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Combating “Hate”: The Trojan Horse For Precrime

Combating "Hate": The Trojan Horse For Precrime

Authored by Conor Gallagher via Naked Capitalism,

Philip K. Dick’s 1956 novella The Minority…

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Combating "Hate": The Trojan Horse For Precrime

Authored by Conor Gallagher via Naked Capitalism,

Philip K. Dick’s 1956 novella The Minority Report created “precrime,” the clairvoyant foreknowledge of criminal activity as forecast by mutant “precogs.” The book was a dystopian nightmare, but a 2015 Fox television series transforms the story into one in which a precog works with a cop and shows that data is actually effective at predicting future crime.

Canada is trying to enact a precrime law along the lines of the 2015 show, but it is being panned about as much as the television series. Ottawa’s online harms bill includes a provision to impose house arrest on someone who is feared to commit a hate crime in the future. From The Globe and Mail:

The person could be made to wear an electronic tag, if the attorney-general requests it, or ordered by a judge to remain at home, the bill says. Mr. Virani, who is Attorney-General as well as Justice Minister, said it is important that any peace bond be “calibrated carefully,” saying it would have to meet a high threshold to apply.

But he said the new power, which would require the attorney-general’s approval as well as a judge’s, could prove “very, very important” to restrain the behaviour of someone with a track record of hateful behaviour who may be targeting certain people or groups…

People found guilty of posting hate speech could have to pay victims up to $20,000 in compensation. But experts including internet law professor Michael Geist have said even a threat of a civil complaint – with a lower burden of proof than a court of law – and a fine could have a chilling effect on freedom of expression.

While this is a dangerous step in Canada, I also wonder if this is where burgeoning “anti-hate” programs across the US are headed. The Canadian bill would also allow “people to file complaints to the Canadian Human Rights Commission over what they perceive as hate speech online – including, for example, off-colour jokes by comedians.”

There are now programs in multiple US states to do just that –  encourage people to snitch on anyone doing anything perceived as “hateful.”

The 2021 federal COVID-19 Hate Crimes Act began to dole out money to states to help them respond to hate incidents. Oregon now has its Bias Response Hotline to track “bias incidents.”

In December of 2022, New York launched its Hate and Bias Prevention Unit. Maryland, too, has its system – its hate incidents examples include “offensive jokes” and “malicious complaints of smell or noise.”

Maryland also has its Emmett Till Alert System that sends out three levels of alerts for specific acts of hate. For now, they only go to black lawmakers, civil rights activists, the media and other approved outlets, but expansion to the general populace is under consideration.

California vs. Hate, a multilingual statewide hotline and website that encourages people to report all acts of “hate,” is coming up on its one-year anniversary, reportedly receiving a mere 823 calls from 79% of California’s 58 counties during its first nine months of operation. It looks like the program is rolling out even more social media graphics in a bid to get more reports:

A key question is why states like California are rushing to expand the definition of hate. Officials in the Golden State like Governor Gavin Newsom claimed it was because of a rise in reported hate crimes – up 33 percent from 2020 to 2021. A deeper look at the data, however, shows that Newsom is guilty of cherry picking. From Public:

But convictions of hate crimes have been flat. In 2012 there were 107 hate crime convictions in California. In 2021, there were 109, according to the same data. It’s possible that hate crimes really did rise by 80%, and juries decided not to give prosecutors convictions. …But it’s also possible that convictions stayed the same because there was no increase in prosecutable hate crimes. And it may be that Californian prosecutors simply labeled more crimes as “hate” crimes because they were primed to do so by the media’s 700% – 1,000% increased focus on racism between 2011 and 2020.

I’m likely omitting other states with similar programs, but it’s clear that there is a push across the country. No doubt, these efforts to eliminate hate also have other benefits for the ruling class.

In a state like California or New York, there is the added bonus that the program ends up being a massive giveaway to a key part of the Democratic base – the nonprofit industrial complex that is helping to bring this system into existence.

These programs also help spread fear that hate is around every corner, which could allow for an erosion of rights under the guise of eradicating “hate.”

There’s also the issue of who is providing the definitions for hate that go beyond the laws already on the books for hate crimes. The California Senate Public Safety Committee analysis stated the following about the CA vs. Hate program:

A hate incident is an action or behavior motivated by hate but legally protected by the First Amendment right to freedom of expression.

That leads to the question of why the state is encouraging people to report and is collecting information on legally protected “behavior.” And where does the expanded definition come from? The committee stated the following:

Define hate incidents with language provided by the Anti-Defamation League.

The Anti-Defamation League (ADL) is a non-governmental organization based in the US, whose stated mission is “to stop the defamation of the Jewish people, and to secure justice and fair treatment to all.”

But there’s a little more to it than that. In May 2022, Jonathan Greenblatt, CEO of the ADL, announced that, “Anti-Zionism is anti-Semitism.” He also labeled groups that want equal rights for Palestinians in Israel as “extremists” and likened Israel critics to white supremacists. More from Boston Review:

…the ADL has consistently sought to undermine the left, leveling a charge akin to dual loyalty: that the American left’s calls for redistribution of power, its solidarity with global movements, and its prioritization of people over states threaten the very concept of the state. Indeed the ADL, in addition to its stated mission of shoring up U.S. support for Israel, is deeply loyal to the U.S. state. The second is that the ADL has waged a long, vigorous, and successful campaign, alongside AIPAC, specifically to characterize Arab American political organizing as dual loyalty.

Maybe this isn’t an organization that should be defining hate for US governments. We have the International Holocaust Remembrance Association (IHRA) for that.

In March South Dakota became the 35th state to codify the IHRA’s working definition of antisemitism. The law requires the consideration of the definition of antisemitism when investigating unfair or discriminatory practices.That definition includes the traditional elements of antisemitism but also inserts elements that could move the state of Israel under antisemitic protections. Consider the following from the IHRA’s definition:

  • Denying the Jewish people their right to self-determination, e.g., by claiming that the existence of a State of Israel is a racist endeavor.

  • Applying double standards by requiring of it a behavior not expected or demanded of any other democratic nation.

  • Drawing comparisons of contemporary Israeli policy to that of the Nazis.

A 2022 UK study published in Springer Nature found the following about the IHRA’s definition:

…pro-Israel activists can and have mobilised the IHRA document for political goals unrelated to tackling antisemitism, notably to stigmatise and silence critics of the Israeli government. This causes widespread self-censorship, has an adverse impact on freedom of speech, and impedes action against the unjust treatment of Palestinians. We also identify intrinsic problems in the way the definition refers to criticism of Israel similar ‘to that leveled against any other country’, ambiguous wording about ‘the power of Jews as a collective’, lack of clarity as to the Jewish people’s ‘right to self-determination’, and its denial of obvious racism.

Despite that effect, and despite the 2021 Hate Crimes Act, which provided more money and more programs to collect data on all “hate incidents,” there are still complaints that it all still isn’t enough because they don’t prevent “hate” but only address what takes place afterwards. To fix that, a precrime system will be necessary.

***

Predictive policing – which uses computer systems to help direct the deployment of police to crime hotspots – has been widely discredited as biased and worthless.

The Markup found that predictive policing does not work – at all. It took a look at efforts by Geolitica, known as PredPol until a 2021 rebrand, and its software that ingests data from crime incident reports and produces daily predictions on where and when crimes are most likely to occur. From The Markup:

We examined 23,631 predictions generated by Geolitica between Feb. 25 to Dec. 18, 2018 for the Plainfield Police Department (PD). Each prediction we analyzed from the company’s algorithm indicated that one type of crime was likely to occur in a location not patrolled by Plainfield PD. In the end, the success rate was less than half a percent.

It is also biased, despite efforts to make it less so. MIT Technology Review points out:

…many developers of predictive policing tools say that they have started using victim reports to get a more accurate picture of crime rates in different neighborhoods. In theory, victim reports should be less biased because they aren’t affected by police prejudice or feedback loops.

But a University of Texas study found this method still led to significant errors:

 For example, in a district where few crimes were reported, the tool predicted around 20% of the actual hot spots—locations with a high rate of crime. On the other hand, in a district with a high number of reports, the tool predicted 20% more hot spots than there really were.

While these predictive policing spatial models prove biased, what if to counter those criticisms you begin to roll out programs to “protect” minorities by preventing hate crimes? Could an approach that treats each individual as a collection of data points (including any “hate incidents”) be predictive of a future hate crime?

Efforts to do just that date back to at least the early 1970s. When UCLA tried to set up a center for the study of violence.The Center for the Long-Term Study of Life-Threatening Behavior was intended to re-think human functioning itself in terms of data and was going to compile behavioral data to understand crimes that were “in formation.”

The center never officially opened its doors, however, as it got caught in the backlash against psychosurgery when groups like the Black Panthers and Nader’s Raiders protested against it.

But the rethink of humans as a collection of data points that can predict crimes in formation never really went away, and is now inching closer to becoming a reality. What is Canada’s proposed law other than a method to use data to measure “dangerousness” and preemptively punish suspects?

As MIT Technology Review pointed out above, there are efforts underway to use victim reports to counteract bias, but the University of Texas study was still trying to use them to predict where a crime might occur and not who might commit the crime.

I should point out that it’s unclear what states are doing with all the info collected from reported hate incidents, particularly the details on the alleged perpetrators. I reached out to the California Civil Rights Division weeks ago to get an answer but have yet to receive a response.

There is a clear line of thinking that these hate incidents can be predictive of future crime, however. That’s what the Canadian bill claims. Back in 2019 NYU researchers claimed to use AI to show that “online hate” could be predictive of offline violence. Could all these efforts to gather data on hate “incidents” be laying the groundwork for precrime detention along the lines of what Canada is attempting?

For those who would like to see the adoption of a precrime system, one of the benefits of focusing on individuals and hate crimes is that it could help diffuse the bias criticism of predictive policing from groups typically suspicious of increased law enforcement powers. Indeed, many of the groups helping to implement the hate incident hotlines in US states are nonprofits focused on minority groups.

As the state efforts above show, the definition of what constitutes a bias or hate “incident” are slippery and many interested parties would like to shape that definition. Again, there are already hate crime laws on the books, and I have yet to encounter an explanation for why these laws are so ineffective that it’s necessary to encourage people to rat on one another in order to gather data on hate incidents.

Placed alongside burgeoning censorship efforts, it begins to make more sense. If we look at Canada’s effort to establish official pre-hate-crime law enforcement, it’s one that would mark the official end of free speech and lead to a dystopian society revolving around the fear of being targeted – either by an individual or AI.

Even without official precrime laws on the books, there are already ways that these efforts to combat “hate” are attempting to stifle speech. Naked Capitalism readers don’t have to look far for errors (or intentional targeting) in this system as Google’s AI targeted this site for “hateful content” among other alleged sins.

And there’s the issue with “hate.” It could mean a racist comment or action; it could also now refer to criticism of Israeli policy or a thought crime against the ruling class. It apparently does not refer to elite policy in California, for example, where the gap in life expectancy between the richest and poorest percentiles increased to 15.51 years in 2021 (which seems like the hateful result of hateful policies if you ask me). What happens if Californians begin to make hateful comments about that fact?

We don’t have to only look to fiction like Minority Report for answers. California’s own history provides a great example of the real use of these burgeoning programs to purportedly combat “hate.”

The California Criminal Syndicalism Act of 1919 prohibited speech that suggested the use of violence for political aims. It came at a time when workers were winning important battles in the class war raging across the state. California started locking up Wobblies en masse. As Malcolm Harris describes in his book Palo Alto:

Wobblies filled San Quentin, the Bay Area’s only prison, on bullshit charges that could hold them for up to 14 years. In Southern California, the police teamed with a resurgent KKK to bust the waterfront union, and the IWW was lucky if the cops decided to merely stand by and watch. …By the end of the decade, the state organization was jailed and beaten into submission.

Tyler Durden Sat, 04/06/2024 - 11:40

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Americans doubt the economy’s stunning success. They shouldn’t.

Apart from decades-low unemployment, recession-defying growth, slowing inflation and record-high stock markets, what has the economy done for us?

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'Vox populi, vox dei' is the lesson most politicians, and no small number of economists, absorbed with their baby food.

Roughly translated from Latin as "the voice of the people is the voice of God,' the 'Vox populi' approach to public opinion polls tends to have long lingering effects on myriad government and economic policies.

In an election year, however, the "voice of the people" influence extends beyond the powers of any known deity and rises to the realm of the universally accepted empirical truth.

That's been starkly evident in the ongoing debate about the strength of the domestic economy, which is typically associated with White House policies (despite the president's limited ability to influence anything beyond big-picture jawboning).

A recent Wall Street Journal survey suggested that less than a third of voters agreed that the economy has improved over the past two years despite an average GDP growth rate of 3.9%, the best in over a decade.

Chairman Jerome Powell's Fed has slowed inflation to around 3.1% from 9.1% over the past two years, while the economy added 15 million new jobs and produced solid wage gains.

OLIVIER DOULIERY/Getty Images

A New York Times poll, meanwhile, indicates that nearly three-quarters of those surveyed think the economy is doing only fair, or poor, despite the fact that U.S. growth has outpaced every other similar-sized market in the world since the 2020 pandemic. 

Jobs, growth and stock-market records

The stock market, too, has reached a series of all-time highs, with the Dow Jones Industrial Average flirting with the 40,000-point threshold. That level is more than 33% higher than at the peak of former President Donald Trump's four-year term in office.

When it comes to individual assessments of the economy, inflation pressures tend to trump labor-market strength and stock-market records, if for no other reason than rising prices affect everyone while job losses impact a much smaller number.

That could be why a major CBS News poll showed most Americans consider the economy to be in a better position under Trump, even though employment, GDP growth, and wage gains have all outpaced the pre-COVID averages under his administration. 

Related: Fed members' updated interest rate outlooks rock markets

In fact, headline inflation pressures have eased notably since they reached a four-decade peak of 9.1% in summer 2021, powered at the time by COVID supply-chain disruptions, surging energy prices linked to Russia's war on Ukraine, and the billions in pandemic support provided by the U.S. government.

The Fed's delayed reaction to the spike in domestic inflation, which was mirrored in major economies worldwide, led to the most aggressive series of interest-rate increases in a generation and took the central bank's benchmark lending rate to a 22-year high of between 5.25% and 5.5%.

Amid those rate hikes, the normalizing of supply-chain flows from Asia and elsewhere, and a pullback in gasoline prices, inflation slowed to just 3% last summer. But it has remained at or above that pace ever since, powered by stubbornly high costs for rent, cars, and healthcare services. 

Inflation pressure is real; labor market is resilient 

However, alongside that inflation stickiness has been one of the most resilient, and Wall-Street-defying, labor markets on record. 

More than 15 million new jobs have been added to the economy since 2022, with the recent average showing 266,000 new hires every month since June. That's helped keep the headline unemployment rate under 4% for the past two years, the longest run since the Vietnam War.

Data published Friday also showed a much bigger-than-expected addition of 303,000 new jobs over the month of March. More than three-quarters of those added jobs came from the private sector, with average hourly earnings easing modestly to an annual rate of 4.1%.

"With jobs and wages rising and inflation moderating, Americans will continue to spend this year, extending the economic expansion," said Comerica Bank's chief economist, Bill Adams. 

While inflation remains stubbornly north of the Federal Reserve's 2% target, wage gains have helped Americans combat headline price increases, at least to some degree.

Related: Jobs report smashes forecasts as red hot labor market confounds Wall Street

Daniel Casali, chief investment strategist at wealth manager Evelyn Partners, notes that so-called nominal labor income, which pulls together wages, hours worked and the broader labor market, rose 6% in March from a year earlier. That's nearly double the rate of inflation over the month of February. 

What might be harder for Americans to overcome, however, is the quiet surge in gasoline prices since last fall. That's added 6.6% to the cost of a gallon and taken the national average to a six-month high of $3.582, according to the AAA motor club. Further gains might be coming as the U.S. heads into the summer driving season.

The recent leap in global oil prices, which are growing increasingly sensitive to headlines from the ongoing conflict in Gaza as well as Russia's actions in Eastern Europe, is likely to put gasoline prices back on the list of inflation factors and blunt the Fed's, and the market's, hopes for summertime interest-rate cuts.

Who needs the Fed? 

But they might not be needed, according to Minneapolis Fed President Neel Kashkari, who told Pensions & Investments late last week that "there's a lot of momentum in the economy right now."

The Atlanta Fed's GDPNow forecasting tool, a real-time tracker of current-quarter growth, suggests that the world's biggest economy is expanding at a 2.5% clip, following on from gains of 3.4% and 4.9% in Q3 and Q4 2023, respectively. Both those figures topped economists’ forecasts.

For an economy to grow at this pace while adding 266,000 new jobs every month with rising wages and slowing inflation, is nothing short of astonishing. 

Related: The Fed's stock market influence, like inflation pressure, continues to fade

Whether you attribute that to the policies of the Biden administration or count the cost of the $1.7 trillion budget deficit recorded last year might depend largely on your political affiliation. 

As will your thoughts on the impact of immigration, which has helped boost the overall job-addition total and increased the overall level of labor-force participation while keeping wages from spiraling beyond the Fed's current comfort level.

More Economic Analysis:

But what can't be reasonably argued any longer is whether the economy itself is performing well.

"Big fiscal is undeniably a positive force for current growth, and the addition of immigrants to the labor market has clearly increased output and helped hold down wage growth," said Steve Wyett, chief investment strategist at BOK Financial in Tulsa, Okla.

"Going forward it will be a question of how long these factors can remain a tailwind," he added. "For the moment, they allow the Fed to be patient as they think about when to begin recalibrating monetary policy."

The only question now, it seems, is whether the 'Vox populi' will recalibrate their thoughts on the economy. 

Related: Veteran fund manager picks favorite stocks for 2024

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International

Europe’s South Takes The Lead

Europe’s South Takes The Lead

By Maartje Wijffelaars, Senior Economist at Rabobank

Brent crude oil extended its gains and broke through the…

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Europe's South Takes The Lead

By Maartje Wijffelaars, Senior Economist at Rabobank

Brent crude oil extended its gains and broke through the 90 dollars a barrel threshold yesterday, for the first time since end-October last year. The commodity continues its ascend this morning and at the time of writing it’ll cost you 91.2 dollars to buy a barrel. And more support for the commodity is on the table if Russia and Iraq actually stick to the production quotas. Indeed, on Wednesday OPEC+ decided to extend its production cuts through June, but Russia and Iran have produced more than agreed recently. Ukraine strikes on Russian production facilities over the past weeks could ‘help’ Russia lowering its exports, as sites are down. The exact amount of damage is unknown, however, with multiple different figures going around.

Apart from a tighter market, rising uncertainty in the Middle East have fed oil prices since Monday. At the start of the week, Israel hit Iranian military officials in Syria, stoking fears of an escalation of the Israel-Hamas conflict into the broader region.

Yesterday’s ECB accounts of its March meeting showed that uncertainties with respect to the developments of energy prices are on the ECB’s radar. Specifically they mentioned that “Upside risks to inflation included the heightened geopolitical tensions, especially in the Middle East, which could push energy prices and freight costs higher in the near term and disrupt global trade.” And that “It was important to keep in mind that wrong assumptions on energy prices would eventually feed through to all inflation components, either through input prices or indirectly, via wages.”

Overall, the accounts strongly point to a June move, but also underscore the likelihood of a cautious approach for the trajectory afterwards. For more on our ECB view please keep an eye on the preview for next week’s meeting our ECB watcher Bas van Geffen will send out today.   

Meanwhile, yesterday’s PMI figures for March narrowly lifted activity in the Eurozone to expansionary territory, for the first time since May 2023. The composite figure came in at 50.3, despite an accelerated contraction in manufacturing (46.1), owing to improved conditions in the services sector on the back of rising new orders, output and employment (51.5).

Indices for individual member states continued to show quite some divergence among member states. Specifically, they showed that things are going rather well in the South, with a composite PMI of 55.3 in Spain and 53.5 in Italy, but (still) not too good in Germany (47.7) and France (48.3). It’s a story that has been playing out for quite some time now due to a multitude of both longer- and shorter-term reasons.

Lost in thought contemplating the rising southern European PMIs

For example, Germany has been struggling with low demand in China and a loss in competitiveness not only due to the ‘recent’ surge in gas prices, but also due to relatively high labour cost growth – outpacing that of many peers for years now – and increased competition from Chinese car manufacturers. A very tight labour market has also been putting a lid on business’ abilities to grow.

Meanwhile, Italy has benefitted from increased competitiveness due to both relatively weaker wage growth and quality gains over the past years, supporting export growth. Indeed, it’s real effective exchange rate based on relative unit labour costs has been steadily in decline since the GFC. It has furthermore been able to tap into high-growth niche markets such as maritime transport production and has suffered less than Germany from supply chain disruptions during the pandemic.

Another important driver of Italy’s post-pandemic boom is the Superbonus tax credit scheme which has fuelled construction investment since 2020 – support from the latter is expected to come to end, however, as the scheme is being faced out. Finally, Italy has benefitted from EU grants from the Recovery and Resilience Facility (RRF) – also known as the EU pandemic recovery fund. Conditional on reform and investment progress, it is entitled to grants worth in total EUR 72bn (3.4% of 2023 GDP). So far it has received just over half of the amount it’s eligible to, although part of that money is still waiting to be spend.

Both wage moderation and significant support from the EU recovery fund have also helped Spain. The latter is entitled to as much as EUR 80bn in EU grants (5.5% of 2023 GDP) and has so far received a little less than half, although not all money received has been spent yet. More beneficial demographic developments have also helped Spain when compared to both Germany and Italy - this partly results from immigration. Another important factor of Spain’s more recent outperformance is that it has been playing catch up lately. It took longer for its hospitality and tourism driven economy to pick up from the pandemic slump. Furthermore, while its relatively small industrial sector – with a relatively strong focus on car manufacturing – has meant that Spain’s economy benefitted less from the strong industrial production growth during the pandemic years, past year(s)’ slump in the sector has also acted as a smaller drag.

German factory orders for February (0.2% m/m and -10.6% y/y) and industrial production in France (0.2% m/m and -0.8% y/y), out this morning, confirmed both countries’ rather weak start to the year. Yes, both saw a minor monthly uptick after a major contraction in January, but performance was worse than expected and in year-on-year terms both indicators weakened compared to January. At the same time, Spain’s industrial output in February exceeded expectations and picked up both compared to January (0.7% m/m after 0.4% m/m in January) and a year ago (+1.5% y/y in February after -0.6% y/y in January).

On a positive note, figures for Germany, France, and the Eurozone were upwardly revised from preliminary estimates. This suggests that the economy gained some steam in the final weeks of the quarter. This suggests growth in the Eurozone is likely to pick up in Q2, from a rather flat start this year. This is in line with our forecast, as private spending is projected to benefit from improved household purchasing power and a decline in long-term interest rates, while investment in general will be supported by the RRF funds – especially in Southern member states. Overall, Spain is expected to largely outperform peers this and next year, while France and Italy are projected to perform broadly in line with the Eurozone average;  Germany is to underperform.

Tyler Durden Sat, 04/06/2024 - 08:10

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French Pilots To Go On Strike Against Government’s Proposal To Ban Strikes

French Pilots To Go On Strike Against Government’s Proposal To Ban Strikes

It’s been a week full of absurd news and this certainly is a fitting…

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French Pilots To Go On Strike Against Government's Proposal To Ban Strikes

It's been a week full of absurd news and this certainly is a fitting end to it.

At a time when workers around the world are striking and demanding higher pay left and right to keep up with soaring prices, the Air France pilot union is doing the same... only with a twist: this strike isn’t due to any current labor issues between the union and company, but rather due to a new government bill that’s currently under consideration; as such the pilots are about to go on strike over a government’s proposed ban on strikes.

As View from the Wing reports, the French government is considering a ban on strikes “over fixed periods, up to 60 days per year" and the French Senate will debate the proposed bill April 9th. In France, strikes are often timed to maximize the impact they have on customers, so the government’s goal is to presumably limit strikes over the busiest periods, especially in the transportation sector (the upcoming Summer Olympics in Paris may also factor into this).

Meanwhile, the SPAF pilot union (Syndicat des Pilotes du groupe Air France), which represents pilots at Air France, believes that Air France is not public transport and not engaged in public service, and thus their right to strike shouldn’t be constrained to benefit the public. Doing otherwise “would “relegate” the country to an authoritarian state” according to the pilots who clearly are unaware that France was relegated to an authoritarian state long ago.

And since the union “cannot accept” such "authoritarian" legislation they are calling on all French pilots to strike April 15-16.

The pilots maintain that there’s a separation between the airline and society, and that they don’t owe a duty to the French public – yet their own actions undermine the claim. They say Air France is private, this new potential policy is government, and they’re protesting the government policy by striking… against the airline.

Meanwhile, it’s surreal to suggest that:

  1. Air France isn’t an artifact of the state The French government owns nearly 30% of Air France KLM. The airline received approximately $17 billion in subsidies during the pandemic. They have received grants of favorable slots at both Paris-Orly and Charles de Gaulle airports, which are property rights gifted by the government and which exclude competition.
  2. French labor law doesn’t already interfere in employee-employer relations French labor law is already tilted heavily towards striking workers. The pilot union doesn’t claim that this risks tyranny. Airlines cannot generally hire replacement workers (and can only reassign duties to existing workers). Here the French state gives labor tremendous leverage over employers through force of law. The French Labor Code also imposes severe conditions on an employer’s ability to dismiss workers, from severance pay to a worker’s right to challenge dismissal in labor courts. It requires consultation with a Social and Economic Committee and developing job-saving plans and plans to minimize the impact of layoffs through transfers and retraining where more than 10 employees are involved.

The French government is the primary owner of Air France and heavily involved in French labor relations. New legislation threatens to tinker with rules that would limit harm to French citizens from strikes at this business that’s been deemed systemically and socially important (hence billions in subsidies from citizens). With this change, if it were to come to pass, French law would still tilt heavily towards workers.

Meanwhile, Air France pilots are not the downtrodden souls union workers normally want to be seen as: "these aren’t factory workers during the industrial revolution", as VFTW points out. On average Air France pilots earn around $160,000 with senior captains frequently earning in excess of $250,000 per year. And since French per capita GDP is half that of the United States, these numbers are even more impressive.

Bottom line: French pilots striking to push for government policies protecting their privileged positions at the expense of average citizens is an awkward position to be in, but come to think of it not all that different than ALPA in the United States.

Tyler Durden Sat, 04/06/2024 - 07:35

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