http://commonsandeconomics.org/groups/stream-2-labor-and-care/forum/topic/labour-power-as-a-common-pool-resource/

To better explain what it means to regard labour power as a common-pool
resource, it is helpful to first take a step backward to the more
conventional notion that labour is a commodity, the price of which “rises
and falls according to the demand.” as Edmund Burke claimed over two
centuries ago.

Midway between that assertion and the concept of labour power as a
common-pool resource is the refutation that labour is not a commodity. That
negative claim was officially endorsed in Section 6 of the U.S. Clayton
Antitrust Act. Hailed by American Federation of Labor president Samuel
Gompers as a “Charter of Industrial Freedom,” Section 6 proclaimed that
“the labor of a human being is not a commodity or article of commerce.”
Nearly identical wording was incorporated into the Treaty of Versailles in
1919 as a guiding principle for the establishment of the International
Labour Organization and reaffirmed as a first principle of the I.L.O. in
1944.

The everyday experience of working people, economic policies of
governments, bargaining priorities of trade unions and theoretical models
of economists would seem to conform more to the commodity model than the
idealistic but nebulous proclamations of the Clayton Act and the Treaty of
Versailles. But an early rationale for the rebuttal was outlined in 1834 by
silk weaver William Longson in his evidence to the House of Commons Select
Committee on Hand-Loom Weavers:

…every other commodity when brought to market, if you cannot get the price
intended, it may be taken out of the market, and taken home, and brought
and sold another day; but if a day’s labour is offered on any day, and is
not sold on that day, that day’s labour is lost to the labourer and to the
whole community…

Longson concluded from these observations of labour’s peculiarities that,
“I can only say I should be as ready to call a verb a substantive as any
longer to call labour a commodity.” Another formidable challenge to the
notion of labour as a commodity had been articulated nine years earlier by
Thomas Hodgskin in his *Labour Defended Against the Claims of Capital.*Hodgskin
pointed out that the most important operation for the production of wealth,
” the rearing of youth and teaching them skilled labour, or some
wealth-creating art,” is conducted without remuneration, “under the strong
influence of natural affection and parental love… through all the long
period of the infancy and childhood of their offspring.”

In both Longson’s and Hodgskin’s arguments, the distinction between labour
and labour power is crucial. No actual labour was performed in Longson’s
example. What the labourer offered on the market but was unable to sell was
his or her capacity to work on that particular day. Similarly, what parents
give to their children by bringing them up and teaching them skills is a
capacity to labour, provided the opportunity arises to exercise that
capacity. Wage labour per se only comes into existence after the capacity
to labour has been purchased and combined by the employer with facilities,
equipment, raw materials and direction.

Human mental and physical capacities to work have elastic but definite
natural limits. Those capacities must be continuously restored and enhanced
through nourishment, rest and social interaction. Over the longer term that
capacity for labour also has to be replenished by a new generation of
youth, reared by the previous generation.

It is this combination of definite limits and of the need for continuous
recuperation and replacement that gives labour-power the characteristics of
a common-pool resource. As Paul Burkett explained, Marx also regarded
labour power not merely as a marketable asset of private individuals but as
a “reserve fund for the regeneration of the vital force of nations.” “From
the standpoint of the reproduction and development of society,” Burkett
elaborated, “labor power is a common-pool resource – one with definite
(albeit elastic) natural limits.”

“Common-pool resource” is not terminology Marx had used; Burkett adopted it
from Elinor Ostrom’s research on governing the commons. For Ostrom,
common-pool resources are goods that don’t fit tidily into the categories
of either private or public goods. They are like private goods in that
their use by one consumer subtracts from how much is available for others.
But they are like public goods in that it is difficult to exclude people
from access to them. Some obvious examples are forests, fisheries, aquifers
and the atmosphere.

Regardless of whether work is paid or unpaid, the capacity to perform it is
the outcome of an intrinsically social, co-operative activity. As such,
this capacity can best be understood as a “common-pool resource” in that it
may most effectively be engaged, valued, enjoyed and protected as a
collectively-shared asset rather than as a fragmented assortment of
individualized units, which is the current model of labour-as-a-commodity.
Relating the concept of a common-pool good to labour is especially apt in
that it illuminates, as Burkett points out, “the parallel between capital’s
extension of work time beyond the limits of human recuperative abilities
[including social vitality], and capital’s overstretching of the
regenerative powers of the land.”

The basic idea behind common-pool resources also has a venerable place in
the history of classical political economy and neoclassical economic
thought. In the second edition of his Principles of Political Economy,
Henry Sidgwick observed that “private enterprise may sometimes be socially
uneconomical because the undertaker is able to appropriate not less but
more than the whole net gain of his enterprise to the community.” From the
perspective of the profit-seeking firm, there is no difference between
introducing a new, more efficient production process and simply shifting a
portion of the costs or risks onto someone else, society or the
environment. In fact, the opportunities for the latter may be more readily
available.

One example Sidgwick used to illustrate this was “the case of certain
fisheries, where it is clearly for the general interest that the fish
should not be caught at certain times, or in certain places, or with
certain instruments; because the increase of actual supply obtained by such
captures is much overbalanced by the detriment it causes to prospective
supply.” Sidgwick admitted that many fishermen may voluntarily agree to
limit their catch but even in this circumstance, “the larger the number
that thus voluntarily abstain, the stronger inducement is offered to the
remaining few to pursue their fishing in the objectionable times, places,
and ways, so long as they are under no legal coercion to abstain.”

Applying the same principle to the context of labour-power, “fishing in the
objectionable times, places and ways” manifests itself in the standard
practice of employers considering labour as a “variable cost.” From the
standpoint of society as a whole, unemployment is simply a way of shifting
the overhead cost of labour onto society as a whole.

Ostrom explained the differences between various kinds of goods by calling
attention to two features: whether enjoyment of the good subtracts from the
total supply still available for consumption and the difficulty of
restricting access to the good. Private goods are typically easy to
restrict access to and their use subtracts from total available supply.
Public goods are more difficult to restrict access to and their use doesn’t
subtract from what is available for others. As mentioned earlier,
common-pool goods are similar to private goods in that their use subtracts
from the total supply but they are like public goods in that it is more
difficult to restrict access to them.

Superficially, it might seem that the individual worker can deny access to
an employer offering unsuitable terms. But it is here we need to factor in
that peculiarity of labour-power noted by the silk weaver, William Longson
that a day’s labour not sold on the day it is offered is “lost to the
labourer* and to the whole community* [emphasis added].” “If his capacity
for labour remains unsold,” Marx concurred, “the labourer derives no
benefit from it, but rather he will feel it to be a cruel nature-imposed
necessity that this capacity has cost for its production a definite amount
of the means of subsistence and that it will continue to do so for its
reproduction.”

This contingency and urgency of employment effectively undermines the
worker’s option of refusing work. The option of refusing work at unsuitable
wages or conditions is further undermined by competition from incrementally
more desperate job seekers – a population Marx famously referred to as “an
industrial reserve army.”

The pervasiveness of unemployment from the paid labour force also
stigmatizes and marginalizes unpaid work. For example, “welfare to work”
schemes require single parents of young children to take low-paid work that
often forces them to depend on unsuitable child care arrangements. Such
rules discount the social value of parenting work but are enforced on the
grounds that public assistance recipients are employable.

There are no barriers to entry to unpaid work and relatively few
credentials awarded for doing it. Thus mobility from unpaid care work to
paid employment is impeded. Work done outside the paid labour force rarely
counts as work experience. Instead, the time away from paid labour
depreciates accumulated skills and experience.

Regarding labour power as a common-pool resource does not automatically
result in governing work as a commons. It is instead an important
preliminary step that offers a rich conceptual framework for guiding the
development of concrete policy proposals, research agendas, strategies and
experiments. Such strategies and proposals can borrow from and combine
experience in the governance of resources such as fisheries, forests and
watersheds alongside lessons from trade union movements of the past and
present and from feminist struggles for recognition and valuing of
caregiving work.

Innovations that result from synthesizing such diverse experiences may seem
disturbingly unfamiliar from the traditional perspective of viewing labour
as a commodity. That is why it is important to not only foster an
understanding of labour as a common-pool resource but in the process to not
lose sight of what the traditional perspective entails and what is the
relationship between the two views.

-- 
Cheers,

Tom Walker (Sandwichman)
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