"Freedom of the choice to determine what kind of work and for whom to work is a clear difference between low-wage labour and slavery."
Over the next few blogs, we will be exploring some common language, questions and misunderstandings about slavery in the 21st century. This article examines low wage employment and how this is different to slavery. This article also explores how and when different forms of labour can be classified as slavery.
Low-wage Employment
Firstly, let's look at the difference between low-wage labour and slavery. The difference between a low paid labourer and a slave has actually very little to do with the income they receive for the work they do. A helpful way to understand the distinction is to answer the following questions.
What is being 'owned' by the employer?
A worker/employer relationship typically involves the payment of wages for the workers time and effort. In this relationship, the employer only 'owns' the amount of time during which the worker provides their labour (Time-based labour). Alternatively, the employer 'owns' the effort required for the worker to complete tasks/quotas (Contract labour). The time required to complete these tasks/quotas may vary. The employer has no 'ownership' rights to the worker’s time or effort once they have completed their Time-based or Contract labour, in a low-wage situation. Additionally, the employer has no rights to require Time-based or Contract labour from the worker’s family if the worker is not able to provide or complete this labour.
A slave may provide labour which resembles time-based or contract labour, however, the employer’s ownership 'rights' are greater than those in a worker/employer relationship. Slave-based industries arbitrarily impose time and quota requirements without the worker having the means to negotiate or refuse the work. A slave does not have the ability to limit the time or effort required from them. Fundamentally, all the time and efforts of a slave are 'owned' by the employer in a slave-based industry. There is no limit to the amount of labour which a slave may be required to provide. Additionally, this ownership extends to the slave’s family as the family members are either slaves, in their own right, or required to supplement any shortfalls in time or quota which the slave is not able to satisfy.
What transactions other than the payment of wages are occurring?
A worker/employer relationship usually involves relatively simple financial transactions. Financial transactions in Time-based labour are an exchange of labour for an hourly rate or day rate. Contract labour transactions involve the exchange of labour for a certain quantity of production or services. For example, tree planters in modern forestry industries are paid for the amount of trees they plant each day. No other transactions are generally part of worker/employer relationships.
The imposition of expenses on workers by employers is more prevalent in slave based industries. Albeit that this practice also occurs in legitimate employment relationships. Wages can be deducted for the employer providing things such as:
Uniforms
Tools and equipment;
Accommodation and meals; and
Advanced payments (which may be voluntary or involuntary)
Issues arise when the worker has no option but to incur these expenses or when these expenses exceed the worker’s wage. Anytime a worker is in a position where they own a debt to an employer the relationship will be more indicative of slavery. The distinction between low-wage labour and slavery is further eroded when expenses are incurred prior to the employment commencing. Examples of some of these expenses are:
Personal Loans;
Travel Expenses; and
Visa Costs
Some industries have the practice of imposing fines and penalties on workers for shortfalls in production or damage to equipment. These practices are more indicative of slavery relationships than legitimate employment situations.
The distinction between low-wage labour and slavery can often be identified by the existence of financial transactions outside of the typical payment for Time-based and Contract labour.
Is alternative employment available to the worker?
Freedom of the choice to determine what kind of work and for whom to work is a clear difference between low-wage labour and slavery. Many low-wage labourers may have limited employment options. However, they still have the ability to transition between employers and industries. Slaves simply do not have this option as they must work in whatever industry and business in which their 'owners' require them to work.
Importantly, low-wage labourers can become slaves if their employment conditions change. Typically, the imposition of expenses, fines, penalties or the giving of loans can rapidly transition a low-wage employee to a slave.
Both low-wage labour and slavery can be exploitative and in many cases the financial and physical hardships they experience are very similar. However, the distinction between these forms of labour is important to understand when considering how best to improve the outcomes for these workers.
At New Rivers, we abhor any exploitative form of labour. Our focus on slave-based industries is aimed to make this form of exploitative labour obsolete. New Rivers endeavors to provide living wages and the means by which our employees can improve their long-term financial, educational and health outcomes when we transition workers from slavery to legitimate employment in the business we operate.
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For more information on how you can be part of this transition through your investment with New Rivers, follow this link to learn more and join other investors.
We are always interested in new ideas that people may have with respect to changes that can be made at the brick factories and any other businesses that New Rivers is involved in. We look forward to hearing from you - email us at info.newrivers@gmail.com.
Pictured: Manfred, Michelle (centre) and the New Rivers Team
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