There was a time, not so long ago, when I’d see big layoffs and my inner Keating would say “the reality is that jobs like textiles and clothing, as well as many other manufacturing jobs should be offshored”.
The logic been that in a global economy each country must utilise it’s “competitive advantage”. In Australia that means utilising our high eduction standards with high tech / bio tech jobs and in Indonesia/China that means manufacturing as their competitive advantage is cheap labour.
At this point I must make it very clear that I am appauled by the wages and conditions experienced by manufacturing (and other) workers in majority world countries. However, if workers in these countries were paid a reasonable living wage (which they aren’t at the moment) they would still have lower labour costs providing an incentive to manufacture in those countries. Wages in Australia are high. This is a good thing but it means that we can’t take advantage of the manufacturing industry.
I’d also like to point out that loosing your job is a horrible thing. There are issues of financial stability, not to mention pride. Jobs are extraordinarily important and I’m always deeply saddened when jobs are lost.
But all this is beside the point. I don’t think the reality of “competitive advantage” when it comes to hi tech jobs exists anymore. Moreover, you can’t run a country where the only jobs available are in the biotech industry. Call centre jobs are going offshore, as are IT jobs – both of which you would have once thought would never leave. As the education standards in countries like India and China continue to improve the opportunities to exploit a highly trained, yet quite cheap workforce becomes apparent.
I’m rethinking my position. I’m not big on Nation States but I do think we need to regionalise more particularly in the face of climate change. We can’t be shipping things across the globe as much and we need non-service industry jobs that you don’t need a university education to do.
Do we go back to an era of protectionism? That’s not the answer either and it generally harms the majority world. When European farm goods are heavily subsidised their cost becomes lower than primary products produced in the majority world who then import these goods from Europe.
Similarly less trade protections means more jobs going off sure.
It’s difficult and we will need to be a lot more strategic.
I don’t know where the workers at Pacific Brands are going to find a new job. For most it is too late to retrain and they (understandably) don’t want to work at Coles.