STEVE McKAY
Assistant Professor, Sociology
UC Santa Cruz
I listened to Steve give a paper on Filipino merchant seafarers at UCSC on March 1st and met with him a couple days later at College 8 to learn more about his research on export processing zones (EPZs) in the Philippines. Specifically, we talked about relationships between local labor forces, multinational corporations that employ them, and the state's role in spatial organization plans to create stable, manageable communities of workers. He calls these "strategies of capital".
Following are notes from our conversation. Please note that these are primarily Steve's responses to my questions about his work. My thoughts are kept to a minimum and always appear in italics.
Local workers in EPZs in the Philippines no longer process garments and footwear in sweatshops. They are employed to assemble high-tech electronics. Multinationals include Intel, Texas Instruments (Baguio), Acer. Because the work is assembly (not production or sourcing of raw materials), the government's investment stays very low. It just has to provide people and place.
Geographic proximity to airports is key: components are flown in and out as quickly and efficiently as possible. This has driven the development of specific areas over others. In the past, these were located in southern Manila, where goods could travel along the South Super Highway and arrive and leave out of Ninoy International Airport (Manila). This was the area he studied. (My research looks at a recent shift to northern Manila, specifically former U.S. military bases: Subic in Olongapo City (navy) and Clark in Angeles City (air), where components are now transported in and out.)
Consistency, or absence of any disruption to the production and distribution flows, are also key. Companies want as little interruption as possible. So worker unrest must be kept to a minimum. Two strategies: pay workers better or establish tighter control measures. The government plays a huge role in maintaining order. It provides the space and the infrastructure for capital -- not for the people.
Steve studied three EPZs. Each demonstrates particular strategies by the state and corporations to control labor through spatial organization:
a. BATAAN: state builds housing for workers; this creates a highly-controlled and centralized labor force available for employment by multinationals.
This spatial arrangement made it easy for labor unions to go where workers live and unionize them. Bataan is the first site for unionized labor in the Philippines.
b. ROSARIO, CAVITE: state tries a different strategy: it steps back and does not create any housing; 50,000 workers are employed, creating a market for housing; outside the EPZ, boarding houses, unchecked and unregulated arrangements arise; the church participates in trying to organize better housing for workers; Steve gains access through church contacts (activist priests)
c. LAGUNA: established as a private economic zone with just a few multinationals; lead firm is Intel; workforce to manage is smaller; whereas in Cavite, worker housing surrounds the EPZ, in Laguna worker housing is dispersed widely. The EPZ sets up private shuttles to pick workers up at 75 different pickup points, some as much as two hours away. Workers are too dispersed, very difficult to organize into a union.
In Bataan, the state has high control over spatial organization of housing, maximum presence.
In Cavite, the state is unorganized, minimum presence.
In Laguna, the state is an actively DISorganizing force.
Shift to Subic and Clark as relatively newer Special Economic Zones (SEZs). These are hybrid spaces, mixing tourist entertainment areas and resorts with corporate office parks.
Multinational corporations are predominantly Asian. Four nationalities of workers: Korean (cheapest labor conditions), Japanese, European, and U.S.
Subic used to be the site of the largest U.S. naval base in the Pacific. Clark was the largest U.S. air base. Both environments are a mix of pristine, undeveloped lands and forests where U.S. soldiers trained in jungle warfare for Vietnam; and contaminated testing grounds where weapons were deployed in training exercises.
(We didn't discuss Subic and Clark as much because these zones represent mine, not Steve's studies. He had been to Subic once, so our discussion expanded to his general findings, some of which will be very generative for my ongoing research.)
In EPZs which are run by multinationals, the government functions very differently. It is not absent; its presence is in fact very controlled. The government plays a very important role in zone organization (space, housing) and labor control. The first thing multinational companies do when they enter a country: localize. They do this by getting in touch with a local Human Resources (HR) office, set up by the government. Steve calls this "strategic localization". Everything has to be organized locally.
The government has a zone authority: PEZA or Philippine Economic Zone Authority in Manila. They are set up to promote the Philippines, to encourage and attract foreign investment. A good but difficult entry point for research. Steve wanted to hear how they pitch the Philippines to multinationals and to get into the zones and actual offices. He couldn't say he is a sociologist researching labor conditions; have to create a more nuanced position to gain access. Now that his book is out, it will be extremely difficult to get back into these areas.
Relationship between multinationals and the workers: workers are local citizens and permanent employees. They are not a transient workforce. So the government and the corporations are constantly trying to minimize "structural conditions for labor organizations". Because production runs on "just-in-time" manufacturing, assembly, delivery, disruptions of any sort have to be kept to a minimum. Time is compressed, so transport and consistency are very valuable.
Profiling potential employees: corporations want people who are least likely to organize, join a union, or complain. Potentials undergo elaborate screening processes. For example: a woman was rejected for a job because she said she did not have a problem with unions. Another was rejected because a family member had belonged to a union.
Workforce is highly-feminized. 98% of workers are single women, specifically eldest daughters, between the ages of 16 and mid-20s. They are technical operators. Very few move up the job ladder. The next step up is technician, a position that is held by men.
Strategies of control and consent are incredibly versatile because workers are permanent. For example, corporations offer family planning classes. Women workers feel this supports their independence. In fact, multinationals run these classes so that women are less inclined to get pregnant and go on paid maternity leave.
Side note: There has been a recent shift of labor to China and Vietnam, where wages are lower. What impact will this have on these EPZs and SEZs?
Steve's upcoming research will be on the performance of masculinity among overseas Filipino workers, particularly seafarers he described in his talk.
Currently, 10% of the Philippine population work overseas. It is the largest export industry. $17 billion is remitted back to the Philippines annually – 10x more than the amount of foreign aid. In the past, outmigration was predominantly female (service). This is shifting, men outnumber women.
Steve studied a particular group: seafarers or workers on merchant ships. 1 out of every 3 is a Filipino man. His talk unpacked the sociopolitical processes through which these workers become racialized: What characteristics are naturalized as "Filipino" to meet a certain market demand? For example, "Filipinos are good sailors", "service with a smile", basically that this particular group will be subservient and hardworking – it's the Filipino nature. So, 80% of Filipinos are in lower ranks; they are not promoted to leadership roles.
Steve's research will look at how these men exercise agency, particularly how they perform masculinity when they are off the ships. On ships for 9-12 month tours, they are subjected to strict hierarchies and subservient roles with little or no respite. They perform roles of "responsible provider", "adventurer", "brave breadwinner" to stay in their jobs (Steve interviewed many on board who likened their jobs to prison sentences.) When they return home, many buy property (homes or vehicles) to convey this masculinity.
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