anti-Chinese and other racism intimidates migrant workers and can make them reluctant to stick their heads up. Just four days ago, a Sydney University Chinese student was bashed by an unknown white man screaming racist insults. To unleash the full fighting energy of migrant workers, our workers movement must take action to oppose racist attacks and to demand the rights of citizenship for all migrants.
An Important Struggle to Win
There are literally millions of workers in this country who are hired on a gig basis, on sham “contracts” or on other forms of casual and insecure employment. These intensely exploited workers could be inspired to fight for their rights if they see the Couriers Please drivers struggle succeeding. Therefore, if these courier drivers end up going ahead with industrial action, it is crucial that those who joined Tuesday’s rally – and the many more who could not attend the snap rally but gave it moral support – go into overdrive to build support for the action. Let us build mass picket lines outside the company’s depots to help enforce any strike! Most crucially, we must fight to build secondary solidarity strikes amongst the less vulnerable sections of the working class. This is possible to do. For since the especially severe exploitation of gig workers is used to drive down the wages and conditions of all workers, it is in the interests of the entire working-class to actively support the struggle to improve the rights of gig workers. Let’s make the Couriers Please drivers’ struggle a springboard to launch a broad struggle to convert all gig jobs into secure, wage-paying jobs!
Photo Above: Six years ago, scores of current and former public housing tenants, trade unionists from the Maritime Union of Australia, Trotskyist Platform supporters, staunch anti-fascist activists and other supporters of public housing carried out a powerful occupation of vacant public housing dwellings at 78 to 80 High St, in inner city Sydney’s Millers Point to oppose the slated sell-off of these properties to wealthy speculators and capitalist developers. The powerful 6 August 2017 occupation demanded that these vacant public housing dwellings be made available to those on the public housing waiting list or the homeless. We urgently need such actions now on a huge scale to not only oppose all privatisation of public housing but to fight for the confiscation of the vacant homes of the ultra-rich so that they can be used for low-rent public housing.
Drive Down Rents by Massively Increasing Public Housing!
Expand Rental Supply Now – Confiscate Vacant Houses of the Ultra-Rich!
16 June 2023: Skyrocketing rents in Australia are driving working class people into poverty. Over the last year, rents for new leases surged by an incredible20% in capital cities. Alongside the prices of food, electricity and fuel rising much more quickly than modest wage increases, surging rents are forcing millions of people to skip meals, stop buying fresh food, forego visits to dentists and specialists and avoid using heaters during the frigid winter, just to try and get by.
Unaffordable rents are the result of the capitalist “free market”. Developers shy away from building affordable homes because they know that they can make more profit by building expensive homes for the affluent or for wealthy investors looking to buy up houses for speculation. As a result, there is such a shortage of affordable rentals that not only are landlords able to jack up rents but low income tenants are not able to move into cheaper homes to escape soaring rents in their existing tenancies. A recent rental affordability snapshot found that just eight out of every 1000 available properties were affordable for a single person on the minimum wage lucky enough to have a full-time job! At the time of the 2021 census, over 122,000 people were homeless in Australia. Since then, the number of homeless people has skyrocketed – many of whom have jobs. Meanwhile, more and more low income women who are financially dependent on abusive partners are being hit with the terrible “choice” of either dumping their abusers and becoming homeless or trying to endure the abuse just to keep a roof over their – and often their children’s – heads.
The inevitable failure of profit-driven developers to provide affordable accommodation is compounded by the policies of federal and state governments. Not only have they favoured landlords and investors over low income tenants, they have instituted tax policies that have skewed the housing market towards speculators. Most damagingly, these governments have gutted public housing. As a result, the percentage of people in public housing in Australia has nearly halved over the last 25 years! By 2021, the proportion of public housing had plunged to just one in every 36 dwellings.
Some of the public housing sold off by governments has been turned into “community housing”. Still, over the last 25 years, Australia’s governments have slashed the total amount of “social housing” – which includes both public and “community” housing – by a quarter. Moreover, “community housing” is not public housing. “Community housing” landlords are private entities notorious for their high-handed bullying of tenants. Furthermore, because “community housing” operators are driven to either make a profit or, if they are a charity, “break even”, they bias their tenancy allocation towards those who can afford higher rents. Thus, the proportion of well-off people housed in “community housing” is nearly three times higher than in “public housing.” On average,“community housing” operators allocate one in eight tenancies to those who are in the highest 60% of income earners – many low income households thus missing out when public housing is converted into “community housing”. Moreover, the proportion of community housing” that is tenanted by Aboriginal and Torres Strait Islander people is 20% lower than in public housing. We say: No to privatisation by stealth – Stop the sell-off of public housing to private “community housing” operators!
What is needed is to massively increase the amount of low-rent public housing. This does not only mean greatly boosting the public housing budget. Currently, at every level, capitalist contractors engaged to build and maintain public housing leach off as profit a big part of housing budgets. State-owned firms must be set up to take over these tasks so that more public housing can be built for the same spending. However, all this alone will no longer be able to relieve the hardships of those hit by soaring private rents. Not only is the public housing waiting list too huge, many others eligible have not put their names on the list only because they know about the ten plus years they may need to wait to finally get a tenancy. Moreover, the criteria to even get on the list is so stringent that many who desperately need public housing can’t even get wait listed. Thus, a full-time, minimum wage worker is not even close to being eligible for public housing. To immediately boost the supply of public housing, some of the more than one million unoccupied homes (!) in Australia must be requisitioned. Many of them are owned by the super-rich who use them as holiday homes or as speculative investments.We say that any dwelling owned by a household with more than five million dollars worth of property assets that is either unoccupied or underutilised for one month – or for a total of more than two months within a year – should be confiscated and turned into public housing. Since such dwellings are often large mansions, they can be turned into dwellings for multiple households. And to the extent that the ultra-rich will let out their properties to avoid such confiscation that will, at least, reduce the demand – and hence rents – for other dwellings.
For Working Class Protest Action to Win Low-Rent Housing for the Masses
To institute the housing measures that are urgently needed, it is not only the right wing Liberals that stand in the way. All the parties currently in parliament are complicit in undermining public housing. In just the five years up to 2021, the state Labor government in Victoria slashed the proportion of public housing dwellings there by nearly 14%. For their part, the Greens, in a coalition with Labor in Tasmania in the early 2010s, were part of a state government that drastically cut the proportion of public housing dwellings, alongside slashing public housing maintenance.
Today, with a widely acknowledged rental affordability crisis, the ALP and the Greens are now keen to portray themselves as supporters of “social housing”. Labor promises 30,000 new “social and affordable” housing dwellings over five years. However, the new “social housing” will not be public housing but “community housing”. The “affordable housing” component involves subsidising landlords to offer rents 20% lower than the market rate. Yet with market rents so obscenely high, such “affordable” homes will remain out of reach for most low-paid workers and part-time workers, let alone unemployed workers and students. Moreover, as the Greens have rightly pointed out, the 30,000 “social and affordable” dwellings that Labor pledges, will not even meet half the increased need for low-rent accommodation during the next five years. The ALP’s plan is a recipe for driving even more low income renters into poverty – albeit at a slightly slower pace! The Greens plan offers more, promising $2.5 billion a year on low-rent housing. However, this is still wholly inadequate to address the huge shortfall in low-rent accommodation. This is especially so given that the Greens, as a party which accepts the dominance of the capitalist economy, has no plan for bringing the actual construction and maintenance of public housing under public ownership, thus allowing a big chunk of the housing budget to continue to be gouged away by the bosses of capitalist contracting firms. Moreover, the Greens plan is not exclusively for public housing but also for “community” and “affordable” housing. Thus, in good part, the Green’s proposals, like the ALP government’s entire plan, will see public money handed over to private landlords – money that should be used to build up public housing. The Greens do call for a freeze on rents – a measure that we support. However, such rent controls will only work if they are accompanied by measures to restrict landlords from removing properties from the rental market and skimping on repairs – measures that the Greens do not advocate. Most notably, the Greens do not even promise the housing measure that is most urgently needed: the confiscation of the vacant homes of the ultra-rich and their transfer into the public housing stock.
Ultimately, all the current parliamentary parties have no program that can truly solve the rental and homelessness crisis because they all uphold the big end of town’s “right to dispose of their property as they see fit”. To win the housing measures needed, workers, unemployed workers, low income youth, activists opposing domestic violence against women and leftists must all unite in militant protest action. There need to be mass protest occupations to stop any privatisation of public housing and to requisition the vacant homes of the super-rich into the public housing supply. In recent years there have been some actions that can inspire us on this course. On 6 August 2017, scores of current and former public housing tenants, trade unionists from the Maritime Union of Australia, Trotskyist Platform supporters and staunch anti-fascist activists carried out a powerful occupation of vacant public housing dwellings at 78 to 80 High St, in inner city Sydney’s Millers Point to oppose the slated sell-off of these properties to wealthy speculators and capitalist developers. Although after about five hours, van loads of riot police brutally broke up the action and arrested four of the activists involved, including two main organisers of the occupation – a respected long-time Millers Point tenant who had then recently been cruelly evicted from public housing there and one of our own Trotskyist Platform comrades – the action scared the then NSW Coalition government enough to temporarily restrain their broader state-wide public housing selloff. This can be seen by looking at the numbers of public housing dwellings in NSW over the last decade (see Table 18A.3, Report on Government Services 2022, Australian Government Productivity Commission). They show that during each year, the number of public housing dwellings either decreased or barely changed. The one exception is for the financial year that includes the eleven month period that followed the August 2017 Millers Point occupation – when total public housing numbers in NSW increased by over 1,100 homes. Then just last week, about two dozen people occupied the common areas of a public housing block in 82 Wentworth Park Rd, Glebe to oppose the NSW state government’s plan to demolish the block and turn the site into a larger “mixed” housing block with the public housing turned into privately-run “community housing”. The protest action, which was deemed legal by the authorities because none of the vacant units were occupied, lasted five days. It was organised by Action for Public Housing and the Anti-Poverty Centre and was supported by various socialist groups as well as by left-wing anarchists and other staunch antifascists who did much of the hard work of staffing the protest site during the nights. The action had an impact. The housing minister in the new NSW state Labor government has now promised that the site will remain entirely devoted to public housing (but without any evidence of an actual change to the formal development plan activists are rightly sceptical of this promise).
Yet, given the severity of the long-brewing rental affordability crisis, we need mass action on a scale and intensity much greater than anything we have seen. In particular, the power of the organised working class movement must be brought to bear. Class-struggle action to win the measures needed to provide low-rent accommodation must be combined with demands for a big increase in workers’ wages, for the conversion of casual jobs into secure ones with all the rights of permanency and for the confiscation of the power and fuel sectors and their transfer into public hands in order to drive down unaffordable living costs. To unleash the kind of struggle needed, it is not enough to energetically advocate for it. We must knock down the political obstacles that stand in the way of such struggle. Chief among these is the reality that the current leadership of the workers movement are supporters of the ALP. Especially with an ALP federal government and wall to wall Labor state governments across the mainland, they are reluctant to organise truly concerted struggle against any government policy. Instead, they tell their working class base that the ALP in office is the best that they can hope for and nothing should be done that could damage the ALP’s re-election prospects. These officials sell their ranks the lie that the ALP’s program of seeking “win-win” collaboration with the big end of town is workers’ only effective path to improving their lives. Currently, many workers grudgingly accept these claims. That is why, the struggle to mobilise determined action against soaring rents must be accompanied by a political campaign to explain that, when in government, the ALP, in the end, operates a state machine hard wired to the capitalists that is programmed to serve the big business and big property owners. In opposition to the program of the Labourites, we must win the most politically advanced workers to the understanding that the interests of working class people can only advance at the expense of the economic interests of the capitalist big-end-of-town.
Hopes in the Greens are also an obstacle to the struggle that is needed. Since the Greens do at least loudly advocate for public housing, such illusions in the Greens do exist – especially amongst progressive-minded youth. Should the Greens want to support a particular protest action in defence of public housing, they are of course free to do so. However, activists must point out not only the Greens’ own tarnished record on public housing when they have been in coalition government with the ALP in Tasmania and federally in the early 2010s but the fact that this is inevitable for any party that seeks to manage the capitalist order. Most importantly, the demands and direction of struggles must not be curtailed to win the acceptance of the Greens. We must not shy away from militant protest occupations that impinge on official capitalist “property rights” or recoil from raising the urgently needed demand to confiscate the vacant homes of the ultra-rich because we know that both these courses will scare off the Greens, who after all include wealthy capitalists amongst their ranks and their donors as well as plenty of upper middle-class, multiple property owners. Just as importantly, we must not avoid openly framing our housing struggle as one that is being waged in the class interests of working class people against the class interests of the super-rich, big property-owning class for fear of “putting off the Greens”. If we were to in this way dilute and shroud the class-struggle content of our movement it would make the movement less attractive to militant workers – the very people whose participation is key to winning victories.For the movement against unaffordable rents to acquire the pro-working class orientation, militant character and anti-capitalist demands that can make it a serious factor, the movement must be freed from all subordination to the agenda of the “progressive” wing of the big end of town, represented by the Greens. All promotion of the Greens by groups within the movement – for example, by advocacy of a vote for the Greens at elections – must be challenged.
There is another, very sinister, political challenge that faces any movement to drive down unaffordable rents. That is the fact that the capitalist class, including most blatantly the capitalist media and Peter Dutton’s Liberal Party, are increasingly seeking to blame migration for the rental affordability crisis. Their claims are a complete pack of lies. The lack of affordable accommodation is solely the result of the capitalist free market in housing and decades of government policy favouring landlords and speculative investors over tenants and low income home buyers. The ruling class wants the masses to blame anyone but themselves! We cannot let them get away with this! To the extent that the masses buy the capitalist rulers’ propaganda, it will not only divert away the movement against unaffordable rents but by inciting racist hostility to migrants and people of colour, it will divide and weaken the workers movement and its capacity to resist capitalist attacks on its living standards. That is why the workers movement and all supporters of public housing must not only oppose any scapegoating of migrants for the housing crisis but must positively mobilise to defend targeted communities against any racist, and other bigoted, attacks. We must demand freedom for and the bringing here of all refugees from PNG and Nauru. We must build mass action to defend Aboriginal people, Asians, other people of colour and the LGBTIQ community against violent far-right forces. And to stop people, vulnerable because of their insecure visa status, being especially ripped off by greedy landlords, which helps push up rents for everyone, we must fight to win the full rights of citizenship for all visa workers, international students and refugees.
The Example of Socialistic China’s Housing Policy: “Houses Are for Living, Not for Speculation”
Those opposing an emphasis on public housing and strict controls on the housing market argue that such an agenda does not work in practice. They say it is outdated and goes against the world trend of privatisation, “user-pays” and neo-liberal deregulation. There is a huge problem with that argument, however. In Australia’s largest trading partner, the People’s Republic of China (PRC), the direction over the last decade and a half has been explicitly towards public housing and strict regulation of the housing sector. In the decade from 2008, the PRC provided 70 million additional public housing dwellings for her low and lower-middle income people. Proportionate to population size, China delivered in ten years, one and a half times the amount of public housing as what the Greens promise to provide in low-cost accommodation over twenty years. As a result, today, the percentage of China’s urban population in public housing is nearly ten times higher than Australia’s. Moreover, the PRC’s public housing drive continues. Last year, the PRC provided an additional two and a half million public rental dwellings for her people. In percentage terms, this is equivalent to 45,000 dwellings here. That means proportionate to population size, Red China in just one year provided one and a half times as much public housing as what the Albanese government promises to deliver in privately-owned “social and affordable” housing over five years. And unlike here, China does not have a homelessness crisis. Despite China (which is still trying to pull herself up from her impoverished pre-1949, capitalist days) having a per capita income some three to five times lower than Australia’s, Chinese international students entering Australia, the U.S. and Western Europe are shocked at the level of homelessness in these richer countries compared with their socialistic homeland.
The PRC’s public housing drive is part of Beijing’s official housing policy that is aptly titled; “Houses are for living, not for speculation.” The PRC takes the opposite stance towards housing speculation compared to successive Australian governments. For example, most Chinese cities ban households from buying more than two homes. Needless to say, Australia’s big end of town hate the PRC’s policies. That is why their media seek to denigrate it at every possible instance. Last year, they seized on the troubles of a Chinese capitalist developer hit by the anti-speculation campaign to claim that the PRC’s “Houses are for living, not for speculation”-policy was soon going to cause the Chinese economy to collapse. Needless to say, that never happened! Today, while the capitalist Australian, American, British and German economies are either in recession or on the verge of one, the PRC’s economy surged by 4.5% last quarter. More importantly, socialistic China’s workers continue to enjoy, by far, the world’s fastest growth rate in real wages. All this is why the Western capitalist powers see China as an “existential threat.” They fear that the successes of China’ socialist alternative will encourage their own masses to also demand a system that puts the masses’ needs above big end of town profits. Frankly, that is the kind of “threat” that working class people in the capitalist West need! Let’s help “infect” Australia’s working class population with sympathy for Red China’s “Houses are for living, not for speculation” policy and her system that underpins it. The fact that China’s transition to socialism is incomplete, bureaucratically distorted and endangered by hostile elements – including by the capitalist powers internationally and by its own capitalists who long to have the right to “freely” exploit as in “normal” (that is capitalist) countries and who have a layer of academics, lawyers, journalists and politicians in the right wing of the ruling Communist Party of China doing their bidding – actually makes socialistic rule in China more in need of defence, not less. Let’s oppose the U.S. and Australian regime’s military build up against the PRC! Let’s refute their lying propaganda attacks against China! And let’s oppose the anticommunist groups within China that they support in their quest to destroy socialistic rule there!
The PRC’s public housing drive has been made possible not only by official policy. It is also made possible by the fact that the developers building the public housing, the steel, cement, glass and other factories providing the materials for the constructions and the banks whose loans provided part of the finance for the projects are all, overwhelmingly, under public ownership. So the PRC is able to build more public housing without having a good part of the budget leached away by capitalist profiteers. China’s system centred on public ownership was created in an inspirational revolution in 1949 that brought the toiling classes to power – albeit a power administered in an imperfect, indirect way via a middle-class bureaucracy. To ensure a system here where not only housing but also health care, aged care, education, industry, agriculture, science and culture operate for the people’s needs and not the profits of a super-rich few, the working class here will also need to take power. Let’s advance towards that goal by enhancing working class peoples’ unity, confidence in their own power and distrust of all the parties and institutions serving the capitalist class (and all its wings) in the course of hard-fought struggles to radically drive down rents, stop the plunge in the masses’ living standards and reverse the decline in workers’ real wages.Let’s build militant struggles to win a massive increase in public housing and the confiscation of the vacant homes of the ultra-rich for transfer into low-rent housing.
Above Left: Australia’s Labor prime minister Anthony Albanese meets with Australia’s unelected feudal, head of state for life, King Charles III a few days before the British monarch’s coronation on 6 May 2023. Above Right: Albanese arrives with his partner for King Charles III and Queen Camilla’s coronation ceremony. Albanese pledged allegiance to the new monarch. Photo credit: AP
LIKE THE DEPOSED, MUCH HATED, RIGHT WING MORRISON GOVERNMENT, ALBANESE HEADS AN ADMINISTRATION SERVING THE CAPITALIST EXPLOITERS!
HIS MAJESTY’S LABOR GOVERNMENT MARCHES THE SAME PATH AS HER MAJESTY’S LIBERAL GOVERNMENT … ONLY WITH LESS ODIOUS REGALIA
27 January 2023: After nearly nine years of conservative administration, Australia’s working class masses, progressive youth, Aboriginal people and much of this country’s Asian, African, Islander and Middle Eastern-based migrant communities had been hoping that the defeat of the hated Morrison government in last May’s elections would finally bring at least a modest degree of relief from years of reactionary attacks on their rights and living standards. However, eight months later, it is clear that little of substance has changed. Moreover, the new Labor administration headed by supposed ALP “Left” Anthony Albanese has no agenda to substantially alter the course that the former right-wing government was on. As a result, the masses’ living standards continue to plunge. Workers’ wages only rise slowly, while food, gas and electricity prices are surging and petrol prices remain obscenely high. Millions of gig economy and casual workers continue to endure jobs with no security and harsh employment conditions that can be made still tougher at any time at the whim of the boss. Just look at how the 15,000 riders delivering food for Deliveroo were thrown out of work with no notice, zero entitlements and zero payout after the delivery platform wound up in Australia two months ago. Especially hard hit are the large number of low-income households that rent. Last year rents soared by more than 10%. Moreover, with so little affordable rental accommodation available, low-income households are not even able to move into cheaper dwellings to get by. As a result, not only are many unemployed workers being forced into living rough on the streets but more and more casual, part-time and other low-paid workers are being reduced to sleeping in their cars or their friends’ lounge rooms to get by. Many more are trying to make ends meet by skipping meals, foregoing essential dental visits or enduring cold winters without using the heater at all.
There are a couple of areas where the new government has moved to end especially extreme anti-working class measures imposed by the previous right-wing government. It has wound back the powers of the union-busting Australian Building and Construction Commission (ABCC). Yet, at the same time, the ALP government has committed itself to maintaining all the laws restricting workers’ strike action and union access to workplaces. The government did follow through on their promise to end the compulsory use of the cashless debit card that had been imposed on welfare recipients in some communities to control how they could spend their money. However, the Albanese government insists on continuing to subject unemployed workers to grinding poverty by refusing to make any real increases to the paltry Jobseeker payments [update – At the May 2023 budget the government did announce that JobSeeker, Youth Allowance and Austudy payments would increase from September onwards … but only by an insulting $2.60 a day!]. Albanese and his treasurer Jim Chalmers are simply not prepared to spend any of the public budget to lift these most vulnerable people out of poverty. Nor are they prepared to use public revenue to maintain funding levels for public hospitals – let alone boost them. Last October’s budget saw the federal government incredibly announce that it will cut the funding that it gives to the states to run public hospitals by $2.4 billion over four years. This is at a time when the public hospital system is so overwhelmed that patients are waiting years for surgeries deemed “elective”, ambulances are queuing in ramps outside hospital emergency departments for sometimes hours before they can get their patients admitted and nurses are being battered with ever more unsustainably high work loads due to short staffing. Yet if required to expand the wealth of the rich, ALP leaders are quite happy to drain down the public budget. Thus, Albanese and Chalmers dismissed opposition from Labor ranks and went ahead with their promised tax cuts for the wealthy.
The main difference between the current ALP government and its right-wing predecessors is merely in style and rhetoric. Morrison and Co. would oversee skyrocketing rents, falling real wages, and rising profits and then arrogantly tell us that this is all fair and we ought to work harder if we don’t like it … or buy a house if we are tenants who think that rents are too high! On the other hand, the ALP as a party with a mass working class base is careful to acknowledge “that many working people in Australia are hurting” and that “real wages need to rise.” Yet, the more sympathetic demeanour does not help workers to pay for their surging food and electricity costs and their ever-increasing rents that result from a government that continues to put the interests of the capitalist bosses ahead of the needs of the working class masses… just like their predecessors!
The divergence between the style and substance of the Albanese government is especially apparent on the issue of workers’ wages. When the Fair Work Commission (FWC) was about to make its annual setting of minimum wages last June, the Albanese government made a submission to the FWC calling for a minimum wage increase in line with the then inflation rate. This is what the FWC basically did, granting an increase in the minimum wage of 5.2% and a below inflation increase of 4.6% for other award workers. The Labor government boasted about its role in the decision and contrasted its stance to that taken by the previous Liberal-National government. The currently pro-ALP, ACTU leadership of our unions also stated that they were “really happy” with the outcome. However, the Albanese government and the ACTU tops knew all too well at the time that the inflation rate was expected to sharply rise and that by the Labor government only calling for a minimum wage increase that matched the then inflation rate, they were in effect calling for a pay cut. Seven months down the track this is all too clear. Prices have soared in this period. Annual official inflation is now 7.8% – the highest in over three decades. Most notably, food prices surged by 9.2% over the last year. As a result, the rate of price increase of non-discretionary items like food and fuel, which is what low-paid workers spend most of their money on, has surged even faster than the overall inflation rate – rising by 8.4%. Therefore, the June Fair Work Commission wage decision, so cheered on by Albanese, has in effect turned out to be a 3.2% pay cut for minimum wage workers and an even larger cut for other award workers. For many gig economy workers – like food delivery workers, Uber drivers and taxi drivers – the loss of income is even greater. Not only are they not even granted award wage increases, they have to pay out of their own pockets for the super-high fuel costs.
The reason that workers’ living standards are plummeting can be seen by comparing changes in wages with that of business profits. The latest figures from the Australian Bureau of Statistics (ABS) show that while wages only increased by 3.1% on average over the last year – that is a 4.7% cut in real wages – company profits increased by 8.5%. The profits of unincorporated businesses – overwhelmingly small businesses – increased even more sharply, surging by nearly 16%. In other words, workers are getting poorer because capitalist business owners – both big and small – are seizing as profits an ever greater share of the fruits of workers’ labour.
Australia’s capitalist bosses have been increasing the rate at which they exploit their workers not only over the last year but over the last nearly four decades. This is revealed in an index published by the ABS called the Unit Labour Cost, which shows the relative amount that bosses pay workers in wages, super and other benefits for every dollar of output value added by their workers. That Unit Labour Cost has plunged by over 21% over the last 36 years, representing the staggering increase in the rate at which capitalist business owners are exploiting their workers. This has been presided over by Liberal, Labor and Labor-Greens governments alike. Whether under the Coalition, Labor or indeed Labor-Greens defacto coalitions, the rich capitalist exploiters have gotten richer while the working class masses got poorer.
With no program to close the ever expanding income gap between the rich capitalists and working class people, the Albanese government inevitably seeks to divert the masses’ frustrations onto racial minorities by upholding the xenophobic and reactionary nationalist policies of the previous government. Thus, although the Labor government made a sop to its progressive supporters by finally ending the unpopular persecution of the Murugappan Biloela-based Tamil family, it continues to cruelly incarcerate over two hundred Asian, Middle Eastern and African refugees in off-shore detention in Nauru and PNG. To show how deeply it shares the racist refugee policy adhered to by the Coalition, immediately upon taking office, the Albanese government deported the asylum seekers who had arrived by boat on election-day from Sri Lanka. In fact, even as it slashed funding for public hospitals in its recent budget, the Albanese government increased annual spending on enforcing its offshore detention policy by a further $150 million. Meanwhile, the government has refused to offer permanent residency to those brought here for medical treatment from off-shore detention in Nauru and PNG (the “Medevac refugees”). As for their promise to grant permanency to the thousands of refugees living here on temporary visas, eight months into office this has not been implemented. This has left thousands of refugees in limbo. On top of the stress of having to reapply for these temporary visas every three or five years and not knowing if they will end up being deported at the end of a visa period, these temporary visas deny refugees the right to bring their spouses or children living abroad, the right to travel abroad, the right to have full access to social security payments, the right to university education and in the case of SHEV visa holders the right to live and work in urban areas.
Meanwhile, like its predecessors, the Labor government defends a system that continues to cruelly oppress Aboriginal people. This was signified in the ostentatious way that the government mourned over the death of Queen Elizabeth, the monarch under whom Aboriginal people were brutally subjugated and under whom generations of Aboriginal children were heinously stolen from their parents in order to be cut off from their culture and heritage. Albanese and Co. deeply offended Aboriginal people and all those opposed to colonialism by hailing uncritically the dead, war-criminal queen and by embracing the coronation of her unpopular son as king. They went event further. Seemingly trying to outdo right-wing conservatives and monarchists in adulation for the queen, the supposedly “republican” prime minister, Albanese, even decided to grant a special public holiday to mourn the passing of Australia’s unelected head of state for life. While upholding the social order that oppresses Aboriginal people, the ALP proposes to insert a token “recognition” of Aboriginal people into the constitution and to set up a powerless Aboriginal advisory body (“Voice”) to the parliament. This scheme is aimed at giving the regime the appearance that it is listening to Aboriginal people’s voices. Although the hard right-wing section of the Australian ruling class cannot stomach any recognition that Aboriginal people lived on this land for tens of thousands of years before colonial invasion, much of the ruling class see the proposed scheme as being useful because they hope that it will dampen the Aboriginal rights movement that has become more vigorous in recent years. They also think that the planned changes will persuade the broader population into having greater faith in the supposed “fairness” of the present Australian social order and, therefore, be more willing to support the ruling class’ more aggressive military and political interventions into the Asia-Pacific; as Australia’s capitalist rulers seek to, on the one hand, maintain their neo-colonial plunder and paternalistic control of the South Pacific and, on the other, play a frontline role in the Western imperialists’ Cold War drive against socialistic China. Those sections of the White Australia capitalist ruling class pushing the new scheme also want to ostentatiously display “constitutional recognition” and a nominal Aboriginal “Voice” for international consumption. They want to deflect widespread global revulsion at the Australian regime’s brutal oppression of Aboriginal people, which they know undercuts their ability to unleash (usually bogus) attacks on their enemies over “human rights.” However, most staunch Aboriginal activists have seen through the proposed measures. They have been enraged by the window-dressing nature of the “embrace” of an Aboriginal “Voice” and have skewered the tokenism of the proposed constitutional changes. At yesterday’s January 26 Invasion Day rally in Sydney, every single Aboriginal activist that addressed the issue of the “Voice” and “Constitutional Recognition” – including leading activists Gwenda Stanley, Lizzy Jarrett and Lynda-June Coe – condemned and opposed the sham plans. Nearly all the speakers at the Melbourne and Brisbane protests took the same stance. As Gumbainggir man and veteran Aboriginal militant, Uncle Gary Foley, powerfully told the Melbourne rally, the Voice would “only be cosmetic”. “Like lipstick on a pig. It will not address the deep underlying issues that still pervade Australian society and that primary issue is white Australian racism,” Foley pointed out.
The stance taken by staunch Aboriginal activists is especially valid when the government that is pushing the proposed constitutional changes not only hails the blood-soaked, white supremacist monarchy but does nothing to stop regime personnel from killing Aboriginal people in custody and continuing to remove Aboriginal children from their families; while doing little to ensure decent housing and services for Aboriginal communities and absolutely nothing to genuinely return stolen land to Aboriginal people. Since the ALP took office, young Aboriginal people continue to die in state custody at a horrific rate and police and prison guards responsible for killing Aboriginal people continue to get away with these crimes. This has only encouraged violent white supremacists on the streets. The sickening beating to death by white racists of 15 year-old Aboriginal boy, Cassius Turvey, while he was walking home with his friends from a school in suburban Perth is a product of the White Australia capitalist “order” upheld by the Liberals, One Nation, the ALP and the Greens alike.
CLASS STRUGGLE IS THE ONLY ROAD TO DEFEND WORKING CLASS PEOPLES’ LIVING STANDARDS
With the ALP’s working class base increasingly angry at their falling living standards, ALP leaders have been at pains to look like they are trying to lift wages. They pushed through new laws ostentatiously called the “Secure Jobs, Better Pay Bill.” As well as claiming that it will lift wages and improve job security for casual workers, Labor says that the bill will help reduce the gender pay gap. However, any benefits to workers from this bill will at best be modest and on balance it may do as much harm for workers as good. One positive aspect of the legislation is that it somewhat increases the scope for workers employed by different businesses in the same industry to collectively bargain for their rights. This partially winds back the measures introduced by the Keating Labor government in the early 1990s that restricted workers to bargaining with their bosses at a single enterprise. That system of enterprise bargaining, by curtailing the number of workers who could be united together to fight for a particular deal, reduced workers’ power and has been part of the reason why the capitalists have been able to increase their rate of exploitation of workers over the last few decades. To the extent that particular aspects of the new law undo the enforced limitation of workers bargaining to the enterprise level – that is, undo the damage done by a former Labor government – these aspects should be defended. However, we need to fight for the extension of the right to multi-employer bargaining that is far, far more wide-ranging than those very modest measures prescribed in the current law. For example, not only does the new law give small business bosses the power to refuse to be part of multi-employer deals with workers, it also gives this same power to capitalists who already have an enterprise agreement with their staff. Moreover, the legislation excludes multi-employer deals done with unions that have been involved in “repeated breaches of industrial law” – effectively preventing construction workers, mine workers, wharfies, seamen, offshore energy workers, ferry drivers and others represented by the more militant unions like the CFMMEU from engaging in multi-employer bargaining. Furthermore, in typical social democratic fashion, the ALP caved in to ruling class opposition to the pro-worker aspects of the bill from bosses’ organisations and the yuppy cross-benchers, thereby weakening them further. Thus, the extension of industry-wide bargaining prescribed in the original legislation kept on getting narrower and narrower. In the last few days before the bill was passed, the ALP government bowed to cross-bench senator David Pocock and excluded businesses with fewer than 20 employees from being compelled by the majority of their workers to engage in multi-employer bargaining, rather than the previous threshold of 15 employees. Additionally, the Albanese government agreed to changes that will make it much easier for bosses of businesses with up to 50 employees to escape multi-employer bargaining by workers.
Moreover, there are aspects of the so-called, “Secure Jobs, Better Pay Bill” that will actually help capitalist bosses to intensify their cuts to workers’ employment rights and real wages. For one, the new law includes new impediments on workers’ already very restricted right to take strike action. Workers must now go through a momentum-slowing, compulsory period of formal conciliation with the bosses before taking any industrial action. If they take action involving multi-employer bargaining they must give the bosses a full five days notice. And in a measure aimed at quashing long-running union industrial action, workers must now go through the complex process that they already need to engage in before taking industrial action – involving a time-consuming, momentum-sapping secret ballot of employees – every three months. Moreover, a measure in the bill to give the “Fair Work Commission” (FWC) the power to resolve disputes between bosses and workers through arbitration where there is no reasonable prospect of agreement being reached, will in the long run do far more harm to workers than any good. Yes, in places where workers’ unions are weaker and in the context of the workers movement having been on the back foot over so many years, it is perhaps possible that compulsory arbitration could allow some workers in the short term to receive a tiny few more crumbs from their bosses than they otherwise would. However, when the workers movement rises in a class struggle fightback – as it must – then increased arbitration powers for the FWC, which are after all the courts of a capitalist bosses-serving state, will be used to quell workers’ struggles and prevent workers from winning substantial victories through action. Furthermore, in a concession to lobbying by business groups, the ALP has introduced a measure in the legislation that will weaken the requirement that deals between workers and their bosses leave the workers nominally better-off than previous arrangements. Instead of this Better Off Overall Test (BOOT) being applied for specific changes, bosses can claim that they have met the BOOT because they have made improvements to workers’ conditions in some areas that supposedly offset cuts to workers’ rights in others. The new measure is set to open the way for business owners to drastically undercut workers’ conditions at those workplaces where workers have less bargaining power – for example, where workers’ union organisations are weaker. Indeed, secretary of the Retail and Fast Food Workers Union, Josh Cullinan, described the new law (when it was still at a bill stage before its better aspects were weakened further) as one containing “calamitous attacks on working people.” The union secretary further insisted that the (then proposed) law “does nothing to improve the job security of casual workers. In truth, it only attacks them.”
With the last eight months having proven, once again, that the ALP in government is not willing or able to stand up to the rich and powerful capitalist bigwigs that the conservative parties openly represent, it is clearer than ever that the only way for the working class masses and all the oppressed to defend their living standards and rights is through determined class struggle. Let’s build up our unions and make them infinitely more militant. We need hard-fought strikes and other struggles to win massive pay rises for workers. We must not only make up for rampant inflation but for the years of falling real wages. To clear the legal obstacles to such struggles we must simultaneously fight for the repeal of all anti-strike laws. For the unrestricted right of unions to engage in industry-wide and nationwide bargaining with the bosses! Reverse Labor, the Liberals and the capitalists’ gutting of the Better Off Overall Test in workplace agreements! We also need to ensure that all those currently working as casuals and gig workers have their positions converted into secure jobs with all the rights of permanency. As part of fighting for this and in order to ensure secure jobs for all unemployed workers, we must force companies to increase hiring of permanent workers at the expense of their fat profits. To stop landlords being able to jack up rents ever higher because they know that renters have nowhere else to go, we must take action to demand a massive increase in low-rent housing. To facilitate women’s full participation in economic life and complete economic independence, we must struggle for free 24-hour childcare. We must also fight for Medicare to fully cover all specialist fees, essential medicine, dental, “elective” surgeries and all aged care. The public budget will only be able to afford such free childcare, healthcare and aged care if we bring these sectors completely into public ownership so that a large part of the public budget for these social services does not end up, as it does today, in the pockets of the wealthy capitalists that own profit-driven childcare, aged care, pathology, X-ray, medical centre, pharmacy and other health service firms. We need funds to employ more public sector nurses, paramedics, doctors and aged care workers and not high profits for health sector profiteers. To help provide the urgently needed resources for public health, aged care, public housing and education and to drive down surging living costs we must fight for the confiscation of the oil, gas, coal and power companies and their transfer into public ownership.
To wage such struggles against the powerful capitalist class that runs this country, working class people need tight unity across racial and ethnic lines. Such unity can only be built if the workers movement consciously combats the efforts of the exploiting class to divide the masses with reactionary nationalism and if it actively mobilises against racist oppression. The workers movement must unleash its power to oppose racist state killings of Aboriginal people in custody and to oppose the disproportionate imprisonment of black people in Australian jails. We have to resist the rampant white supremacist violence in this country – whether it comes from rabid rednecks on the streets, as in the beating to death of Cassius Turvey, or from the regime forces, as in the crushing to death of 26 year-old Aboriginal man, David Dungay, by racist prison guards. There also needs to be united mass action of our unions, Aboriginal people, Asians and other people of colour to sweep violent far-right racist outfits off the streets. If we can strike blows against such organised white supremacist forces, we can send a message to the more numerous garden variety rednecks out there – of the type that in Kalgoorlie deliberately ran over and killed 14 year-old Aboriginal boy Elijah Doughty, who murdered Indian-origin, Brisbane transport worker Manmeet Alisher by throwing a firebomb into the bus that he was driving and who have brutally bashed numerous Chinese and other East Asian people over the last few years – that they had better pull their head in. We can not allow racist terror to intimidate and, thus, marginalise from broader society and social struggle Aboriginal people and other people of colour. We also need to ensure that migrant workers are not bullied out of participation in class struggle resistance by the threat of deportation. That means that we must fight for the rights of citizenship for everyone who is here. We must demand that all refugees on temporary visas, all guest workers and all international students are given permanency and the rights of citizenship. Let us also demand that all the asylum seekers incarcerated in PNG and Nauru are brought here with the full rights of citizens.
THE ALP DID NOT EVEN PROMISE TO STAND UP TO THE WEALTHY BUSINESS-OWNING CLASS
That the ALP government is kowtowing to the big end of town is hardly a surprise. Even during the lead up to the elections they made clear that they were not going to challenge the capitalists. Fearful that the billionaire oligarchs would utilise both their ownership of the media and their power to decide which political forces that they direct their massive financial resources to in order to campaign against Labor, Albanese’s team went out of their way to assure the wealthy ruling class that the ALP would look after their interests as diligently as Morrison’s conservatives. To their working class base, on the other hand, Albanese and Co. promised that they would reverse the plunge in real wages, fix the crisis in aged care and address the lack of affordable housing. Yet they promised to do all this by merely managing the existing capitalist system more rationally than the Liberals and by doing away with the most extreme reactionary of the latter’s policies. Rather than measures to curb the power of the corporate bigwigs, the ALP tops advocated “win-win” policies that brought together workers and their unions on the one hand and worker-hiring business owners on the other. However, such talk of “win-win” between workers and the capitalists is a cruel hoax. Workers are getting poorer precisely because capitalist bosses are increasing the proportion of the fruits of workers’ labour that they seize as profits. The interests of workers and those of the business owners that extract profit from their toil are counterposed. To refuse to stand with workers’ interests against those of their capitalist bosses means to accept the status quo of ever-increasing capitalist exploitation of workers.
Yet, despite all the ALP leaders’ efforts to please the capitalist ruling class, the latter do not come easily to accepting a Labor government. The ALP is, after all, a party whose rank-and-file are workers and is a party organically tied to the union movement. The exploiting class worries that this base could push an ALP government into enacting measures to defend workers’ interests. Therefore, in “normal” times, the oligarchs prefer their own parties, like the Liberals and the Nationals, to administer government, especially at the federal level. However, when the working class start to get restive or when the ruling class wants to herd the masses into supporting measures that could be unpopular – like a major war – the ruling class turn to the ALP. They hope that with the ALP’s greater authority amongst the working class and with its ties to the union leadership, the Labor Party is better able to pacify the working class masses and more effective at lining up the masses behind major campaigns of the capitalist elite than the openly, pro-business owner conservatives. In this way, the ruling class will look to ALP social democracy to come to their rescue when they are in a difficult position, even while having misgivings that an ALP government could irritate them by throwing some sops to its working class base. This was the case in the lead up to the 2007 elections when the working class masses were angry after more than eleven years of right-wing Coalition government and when workers had in the previous two years participated in mass nationwide stopwork actions against the Howard government’s anti-worker Workchoices legislation. At the time, even the main national, NSW and Queensland newspapers of hard-right billionaire Rupert Murdoch called for a vote to Kevin Rudd’s ALP. Murdoch even personally praised Rudd. Then, in the lead-up to last May’s elections, after nearly nine years of corrupt Coalition rule has discredited Australia’s present social order in the eyes of the masses and with working class people grumbling over plunging living standards, decisive sections of the ruling class started to seriously consider whether it would be better to get the ALP into government. This is especially the case because the capitalist rulers are worried that the disgruntled working class masses could refuse to get behind their Cold War drive against socialistic China.
However, before they were willing to accept the possibility of a Labor government, in the months and years leading up to the federal elections, the various factions of the capitalist class subjected Albanese’s Labor to a number of tests to see whether this nominally workers’ party could be trusted to run the federal government. The big end of town utilised their control of the media and think tanks and their numerous personal connections with politicians to demand reassurances from the ALP on key issues.
For one, they wanted to be sure that the ALP would not loosen anti-strike laws and would not encourage class struggle by pushing any policies that would openly redistribute wealth from the rich to the masses. The capitalist bigwigs were quite satisfied with Labor’s response. Not only did the ALP pledge to uphold anti-strike laws, some of which they had themselves instituted on previous occasions that they were in office, the ALP also pointedly refused to make even the most modest promises to redistribute income away from the super-rich. Indeed, ALP head offices openly instructed branch members not to make any negative references to the “big end of town” that the Labor Party had sometimes used in the lead up to the previous elections in 2019. The big end of town also demanded that the Labor Party abandon any plans to enact even minimal measures that would curb the returns of the rich from buying up multiple properties for speculation or for renting out as landlords. Here too Albanese’s Labor duly obliged. Thus, long before the elections, the ALP ditched the agenda that it took to the previous two elections of limiting the scope of negative gearing tax exemptions and reducing the amount of discount on capital gains tax payments. The supposed ALP “Left” Albanese has ostentatiously positioned himself even further to the right than his ALP Right faction predecessor, Bill Shorten. Even when promising resources for lower-rent “social housing”, the proposals of Albanese’s ALP are so modest that they would not be enough to pull down rents across the market – music to the ears of multiple-property owning, rich landlords shaking down ever greater rents from their tenants. Moreover, even the ALP’s modest plan for more “social housing” that it took to the election will not increase badly needed public housing but rather promises funds for just a modest increase in “community housing”, notorious for its private operators who skimp on repairs and shun the most hard-up, would-be tenants. Thus, even in making a sop to the needs of low-income renters, the ALP was careful to show that there would be a lot in the plans for the capitalists – in the form of expanded opportunities to profiteer from running partly government-funded “community housing.”
THE BIG END OF TOWN’S KEY RED LINE: ANY GOVERNMENT MUST FULLY PARTICIPATE IN THE COLD WAR TO STRANGLE SOCIALISTIC CHINA
Perhaps the most important assurance that the ruling class demanded of Labor in the lead-up to the elections is a guarantee that it continue to support the U.S.-led Cold War drive to “contain” and squeeze socialistic China. They want Labor to follow through on the conservatives’ agenda for an increase in the U.S. military presence in Australia, for an aggressive Australian military build-up in support of this anti-China war drive and for a continuation of political support for those forces seeking to undermine socialistic rule in China from within – whether they be pro-capitalist, pseudo-“pro-democracy” activists or the dwindling number of anti-communist and fanatically anti-women’s-equality, religious fundamentalist forces based on the, more European-looking, Uyghur minority in north-western China’s Xinjiang Uyghur Autonomous Region. The capitalist class also want Labor to do a more skillful job in aggressively interfering in Australia’s South Pacific “neighbourhood” in order to sabotage socialistic China’s south-south cooperation with the region. To be sure, the capitalists also want Labor to somehow conduct this Cold War in a way that simultaneously maintains workable diplomatic relations between Canberra and Beijing so that the tens of billions of profit that they get from Australian exports to China is not disrupted too much.
This begs the question: why are Australia’s capitalist bigwigs risking harm to their immensely lucrative trade with China by antagonising the latter? The answer to this question is entirely related to the fact that China is a workers state as opposed to being a country under capitalist rule. China’s toiling classes grabbed state power in a giant anti-capitalist revolution in 1949. To this day, China has an economy centred on a property system that favours working class people: that is, socialist, public ownership of key economic sectors. Even though the current Beijing leadership does not seek to challenge Western imperialism’s domination over the world, the mere existence of China as a socialistic power is slowly undermining the grip of imperialism over the ex-colonial countries. China’s mutually beneficial cooperation with the Global South is allowing countries in the Pacific, Africa, Asia, the Middle East and Latin America to access capital, modern technology, training and a large market in China without having to subordinate their country to the imperial powers or their agencies like the IMF. This is what is driving Australia’s capitalist rulers mad as countries in the South Pacific like the Solomon Islands and Fiji slowly exert greater independence from their Australian imperialist overlords.
Furthermore, the capitalist powers are terrified that even though Beijing does nothing to explicitly promote socialist revolution, the mere example presented by the most populous country in the world continuing to adhere to a socialistic course, while successfully lifting her people out of poverty and providing rapidly rising real wages, wide access to low-rent public housing and ever improving infrastructure, public transport and cultural opportunities for her masses, will encourage working class people in the capitalist world to themselves start agitating for socialism. That is why the Western ruling classes see the rise of socialistic China as an “existential threat.”
For the very same reason that capitalist exploiting classes fear and loathe the socialistic PRC, the working class must hail and defend its existence. For the very existence of working class rule in China, Vietnam, Laos, Cuba and North Korea – in however a fragile and incomplete form – gives confidence to the toiling classes in Australia and other capitalist countries that they do not have to accept capitalist rule and all that it brings – bullying bosses, plunging real wages, skyrocketing rents, growing racism and all-round economic insecurity and chaos. That is why the workers movement and Left must unconditionally stand with socialistic China and the other workers states against every form of attack that they face – whether that be military, economic or propagandistic.
Yet, diametrically against the interests of its working class membership, the ALP is right behind the capitalists’ drive to strangle socialistic China. Thus, while in Opposition, the ALP supported every one of the former Liberal government’s Cold War moves against the PRC – from the discriminatory banning of Chinese tech giant, Huawei, from participating in the building of Australia’s 5G wireless network, to the introduction of McCarthyist, so-called “foreign interference” laws aimed at intimidating Australians of Chinese descent that are sympathetic to Red China, to the enacting of the AUKUS anti-China deal for Australia to acquire nuclear submarines from the U.S. and Britain. Indeed, in the lead up to the elections, Albanese’s ALP even sought to position itself as more extreme in its opposition to the PRC than the right-wing Coalition. Thus, the ALP joined the hysterical, anti-China denunciations of the deal leasing part of the civilian port of Darwin to a Chinese company. Moreover, ALP leaders criticised the Morrison government for not bullying enough the Solomon Islands into renouncing their security cooperation with China. At the same time, the ALP tops canvassed to the capitalist class that they could do a better job than their rivals of dragging South Pacific countries back into the Australian ruling class’ tight hold. They argued that they would restore the Australian regime’s damaged credentials in the region through taking a more rational verbal position on issues – like climate change – knowing full well that Pacific island countries vulnerable to rising sea-levels are only too aware that Australia’s carbon emissions per person are among the highest in the world and nearly two and a half times larger than China’s. Australia’s capitalist rulers have been more than convinced. As far as they are concerned, the ALP passed with high distinction their test requiring that any prospective government commit to zealously pursuing the anti-communist Cold War against China. Moreover, Labor’s assurances that they could do all this while simultaneously restoring full trade relations with China through dialling down the ferocity of Canberra’s anti-China rhetoric also impressed the corporate elite.
THE STANCE THAT MARXISTS SHOULD HAVE TAKEN TOWARDS THE ELECTIONS IN ORDER TO ADVANCE ANTI-CAPITALIST RESISTANCE
Before finalising their decision not to throw their massive economic might against the election of an ALP government, there was one final important requirement that Australia’s capitalists vetted the ALP over. They wanted to be sure that Labor would be all the way with Canberra’s Western allies in waging the West’s defacto war against Russia via their Ukrainian proxies. To be sure, initially the war was mainly a squalid battle for territory between the respective capitalist classes of Ukraine and Russia. In such an inter-capitalist war, the working people of both countries had no side except opposition to their own respective rulers. However, even from the very start of the war, an important additional aspect of the conflict was Russia’s just struggle to keep the nuclear-armed NATO warmongers from its Western border, on the one hand, and, on the other, Kiev’s kowtowing to the interests of Western imperialism. Before long, this second aspect of the conflict became the dominant one. The U.S. and its British, EU, Australian and Canadian allies poured into Ukraine such huge amounts of weapons, military advisers, intelligence assistance and propaganda backing, that in a matter of weeks this conflict ceased to be primarily a Ukraine-Russia war and effectively became a conflict between the Western imperialists and Russia with Ukraine acting as the proxy for the former. The U.S. imperialists want to subordinate Russia and reduce her to the humiliated status that she had in the first decade and a half after the early 1990s capitalist counterrevolution devastated her and the other lands of the former USSR. They want to ensure that Russia does not obstruct their predatory designs on the resource rich Caucuses and Central Asian regions. Moreover, the U.S.-led imperialists cannot tolerate Russia or anyone else being an independent, nuclear-armed power, especially if that power has failed to sign up to their Cold War drive against Red China. To be sure, the Australian ruling class’ reasons for opposing Russia are very different to their opposition to socialistic China. Most notably, unlike the PRC, Russia is a fellow capitalist country. Moreover, Russia has few interests in the South Pacific and Southeast Asian region. She is not obstructing Australian multinational corporations from plundering this region. Nor do the Australian capitalists have any significant interests or ambitions within either Russia or its neighbouring regions that would enable them to gain some direct economic benefit from any subordination of Russia. That is why, in previous years, Australian regime officials had privately complained to Washington that it is expending too much energy countering Russia when it should be devoting all its efforts to suppressing Red China. However, once the U.S. and its other allies entered the recent war in a decisive manner, the Australian ruling class fell in behind its allies. It wants the power and prestige of the U.S. and the overall West to come out strengthened rather than damaged from the war. This is a matter of self interest for Australia’s capitalist rulers. It is Australia’s alliance with U.S. – and to a lesser extent British – military and economic might that enables Australia’s capitalists to subjugate the peoples of the South Pacific. If the powerful allies of Australia’s exploiting class are weakened, then its own tyranny in this region becomes endangered.
Here too on the question of the war in Ukraine, the ALP proved its credentials to the capitalist class. It enthusiastically backed the Morrison government’s imposition of sanctions on Russia and its sending of hundreds of millions of dollars of military equipment to the authoritarian regime in Ukraine. With the ALP thus on board on all the issues of greatest strategic concern to the capitalist class and with the latter having serious concerns about the corrupt Morrison government’s ability to hold back mass struggle in the context of plunging real wages, much of the ruling class chose to either back Albanese’s ALP in the elections or to be indifferent as to whether the ALP or the Coalition won. This is shown by the fact that just like the openly pro-boss Liberals, far-right parties, “Teal independents” and Greens, the various branches of the Labor Party received tens of millions of dollars in donations from both ultra-wealthy individuals and from corporations in the months and years leading up to last year’s federal elections. Moreover, significant sections of the capitalist-owned media sided with the ALP in the elections. Take, for instance, Nine Entertainment Holdings which owns Channel Nine TV, the 2GB radio station and the vast suite of newspapers that formerly belonged to the, now defunct, Fairfax Group. Nine Entertainment is owned by right-wing billionaire, Bruce Gordon, and the chairman of the corporation is none other than former federal treasurer and Liberal Party stalwart, Peter Costello. The flagship newspapers of the corporation, the Sydney Morning Herald and The Age, both editorialised for a vote to Albanese’s Labor at the elections. Also calling for a vote to the ALP was the “progressive” liberal, Guardian Australia online newspaper, a publications that has relied on massive financial contributions from wealthy capitalists to operate – including a huge initial investment from filthy rich, Australian tech tycoon Graeme Wood (at the nudging of Liberal Party then future prime minister Malcolm Turnbull) and large contributions to the British owners of the publication from foundations controlled by some of the most powerful American capitalists in history, including Bill Gates, the Ford family that control the Ford car company, the Hilton family owning the Hilton hotel chain and the Rockefeller family known for their vast oil, banking and property empire and their one-time advocacy of despicable fascistic “theories” like Social Darwinism and Eugenics. To be sure, the hard-right Murdoch family’s main newspapers like The Australian and the Daily Telegraph supported the Liberals at the elections. Yet, Rupert and Lachlan Murdoch were unperturbed enough about the prospect of a Labor government to recoil away from enforcing a uniform, anti-ALP election line on their outlets, unlike the uniform positions that they often enforce for questions that are important to them – like support for particular Western military interventions abroad. Thus, the Murdoch newspaper in the Northern Territory, the NT News actually editorialised for a vote to Labor.
With major sections of the capitalist class either backing, or being unconcerned by, an ALP election win, to call for a vote for the ALP at the elections would have been a call for upholding the overall interests of the capitalist class. To do so would have been harmful to the interests of the working class and oppressed just as would obviously have been any support for the reactionary, openly anti-union Coalition. As we put it in a Trotskyist Platform leaflet issued in the weeks leading up to the election:
“… the Labor Party (ALP) “alternative” is hell bent on proving to the big business owners, the people who really hold the power here, that an ALP administration will enforce capitalist interests as reliably as the Coalition does. Albanese’s ALP even proclaimed that a Labor government will not increase the paltry JobSeeker payments. So, at the upcoming elections, no vote should be given to either the Coalition or the ALP and Greens “alternatives” and obviously not to the racist One Nation or the other nationalist far-right outfits like the United Australia Party. Instead, we need hard-fought strikes and other mass actions by the workers movement and its allies to turn back the capitalists’ exploitation of workers, to resist their oppression of Aboriginal people, women and coloured ethnic communities and to oppose “their” regime’s military buildup. The more that the working class understands that their position will not be advanced through supporting any of the current parliamentary parties, the more determined they will be to build the mass struggles needed.”
Trotskyist Platform, For Militant Class Struggle Against Australia’s Capitalists!, 25 April 2022
Most of the other far-left groups rejected such a stance. They called either openly, or more often backhandedly through preferences, for a vote to the ALP. However, events since the Albanese government’s election have confirmed the correctness of our opposition to supporting either the Coalition or the ALP or indeed any of other current parliamentary parties. Since coming to office, the Labor government has upheld all its commitments to the big end of town, while delivering few of the meagre promises that it made to its working class base. Thus, the Albanese government has given tax cuts to the rich, maintained tax exemptions for wealthy property speculators, cut public hospital spending and maintained – and even strengthened – anti-strike laws. Its measures to lift wages are so limp and state Labor and Liberal governments so draconian in their determination to keep state public sector pay rises well below inflation, that not only are real wages falling even faster than they were during Morrison’s reign but even treasurer Jim Chalmers quietly concedes that real wages are expected to continue to fall until … at least, 2024!
Meanwhile, as promised to the capitalist bigwigs, the ALP has continued the Australian regime’s obsessive participation in the imperialist campaign to strangle socialistic rule in China. Indeed, it was literally just hours after Albanese and his cabinet had been sworn into government by “Her Majesty’s” representative (the Governor General) that Albanese and foreign minister Penny Wong flew off to a Quad meeting in Tokyo to advance the Cold War measures of the U.S.- Australia-Japan-India, anti-China alliance. That Albanese briefly met Chinese president Xi during the G20 summit is hardly a sign of an easing off of the Australian regime’s determination to participate in the anti-PRC Cold War. The government and the capitalist class that it serves wants to have a relationship with the PRC somewhat like the Japanese, German, New Zealand and French regimes, who are all fellow, zealous Cold War opponents of socialistic rule in China but maintain diplomatic relations with Beijing at the level just above that which causes trade to be seriously affected. Albanese and Penny Wong thus seek improvement in diplomatic exchanges with Beijing from Morrison’s time. This is especially because the inflation-plagued Australian economy is faltering. Yet, while seeking to reduce the temperature of diplomatic disputes with Beijing, Canberra is following through on its commitment to the capitalist class to continue to pile on the pressure on socialistic China. Since, the Albanese government took office, Australian warships and military aircraft have continued to provocatively traverse waters and skies claimed by Beijing in the South China Sea, thousands upon thousands of kilometres from Australia. Moreover, not only is the ALP government following through on the deposed conservative government’s plan to acquire long-range naval missiles and nuclear submarines, late last year it was revealed that the Albanese government was planning a still more threatening move against China – allowing the U.S. to deploy nuclear-capable B52 bombers at a base south of Darwin. Then, three weeks ago, it was revealed that the Albanese government would be buying the expensive, long-range HIMARS missile system from the United States. All this is part of an aggressive military build-up aimed at contributing to Cold War military pressure against the PRC. Meanwhile, in the South Pacific, the new government has followed through on its promise to intervene more aggressively in the region in order to shore up the interests of Australia’s capitalist class through sabotaging the efforts of regional countries to cooperate with the PRC. Indeed, Albanese and Penny Wong have intruded so coercively into the Solomon Islands that the Solomon Islands government responded to one such act of meddling last September with a defiant statement slamming Canberra’s move as “an assault on our parliamentary democracy” and “direct interference by a foreign government into our domestic affairs” (a brave act by the Solomon Islands government given that Western powers had stoked riots against them a year earlier and given the degree to which not only the upper levels of the country’s bureaucracy have been infiltrated by Australian officials and “advisers” but broader sections of the island nation’s civil institutions and media have been ensnared in the Australian ruling class’ influence operations).
Moreover, the new ALP government has taken over the baton from the previous government when it comes to participating in Western imperialism’s joint propaganda war against Red China. Three weeks ago, the government joined a very small number of other countries – including the U.S. and Britain – in imposing a requirement that travellers from China and only from China get a pre-departure COVID test. They forced through the new rule in spite of Australia’s chief medical officer and most other experts advising against the move! Clearly, the Australian government’s measure has little to do with protecting the Australian population from COVID and everything to do with trying to build negative perceptions of China by denigrating her COVID response, despite the fact that the PRC has so successfully protected her people from the pandemic that her COVID death rate per resident is currently 15 times lower than Australia’s. After having supported last November’s small anti-COVID-response protests in China – that were the Chinese version of the Far Right-instigated COVID “Freedom” protests in Australia and other Western countries – that opposed China’s mask mandates and PCR testing of COVID-affected regions, the Albanese government and its Western counterparts have now done a 180 degree flip and want to portray China’s recent relaxation of COVID controls as reckless. This is despite the PRC being in a much better position to protect her people from COVID deaths after reopening than Australia was when it opened up a year ago because the anti-viral medications that are now widely available in China – both from Western pharmaceutical firms and from Chinese ones – were not available at the time Australia opened up; and because China’s community-based COVID response (which involves doctors and nurses seeing patients in makeshift clinics within neighbourhoods and neighbourhood committees and local volunteers regularly checking up on the health condition of elderly and other COVID-vulnerable neighbours, while delivering medical kits and pandemic information) is very effective in ensuring that vulnerable COVID-infected people get prompt enough access to anti-viral medication and are speedily triaged to top-level hospitals.
Meanwhile, just like its right-wing predecessors, the Labor government has continued to claim that China is persecuting her Muslim Uyghur minority that live in the country’s northwest – a claim that not only have countries representing around 85% of the world’s population refused to sign on to during UN debates and motions (including every single Muslim majority country in the world other than for tiny U.S.-dependent Bosnia) but which the organisation of Islamic Cooperation, most Muslim-majority countries individually and much of Africa, the Middle East and Asia have denounced as a lie and instead emphatically praised China’s treatment of Muslim Uyghurs after sending fact-finding inspections to the country’s northwest.
The Albanese government has also more than delivered on its promise to the imperialist ruling class to continue the Morrison government’s support for the Washington-led proxy war against Russia. In July, Albanese exceeded the former prime minister’s level of support for the war by personally visiting Ukraine and meeting with its authoritarian president. Albanese announced during his trip that his government would provide Ukraine with an additional 34 armoured vehicles valued at $100 million. As Albanese has boasted many times, the Australian regime is now the largest non-NATO provider of military aid to Ukraine… or rather to the proxies of Western imperialism. This backing reached a new level last week when 70 Australian soldiers departed for Britain to participate in a British-led training program of Ukrainian troops.
THE LABOR PARTY HAS ALWAYS BETRAYED ITS WORKING CLASS BASE
Although none of the Labor Party’s working class supporters thought that the Albanese government was going to seriously redistribute income and power from the big end of town to the masses, even their most modest hopes of progressive change are gradually being dashed. Yet this is hardly a new experience for Labor supporters. The ALP has always betrayed its base. This is not merely a matter of a lack of resolute, selfless leaders or a matter of the leadership not living up to the “principles” of the Labor Party. Mostly, it is because the social democratic strategy that the Labor Party commits itself to is incapable of delivering major, lasting benefits for its mass base. Social democracy seeks to improve the lives of the masses without fundamentally challenging the tremendous economic and political power of the capitalist class … or by “postponing” constructing that challenge to the distant never reached “right moment”. This becomes a recipe for resigning oneself to the domination of society by the big end of town and capitulating to their demands on the most decisive issues. By thereby accepting the supremacy of the capitalists, while negotiating with the latter on terms of their dominance in society on the nominal behalf of the working class masses, social democratic politicians, union leaders and NGO heads gain a highly respectable position in society as well as privileged incomes compared to their support base. They also acquire personal links with the big end of town that facilitate future lucrative careers in the corporate world. All this entices them to bow down even more subserviently to the capitalist bigwigs whenever the latter get angry that social democratic leaders are demanding “too much” on behalf of their support base.
Any working class based political party in a capitalist country faces not only the direct pressure of the capitalists but also the pressure of the state institutions. Despite the state being a body that nominally “treats everyone equally”, in practice, in capitalist societies the government departments, the bureaucracies, the courts, police, army and secret police all act as upholders of the interests of the racist, capitalist exploiting class. Just look at what has been revealed during the course of the Royal Commission into the former Morrison government’s despised “Robodebt” scheme, in which the regime’s computers, supposedly checking for “over-claiming” by welfare recipients, automatically sent messages to nearly half a million of this country’s most economically vulnerable people unlawfully demanding payments of non-existing debts, in some cases of up to tens of thousands of dollars. What testimony during the investigation showed is that it was not just Morrison and his ministers who were driving the Robodebt scheme. So were many highly-paid, senior government bureaucrats who shared the anti-working class Liberal government’s determination to suck every cent that they could out of low-income welfare recipients. Indeed it was bureaucrats from the Department of Human Services rather than Coalition ministers that first proposed Robodebt. Later, after the harm caused by Robodebt became widely known, calls by lower down staff for the scheme to be seriously overhauled were met with hostility by upper bureaucrats.
Meanwhile, two months ago, there were revelations of just how intense racism and hostility to leftists is within Queensland Police ranks. In recordings taken at the Brisbane city police watch house, a large number of cops engaged in discussions expressing their extreme hatred of black Africans, Muslim people, Aboriginal people and leftist protesters and also their contempt and concocted “fear” of being overwhelmed by Africans, Chinese, Indian and Muslim people and migrants more generally. Chillingly, some officers even discussed the possibility of beating to death and burying black Africans and expressed their wish to violently attack anti-racist, climate change and refugee rights protesters.
Given the racist, anti-leftist and anti-working class character of bureaucratic organs in Australia and other capitalist countries, any party that comes into government promising progressive, pro-working class measures would face sabotage of their agenda from the state agencies nominally under their “control”. Understanding this, we communists understand that in order to implement thoroughgoing, progressive social change, the working class, united with all the oppressed, must first grab state power by replacing the existing capitalist state with its own organs built to defend the interests of the working class masses and all the downtrodden. On the road to such a workers revolution, the exploited and oppressed can win immediate gains and concessions from the ruling capitalists through class struggle and other mass actions provided that they maintain complete political independence from all institutions of the capitalist state. In contrast, the approach of social democrats – whether of its most right-wing practitioners like the ALP or it’s most avowedly pro-socialist, left-wing elements – is to seek to wield the existing capitalist state in the service of the masses. Yet given that this state has been built up and maintained to enforce the interests of the capitalist ruling class, social democrat-administered governments, aware of the resistance that they would face from their own state agencies, almost always recoil from implementing the more progressive aspects of their agendas, even in those cases where pressure from their working class base pushes them to promise a more radical program.
In very rare cases when a social democratic party in government still insists on following through on a more explicitly pro-working class agenda, their government ends up being overthrown by the state institutions that they nominally head. Most infamously in September 1973 in Chile, the elected Socialist Party-led government of then Chilean president Salvador Allende, which had nationalised some industries and sought to improve workers’ living standards, was overthrown in a coup by the Chilean military backed by the country’s police. That the Australian Secret Intelligence Service (ASIS) helped the American CIA to conduct a destabilisation campaign against Allende in order to foment the right-wing coup underscores the intensely pro-capitalist political character of Australia’s state organs. A few months before the coup, the then newly elected ALP government led by Gough Whitlam found out about the ASIS operation in Chile. Whitlam did order the ASIS operation to be disbanded. But this was only because he feared that it would be politically damaging if the plot was exposed. Indeed the ASIS chief at the time made clear to fellow spies that “personally he [Whitlam] would have wished to approve” the operation. Moreover, while ordering the end of ASIS’s role in the destabilisation plot, Whitlam facilitated the ongoing CIA operation against the elected Allende government by choosing not to expose it. This did not stop the CIA from carrying out a covert destabilisation campaign against Whitlam’s own administration! That culminated in the November 1975 overthrow of the Labor government in a right-wing coup executed by the British monarchy’s representative and long-time participant in CIA front organisations, then Governor General John Kerr. Although Whitlam was far more conservative and far less principled than the avowed Marxist, Allende, the American regime felt that he was still not a reliable enough backer of the critical Pine Gap U.S./Australia spy base in the Northern Territory. That the most progressive Labor government in Australian history was overthrown in such a coup shows the impossibility of realising even the rather modest aims of the Laborite project. That Whitlam had earlier stabbed his fellow social democrat Allende in the back by keeping him in the dark about the CIA destabilisation operation and by refusing to publicly expose the American interference plot only shows how the social democratic perspective of seeking to govern with the tolerance of the capitalist bigwigs and their state agencies inevitably means betraying the interests of the working class.
WHEN IT IS USEFUL TO GIVE CRITICAL ELECTORAL SUPPORT TO A SOCIAL DEMOCRATIC PARTY AND WHEN TO DO SO WOULD BE A BETRAYAL
Despite the political bankruptcy of social democracy, there are certain times when mass working class based social democratic parties, like the ALP, could be pushed by their base to stand on a more explicitly pro-working class platform. This would be at a time of left-wing radicalisation of the working class and during a period of greater class struggle. Leaders of social democratic parties may then use the strengthened activity of their base to try and pressure the capitalists into granting some concessions to their base in order to dampen their mobilisation. At the same time, social democratic parties may put forward more overtly pro-working class demands and push to the fore more left-wing elements of their parties in order to maintain the authority of their base, so that they will be able to contain the radicalising working class and prevent them from heading in a revolutionary direction. In such circumstances, especially if the social democratic party has been out of government for a lengthy period, the working class masses could have serious expectations that should the party win office they would institute major pro-working class reforms. Although, in the event of a working class radicalisation, the worried capitalist class will be looking to social democracy to save their system from a resurgent working class, the demands that a social democratic party may be pushed to put forward could be too much for the capitalists to accept. In such scenarios, the capitalists as a whole may choose to actively campaign against the election of the social democratic party to government. If that were to happen, it may be worthwhile for communists to give electoral support to the mass social democratic party in order to deliver a political defeat to the capitalists and, thereby, embolden the anti-capitalist sentiments of the working class mases. Moreover, given that major pro-working class measures can only be implemented against the resistance of the capitalists through the powerful push of class struggle mobilisation, having a social democratic party in government when it actually stands on an anti-capitalist agenda can help intensify class struggle. However, any electoral support given by communists to a social democratic party like the Labor Party would be given with unyielding criticism of that party. We would point out that the social democratic party is incapable of realising its more worthy promises because it always ultimately seeks an accommodation with the capitalist exploiting class and because it is loyal to the capitalist state that enforces the interests of the exploiting class. Communists would warn the working class masses that the social democrats in government would inevitably betray them. We would insist that only class struggle action that is based on maintaining complete political independence from all the arms of the capitalist state can ensure major advances for the working class in the present; and that such gains can only be secured and reach decisive levels if the working class is able to lead all the oppressed in the seizure of state power. Thus, even in situations where it would be appropriate to give electoral support to a social democratic party, communists would be, in the words of Russian Revolution leader V.I. Lenin, seeking to support the social democratic party “in the same way as the rope supports a hanged man.”
When Lenin wrote the above words in April-May 1920 he was outlining why he believed that communists in Britain at the time should call for a vote for the British Labour Party while explaining to the masses that a Labor government would inevitably betray its working class supporters. Since then, nominally Marxist, left social democratic groups have seized on Lenin’s words to advocate giving electoral support to mass social democratic parties in every election, irrespective of the platform that those parties may claim to stand on. However, when Lenin advocated giving critical electoral support to the British Labour Party, the latter was claiming to stand on a program very different to Albanese’s Australian Labour Party today. With the most politically advanced layers of the British working class inspired by the socialist revolution in Russia two and a half years earlier and demanding a struggle for socialism in Britain, the leaders of the British Labour Party at the time knew that they would need to show some socialist credentials if they were to retain the loyalty of the British working class. In February 1918, notably just three months after Russia’s socialist revolution, the British Labour Party wrote into its constitution a commitment to socialist public ownership of the economy. They adopted Clause IV into their constitution, which stated that: “To secure for the workers by hand or by brain the full fruits of their industry and the most equitable distribution thereof that may be possible upon the basis of the common ownership of the means of production, distribution, and exchange, and the best obtainable system of popular administration and control of each industry or service.” In contrast, not only does the ALP today not even pretend to stand for nationalisation of the economy and socialism, it is known by the politically engaged masses for having supported privatisation. Indeed, it was the 1983-1996 Hawke/Keating ALP governments that unleashed the privatisation wave that has swept Australia over the last four decades. That Labor government sold off the Commonwealth Bank and Qantas. Then, in 2002, the Carr NSW Labor government and the Bracks Victorian Labor government joined with the then Howard federal Liberal-National government to privatise the bulk of Australia’s rail freight operations. Meanwhile, state Labor governments have sold off public housing and state-owned electricity generation and retail with almost as much vigour as their right-wing opponents.
Another major difference between the British Labour Party of 1920 and today’s ALP was in their respective attitudes to the capitalist war drive against the then biggest workers states of their times. To be sure, in 1920 the leaders of the British Labour Party were as hostile to Soviet Russia (the only workers state then) as the ALP leaders are today towards socialistic China. However, Britain’s Labour Party heads also knew that there was considerable sympathy for the Soviet workers state amongst the most politically active ranks of the British working class. This sympathy combined with war weariness (following World War I) and pacifist sentiments led to a number of protest actions against the British government’s military intervention in Russia that was supporting anti-communist forces that were waging a civil war to overthrow the young Soviet workers state and restore capitalist-landlord rule. There were even a series of daring mutinies by British forces in Russia who demanded to be sent home. Meanwhile, within Britain itself, troops staged mutinies against plans to send them to Russia. Then during the very weeks in April-May 1920 when Lenin was writing the book, “Left-Wing” Communism: an Infantile Disorder, where he made that call for British communists at the time to give critical electoral support to the Labour Party “in the same way as the rope supports a hanged man”, there were two very powerful actions by British workers in opposition to the government’s shipment of arms and munitions to the capitalist Polish regime that was waging a war against Soviet Russia. In one, seamen sabotaged barges carrying munitions to the Polish troops causing the barges to sink. Then dock and coal workers refused to load and supply the ship Jolly George that had been scheduled to send munitions to Poland. In these various actions and munities, rank- and-file Labour members participated. Aware of this, when the British government weeks later announced that it would be sending troops to Poland to help fight against Soviet Russia, the Labour Party leaders and pro-Labour trade union heads called for protest actions to oppose the intervention. They built Councils of Action across the country to oppose the expedition to Poland, organised a series of massive protests and even threatened a general strike should the intervention go ahead. As a result, the British government had to abandon its plans to openly support the Polish regime’s war on the Soviet workers state. How different was the stance of the British Labour Party in 1920 towards the war drive against the Soviet workers state from the policies of today’s ALP towards the war drive against socialistic China! Today, even before the elections, Albanese’s ALP vowed to prosecute the rapid anti-China expansion of the Australian military, expand the presence of U.S. forces in Australia aimed against Red China and continue the Australian navy’s participation in provocative Western military incursions into China-claimed waters off her coast.
None of the above changes the fact that Britain’s Labour Party in 1920 was just as much an enemy of the fight for workers revolution then as the Australian Labor Party is today. The British Labour Party was fresh from having criminally led workers into supporting their “own” capitalist exploiters in the horrific inter-imperialist slaughter that was World War I. Labour Party leaders even took up cabinet posts in a wartime coalition government led by the Liberal Party. It was for good reason that Lenin had labelled social democratic parties like the Labour Party a “stinking corpse”. The British Labour Party leadership’s pro-socialist posturing was largely about maintaining its hold over a radicalising working class. In 1919, British workers had unleashed a massive strike wave that continued into 1920. Labour parliamentary and union leaders while nominally supporting the strikes worked overtime to ensure that they did not reach the level that would threaten the stability of the capitalist order. This is despite the unions representing the miners, railways workers and dockers and other transport workers having earlier formed themselves into a Triple Alliance promising to stand as one to fight for their demands. However, when each section of workers was facing major disputes with their bosses in 1919 and 1920, the pro-Labour Party union leaders refused to call out their members to strike as one as the Triple Alliance promised. Labour leaders held the same attitude to the promises of Clause IV as they did to the Triple Alliance. Clause IV existed to express a sentiment that would maintain the allegiance of pro-socialist workers to Labour but provided no program of action as to how an economic system in Britain based on “common ownership of the means of production, distribution, and exchange” was going to be actually achieved. This was because the social democratic Labour leaders were unwilling to mobilise the revolutionary struggle needed to win such a system.
However, for most British workers it meant a lot that the leaders of the party that they saw as their party was promising to nationalise the mines and railways, greatly increase the provision of public housing and significantly redistribute income from the capitalists to the workers should they win the next election. To be sure, Lenin pointed out that the most politically advanced section of the British working class already distrusted Labour Party leaders and their commitment to deliver on their stated agenda. They had been convinced of this through communist propaganda and theory. However, the majority of workers could not be educated in this way. They needed to be shown through their own experience that social democracy is incapable of bringing a fundamental redistribution of power and wealth in society towards the working class – let alone open the road to socialism. Thus Lenin argued that it was necessary to get Labour elected to government and be put to the test. At the same time, communists must explain to the mass of British workers that communists are helping them to get the Labour Party elected in order to prove to them that the Labour Party will surely betray working class people. Communists would say to the British workers: we will prove to you that only our communist program can bring you lasting improvements in living standards, public ownership and socialism.
Yet such a tactic only made sense because British workers at the time could have genuine illusions that the Labour Party would nationalise key industries, seriously redistribute income towards the workers and make steps toward socialism. No politically engaged worker in Australia could have had illusions before last May’s elections that Albanese’s ALP was going to do any of these things. For not only did the ALP never promise any nationalisations, it was careful to not even speak about redistributing wealth from the capitalists to the masses in even the mildest way. Indeed, while the ALP did promise to stop the decline in real wages, it also promised to follow through on implementing the Coalition’s planned tax cuts for the rich – a promise that they dutifully kept!
Lenin’s advocacy of the tactic of critical support was also shaped by the attitude of the British capitalist class towards the Labour Party. Openly declaring his fear of a Labour victory, then prime minister from the capitalist Liberal Party, Lloyd George, compared the Labour Party to the Bolsheviks! He was of course completely wrong! However, such statements from capitalist leaders could only reinforce illusions amongst politically conscious British workers that the Labour Party would advance the country towards socialism. Moreover, the anti-Labour rants of Lloyd George and his then secretary of state for war, Winston Churchill, showed the then gulf between the agenda that the Labour Party had been pushed by their base to promise and the level of pro-working class reforms that the capitalist class were prepared to accept. In such a situation, an electoral victory for the Labour Party against the openly capitalist parties would be seen as a victory for the working class over the capitalists that would raise the fighting morale of anti-capitalist workers. This situation definitely did not occur in Australia around the May 2022 elections. A gauge of what the big end of town thought about the triumph of Albanese’s ALP in the last federal elections can be seen by comparing Australia’s stock market index immediately before and after the May 21 election. Not only was there no dramatic fall but the index actually rose slightly. This proved that much of the capitalist class were either mildly sympathetic or ambivalent towards the Labor victory over the conservatives. There was certainly no fear amongst wealthy investors that a Labor election would lead to a major reduction in the rate of capitalist profits.
The most important reason why Lenin and the other Bolshevik leaders, like Trotsky, thought that British communists should give critical electoral support to Britain’s Labour Party is because, at the time, that party had never previously led a national government. That meant that the majority of Labour’s working class base still had many illusions that should the party take over the government, this would lead to a substantial improvement in their living standards and major advances towards socialism. Many workers held the social democratic illusion that since workers make up the majority of the population, they could take over society through “democratic elections”. These hopes were reinforced by the then still expanding suffrage in Britain that was expanding the right to vote to workers who had been previously disenfranchised by laws restricting the right to vote to those who owned more than a specified amount of property. It was only in 1918 that all property requirements for male voters were scrapped granting the right to vote to the 40% of males hitherto denied suffrage because they lacked sufficient property; and that the right to vote was at long last extended to a large number of women (provided that they were over 30 and had some property – it took until 1928 for British women to be granted the same voting rights as men). British working class people expected that this expanded suffrage for working class people, the prospect of a future expansion of suffrage to low-income women lacking property and to younger women and the hoped-for scrapping of laws allowing business owners and other, mostly wealthy, individuals to vote twice, would open the way for workers to finally bring their numbers in society to bear in the political field. Lenin and the other leaders of the Communist International understood that it would take the experience of Labour in government to dash the hopes of the mass of politically engaged British workers that there could be an electoral road to socialism.
More than a century later, when workers in both Britain and Australia have been subjected to many Labour/Labor governments over the decades, such illusions amongst workers have been disappointed many times over. Indeed, over the last four decades, the Australian Labor Party has headed the federal government for a full half of this period. Therefore, right now, working class people in Australia do not have unrealistic expectations that a Labor government would fundamentally restructure society in their interests. That means that for communists to today consider applying the tactic of critical support towards the Labor Party, the ALP would need to stand on a far more emphatic pro-working class agenda than would have been required for communists to apply critical support in the period before the ALP first headed a majority government or in the period when it had been out of office for several decades (as was the case when the Whitlam Labor government was elected in 1972). The leaders of the anti-revolutionary ALP would only proclaim such an agenda if they were pushed to do so by a huge surge in militancy and left-wing radicalism of their working class base. Yet when the socialist consciousness of working class people reaches the next level – when the majority of the politically active section of the toiling masses is not only intent on resisting capitalist exploitation but desire the sweeping away of the entire capitalist order – then the time for electoral tactics becomes superseded; and communists will need to immediately organise a direct struggle for the working class seizure of state power. Therefore, while it still exists, the window, in terms of working class consciousness, in which the tactic of critical support to mass social democratic parties is applicable is narrower than it was a century ago.
What is called for before determining whether the tactic of critical support should be applied towards a particular social democratic party is a careful examination of what the party is claiming to stand for, what attitude the capitalist class is taking towards that party, what the sentiments of the working class are and what the general state of the class struggle is. What is definitely not needed is to mindlessly campaign for the victory of mass social democratic parties at every election based on what Lenin advocated towards the British Labour Party more than a century ago ‒ a position that was based on the particular circumstances at the time where that party had never previously led a government and, pushed by the striking growth in pro-socialist sentiments amongst their base following the October 1917 Russian Revolution, was proclaiming its intent to nationalise key industries and oppose its own rulers’ war moves against Soviet Russia. Those far-left groups that advocated a vote for the ALP at last year’s federal elections when the ALP was not even pretending to stand on an anti-capitalist program achieved the very opposite of Lenin’s tactic of supporting a mass social democratic party “in the way that a rope supports a hanged man.” Instead of helping to break the working class masses from allegiance to the ALP in the direction of support for communism, their call for support to the ALP pushed the masses, disgruntled at the Labor Party’s subservience to the capitalist bigwigs, back towards the Labor Party. No matter what else they said, by calling to support Albanese’s ALP, these pseudo-Leninist groups sent a message to those that they have influence over that no matter how much the ALP upholds the domination of the big end of town at home and the international agenda of that class abroad, workers have “no choice” but to support the ALP as “a lesser evil”. This can only breed despair and demoralisation amongst the working class. It harms the building of class struggle resistance to the capitalist exploiters.
WHAT ABOUT THE GREENS?
Given how small are the differences between Labor’s agenda and that of the Liberals, the Greens have gained a growing following amongst progressive-minded youth and the small-l liberal, middle class. They are attracted to the Greens by some progressive policies that the Greens advocate. This includes the Greens platform calling for dental to be covered by Medicare. Unlike the ALP, whose plan to grow “social” housing only involves a small increase in privately owned, “community housing” rather than any increase in public housing, the Greens stand for actually increasing public housing, albeit at a modest pace. However, to implement such reforms, let alone really substantial anti-poverty measures, requires standing up to inevitable resistance from the majority of the capitalist class. The Greens cannot do this because they reject a class struggle outlook. This is because the Greens actually embrace wealthy capitalists in their own party and a dominant role in their party is played by upper-middle class elements who gain part of their income from capitalist share investments. For example, one capitalist investor, Duncan Turpie, has personally donated over a million dollars to the Greens over the last few years. Therefore, lacking both the will and ability to challenge capitalist power, any Greens in government will inevitably bend to the demands of the powerful capitalists.
That is why in the early 2010s, when the Greens had two ministries in the then Tasmanian government, they were part of a joint government with Labor that cut nursing jobs and public housing maintenance. Federally, as part of a defacto coalition with Labor from 2010 to 2013, the Greens helped oversee the final privatisation of Telstra begun under John Howard. Today, they back the rest of the capitalist class’ drive to strangle socialistic rule in China. Indeed, while opposing the AUKUS nuclear submarine plans, the Greens are even more rabid than either Labor or the Coalition when it comes to spewing the lying “human rights” tirades against China that “rationalises” such military escalation. In this the Australian Greens are similar to their German counterparts who today form a key part of Germany’s coalition government alongside the Social Democratic Party and the avidly neoliberal, Free Democratic Party. The leader of Germany Greens, Annalena Baerbock, is that country’s foreign minister. While preferring to wrap their meddling imperialist agenda in more “human rights” packaging than their right-wing counterparts, Germany’s Greens are so extreme in supporting both Western imperialism’s proxy war against Russia and its Cold War drive against socialistic China that they would make neoconservatives blush! A future Greens role in the Australian government, either as a coalition with Labor or alone, would similarly see them act as imperialist warriors with a “progressive” face. Although the Greens call for lowering defence spending to 1.5% of GDP that would still be much higher than the likes of Canada and Japan and, on a per person level, nearly five times higher than China’s. The Greens international agenda is to support essentially the same imperialist interests of Australia’s capitalist class that Labor and the Coalition uphold, while pushing to supplement military might with greater use of “human rights” propaganda, increased support for pro-Western opposition movements in countries targeted by Western imperialism and deeper utilisation of Australian government aid as a means of political manipulation.
The Greens unwillingness and inability, as a party, to resolutely stand up to the rest of the capitalist establishment has sometimes even been evident when their own members have been targeted by other sections of the ruling class. Greens politicians are frequently pilloried by Far-Right parties, right-wing Coalition MPs, the Murdoch media, conservative think tanks and other organs of the hard right-wing of the capitalist class. Copping such, often vicious and personal, attacks is indeed part of what gives the Greens credibility with progressive-minded people. A favourite target of the rabid right-wing is the federal Greens First Nations portfolio head – DjabWurrung Gunnai Gunditjmara Aboriginal woman and senator from Victoria, Lidia Thorpe. Before becoming a Greens senator, Thorpe had been well known as a staunch activist for Aboriginal rights. Thus, her entry into the Greens gave the party increased authority amongst many Aboriginal people and leftists. In May 2017, at the Uluru Aboriginal convention where supporters of constitutional recognition created their petition calling for the establishment of a First Nations “Voice” enshrined in the Australian Constitution, Lidia Thorpe was one of the staunch activists who walked out of the convention in protest at the direction it was heading in. She stated at the time, “We as sovereign First Nations people reject constitutional recognition. We do not recognise occupying power or their sovereignty, because it serves to disempower, and takes away our voice,” insisting that, “We need to protect and preserve our sovereignty.” When the new Albanese government announced its intention to push for the implementation of the advisory “Voice”, Thorpe made clear that she was not going to simply roll over and accept the scheme that was being championed by small-l liberals, social democrats, “progressive”-liberals and many mainstream conservatives. Lidia Thorpe insisted that a Treaty between the government and Aboriginal people, a Truth Commission to lay bare all the genocidal crimes that have been perpetrated against Aboriginal people, the stopping of Aboriginal deaths in custody and providing proper compensation for Aboriginal people who were stolen from their families when children, all took precedence over the “Voice”. As a result of this stance, the centrist and “progressive” sections of the ruling class establishment joined their right-wing counterparts in setting their political gunsights on Thorpe. It was, indeed, the supposedly centrist-“progressive” ABC News that led the renewed witch hunt against Lidia Thorpe. They sensationalised an “exposé’” about how Thorpe had once briefly dated a former Victorian leader of an “outlaw” bikie gang. Quickly, the rest of the racist establishment joined the beat up claiming that Thorpe had a potential conflict of interest because she sat on a parliamentary “law enforcement committee”, even though the person she dated had years before left the motorcycle group and had no criminal convictions and despite the committee having not even inquired into outlaw motorcycle groups during Thorpe’s time as a member. Indeed, the man Thorpe briefly dated, who is a strong supporter of Aboriginal rights, seems to be a saint relative to the greedy, often corrupt and frequently racist capitalist exploiters that most parliamentarians associate with. Yet, less than an hour after the ABC unleashed this revamped witch-hunt against Lidia Thorpe, Greens leader Adam Bandt cowardly forced his First Nations portfolio head to resign as the Greens deputy leader in the Senate. Bandt also publicly condemned Thorpe for showing a “significant lack of judgement”, while saying nothing against the obvious beat up against her. A party that cannot even defend one of its own leaders against a ruling class witch hunt, moreover one laden with large amounts of racism and misogyny, is incapable of standing up to the rest of the capitalist ruling class more generally. The Greens should be given no political support – including at election time!
Several socialist groups that stood to the left of the Greens also ran in the May 2022 federal elections. Unlike the Greens, these parties proudly proclaim themselves anti-capitalist organisations. Among these groups is Socialist Alliance. Whereas the Greens advocate maintaining the U.S.-Australia alliance – only calling for it to be “renegotiated” – Socialist Alliance rightly demand an end to the alliance. Moreover, while the Greens leadership refused to defend their own First Nations portfolio head, Lidia Thorpe, from the reactionary witch hunt unleashed against her five months after the elections, Socialist Alliance had the decency to condemn the attack upon her. However, Socialist Alliance tied their 2022 electoral campaign to the Greens. They called not only for directing preferences to the Greens but for a vote to the Greens in seats where their own party was not standing. This is despite Socialist Alliance and other pro-Greens socialists sometimes acknowledging the capitalist essence of the Greens. By advocating a vote for the Greens, Socialist Alliance and other pro-Greens socialists are undermining class struggle by, in effect, promoting the false notion that a wing of the capitalist class – represented by the Greens – can improve workers’ lives. This is as harmful to the building of militant unions as the false notion at the workplace level that workers can improve their lot by helping “nicer” managers to become their top bosses.
The tailing of the Greens by the likes of Socialist Alliance not only reflects their failure to insist on the independence of the working class movement from all wings of the capitalist class – including the “progressive”-liberal wing represented by the Greens – but also the fact that these reformist socialist groups share not only the Greens’ progressive positions but also share its reactionary loyalty to the key global strategic agendas of the Australian capitalist class. Thus, Socialist Alliance, like the Greens, are avid supporters of the U.S.-NATO-Australian regimes’ proxy war against Russia. An 18 September 2022 Socialist Alliance resolution even supported the supply of arms to Ukraine by these Western regimes. Still more harmfully, Socialist Alliance apes the Greens in lining up behind the principle strategic goal of the U.S. and Australian imperialist ruling classes: to destroy the Chinese workers state. Socialist Alliance excuses this position by ridiculously claiming that China is just another “capitalist” country and, what’s more, one dominated by “authoritarian nationalist politics.” With these rationales, Socialist Alliance, while rightly opposing the U.S.-Australia military build up against China, fervently support the Western imperialists’ anti-communist propaganda assaults on Red China over “human rights”. They also support all the forces attacking socialistic rule in China from within – from the pro-colonial, upper-middle class, anti-communist opposition forces in Hong Kong to the Taiwanese capitalist ruling class seeking to guarantee its rule of exploitation through securing independence from socialistic China to last November’s Chinese version of the Far Right-instigated, anti-COVID response “Freedom” protests. Unless Socialist Alliance both dumps their support for the imperialist-driven campaign to undermine the Chinese workers state and breaks free from the orbit of the “progressive”-capitalist Greens, they should not be given even critical electoral support – including at the upcoming NSW state election.
WHAT THE MAY 2022 ELECTION RESULTS SIGNIFIED
The Greens gained significantly during last May’s federal elections. With an increasing share of the vote, they boosted their numbers in the Lower House from one seat to four seats and their Senate numbers went up by to twelve seats from the nine held previously. Although the Coalition were badly defeated, the ALP’s first preference vote actually fell slightly. The loss in Coalition vote in affluent areas was in good part siphoned off to so-called Teal “independents” that advocated greater action against climate change, gender equality and more small-l liberal social policies. Their success represented a rebuff by the liberal sections of the upper class and upper middle-class to the Liberal-National’s increasingly extreme, rightward course on social policies, resistance to action on climate change and male chauvinist internal culture. These “independents” grabbed six formerly safe Liberal seats in urban and suburban areas in addition to those that they held prior to the elections. However, these Teal independents are as committed to anti-working class, neoliberal economic policies as the conservatives. Their campaigns relied on lavish funding from corporate bigwigs and other wealthy individuals. Some of this went directly to TEAL candidates and the rest was funnelled through campaign groups like Climate 200, which alone provided nearly $6 million dollars to TEAL candidates. Among those making donations well in excess of $1 million to the TEALs and Climate 200 were Australia’s fourth and fifth richest capitalist exploiters – Atlassian cofounders Mike Cannon-Brookes and Scott Farquhar – and the CEO of trading outfit VivCourt, Rob Keldoulis. Also providing big bucks for the TEALs is Climate 200 convenor, Simon Holmes à Court, a capitalist investor and one of the heirs to the wealth of his father, Australia’s first billionaire, ruthless corporate raider Robert Holmes à Court. On the opposite political flank of the Coalition, the Liberals and Nationals lost votes to the Far-Right parties. The parties to the right of the Coalition increased their vote by nearly 60% relative to the previous elections. That means that last May’s elections saw one in eight people vote in the Lower House for a range of extreme right-wing parties including the racist Pauline Hanson’s One Nation and Liberal Democratic parties and billionaire Clive Palmer’s ultra-nationalist, United Australia Party. This reflected the dangerously growing right-wing extremism of a chunk of Australia’s disgruntled middle class and self-employed layers – a result of their economic insecurities in the context of the decaying capitalist order and the present failure of the workers movement to provide a powerful anti- capitalist alternative that could channel the legitimate component of middle-class grievances. The splintering away, in either direction, from the main parties of the capitalist class, the Liberals and the Nationals, ultimately reflects the crisis of confidence that the capitalist class feels internally as it agonises over the economic and social crises of its own system, on the one hand, and on the other, panics over the implications posed by the successes of socialistic rule in the world’s most populous country.
Given that there was no mass workers party running on an anti-capitalist platform in last May’s elections, the most crucial aspect of the election results to examine was the proportion of people who did not cast valid votes. It turns out that the number of people who risked a fine by neither showing up to vote nor filling out a postal ballot increased by 25% from the previous elections – reflecting fading hopes in the supposedly “democratic” political system. Over one in ten voters did this. More interesting still is to analyse the number of people who turned up to the ballot boxes to get their names ticked off to avoid a fine and then did not cast a valid vote. Some of these people even wrote messages criticising the political parties instead of numbering the boxes. More than eight hundred thousand people in this way “voted” Informal at last May’s federal elections. Although a very small proportion of these people may have simply filled out the forms in error, for the most part, their Informal “vote” represented distrust of all the political parties running in the elections.
Such anti-establishment suspicion could come from a number of different standpoints. In the worst case it could reflect people’s adherence to any number of crazy, inherently right-wing, conspiracy theories or to the fact that each extreme right-wing party was not on the ballot in every seat where there were people who wanted to vote for them. However, the greatest share of the Informal vote came from working class voters – often from people of colour backgrounds – who would never dream of voting for the Liberals or Far-Right parties but are understandably disillusioned with the ALP for not standing up for their interests. This is proven by the big disparity in the Informal “vote” between the wealthy electorates and the strongly, pro-ALP working class electorates. Thus in the rich Sydney electorate of Wentworth, which includes plush suburbs like Bellevue Hill, Point Piper, Rose Bay and Vaucluse, just 2.5% of people “voted” Informal. Wealthy residents trust the political system and their casting of valid votes reflects their understanding that they have a voice in how the system operates. In contrast, the opposite sentiment is significant in working class areas. Thus, in the Sydney electorate of Blaxland, which largely consists of heavily Asian, Middle Eastern, African and Islander working class suburbs like Auburn, Bankstown, Chester Hill and Villawood, the Informal “vote” was well over four times higher than it was in wealthy Wentworth. Nearly one in nine voters showed up to the ballots in Blaxland only to cast an Informal “vote”. Indeed, in particular voting booths in Sydney’s multiracial southwest, the Informal vote was even higher. In the Blaxland polling booth in Auburn West, nearly one in five voters cast an Informal “vote”. In the Villawood North polling booth in the seat of Fowler and the Fairfield Heights booth in the McMahon electorate, the Informal “vote” was also more than 18%. By contrast, a ten times lower proportion of voters cast an Informal “vote” at the polling booths in the wealthy Double Bay and Bellevue Hill South areas. Some mainstream political commentators, eager to cover up the distrust in the “democratic” system amongst the working class masses, patronisingly claim that the much higher Informal “vote” in migrant, working class areas is due to poor education and lack of English ability causing people not to know how to vote properly. However, while such problems caused by socio-economic disadvantage is a minor factor, it is not the main one. This is proven by the reality that the Informal “vote” in the Senate, where people have greater choice in the parties that they can vote for, is more than a third lower than it is in the Lower House vote. The fact that the Informal “vote” mostly represents a conscious choice to reject all the parties running in the elections is further proven by the fact that the Informal vote fluctuates widely from election to election. After all, if unintentional errors in filling out ballot papers were the cause of the Informal vote it should not swing so wildly from election to election.
Indeed, the narrow defeat of high-profile Labor candidate Kristina Keneally to a local independent in the multiracial, working class, southwestern Sydney electorate of Fowler can be, in good part, put down to the fact that well over one in ten voters – no doubt mostly potential Labor voters – turned up to the ballots to get their names ticked off and then cast an informal “vote”. Indeed, when a Trotskyist Platform supporter in this electorate explained to Labor election day canvassers why he would be “voting” Informal, the reaction of the Labor activists was along the lines off: Oh no, not you as well, please don’t waste your vote like so many other people! This indicated that many others in the electorate were “voting” Informal as a conscious rejection of all the parliamentary parties and in particular as a rebuff of the party that they see as the party which should represent them but which they rightly understand has betrayed them – the ALP.
WORKERS DO NEED A PARTY – BUT ONE BUILT TO ORGANISE INTRANSIGENT RESISTANCE TO THE CAPITALIST CLASS
That proportion of working class people who would never support the conservative or Far-Right parties but are disillusioned with Labor can be a key force for organising class struggle action to fight for the rights of working class people and all the oppressed. However, that is only if their disappointment with Labor and the whole system does not lead to them becoming skeptical of the possibility of achieving change and cause them to become depoliticised. Especially when plunging living standards and economic insecurity constantly impel people into political activity, political demoralisation can sometimes be people’s first step to turning towards the Far Right whose stock in trade is, after all, to turn despair at the possibility of resisting the big end of town into scapegoating of the most downtrodden layers of society.
That is why it is crucial that there be built a working class party that will provide a genuine alternative to the many disillusioned former Labor supporters. However, such a party must be completely different to the ALP. We do not need another party vying for administrative leadership of the capitalist system in order to try to tweak the system to serve the masses’ interests, which is the mission impossible that the ALP seeks to fulfil (at least in the most generous evaluation of the party’s ethos). What we need instead is a workers party that is committed to organising intransigent mass resistance to the capitalist exploiting class and their system. Right now, the potential to mobilise such class struggle resistance is especially evident in Europe where the masses living standards are plunging particularly rapidly. Angered by surging inflation and crumbling public services, hundreds of thousands of French transport workers, teachers, oil refinery workers and others went on strike last Friday against French president Macron’s moves to raise the age at which people can get the aged pension. Meanwhile, workers in Britain have unleased the biggest wave of industrial action there in decades. In the last two months, rail workers, bus drivers, teachers, nurses, paramedics, postal workers and others have waged a series of strikes against falling real wages. To mobilise such struggle here and, most importantly, to ensure that the struggles are both raised to the level of intensity and guided to the direction that can ensure victory (which is a challenge also acutely faced by the rebelling workers movements of France and Britain given their social democratic misleadership), it is necessary to not only positively motivate the need for such actions but to knock down the serious political obstacles impeding militant class struggle resistance.
One such obstacle is the widely held illusion that a Labor government is, in some way, a workers government. A more left-wing version of this myth is the idea that even though an ALP government is far from ideal, the ALP in office can be made to serve the interests of the masses through political pressure and campaigning. Unfortunately, such illusions are being reinforced by many Far Left groups – due to their social democratic skew away from authentic Marxism. This includes the Communist Party of Australia (CPA). Thus, an open letter sent last June by the CPA’s National President to prime minister Albanese praises his government’s stance on a number of issues while politely urging him to take a more progressive stance on others. The letter begins by expressing warm solidarity with the new government:
“Dear Prime Minister Albanese, The Communist Party of Australia wishes to congratulate you on the election of a Labor government and the more diverse Cabinet of MPs and Senators. We recognise you will face many challenges from the nine years of the corrupt, dysfunctional Coalition government with its anti-worker, union-bashing record.”
The CPA letter then covers up the Albanese government’s failure to seriously push for real wage rises and its backing of a minimum wage increase that it knew would not be sufficient to match the widely predicted increase in inflation in the following months by cheering that “We warmly welcome your government’s swift action to support a cost-of living increase in the minimum wage. The outcome is a start to arresting the decline in real wages experienced by low and middle-income workers over recent decades.” Well it wasn’t even a start! Real wages have plummeted at an even greater rate in the seven months since! The CPA letter even praised the Albanese government’s stance on the Palestinian issue by stating that: “We congratulate your government on its stand at the United Nations in not supporting the US-led opposition to an inquiry into human rights abuses by Israel in the occupied territories of Palestine.” Yet, even then it was clear that the new government had no intention of reversing the Australian regime’s long-standing support for Israel’s brutal oppression of the Palestinian people. Indeed, over the last few months, the ALP government has been amongst just a small number of other governments around the world to oppose UN motions aimed against the Israeli regime’s tyranny over the Palestinian people and other Arab peoples in its neighbourhood.
The most harmful aspect of the CPA leadership’s warm open letter to the head of Australia’s capitalist regime is the false notions that it promotes amongst the party’s supporters that the Albanese government deserves some level of support and can be pressured to take a basically progressive course. Such ideas are completely wrong. The Labor Party is, to be sure, a party with a working class base. However, its leadership and program support the capitalist order. Moreover, the Albanese government heads a state machine that has been built up to enforce the interests of the exploiting class. As the last eight months of plunging real wages, skyrocketing rents and continued military build-up against socialistic China proves, the Albanese government is an enemy of the working class and oppressed. Although the CPA and other reformist Far Left groups say that “grassroots campaigning and direct action” is necessary to “push Labor to the left and force progressive policy on key issues”, their semi-favourable portrayal of the ALP government and their sugar-coating of its actions acts to deter the building of truly intransigent class struggle. For it reinforces the false notion that militant anti-capitalist struggle – whether aimed against reactionary policies of the Labor government or against particular capitalist bosses – should currently be avoided, lest it undermine a Labor government that should be given some level of support. Today, the wide acceptance of this idea by politically active workers and progressive youth is the main reason why, despite working class people’s plummeting living standards here, the Australian workers movement and Left has yet to unleash, even, the level of class and other progressive social struggle seen in the likes of France and Britain.
Another widely held misconception holding back class struggle right now is the idea that the new Albanese government has won a “mandate” through its election and should not be opposed in the first half of its term, at least when it is carrying out policies that it took to the elections. However, under capitalism, such “mandates” are not truly “democratically” chosen by the people. For in capitalist societies, any elections and the political discourse leading up to them do not express the interests of the majority of people – the working class masses. For starters, this is because it is capitalists who thoroughly dominate ownership of the media and, thus, ensure that it is only the policies that serve their class that are being promoted by the news media. Moreover, through their incredible wealth, it is the capitalists who are, in great disproportion to their numbers, able to dominate funding of political parties, buying of political advertising, hiring of lobbyists and establishing of those supposedly “independent” think tanks and “movements” (like the right-wing Advance Australia) that have such a great impact on public opinion. Disclosures about political donations in Australia are not yet available for the 2021-22 financial year when the federal elections were held and, thus, when the biggest donations would have been made. But records do show that in the previous financial year, a whopping $177 million dollars flowed into Australia’s political parties – most of it through undisclosed donations and receipts. From the records of the small portion of donations that are disclosed, we do know that in the last two financial years for which records are available, 2019-2020 and 2020-2021, Australia’s fifth richest person with a total wealth of $24.3 billion, Anthony Pratt and family (owners of packaging and paper giant Visy Industries) donated nearly $2.9 million to the Coalition. Meanwhile, in the same period, Australia’s seventh richest person, Clive Palmer, donated nearly $6 million to his United Australia Party, which helped it win a Senate seat in Victoria at the recent federal election. And if you are wondering why the Coalition and Labor keep on allowing the bank bosses to ruthlessly plunder from their customers despite these corporate bigwigs admitting to rip-off practices like charging customers account management fees for no service, here is some part of your answer: from 2019 to 2021 the four big banks donated a combined $580,000 to each of Labor and the Coalition. With such huge money flowing into the “democratic process” from the corporate elite, what chance do the working class masses struggling to pay bills have to significantly shape the “mandates” of the dominant parliamentary parties? The fact is that these “mandates” primarily represent the will of the super-rich capitalist exploiting class. We should not be bowing down before any such “mandates”!
In all the imperialist countries, at all times, among the biggest obstacles to working class resistance is the notion that the capitalist class on the one hand and working class people and other downtrodden sectors on the other have substantial common interests. This false notion is continuously drummed into the working class masses by the currently social democratic, ACTU leadership of our unions. The capitalist ruling class also actively promotes this lie. In large part they do this through whipping up nationalism and the false notion that accompanies it: that all people of the nation regardless of their class position have a common “national interest”. In actual fact, it is the very opposite that is true: that the rights of the working class and all the downtrodden can only be advanced at the expense of the immediate economic interests of the capitalists … and vice versa! This was true even a century ago when Britain’s Labour Party promised substantial reforms benefiting working class people without challenging the capitalist order. However, it is even more so today. For capitalism has reached a still more senile and diseased state than it was in a century earlier. Even by a century ago, the capitalist system had outlived the period when it could still provide some progressive benefits to humanity. The appalling slaughter of World War I where the rival capitalist powers sent the masses of their own countries and their colonies to kill each other for the sake of their competing claims over spheres of exploitation showed this all too clearly. By 1921, Britain and the rest of the capitalist world was in the midst of a sharp post-war recession. Yet, in a longer-term sense, capitalism today is afflicted by a still more severe malaise. The economic collapse in the capitalist world during the late noughties Great Recession was the clearest indicator of this. Most major capitalist economies had never fully recovered from this plunge when they were buffeted by new crises associated with first, COVID and now, out of control inflation. The latest available figures (for 2021) show that since the eve of the late noughties Great Recession, average incomes (adjusted for inflation) have plummeted by 8% in Britain, 9% in Italy, 15% in Brazil and 37% in Greece. The real incomes of the working class section of the population in these countries have fallen still more steeply. If Australia did not suffer to the same degree from the Great Recession and its aftermath, it is solely because China’s booming socialistic state-owned enterprises bought up an ever greater amount of exports from Australia. Indeed, much of the capitalist world has only been saved from still greater disintegration by the rapid growth of the market provided by a socialistic country, in China, combined with the inflation-lowering impact of imports from Red China. To be sure, the wonderful capacity of us humans to innovate occasionally injects some vitality into the shrivelled up veins of late-stage capitalism. However, the system is unable to deliver the benefits of such innovation to the masses. Instead, the capitalist bosses’ only “effective” means to prop up their system is to ever more steeply increase the rate at which they exploit their workers. In by far the biggest capitalist economy, the U.S., real wages are today what they were 50 years ago. In Australia, real wages are lower than they were 12 years earlier. With their system mired in economic and social stagnation and decay, the capitalist bigwigs are even more loathe to grant concessions to the masses than they were a century ago. It will take very intense class struggle to win any substantial gains for the exploited and oppressed masses.
If it is to be able to build large-scale resistance against the ruling class, the workers party that we need will have to oppose nationalism and consciously dispel the myths about the possibility of “win-win” collaboration between the capitalist exploiters and the exploited workers. It will have to convince the masses that every setback for the capitalist rulers strengthens the struggle to advance the rights of working class people and all the downtrodden. That means that such a party would resolutely oppose the extreme exploitation of PNG, East Timor, Fiji, the Solomon Islands and other South Pacific nations by Australian-owned corporations; while opposing the neo-colonial meddling in the region that the Australian regime engages in to facilitate such plunder. Understanding that any setbacks for the U.S./NATO/Australian proxy war against Russia in Ukraine can only make the Western ruling classes more vulnerable to resistance from their masses, a class struggle workers party would stand for the defence of Russia in this conflict – despite the reactionary, capitalist nature of Russia’s ruling class. It would demand an end to all weapons supplies to Ukraine and the immediate droppingof all economic sanctions against Russia.
Whereas the ALP and its allies in the ACTU leadership limit their demands to what it thinks the capitalists will reluctantly tolerate, the new workers party that must be built will fight for what the working class and all oppressed actually need. Given that the crisis-ridden capitalist system cannot satisfy the masses’ aspirations, the ultimate task of such a party is to lead the working class masses to depose the capitalist exploiters from power and take state power into their own hands. This is not an easy task. The capitalists have enormous wealth, control of the economy and the physical power of all the current state institutions. Therefore, to be able to organise the eventual defeat of such an immense force, the members of the revolutionary workers party that we need must be made to adhere to much more rigorous obligations than that of the Labor Party. In the ALP, many join due to a combination of, on the one hand, wanting to advance the interests of working people and, on the other, wanting to build lucrative and socially respectable careers in politics. For the ranks of the party it is more the former that motivates them. However, for the personally ambitious and pushily, careerist-minded people who shove themselves into Labor leadership positions, it is the latter that is often more important. Furthermore, the longer the careers of such leading ALP members progress and, correspondingly, the more evident it is to them that the party’s strategy is incapable of delivering the gains for the masses that may have once primarily motivated them, the more cynical that they become and the more shamelessly that they subordinate their principles for the sake of personal advancement. In contrast, for a party seeking to accomplish so difficult a task as the defeat of the powerful capitalist rulers, the political activity of all members will need to be solely motivated by the goals of liberating the exploited and oppressed and advancing the well-being of humanity. Thus, in working hard to contribute to the building of such a party, we in Trotskyist Platform insist that our members must not seek any personal financial advantage whatsoever out of their involvement in the party’s activities, other than the benefits that they would share with the rest of the masses due to participation in victorious struggles – for example through party members at a workplace being part of industrial action that wins higher wages for all workers at the site. Similarly, members of a revolutionary workers party must not seek even non-material forms of particular personal benefit from their political activities, whether that be fame, ego, sex appeal, social networks or even excitement, although a number of these things, to some degree, may arise as a by-product of their involvement in the struggle. Most crucially, members of a revolutionary party will need to make enormous personal sacrifices for the sake of the struggle and show great personal and political courage.
Despite the enormous power of the capitalists, the working class and other oppressed have one huge advantage over these filthy rich exploiters – there is a lot more of us than them! Moreover, it is the manual and mental labour of the workers that creates capitalist profits. In other words, the working class is potentially a lot more powerful than the capitalists. Indeed, for between a century and a century and a half, the working class in much of the world has had the objective power to overturn capitalist rule. What has been lacking is the consciousness of the need to accomplish this task amongst the mass of workers and a workers’ leadership that is prepared to fight tenaciously for socialist revolution. Even as its own system decays, the capitalists have become increasingly expert at messing up the political consciousness of the working class masses and at poisoning it with nationalism, racism and illusions in the “fairness” of parliamentary “democracy”. Moreover, they are very adept at intervening into the contest within the Left and workers movements between reformists that uphold the capitalist order and revolutionaries opposed to the capitalist system in order to boost the former. The ruling class do so in various ways. First they give enormous financial and other backing to the social democratic reformists. It is not only the bank bosses doing this. The bosses of retail conglomerate, Wesfarmers, and banking and asset management giant, Macquarie Group, each gave around $220,000 to the ALP during the two financial years from 2019 to 2021 – the same amount that they each gave to the Coalition. Meanwhile, in this same period, the bosses of Bluescope Steel which gave Labor $108,000, accounting giant PricewaterhouseCoopers which gave $254,316, oil and gas giant Santos that gave Labor $88,000 and mining giant Fortescue – owned by Australia’s second richest person Andrew Forrest – that gave nearly $70,000, all gave more to the ALP in this period than they did to the openly capitalist Liberal/Nationals. The corporate bigwigs also skew the political battle between Laborite social democrats and revolutionaries, within the Left and workers’ movements, in other ways. The media that they own and the think tanks that they fund promote the most capitalism-loyal elements within the workers movement, while denigrating and witch-hunting revolutionary elements and more militant union leaders. Meanwhile, their courts, DPPs and police target for persecution the more revolutionary elements of the Left and the more radical officials and delegates within the trade union movement. Within workplaces, capitalist bosses victimise militant union delegates and unionists. The bosses seek to break the spirit of such left-wing workers by giving them the worst, most undesirable workplace tasks. More sinisterly, they prosecute disciplinary actions against these workers by concocting claims that these workers have “violated” workplace rules in order to intimidate these workers with the threat of being sacked. In contrast, capitalist bosses look after those union delegates that are seen as compliant, or open to being co-opted, by giving them special treatment at the workplace. Yet, despite how slanted is the competition for the hearts and minds of the working class masses between the Laborites and other social democrats, on the one hand, and the revolutionaries, on the other, the latter have one massive advantage that tilts the contest back the other way: it is we whose program actually represents the historic interests of the working class and all the oppressed. And as capitalist Australia enters a period where falling economic growth and rising job insecurity melds with the high cost of living, plummeting real wages and dangerously rising imperialist militarism that we have already been copping, it will be easier for revolutionaries to motivate a program that is opposed to the entire capitalist order.
Indeed, even the capitalist rulers themselves know that their system is in crisis. In a January 18 interview, none other than the head of the French capitalist regime, Emmanuel Macron, openly expressed his fears for the stability of capitalist rule and for the precarious state of Western capitalist “democracies”:
“First, there’s a crisis within the global open financial capitalist system. This system is experiencing a deep crisis, because, by acquiring capital, it has caused inequalities to skyrocket…. Therefore, our democratic system is in crisis, because it no longer spontaneously generates progress for all – once again, it creates inequalities between social classes.”
As surely as the sun shines, capitalism will create the conditions that will impel the masses into large-scale struggles. The strike wave that we are seeing today in Britain, France and other parts of Europe is testament to this. The only question is: will the Left be up to the task of intervening in and guiding these struggle towards an eventual assault on the crisis-ridden, inequality-skyrocketing, capitalist order? If we fail in this task, the crisis of capitalism will be exploited by the fascist wing of the capitalist class as it was in the 1930s. The terrifying rise of the Far Right in Europe, the 60% growth in the combined Far Right vote at last May’s Australian elections and the expansion of violent fascist, extra-parliamentary forces in Australia, illustrates this all too clearly.
All this is why now is the time to work extra hard and make still greater sacrifices to advance the struggle against the capitalist system. The final assault on the capitalist order can only be prepared and the masses schooled for this task by training the working class masses in all sorts of partial struggles right now to defend their living standards, oppose racist attacks and make immediate improvements in their rights and conditions. So let us unleash the power of our workers’ unions and build militant class struggle and other progressive struggle actions to win higher wages, the rights of permanency for all gig and casual workers, a massive increase in public housing and the confiscation of the oil, gas, coal and power sectors and their transfer into public ownership. Let us fight for the full rights of citizenship for all visa workers, refugees and international students and build mass actions uniting our unions, Aboriginal people, other people of colour and leftists to drive violent racist outfits off the streets. We must also mobilise these forces to oppose the racist state murder of Aboriginalpeople in custody, stop the continuing removal of Aboriginal children from their families, win full and genuine land rights for Aboriginal people and ensure decent housing and services in Aboriginal communities funded for by confiscating the wealth of the mining and pastoral bosses. Let us also demand: Down with the racist, right-wing and small-l liberal witch-hunt of Lidia Thorpe! Crucially, to advance the struggle against capitalist rule in this country, we must defend the anti-capitalist conquests that have already been made abroad. Most importantly, that means that we must defend the working class rule – as imperfect and insecure as it may currently be – in China that was born out of her earth-shattering, 1949 anti-capitalist revolution. To unleash all these struggles and ensure that they have the greatest chance of victory, we need to work relentlessly to knock down the political obstacles that impede and limit these struggles. Let us destroy the myth that workers and their capitalist exploiters have a common “national interest.” Let us convince the masses that Albanese’s ALP in power is a capitalist government ‒ just like its right-wing predecessors. And let us point out that “democracy” under capitalism is only truly a democracy for the rich and that the “mandate” that the ALP government has to maintainanti-strike laws, institute tax cuts for the rich, keep unemployment benefits at their present paltry level, avoid increasing actual public housing, shun measures to crack down on housing speculation, continue the military build up and propaganda war against socialistic China and support the Western imperialists’ proxy war against Russia in Ukraine, is not a “mandate” that the masses should, in the slightest, respect. To most effectively bring such understanding to the working class masses, let us build a new workers party that is linked to the new class struggle leadership of our unions that we need. A party composed of those people who understand that workers and their capitalist exploiters have no common “national interest” and are willing to make great sacrifices for the cause of socialist revolution.
Rally Calls to Rip the Electricity and Fuel Sectors From the Tycoons and Bring Them Into Public Hands
12 April 2023: Last Saturday, over thirty people rallied in the Western Sydney suburb of Auburn to demand that the electricity, coal, oil and gas industries be ripped out of the hands of the greedy tycoons and be placed into public ownership. The action was in response to the unaffordable cost of living and plummeting real wages. In introducing the action, rally emcee Samuel Kim, who is also a leading member of Trotskyist Platform, explained:
Sisters and brothers, we are gathered here today because everything is way too expensive. Electricity, petrol, gas, rent, food … you name it. Bread and cereal prices are up nearly 13% over just this last year. The price of milk and other dairy products has risen nearly 15%. Meanwhile, workers wages are barely rising. As a result, large numbers of people are being driven into poverty. Many people are having to skip meals and forego buying essential medicine. Hundreds of thousands of people are set to endure winter shivering in discomfort.
A major cause of the rising prices is the skyrocketing cost of petrol, electricity and gas. This is not only increasing our fuel and power bills but has driven up the cost of refrigerating, processing and transporting food and other groceries.
So why are the prices of fuel and electricity so high? It is because the greedy rich corporations and company owners have decided to put up their prices for higher profits. And guess who’s paying up so that these tycoons can get even richer … You and I, the working-class, are paying.
As the call-out for the April 8 action stressed:
What we need is for all of the petrol, electricity, gas and coal sectors to be taken out of the hands of the ultra-rich profiteers that own them and be brought into public ownership….
The ruling class’ only “method” to try and contain steep prices is to crash the economy by jacking up interest rates. But we won’t be able to endure unaffordable prices if we lose our jobs or have our hours cut in the resulting recession! Let’s push down the cost of living and do it in a way that protects workers’ livelihoods and stops the slashing of our living standards! Let’s drive down the prices of everything by bringing the petrol, electricity, gas and coal sectors into public hands! We can’t allow the current filthy rich owners of these sectors – like Mike Cannon-Brookes and Kerry Stokes – to keep on milking fat profits at our expense!
The action was jointly built by Trotskyist Platform and the Australian Chinese Workers Association (ACWA). Speakers at the rally included Brenda Wang, a senior member of the ACWA, Sarah Fitzenmeyer, the Chairwoman of Trotskyist Platform and Wayne Sonter from the Revolutionary Housing League. After the introduction from the rally emcee, a message of solidarity to the protest was read out from Pete a retired coal mine worker in the Hunter Valley. The message stressed how the mining capitalists are not only exploiting their workers and charging the public exorbitant prices but are also leaching from the public budget through receiving a huge fuel rebate:
Firstly, I send to you all Comradely greetings from the Hunter Valley in NSW. I am a retired coal miner from Muswellbrook and I worked for BHP at their Mount Arthur open cut mine that is just on the outskirts of town for 20 years.
I come from a long line of miners that started out in the turn of the century at Broken Hill in the far west of NSW.
You are gathering today to voice your opposition against the private ownership of our natural recourses and have them returned to the people of Australia and I wish you every success.
Mount Arthur coal mine where I was a slave to the capitalist system produces both coking coal used in steel making and thermal coal mostly used in power generation….
BHP owns Mount Arthur mine 100% and has recently announced a record pre tax profit for the SIX months up to December 2022 of 1.4 BILLION US Dollars for that one single mine alone. That breaks down to approximately 10 million Australian dollars per day !!!
All of the mining equipment that is used in the mine is diesel powered so the amount of diesel fuel required to run the mine is a staggering amount, millions of litres annually in fact. One of the best kept secrets that the coal miners keep closely guarded is the fact that the Federal Government gives them back a rebate of 47.7 cents per litre. That is for every litre of fuel used in the mine they claim back 47.7 cents and with millions of litres of fuel used annually they get a very fat cheque in the mail to help them pay their fuel bill. This Comrades has to STOP!
… Information that I have from the Australia Institute in Canberra tells me that the mining industry in Australia for the years 2022/23 will receive 7.7 BILLION dollars in fuel rebate and for the years 2023/24 it jumps to 9.2 Billion dollars.
This is YOUR money Comrades going to the dirty Capitalists !!
Rise up Comrades and voice you opinion on this unfair handout to the fat cats of the coal industry!
Among the placards that Trotskyist Platform carried at the event included: “Confiscate the Power, Coal, Oil and Gas Industries from the Greedy Tycoons And Put Them Into Public Hands!”, “Fight for: The Seizure of the Power and Fuel Industries From the Capitalists And Their Transfer Into Public Hands, a Massive Increase in Public Housing and the Conversion of All Casual Jobs into Secure, Permanent Ones!”, “Australia: Power, Fuel, Ports and Finance Sectors in the Hands of Super-Rich Big Shareholders – 6.8% Inflation, Plummeting Real Wages. China: All these Key Sectors Under Public Ownership – Just 1% Inflation and the Fastest Growing Workers’ Real Wages in the World” and “We Don’t Want to Cop Higher Prices for the Sake of the Global Ambitions of the Capitalists that are Ripping Us Off – Lift Western Sanctions on Russia!”
Participants in the spirited rally loudly chanted: “Fuel and Power into Public Hands!” and “Hey, Hey, Ho, Ho, Confiscation’s the Way to Go!” Many passers-by in multi-racial, working-class Auburn stopped to listen to speeches and read the protest banner and signs. They also viewed a beautiful cultural performance put on by Chinese dancers from the ACWA during a brief interlude between the speeches.
The April 8 action received favourable coverage in several Australian Chinese language news outlets, international Chinese language outlets and also in several news platforms in mainland China. Some of the latter outlets especially highlighted the point made by ACWA spokeswoman Brenda Wang that the reason that China has much lower inflation than Australia is because she has public ownership of her key sectors. By thus showing people in China that even pro-working class activists in Australia understand the benefits of China’s system based on social ownership of the backbone industries and are demanding the nationalisation of key industries within their own country itself, the rally had the indirect effect of boosting the morale of staunch Chinese communists who want to defend and strengthen China’s socialistic state sector as against rightist elements who want to give greater openings to private – that is capitalist – “entrepreneurs” (read exploiters).
Emphasising the need to build a powerful working-class movement to win the transfer of the fuel and electricity sectors from the hands of the capitalists into public ownership, rally emcee Samuel Kim concluded the April 8 rally with a call to action:
Comrades and friends, fellow working class people in the good struggle – the costs of living for food, rents, fuel and electricity are eroding savings. Many even go hungry or take out loans. Wages are stagnant, and are in affect going backwards as the cost of living soars. Huge parts of the economy are controlled by the greedy rich who only care about themselves. They aggressively pursue profits – profits stolen from the wages of workers.
Today’s protest is one of many that will happen in the future. It is just the start, as things are not getting better. That is why we need to prepare for a future movement.
We reprint below the speeches given by the ACWA and Trotskyist Platform representatives at the April 8 action.
Speech byBrenda Wang, leading member of the Australian Chinese Workers Association:
The Australian Chinese Workers Association strongly supports this rally to drive down living costs and to bring the fuel and power sectors into public ownership. I want to acknowledge that we are gathering here on the stolen land of the Dharug First Nations people.
Like our fellow working-class Australians of all ethnicities, Chinese workers in Australia have been enduring increasingly unaffordable living costs. Electricity prices, petrol costs, rent, food prices and the prices of other groceries are unbearable. Many working-class people of Chinese descent in this country are being driven into poverty just like our sisters and brothers of other ethnicities. We understand that the high cost of fuel and electricity is a major part of what is driving costs up across the board. That is why we in the Australian Chinese Workers Association support the struggle to take the electricity, oil, gas and coal sectors from the rich tycoons and put them into public ownership.
The Australian Chinese Workers Association is a mass organisation that organises Australian-Chinese workers to defend their workplace conditions and assert their rights to access social services; while linking the Chinese working-class community with the overall Australian trade union movement and involving them in broader social justice campaigns within Australia.
I want to share some of our experience as immigrants from the Peoples Republic of China and as people who still have many friend and relatives in China who we are in regular contact with. In China, not only is the fuel and power sector under public ownership but so are most of the steel, mining, ports, shipping, banks and other major sectors. That is why China has very low inflation now unlike the countries where these sectors are owned by rich shareholders. It is also why workers real wages continue to grow rapidly in China and the economy continues to develop. So if anyone tells you that public ownership does not work, please explain that they are mistaken. Public ownership works – we know this from our own experience and from that of our family and friends.
So I hope that Australian working-class people of all ethnicities can unite to struggle to bring the fuel and power industries into public ownership. And I hope that we can also unite to fight for higher wages, more low-rent public housing and other measures urgently needed by the masses. We in the Australian Chinese Workers Association pledge to do all we can to support these noble causes.
Speech bySarah Fitzenmeyer, Chairwoman of Trotskyist Platform:
I acknowledge that we are gathering here on the stolen land of the Dharug First Nations people. And right across these stolen Aboriginal Peoples lands, the super-rich owners of Australia’s oil, gas, coal and renewable energy companies are making huge, obscene profits. They are making these sky-high profits both by exploiting their own workers and by over-charging us all for fuel and electricity.
But sisters and brothers it is not just the owners of the oil, gas and coal producers who are ripping us off. Right throughout the chain of the fuel and power industries, the billionaire owners of these companies involved are jacking up prices. This includes the oil refiners, the fuel distributors, the fuel retailers, the electricity generators and the electricity retailers.
If you cross the railway line and go not too far to South Granville, you will see that there are two petrol stations owned by United Petroleum. United is one of Australia’s biggest petrol retailers. United outlets are notorious for paying their workers below award wages. The company is owned by two Australians, Avi Silver and Eddie Hirsch. Each of them have acquired a fortune of over $1.6 billion from under-paying United workers and overcharging customers. So when you fill up petrol or buy food at a United outlet and wonder why you are paying such high prices, just know that a good chunk of what you are forking out is used to sustain the lavish lifestyle of two Australian billionaires.
Now, I want to speak about Australia’s biggest electricity supplier, AGL. By far the biggest shareholder in AGL is Australia’s third richest person, Mike Cannon-Brookes. Last financial year, this Mike Cannon Brookes company slashed more than 500 jobs, while pushing the remaining workers to toil harder at their jobs to cover the work of those who were retrenched. Through such exploitation of workers, Cannon Brookes has acquired a $28 billion fortune. Five years ago, he bought Australia’s first home that reached a price of $100 million! Last year, Mike Cannon Brookes share of AGL’s $860 million profit was almost enough to buy himself yet another $100 million home! So those of you who are AGL customers, when you fume at how high your next electricity or gas bill is, just know that a big slice of what you pay may well help a high-living Australian billionaire buy yet another $100 million mansion!
And as you continue to pay unaffordable prices for food and other groceries, just know that part of your payment is going to cover the high costs of transport, refrigeration and processing resulting from the rip-off fuel and electricity prices set by the companies owned by Australian billionaires like Mike Cannon Brookes, Avi Silver, Eddie Hirsch, Ivan Glasenberg and Kerry Stokes.
Sisters and brothers, we have put a stop to this! We cannot continue to tolerate unaffordable living costs just to sustain the lavish lifestyle of greedy tycoons. That is why we need to reverse the electricity privatisation that has taken place over the last two decades. That means we need to fight for the confiscation of the power industry from its current, super-rich owners so that it can be transferred back into public hands. The same nationalisation also needs to happen to the oil, gas, coal and renewable energy sectors. This is what is needed to seriously drive down these exorbitant living costs!
However, the ruling class and their media are doing everything possible to stop you coming to this realisation. That is why they want to blame Russia’s intervention in Ukraine for the high cost of living. But the fact is that prices were going up even faster before the war escalated last year. It is not the war or Russia’s actions that is causing high energy prices – it is because of the sanctions imposed by Western regimes against Russia and we must not be supporting these sanctions. The Australian, American, British and other Western regimes are waging a proxy war against Russia because they want to ensure that the tycoons that they serve maintain their exclusive right to exploit most of the world. It is true that Russia is also ruled by a greedy capitalist class just like here. But because Russia is economically weaker, it is not Russian capitalists that dominate most of the world but rather the American, British, Australian, Japanese and other Western capitalists. For example, resource-rich Papua New Guinea’s entire oil production is owned by Australian corporations! So it will be good for the world’s masses and good for the working-class people of Australia if the greedy ruling class that exploits us and rips us off suffers a blow by having their proxy war against Russia defeated. So we should oppose these sanctions on Russia – sanctions that are helping to drive up our living costs. We shouldn’t have to endure higher prices for the sake of the global ambitions of the capitalists that are ripping us off!
Yet, even these sanctions have not, by themselves, caused the steep price rises. Energy prices have surged because the greedy owners of the Australian fuel industry have chosen to massively increase prices here to match the increased world price. Just because world prices have increased doesn’t mean that we have to cop these increases here. After all it is here where many of these resources actually come from – produced by our labour. And the governments and pro-capitalist political parties have chosen to allow these tycoons to get away with this. The right-wing Liberal Party openly opposes any measures to curb power and fuel prices. The Labor Party, because it has a working-class base wants to look like it is trying to bring down living costs. But because it is so very committed to avoid angering the big end of town, the ALP takes only very weak measures. The price limit for gas that the Albanese government has implemented is nearly three times what the gas price was two and a half years ago! No wonder it has been announced that our electricity prices will go up in July by even more than they went up last year.
So we cannot rely on any of the current parliamentary parties to do what is needed to bring down unaffordable prices. That is why we need to build a campaign of mass actions, including protests, occupations and workers industrial action to demand the transfer of the fuel and power industries into public hands. That is why we in Trotskyist Platform decided to initiate today’s action to begin the building of this much needed movement. Sisters and brothers, if we look at the mass strikes in Britain against falling real wages and the militant protests in France against the government raising the age of eligibility for the pension, this gives us a small taste of what is needed here.
At the same time, we must understand that the rip off prices that we’re all paying for fuel, electricity and groceries is just a symptom of a much bigger disease. And that disease, is this decaying capitalist system that is only surviving by driving down real wages and forcing workers into ever more precarious forms of employment. So as well as demanding the transfer of the energy and power sectors into public ownership we need to fight for big wage rises, for the conversion of all gig and casual jobs into permanent secure positions and for a massive increase in low-rent public housing. To wage such struggles we need to build unity amongst all of the working class.
That means we must positively mobilise to oppose state violence against Aboriginal peoples, win the rights of citizenship for all guest workers, refugees and international students and defeat all far-right racist attacks on people of Asian, African and Middle Eastern backgrounds, stand with and support all women’s rights activists and the LGBTQIA+ community.
Now, working-class people do need a party, But not one like the ALP that accommodates the capitalists and runs their capitalists’ state for them. What we need is a workers party built to organise our intransigent and steadfast resistance against the exploiting class.
Sisters and brothers, nationalising the energy and power sectors will be an important step to driving down unaffordable prices. But it will be only be just a step because currently the state machinery itself is under the control of the big end of town. We will need to assert people’s inspection and supervision of any publicly owned fuel and power industries. These sectors and indeed the whole economy can only truly be made to work for us when we the working class take control of the state itself.
Now the apologists for the ruling class tell us that such talk of workers rule and public ownership is outdated and impractical. There is however a huge hole in their argument. For in the world’s most populous country, the Peoples Republic of China not only are the fuel and energy industries dominated by public ownership so are all the other key sectors including the banks, shipping, steel, ports, car manufacturing, airlines and telecommunications. To see how this works, lets look at state-owned China National Petroluem Company. This giant has a monopoly on China’s oil and gas production. Yet because it is directed as a public necessity to keep down prices, the profits of this Chinese state-owned giant is only just over 4% of its total sales. By contrast, Kerry Stokes oil and gas company here in Australia, Beach Energy has profits that are nearly 30% of its sales. That is why we are suffering an inflation rate of nearly 7%, while in China, through their public ownership of key sectors, they have kept inflation to just 1%. And while workers real wages here are markedly lower than they were 11 years ago, in China, workers real wages have more than doubled in the same period. Yet China’s socialistic system centred on public ownership is precisely what makes the capitalist rulers of the U.S. and Australia so hostile to her.
For they fear that China’s successes in uplifting her people out of extreme poverty will make the masses in their own countries also demand a system based on public ownership. But demanding public ownership is exactly what we need the masses here to fight for! So we should support, applaud and want the great example of socialistic China to continue in its success. That is why it is in the clear interests of the working-class of Australia and the world to oppose all the attacks on socialistic rule in China – whether that be the war-mongering AUKUS submarine project or the lying propaganda that China is persecuting Uyghurs and people in Hong Kong.
Sisters and brothers, we do not need to accept a system based on ownership of industry by filthy rich tycoons who exploit workers labour and charge us unaffordable prices. Let’s stop the ever growing slide into poverty for low-paid workers in Australia! Let’s fight for the confiscation of the coal, oil, gas and power companies and their prompt transfer into public ownership! Let’s build a spirited movement to fight for this. Let’s build on today’s action!
Photo Above: Exorbitant petrol prices on 8 January 2023 in South Australia’s Kingscote. Surging fuel prices have driven up the costs of distributing food and other goods, helping to drive up all-round living costs. Photo: Cheap Fuel Adelaide Facebook page
SICK OF PAYING HIGH FUEL, POWER & FOOD PRICES FOR THE SAKE OF BILLIONAIRES’ FAT PROFITS?
CONFISCATE THE OIL, GAS, COAL & POWER CORPORATIONS AND TRANSFER THEM INTO PUBLIC OWNERSHIP!
30 December 2022: Everything is costing us more. Last year, one in six adults in Australia were unable to afford enough food to eat. Since then the inflation rate has surged to 7%. We are now paying 10% more for fruits and vegetables than we were just a year ago. Workers’ wages are nowhere near keeping up. Younger workers are especially doing it tough. Interest rate rises have hit those with mortgages left to pay off. And soaring rents mean that renters are suffering by far the most.
A major reason for rising prices is the surging cost of oil, gas and coal. This not only increases our transport and heating costs but has caused electricity prices to rise by one-fifth this year. This has in turn boosted the cost of both refrigeration and factory operation, which has pushed up the prices of both fresh and processed food. Meanwhile, the higher fuel costs for shipping, rail, truck, air and forklifts have driven up the distribution costs of food and other goods. The government and media blame all this on Russia. However, even before Russia’s intervention in Ukraine, inflation in all the capitalist countries was too high. This was because Western regimes had unleashed a flood of cheap credit and budget deficits to keep their flawed economies afloat following first, the late noughties recession and then, the pandemic. In Britain, inflation was more than 6% even before the war in Ukraine intensified. The war’s February 24 escalation did lead to a fuel price surge. However, this was not because of Russia but because of the economic sanctions that the regimes running the U.S., most of Europe and Australia imposed on Russia. Once again, our living standards are being sacrificed for the sake of the billionaire oligarchs that dominate Australia. In this case, they want to help the U.S.-led Western imperialist syndicate that they are part of to maintain its plundering domination of the world by ensuring that Russia – which is itself a capitalist country but independent of the Western bloc – cannot become powerful enough to challenge their stranglehold over markets and resources in Eastern Europe and western Asia. They want to shove Russia down to a humiliated condition.
Yet, even these sanctions have not, by themselves, caused the steep price rises. After all, Australia is a big energy exporter. Energy prices have only surged because the greedy bosses of Australian fuel resource giants have chosen to jack up prices to benefit from the higher world prices resulting from Western sanctions. The Albanese government has responded by putting a cap on wholesale gas and coal prices. However, these measures are so weak that the price limit for gas is nearly three times what the gas price was two and a half years ago! As a result, power prices are forecast to rise even more next year than they did this year! Furthermore, although the fuel sector bigwigs and their Liberal Party mates are completely cynical when they oppose even the half-baked price cap on the grounds that it will reduce fuel supply, it is nevertheless true that as long as profit-obsessed shareholders own this sector, they will manipulate markets to try and get their way.
The only way to ensure cheap and reliable fuel – and thus to also keep food and power costs down – is to rip the coal and gas companies from their super-rich owners and transfer them into public ownership. We must also address the petrol sector. Although the majority of Australia’s petrol is imported, the obscene prices charged for domestically produced LPG and oil – which amount to one-third of total domestic consumption – add to fuel prices. So does the cut taken by domestic refiners and retailers. Even though they have been hit by higher fuel costs, they have lifted their sales prices so much that they are grabbing even larger profits all at our expense! In this way, Australia’s biggest fuel distributor, Ampol, which also owns one of this country’s two refineries, more than doubled its already huge profits. Seizing on our expectations of higher fuel prices, Ampol’s refinery, alone, drastically lifted the mark up on their petrol price, in excess of all expenses, from less than two cents per litre in the first half of 2021 to 15 cents per litre a year later. The power sector, which state Liberal and ALP governments have largely privatised, is doing the same. Thus, even with rising fuel costs and even as it cruelly cut more than 500 jobs, Australia’s biggest electricity supplier, AGL, announced that it is expecting its underlying profit to rise this financial year. That is why we must fight to also nationalise the electricity generation and retail sectors as well as the oil extraction, refining and retail sectors. If the entire fuel and power sectors were brought into public hands it would also make it easier to enforce a rapid transition from fossil fuels to renewables and, most crucially, a transition without any job losses or wage cuts and with fully paid retraining of workers currently employed in fossil fuel industries. Most importantly, state ownership of these sectors could make it easier for Aboriginal rights activists to exert political pressure to block those projects that trample on Aboriginal community wishes, while ensuring that acceptable projects do not damage Aboriginal sacred sites and adequately transfer project revenues to local black communities.
A BIG BOUNTY FOR BILLIONAIRES
There is some overseas ownership of Australia’s fuel and power sectors. A major gas producer here is American giant, Chevron, in which the world’s sixth richest person, Warren Buffett, has a $A7.2 billion stake. Also, players in the local oil and gas industry are American behemoths Exxon-Mobil and ConocoPhillips and British giants, BP and Shell. However, it is locally-owned Woodside that is Australia’s largest oil and gas producer. The biggest fuel retailer, Ampol, is also Australian owned. The fact is that it is mostly local capitalists that are making obscene profits from this country’s energy resources and fleecing consumers and exploiting workers in the process! It is many of these same ultra-rich bigwigs that are also plundering the natural wealth of PNG and East Timor. Australia’s power sector is also mostly owned by local exploiters. Thus, the biggest generators and electricity (and gas) retailers here are Australian-owned AGL and Origin Energy.
Apologists for capitalism tell us that such companies are owned by middle-class “mums and dads” and super funds. However, the truth is that these types of investors account for only a small minority of the overall ownership of the corporations. Take this country’s biggest coal miner, Australian-owned BHP. The middle-class “mums and dads” that each have shareholdings of a value that’s less than $231,000 own just 10% of the company while the top 0.2% of shareholders own more than 80%. In most of these companies, the ultra-rich main shareholders use bank nominees as intermediaries to hide their identities. Nevertheless, one is able to identify some of the tycoons that dominate these industries. Take, for instance, Australia’s biggest onshore oil producer, Beach Energy. Its largest stake is held by Seven Holdings, a conglomerate owning Channel 7 TV, Boral and other firms that is owned by powerful Australian oligarch, Kerry Stokes. Meanwhile, the biggest individual shareholder in Australia’s largest thermal coal miner, Swiss-based Glencore, is its Australian former CEO, Ivan Glasenberg. Despite Glencore recently admitting that when Glasenberg was CEO its agents had paid millions to bribe officials in several African countries, Glasenberg’s wealth has skyrocketed by 65% to $12.5 billion over the last year due to Glencore jacking up its coal sale price. Portraying himself as different to Glasenberg and as a climate warrior is AGL’s controlling shareholder, Mike Cannon-Brookes. But at bottom, Australia’s third richest person is just your usual greedy tycoon, one known for buying up extravagant properties. AGL workers angry that they are being made to work harder and more dangerously due to the company’s job slashing and AGL customers livid at their ever-rising utility bills should know that Cannon-Brookes’ share of AGL’s 2022 profit that their labour and payments are contributing to is almost enough for him to buy another $100 million mansion like the Sydney one that he bought in 2018! Similarly, Kerry Stokes’ slice of Beach Energy’s 2022 profit, which he received part of through dividends and will get the rest whenever he sells his shares of the company’s profit-boosted equity, is more than three-quarters of what he needs to get himself another $110 million private jet! Think about that the next time you wonder why you are paying such steep prices when you fill up petrol or are angry why transport and food prices are so high!
BUILD A MASS WORKING CLASS-CENTRED CAMPAIGN
Especially given that the fuel and power industries are dominated by powerful tycoons, the ruling class will fervently resist any demands to bring these sectors into public ownership. Look at what happened in 2010 when the then Rudd Labor government attempted to introduce a much more modest measure – a tax on mining super profits. The mining magnates – led by Gina Rinehart and Andrew Forrest – responded by using their huge wealth to unleash a massive media advertising campaign against the tax, their mates in the Murdoch media denounced the tax and “sophisticated” critiques of the tax were churned out by the “independent” think tanks that these capitalists fund (like the right-wing Institute of Public Affairs that has received huge funding from Gina Rinehart and BHP). As a result, Rudd’s approval ratings plunged and his spooked Labor colleagues (showing typical Laborite cowardice) dumped him as prime minister. The Gillard government that followed immediately diluted the tax plan. Indeed, they watered it down so much that it barely collected any tax at all! When Rudd regained the prime ministership in 2013 he had learned his lesson… from a capitulating social-democratic point of view, that is. He did not try to bring back the originally proposed tax and, instead, put forward an agenda even more servile to the capitalist bigwigs than that of the ousted Gillard. That is why we need a new program to lead our workers movement: one that does not limit our demands to what is tolerable to the capitalists, as the ALP does, but instead fights to mobilise struggle against the capitalists to win what the masses actually need. That means building a campaign of mass actions – including union industrial action, rallies and blockades – to win the nationalisation of the fuel, resource and power industries.
Sadly, the global trend is currently towards privatisation. Pro-capitalist economists, academics and journalists have been able to sell us the lie that “public ownership doesn’t work.” However, their argument has a huge hole in it: the world’s most populous country, the Peoples Republic of China (PRC) runs on a system dominated by public ownership and has been delivering its workers the world’s fastest growing real wages. In the PRC, not only are its fuel and power sectors under the collective ownership of her people, so are most of her other key sectors. That is why while the capitalist world is today buffeted by runaway inflation, inflation is just 1.6% in China. Moreover, even if a PRC state-owned enterprise makes excess profits, the income goes back into the public budget to be used for anti-poverty, public housing and renewable energy projects. Although China’s transition to socialism is incomplete and somewhat deformed, the fact that her system is based on socialist public ownership is why capitalist regimes want to denigrate the PRC. For they know that such a system favours workers at the expense of their capitalist class and they fear that if their own masses see the PRC’s successes, they will want socialism too. It took a revolution by China’s toiling classes in 1949 to establish her public ownership-based system. Although militant struggle could force the regime here to nationalise the fuel and power sectors, to secure a system of common ownership of all key sectors will take our own socialist revolution. Demanding the confiscation of the fuel and power sectors advances the struggle for socialism by showing the need for collective ownership. In campaigning for this measure, we will be fighting for what we need right now to stop the rapid erosion of our living standards. So, let’s fight for the confiscation of the coal, oil, gas and power companies and their prompt transfer into public ownership! And let’s also oppose the sanctions on Russia – we don’t want to wear higher prices for the sake of the global ambitions of the capitalists that are ripping us off!
Above photo: Lebanese cucumbers selling for all most $12 a kilogram at a Woolworths supermarket in an Inner West Sydney suburb on 22 July 2022. Food prices in Australia and other capitalist countries have been surging, while wage increases have been small. Photo credit: Trotskyist Platform
REVERSE THE PLUNGE IN WORKING CLASS PEOPLE’S LIVING STANDARDS!
FIGHT FOR HUGE WAGE RISES, THE RIGHTS OF PERMANENCY FOR GIG WORKERS, A BIG INCREASE IN THE DOLE AND A MASSIVE INCREASE IN LOW-RENT PUBLIC HOUSING!
IMMEDIATELY PUT THE GREEDY OIL, GAS AND POWER FIRMS UNDER PUBLIC CONTROL!
15 July 2022: Food prices are surging. The price of lettuce has more than doubled over the last year. Beef is 12% dearer. And then there are the skyrocketing electricity and fuel costs. Yet while everything is getting more expensive, wages have barely risen. That means that even while the rich business owners extract ever more exorbitant profits from their workers’ labour, workers’ living standards are plummeting. It is of zero comfort to Australia’s working class masses that bankers, corporate bosses, politicians and media “experts” celebrate that the economy is undergoing a “strong expansion” when their own lives are getting ever harder.
Prime minister Albanese stated that it was “absolutely welcome” that the “Fair Work Commission” (FWC) recently set the annual increase in the minimum wage at 5.2%, basically matching the official inflation rate. It is true that unlike the former government, which refused to back a pay rise, the ALP government did call for a minimum wage rise that matched official inflation. Yet not only does the 5.2% increase not make up for the fact that this minimum wage had not kept pace with inflation in the preceding period, it will not match price increases in the coming period, which even the Reserve Bank has conceded will reach 7%. Moreover, as FWC president Iain Ross admitted, the prices of non-discretionary items like food are rising much faster than official inflation, especially hurting those on low incomes. Most low-paid workers are renters and Australia’s rents soared by 9.5% over the last year. Therefore, the actual cost increases endured by low-income workers are closer to 10% and rising fast. In other words, last month’s FWC ruling cheered by Albanese actually means a sizable cut to the real income of minimum wage workers. And other workers will suffer an even bigger cut. The FWC only gave award workers a 4.6% increase – less than even official inflation. Meanwhile, public sector workers are being hit still harder. The right wing NSW government has restricted public sector wage rises to just 3%. Gig workers are suffering the biggest cut in real income. Especially for food delivery workers and taxi and Uber drivers, surging petrol costs are ripping away their net incomes.
WHAT IS CAUSING WORKERS’ LIVING STANDARDS TO PLUNGE AND HOW CAN THIS BE REVERSED?
Australia is not alone in having soaring living costs. This is happening throughout the capitalist world. A poll found that one in six Germans are now skipping meals to get by! In the U.S. the annual inflation rate is 9.1%. Moreover, the crisis extends to the poorer countries. In India, inflation is over 7%, in Brazil it is nearly 12%. In Turkey, the inflation rate is nearly 80%!
So what is causing this crisis? When capitalist countries plunged into the late noughties’ Great Recession, governments found that they could only make their economies recover through flooding them with cheap credit and debt-financed spending. Even after that crisis waned, capitalist economies were so fragile that governments were never able to take their economies fully off of these life-supports. Then after COVID hit, capitalist governments dialled up the intensity of such pump priming “solutions”. The problem is that in the capitalist system, where the economy is in the hands of profit-driven bosses, excess money supply leads the corporate bigwigs to drive up prices. To ensure that the resulting increased revenue flows into their own pockets and not that of their workers, business owners avoid increasing wages knowing full well that soaring prices means that they are effectively slashing their workers’ pay. As a result, workers’ real wages in Australia are now 8% lower than they were six years ago!
This increasing exploitation has been going on under Liberal, Labor and Labor/Greens governments alike. Australian Bureau of Statistics (ABS) data show that bosses are now exploiting their workers 22% more than they were 36 years ago. As a result, ABS figures show that for every $100,000 of value added by workers – that is after all material, property and interest costs have been paid – at a capitalist business (one using hired labour) about $50,000 is gouged by the business owners as profit and only $50,000 is given back in wages! And given that the ABS classifies the fat salaries of CEOs and managers as “wages and salaries”, the reality is that, on average, workers in Australia are now receiving back as wages far less than half of the fruits of their own labour.
Therefore, the measures needed to defend workers’ living standards must be based on drastically increasing the share of the fruits of workers’ labour going back to workers at the expense of the amount that is leached away by the capitalists as profits. For starters that means that the workers movement must fight for huge wage increases. We must also specially defend the most precariously employed workers by demanding guaranteed wages, holiday pay and all the other rights of permanency for all those currently employed on a casual or gig basis. To make it easier to unleash the trade union industrial action needed to win such gains, we must demand the abolishing of all anti-strike laws and all laws restricting union access to workplaces.
Whenever workers demand improvements in their wages, the capitalists scream that this will cause job losses. But such job cuts will only occur if we let these exploiters carry out retrenchments and if we let them retain as few workers as is necessary to maximise their profits. Instead of doing that, we must force the capitalist bosses to hire more workers than they want to at the expense of their profits.We must demand a ban on job cuts by all profitable firms and must demand that all companies making a profit be required to increase their number of full-time, permanent employees by at least twenty-five workers for every one million dollars of quarterly profit.
The already most poverty stricken people are being hardest hit today. Due to entrenched gender inequality, sectors where women workers predominate have especially low wages. It is crucial that the workers movement as a whole demands equal pay for equal work for women workers. Meanwhile, unemployed workers are having to make do with cruelly low social security payments. This is not only driving unemployed workers into extreme poverty but has made the prospect of losing one’s job so scary that it is helping bosses to intimidate some employed workers into avoiding joining workers’ rights struggles. That is why it is especially important to fight for a doubling of the Jobseeker payment. Surging prices also mean that, even though old-age pensioners receive higher payments than unemployed workers, many working class pensioners are facing homelessness. The current system where a meagre pension is combined with individual superannuation carries into old age the inequality that workers faced when at working age. CEOs receive huge superannuation while low-paid workers receive little and gig workers and the unemployed nothing at all. Our unions must demand that the current superannuation system be replaced with one where bosses pay super into a common fund that will be used to help equally pay all a pension equal to the minimum wage.
MASSIVELY INCREASE LOW-RENT PUBLIC HOUSING!
What is making plunging living standards especially unbearable for many working class people is the lack of affordable rental accommodation. Even in the lower income, Western Sydney suburb of Auburn, the median weekly rent for two bedroom units available for lease is right now $435. That’s well over half the minimum wage! And given that so many are working in casual jobs where they receive far less than the minimum full-time wage, it is clear why so many people are only able to pay rent by skipping meals and avoiding using the heater right now at the height of winter. Moreover, there are very few affordable properties available to lease. So people struggling with rising costs are not even able to move into rougher but cheaper dwellings to get by.
The capitalist “free market” is failing to make available enough affordable accommodation – providing such housing is simply not profitable enough for wealthy investors and real estate speculators. What is therefore needed is much more low-rent public housing. Instead, Liberal, Labor and Labor/Greens federal and state governments have overseen a big public housing sell-off over the last few decades. Some of that involves governments handing over public housing to private operators and passing off the resulting “community housing” as also being part of “social housing.” However, the private operators of such “community housing” are notorious for skimping on repairs and skewing their allocations towards higher-rent paying tenants at the expense of the most hard-up. Thus, the proportion of tenants paying more than a quarter of their income in rent is almost eight times as high in “community housing” as it is in public housing.
Even over the last five years, governments have eroded public housing to the extent that the proportion of Australian dwellings that are public housing has been slashed by a further 10%. Today, just one out of every 34 dwellings in Australia belongs to public housing of some form. Yet governments are still continuing on the same course. Let’s stop all sell-offs – let’s fight for a massive increase in public housing instead! And for all public housing properties to be properly repaired! Let’s stop governments from driving tenants out of public housing by allowing properties to become so neglected that they become unfit for habitation!
FOR A NEW, CLASS STRUGGLE AGENDA TO LEAD THE WORKERS MOVEMENT
Many working class people hoped that with the despised Morrison government finally gone, their needs would be addressed. However, the new ALP government also has no commitment to the measures needed to reverse the decline in working class people’s living standards. This was clear even before the elections. To reassure the big end of town that it would not be taking decisive moves to redistribute income from the rich to the poor, the ALP announced that it would ape the conservatives in refusing to lift dole payments. They also made clear that they would not abolish anti-strike laws. That is little surprise. Nearly all these laws had been accepted by previous ALP governments and a few of the rules – such as the Keating government’s 1993 measure restricting strike action to limited bargaining periods – were actually first brought in by Labor. Meanwhile, the ALP’s housing affordability plan will not increase public housing but rather promises funds for just a modest increase in privately-operated “community housing”.
To be sure, ALP leaders would like to improve the lives of their working class base. However, the ALP social democrats are unwilling to seriously challenge the power of the capitalist bigwigs who use their enormous wealth and ownership of the media and economy to thoroughly dominate political life and state institutions. Given their acquiescence to these oligarchs and given that the interests of these capitalists and those of its working class base are counterposed, the Labor Party always ends up betraying its base. Meanwhile, although more progressive on social questions, the Greens too accept the domination of the capitalists. For unlike even the ALP, whose ranks are largely workers, the Greens include significant numbers of actual capitalist exploiters in their ranks and is politically dominated by upper-middle class elements loyal to capitalism.
This means that plunging workers’ living standards are not going to be reversed by the agenda of either the new government or by any of the parties currently in parliament. The way that working class people can advance their interests is through mass action, especially through strikes and other class struggle action by our trade unions. It is through such struggle that working class people have won whatever rights they still have today. In recent months, there have been strikes by NSW train and bus drivers, nurses and teachers that give a small taste of the kind of struggle needed. However, the current pro-ALP union leaders see such actions as supplementary to their main strategy of herding workers into supporting the election and maintaining of Labor governments that they hope will uphold workers’ interests. As we have outlined, this is a losing strategy.
Therefore, we need a new agenda to guide our workers movement. One that rather than seeking collaboration with the capitalist class by limiting demands to what is tolerable to them, will mobilise the working class in an all out struggle against the capitalist exploiters to fight for what the masses actually need. That means not only unleashing struggles for secure jobs for all and big pay rises but also demanding free provision of the social services most needed by the masses. Despite ruling class politicians constantly congratulating themselves about the existence of Medicare, truly free healthcare does not exist in Australia. Currently, the out-of-pocket expenses that a sick person has to cover for specialist fees above what Medicare reimburses can be debilitating. And as governments increasingly underfund the health system, these out-of-pocket expenses are growing. Meanwhile, the lack of Medicare coverage of dental expenses means that large chunks of the working class simply avoid going to the dentist until their teeth deteriorate to the point of an emergency. Similarly, many are foregoing needed specialist visits. This is all the more damaging because COVID in 2022 has been killing people in Australia at the highest rate during this pandemic and hundreds of thousands are suffering Long Covid. Moreover, the inequality of healthcare is so large that those who cannot afford private insurance must wait long periods to receive treatment for debilitating conditions. For example, the current median wait time for a public patient who needs knee replacement surgery to enable them to walk properly again is around eight months!
That is why we must demand truly free health care – that means that Medicare should fully cover all specialist visits, all surgeries, all essential medicine and all dental care and that there should be no long waiting times. Similarly, we need to fight for free education, which means no fees and no HECS debt for TAFE and university. We must also demand free, 24-hour childcare. This is not only a crucial cost of living measure but would help enable women’s full participation in economic life. That in turn is vital for advancing women’s economic independence, without which many women being battered by violent, or otherwise abusive, partners could be coerced by financial necessities into remaining with such abusers.
SANCTIONS ON RUSSIA DRIVE UP FUEL PRICES – WESTERN POWERS’ ANTI-RUSSIA PROXY WAR HARMS THE MASSES’ LIVING STANDARDS
A major reason for the cost of living crisis are the surging fuel prices. These prices are being driven up by the sanctions imposed on Russia by Washington, Canberra and other U.S. allies that back Ukraine in its war with Russia. We must oppose these sanctions! This is necessary not only to protect our living standards. For the Ukraine war has become a proxy war of the Western imperial powers to unjustly drive their would-be Russian rival down to the subordinate condition that she had been in during the first fifteen years after her devastating 1991-92 capitalist counterrevolution. Australian governments have sent Ukraine’s authoritarian regime hundreds of millions of dollars of military equipment, including howitzers (long-range artillery) and dozens of armoured vehicles, to add to the billions of dollars of increasingly heavy and sophisticated weapons sent to Kiev by Washington and its European allies, including anti-aircraft batteries, advanced long-range anti-ship missiles, drones, tanks and advanced HIMARS multiple-launch guided rocket systems. Although Russia is also ruled by an ambitious capitalist class, her lack of economic strength means that it is the U.S, British, Australian, German, Japanese and other Western ruling classes and not, for the most part, the Russian one that are superexploiting and often simply steamrolling through brutal military power (as they did in Iraq, Afghanistan, Libya and Somalia) the peoples of Asia, the Pacific, Africa and Latin America. That is why if the Western proxy war on Russia is defeated it would be great for the peoples subjugated by imperialism. Such a serious setback to the authority of Australia’s capitalist rulers can only strengthen the ability to resist them. So we must demand: No military aid to Ukraine! Lift the sanctions on Russia!
However, the sanctions on Russia are not the only cause of soaring fuel and energy prices. Although the majority of Australia’s petroleum is imported, Australian corporate oil producers contribute to the high pump prices by selling fuel at the obscenely high world price. This is quadruply so with gas, which Australia is a major exporter of. Greedy Australian energy giants are selling gas at such a high price that it is not only sending residential heating costs through the roof but is driving up manufacturing and electricity prices that are flowing through the rest of the economy as well as pushing up home electricity bills. Meanwhile, power cuts have been threatened because profit-driven generator companies are trying to avoid selling electricity at the capped price when their fuel costs are so high. That is why all oil, gas and electricity corporations must be immediately placed under strict public control. Fuel and power costs must be driven down at the expense of the profits of energy corporations!
BRING THE ECONOMY INTO PUBLIC OWNERSHIP UNDER WORKERS RULE
The bulk of Australia’s energy sector is owned by super-rich, Australian shareholders. Among them is Mike Cannon-Brookes who owns the largest stake in electricity and gas giant AGL. Australia’s third richest tycoon with a $28 billion fortune, Cannon-Brookes is known for his obscenely extravagant lifestyle. Four years ago, he paid the highest amount ever for a house when he bought a Sydney estate for $100 million! The fact that we need to take control of energy industries away from the hands of such people inevitably poses the question: why should these filthy rich capitalists be owning such key sectors at all? We should fight to confiscate the oil, gas and power sectors from their big shareholders and place them into public ownership. Similarly, we need to bring all the key social service sectors into public ownership. Part of why we are being hit with such high out of pocket health costs is that so much of the Medicare budget goes into the pockets of the rich tycoons owning private hospitals, pathology and radiology services and pharmacies – like Sonic Healthcare big shareholder, Michael Boyd, and billionaire Chemist Warehouse owners, Jack Gance and Mario Verrocchi. As a result, the service outcomes produced by each dollar of public money that’s spent is severely truncated. The same applies to childcare, where government subsidies end up feeding the profits of the companies that operate the sector. In public housing too, a good part of the budget ends up in the bank accounts of the owners of construction firms and maintenance contractors – including corporate giants like Downer and Ventia. So let us struggle to ensure that all parts of the operation of healthcare, education, public housing, childcare and aged care are brought into public ownership.
To ensure that all these social services are provided for free, more public funds do need to be allocated to them. But where will the money come from ask neoliberal apologists. It will come from confiscating the most profitable sectors of the economy from the capitalists, starting with the mining industry. Mining profits are so huge that the wealth of just the five richest of Australia’s mining billionaires increased by a staggering $19 billion in just the last year – more than three and a half times what all governments spent on public housing! However, to bring the mining, energy and social service sectors into public ownership requires taking on the tyranny of the oligarchs that own these sectors – oligarchs like Cannon-Brookes, Gina Rinehart and Andrew Forrest – who leverage their enormous wealth to keep state institutions under their control and who disproportionately fund political advertising, political parties, think tanks and lobbyists. Therefore, to bring substantial sectors into the collective hands of the people requires the working class to sweep away the whole capitalist-dominated bureaucratic and political machinery and to construct a new workers state. Based on democratically elected working class people’s councils, such a state would bring all significant parts of the economy into the people’s common, that is socialist, ownership and thereby enable the building of a society that would guarantee secure jobs, improving living standards and free quality social services for all. In doing so it would lay the economic basis for dissipating the inequality faced by women and minorities.
We have living proof that such a socialist system indeed works. For in the world’s most populous country, the Peoples Republic of China (PRC), socialistic rule has ensured that she is the one large country whose masses have not been hit by rising food prices. Although China’s transition to socialism is incomplete and deformed and threatened by intense hostile capitalist pressure, the fact that all her major oil and gas, power, food processing and warehousing, shipping, banking and stevedoring firms are under public ownership has enabled her to not only have an inflation rate of just 2.5% but to have actually falling food prices. And even while ensuring that her people have a COVID death rate per person that is 112 times less than Australia’s, the PRC’s socialistic system has ensured that, unlike here, her workers’ real wages have continued to rise during the pandemic. Indeed, for the last 15 years, the PRC has been enjoying the world’s fastest growing real wages. She has ensured that the proportion of her population suffering homelessness is much lower than in Australia through giving her people eight times greater access to public housing than we who live here in Australia. By curbing capitalist pre-school and tuition firms and replacing them with public and non-for profit childcare and children’s leisure activity services, the PRC has reduced her masses’ financial costs of raising children.
Yet, these achievements of socialistic rule and the fact that China continues to gradually lift herself up from the terrible poverty of her pre-1949 capitalist times is what terrifies the world’s capitalist powers. For not only are they enraged that the PRC’s cooperation with developing countries is impeding their economic rape of these countries, the capitalist powers fear that the PRC’s course will eventually incite their own working classes to demand that their economies also be brought under social ownership. Yet that is precisely why the working class in Australia and the other capitalist countries must stand with socialistic China. Let’s advance the struggle for working class ownership of the economy here by defending the existence of such a system in the world’s most populous country! Let’s oppose the U.S./Australia military build up against socialistic China! No to the lying “human rights” propaganda attacks on the PRC over Uyghurs, Tibet and Hong Kong!
If we can protect the PRC’s advance on the socialist course set by her 1949 toiling people’s revolution and if we can popularise knowledge of the benefits provided by her socialistic system, even in the partial form that it exists in, we can promote the need for a system based on public ownership in this country. The plunging living standards, unaffordable housing and lack of economic security of the capitalist system is pushing the masses to seek anti-capitalist solutions. However, in response, capitalist ruling classes are spreading racism to divide and divert the masses that they exploit. That is why racist far right forces have been growing in the U.S., Germany, India and here. To build the inter-racial unity necessary to fight the powerful capitalists, we must consciously oppose racist influence by mobilising the working class in defence of targeted ethnic groups. For union action to support Aboriginal people’s struggle against racist state terror and all-sided oppression! For workers’ struggle to demand the rights of citizenship for all guest workers, international students and asylum seekers! Bring the long-suffering Nauru refugees here! For united mass action of our workers movement and people of colour communities to crush violent white supremacist forces! Let’s also reject those who say that we can protect living standards by favouring Australian businesses over their overseas rivals. Such agendas only set local workers against their worker sisters and brothers overseas while obscuring workers from the truth that they can only defend their conditions by struggling against the local bosses that exploit them. Let’s understand that the main call of Karl Marx’s Communist Manifesto, “Workers of All Countries Unite”, remains as crucial today as it was when the Manifesto was first issued.
Another famous line of our Manifesto – that “the spectre of communism” is haunting the capitalist world – also rings loud today. The escalating economic crisis in the capitalist world, the social decay of capitalist societies, the capitalist powers’ horror at the successes of socialistic rule in China and the terrifying extent to which the imperialist regimes are willing to risk World War III by waging a proxy war on fellow capitalist Russia in good part because they want to weaken her ability to obstruct their war plans against Russia’s socialistic Chinese, friendly neighbour proves this. The Communist Manifesto’s main agenda is to replace the rule of the capitalist class with the rule of the working class. We have made good progress in this task in countries that make up one in five of the world’s people. But we have much work to do! We need to speed up the completion of the Manifesto’s tasks because it is increasingly clear that decaying capitalism not only threatens the masses’ living standards but humanity’s very existence.
The Communist Manifesto made clear that the seizure of political power by the working class is preceded by a period of “more or less veiled civil war, raging within existing society” where the working class “now and then” are victorious in defending their living standards against the capitalists but the “the real fruit of their battles lies, not in the immediate result, but in the ever expanding union of the workers”. To build the unity, strength, self-confidence, organisation and political awareness that’s needed so we can advance towards the working class rule that we so badly need, we must, right now, mobilise militant class struggle to fight for huge wage rises, the rights of permanency for gig workers, a massive increase in low-rent public housing and the nationalisation of the oil and gas, power and social service sectors. Let’s build a party to spearhead the fight for this Communist Manifesto agenda! As Marx and Engels pronounced at the end of their famous tract: Let the ruling classes tremble at a communistic revolution. The proletarians have nothing to lose but their chains. They have a world to win.
Photo Above: Sydney, 2 April 2022 – Demonstrators march to demand that the measures China is using to beat poverty be applied here. Photo Credit: Demi Huang/New Impressions Media
Rally Opposes Privatisation and Exploitation in Australia, Demands that the Measures China is using to Beat Poverty Be Applied Here
5 April 2022: Last Saturday, supporters of workers rights from a broad range of racial backgrounds came together in spirited protest against privatisation and the growing exploitation of working class people in Australia. To inspire the struggle to win anti-poverty measures here in Australia, the Sydney rally highlighted the anti-capitalist and other pro-worker measures being taken right now in the Peoples Republic of China (PRC). At its height, the April 2 protest was some 70 strong, although one of the community media sites reporting on the protest puts its size at “nearly one hundred.”
The united-front protest began with the rally emcee, Yuri Gromov, who is also the editor of Trotskyist Platform’s journal, The Spark, introducing the purpose of the action:
“While the business owners who make their money from exploiting workers’ labour are getting richer and richer, the poor are getting poorer. Prices are soaring but workers’ wages have barely risen. The living standards of low paid workers has been falling.
“Bosses are driving more and more workers into casual and gig jobs with no job security. A huge number of workers do not know how many hours of work they will get from week to week. Having so little job security, it’s easy for capitalist bosses to force us into accepting terrible working conditions. In the food delivery sector, many drivers and riders are doing deliveries all day and not even making the minimum wage.
“Australian governments of all stripes are carrying out policies that are making life harder for working class people. They have been selling off public housing like crazy. Much of the public sector has now been privatised and this always leads to job losses, attacks on workers’ conditions and higher prices for consumers. Federally, the Morrison government is now set on privatising the NBN. Here in NSW the state government continues its surreptitious, gradual privatisation of bus and rail services.
“We are here today to push back against all this. We demand a guaranteed minimum wage for all food delivery and other gig workers. We demand that the sell-off of public housing stop now and that instead there be a massive increase in public housing. We demand an end to all privatisation. Instead of privatisation we call for the nationalisation of the banks. That is the way to ensure that credit is allocated to areas of public need like poverty alleviation projects rather than a crazy huge amount of money being siphoned off as bank loans to housing speculators, a truly horrendous waste of funds which is only pushing house prices up and up and making life harder for working class families struggling to keep up their rent and mortgage payments alike.
“…Today, we want to highlight something positive that can inspire our fight against poverty and exploitation. There is one particular country that has been heading in the opposite direction to the agenda of privatisation and neo-liberal attacks on workers rights that has been happening throughout the capitalist world. And this country headed in the opposite direction is not just any country. It is in fact the most populous country in the world with a fifth of the earth’s people: the Peoples Republic of China.
“Last year the PRC not only decreed that food delivery platform companies must ensure that all food delivery drivers and riders always get at least the minimum wage but started expanding those protections to all gig workers. At the same time, China has been on an intense campaign to provide public housing to her low and lower-middle income population. Moreover, rather than carrying out large-scale privatisations, all of China’s banks and most of her other key sectors remain under public ownership.
“Therefore, socialistic China’s path can be an inspiration to the struggle for working class people’s rights in Australia. That is why Australia’s capitalist regime and pro-capitalist media are doing everything they possibly can to denigrate the PRC. They don’t want the masses here to be inspired to resist privatisation and exploitation. We need to condemn these lying propaganda attacks against China as part of standing up for working class people’s rights in Australia….”
Rally participants listen to an address to the demonstration by rally emcee, Yuri Gromov. Photo credit (above photo): Demi Huang/New Impressions Media Photo credit (below photo): Sydney Today APP
Last Saturday’s demonstration was jointly initiated by the Australian Chinese Workers Association and ourselves in Trotskyist Platform. It was additionally endorsed by the Communist Party of Australia’s Wollongong Branch and by the group, Communists West Sydney. Representatives of all the endorsing groups as well as other individuals addressed the united front rally. Chairwoman of Trotskyist Platform, Sarah Fitzenmeyer stressed in her speech the need for a class struggle strategy for defending working class people’s rights. She also emphasised that the fight against capitalist exploitation in Australia requires solidarity with socialistic rule in China:
“The fact is that during the last few decades, Australia’s capitalist business owners have increased the rate at which they exploit workers’ labour….
“Today, while Morrison’s Liberals have made it clear that they want to sell off the NBN, the only response from the ALP is to say that they oppose an immediate privatisation while leaving the door open to a sell-off in the future. The only way we can push back against privatisation and the ever growing exploitation is through mass struggle and workers’ industrial action. This is how the working masses have always won whatever rights we still have left now. The more that working class people understand that nothing can or will be gained through supporting any of the parliamentary parties at the upcoming election, the more determined we the working class people will be to build the mass actions that are needed.
“… In February last year, guest workers from China spearheaded the first ever strike by gig workers in Australia when they and other food delivery riders took action against British-owned company Hungry Panda and WON! However, we must be very wary that such struggles are not undermined and workers don’t buy into the national security obsession being promoted by the Australian ruling class. This national security propaganda deceptively claims that workers and the capitalists who exploit them have a common national interest. Now, in the name of national security, Australia’s capitalist regime has joined the U.S. in aggressively interfering into the Ukraine-Russia War with sanctions and arms grants. The regime here has also used the war to further ramp up their Cold War drive against China.
“Trotskyist Platform says that when Australia’s capitalist ruling class push `national security’ they only mean the `security’ of their profits and their system of exploitation. However, the current leaders of the workers movement, the Labor Party, joins the Liberals in fully supporting the ruling class’ so-called `national security’ agenda. In doing so they are obscuring the need for workers to resist the local, all Australian, capitalist exploiters who are undermining the security of our living standards in the capitalists’ drive for ever greater profits.
“We need a new agenda to guide our workers movement. An agenda driven by us, the workers, fighting for what we actually need….
“Whenever such a pro-working class agenda is promoted, the ruling elite screams that such violations of free-market principles are `impractical’. But this is a lie because many of the things we are calling for here today are actually being quite successfully implemented right now in the Peoples Republic of China.
“The reason that China is able to carry out such policies is that it is the working class who hold the power there. The toiling classes grabbed power through a massive revolution in 1949….
“China’s success makes Australia’s capitalist regime very fearful. They are petrified that the masses here will look at the great gains of the working masses in China and decide that they too need to fight for socialism here. That is why the rulers of Australia and other powerful capitalist countries are intent on crushing socialistic rule in China. We must NOT allow the imperialist powers to succeed!
“…it is in the interests of at least 90% of Australia’s population to uncompromisingly defend socialistic rule in China. We must oppose the U.S. and Australian military build up aimed against socialistic China. Just as importantly, we must rebuff the lying Western propaganda attacks on the PRC over Uyghurs, Tibet and Hong Kong!
“It is true that China’s victory over capitalism is incomplete. China’s anti-capitalist crackdown does need to go much further. The PRC’s march towards `common prosperity’ – if it is to truly succeed – requires that the tech, real estate and light manufacturing sectors be confiscated from China’s tycoons and brought into public ownership as well. And this is why we need more solidarity actions with socialistic rule in China right here and all across the world. Solidarity from comrades abroad will give confidence to staunch socialists within China to defy the hostile pressure coming from the capitalist world. Solidarity with the PRC will help to drive them towards complete socialism.
“If socialistic rule in China continues to strengthen, it will embolden the struggle against capitalist exploitation in this country. Right now, let’s use the fact that the world’s most populous country is successfully operating a system based on public ownership to inspire our own fightback against privatisation and exploitation in Australia. Let’s start working towards common prosperity here in Australia by advancing the struggle for working class rule.”
Speaking to the media during the rally, Jenny Zeng, general secretary of the Australian Chinese Workers Association (ACWA) called for improvements in people’s livelihoods in Australia that will “allow everyone to have jobs and food, without having to worry about life.” The ACWA is a group that organises Australian-Chinese workers to defend their workplace conditions and assert their rights to access social services. As part of their contribution to the April 2 action, the ACWA’s art troupe put on a captivating cultural performance. This included a drum performance in the classical style of North China, a classical dance routine paying tribute to China’s long history and a classical dance performance in the style of China’s Tibetan Autonomous Region signifying blue sky and a happy life.
Also addressing last Saturday’s demonstration was long-time community activist Peter Butler. He powerfully motivated the need for public housing and for other measures that put the needs of the masses first. Peter Butler also attacked the Australian media’s portrayal of the troubles of large Chinese real estate developer, Evergrande. He pointed out that the media wanted to portray Evergrande’s crisis as a sign of China’s supposed impending doom but had hidden the most important aspect of the events surrounding Evergrande: wealth and power were being transferred out of the hands of Evergrande’s greedy billionaire owner and into the hands of the public. In this he was referring to the fact that not only were Evergrande’s troubles the result of the PRC’s moves to curb housing speculation in order to make housing more affordable for the masses and not only had Chinese authorities forced Evergrande’s owner Hui Ka Yan to sell some of his personal assets – including two private jets, several mansions, expensive art works and shares – to ensure that Evergrande’s workers keep on getting paid but they have pushed Evergrande to sell off to PRC public sector enterprises at low price a number of property assets, while the PRC state has also confiscated parcels of land and other assets owned by Evergrande. Indeed, as in the recent cases of financial conglomerate Tomorrow Holdings, former insurance behemoth Anbang and the real estate and airport operations of the now defunct, giant conglomerate HNA Group, the PRC state has handled the collapse of large private sector corporations in China in such a way that it leads to the transfer of assets from the hands of tycoons into the collective hands of all the people.
For his part, Zac, representing the Wollongong Branch of the Communist Party of Australia, concluded his speech by stressing that unlike what the mainstream media say, China is no military threat whatsoever to the people of Australia. Rather China is winning out in economic competition with capitalism through its own system. Zac emphasised that it is this system of China’s, a system of socialism, which is what Australia’s capitalist rulers really fear.
After several speeches and the cultural performance, the rally marched southwards through city streets from its starting point in Sydney’s Chinatown. Marchers energetically chanted: “More public housing”, “Public housing for you and me – Just like in the PRC”, “Hey ho, hey ho, privatisation has got to go”, “Stop privatisation – Nationalise the Banks” and “P-R-C, Is fighting poverty!”
The final part of the action was a picket outside the offices of the ABC (Australian Broadcasting Corporation) to protest anti-PRC bias in the Australian media. About one-third of the participants from the main part of the rally joined this brief protest picket. As demonstrators approach the ABC’s premises they chanted, “A-B-C: Always Bashing China!” As rally emcee, Yuri Gromov explained:
“… because the PRC’s socialistic system favours working class people, the capitalist ruling classes in the likes of the U.S.A, Australia and India see the mere existence of such a system as a threat. Hence the media owned or controlled by capitalist tycoons have been waging non-stop propaganda attacks against China. The ABC – which let’s be honest forms the propaganda department of the Australian capitalist state – is one of the worst but will be even worse, if you can imagine it, if it ever becomes privatised itself. In attacking the PRC, the ABC and other media outlets are necessarily denigrating China’s anti-capitalist and pro-working class measures. The media are therefore undermining support for the type of measures needed in Australia to alleviate poverty and combat exploitation of workers.”
The April 2 demonstration was intensively covered by two of the most popular Chinese language media sites in Australia: New Impressions Media (which runs the website Australian Impression and the Sydney Impression WeChat site) and Sydney Today. On the latter site, there was a hot debate amongst readers with 42 readers comments: most sympathetic to the demonstration but a few hostile as well.
Saturday’s action concluded with the rally emcee thanking participants for braving not only the pandemic but the hysterical China-bashing political climate. However as the rally chair pointed out: “with poverty, homelessness and exploitation in Australia ever increasing and with new rounds of privatisation looming we all have a massive amount of work to do.” In carrying out this work to build class struggle resistance against exploitation and privatisation in Australia we are inspired by the anti-capitalist and pro-working class measures being implemented in the world’s most populous country.