It is crucial for us to realize that these measures are an attack on the working class and are part of the same attack as that on union organization in the workplace. Capitalism wants to continually increase its profits. Since rebuilding new factories is not profitable in the present accumulation crisis, increased profits must be squeezed out of existing factories. This can only be done by lowering costs of production. It is this clash over costs of production that is now taking place between unions and employers.
Capital has to weaken the unions if it is to succeed in lowering costs.
Capital has to do two things in the workplace - divide and weaken worker unity, and get workers to work harder. Capital tries to co-opt higher paid workers by using training, promotion, housing and employee share ownership. New machines, continuous shifts, sub-contracting, temporary workers, overtime, quality circles and other measures are all designed to reduce the number of workers and get those who remain to work harder. Deregulation is being used to lower costs throughout industry - starting in the rural areas and in small businesses. Privatisation is designed to transfer the profitable parts of state production to capitalists to increase their profits.