Sociology of inequality

1995

                    SOCIOLOGY OF INEQUALITY

                      

BY F.H

.....    In July, 1992, the federal government's Department of Fisheries minister, Brian Tobin, announced that all cod fishing off the coast of Newfoundland would be banned for an indefinite period.  Through this announcement, 30,000 Newfoundland fishermen and fishery workers found themselves unemployed.  The federal government in Ottawa gave the workers a $1.9 billion five-year compensation program ending in the spring of 1999.  Part of this program included training programs which are supposed to allow unemployed fishermen to acquire skills and training to find equitable jobs. 

.....    Many of the fishermen have been outraged, either at the federal government, or at other fishermen who had recently been issued groundfishing licenses.

.....    Newfoundland fishermen have been portray many social inequities in comparison to the average Canadian citizen.  The wealth of most of these fishermen is found in their business and living assets.  Their boats, fishing gear, and their housing property are their main assets.  "...many fishermen invested as much as $500,000 in enterprises that now have little value.  "If they have to move out and go somewhere, they have to give up in many cases a half-million dollars in gear, houses and building."" (Globe & Mail, 28-01-'95) 

.....    The income of most fishermen has come from fishing (in the fishing season) and unemployment benefits (in the off-season).  The average range of a fishermen's yearly salary was from $20,000 to $50,000.

.....    The status of the fishermen is that of a manual labourer.  Most fishermen hold no high school education, and have no skilled labour.  They are mostly from British descent, and are seen from the Canadian mainland as a separate society similar to Quebec.  The dependency on unemployment insurance benefits for the fishermen has given the province of Newfoundland a negative image in the eyes of mainland Canadians. 

.....    The biggest social setback for the fishermen has been their power.  The federal government in Ottawa issues the groundfishing licenses, they service the unemployment insurance program, and they hold the permission allowing the Newfoundland fishermen to fish for cod. The fishermen have no political or ideological power.  Both are negligible due to low education standards and the small representation of MP's in Ottawa's Parliament. 

.....    The only power which the fishermen did hold, was economic power.  However, this power has dwindled with the onset of the cod fishing moratorium.  Most of the income potential for the 30,000 fishermen has shrunk.  Of the 15,000 fishing licenses existing in Newfoundland in 1993, the federal government planned to buy back two-thirds. 

.....    The existence of social stratification and cultural differences have had a large impact on the Newfoundland fishermen.  The basis of a staple-based economy, and a leakage of funds has also made a large impact on Newfoundland's economy. 

.....    The evidence of social stratification has been discussed previously.  With low education standards, low average incomes, and negligible investment from the federal government, Newfoundland's fishermen have been almost completely neglected.   ..... A look at Newfoundland's banking history portrays a rational picture as to why no other industries have been introduced in the past 50 years.  Many of the Canadian-based chartered banks have been taking deposits from Newfoundland's population for the past 50 years.  Unfortunately, these deposits were lend to mainland Canadian business, rather than Newfoundland enterprises.  The outflow of capital has resulted in Newfoundland holding one of the lowest investment ratios in the country. 

.....    Today, a large part of Newfoundland's economy is staple-based.  To those who are unfamiliar with this economic term, a staple-based economy is an economy such as Canada's in the 17th and 18th centuries.  During these centuries, much of Canada's income was derived from selling furs, logs, and some agricultural goods.  The dependency of Newfoundland's well-being on fish, has made this province very vulnerable. 

.....    Who is thus to blame?  The government of Canada, the chartered banks, foreign fishermen, or the Newfoundland fishermen?  Regardless of the blame, Newfoundland has a very big problem.  20,000 fishermen remain jobless today.  Before a solution is given by the federal and provincial governments, they must first learn from its past mistakes. 

.....    The lack of focus on formal education has created a large unskilled labour pool in Newfoundland.  Also, by issuing licenses with "its eyes closed", the federal government had oversupplied the Atlantic Ocean with too many fishermen. 

.....    The solution to Newfoundland's fishermen is comprehensive.  The focus of the solution can be found handily, by looking at those industries which have enjoyed tremendous growth in the past five to ten years in North America.  Most of the growth has been seen in the technology, information systems, mass media, and telecommunications sector. 

.....    In the spring of 1995, New Brunswich was awarded a contract from Bell Canada Enterprises to maintain a national switching centre for telecommunications.  The main reason that New Brunswick received this contract, was due to low transportation costs for equipment, big tax breaks, and a well-trained labour pool.  Newfoundland could learn from this example, and begin to focus on educating its fishermen in skills which will be needed from the present time to the future.

 .....   Another example of a "success story" is the Republic of Ireland.  Since the late 1980's, Ireland has been sent thousands of insurance documents to be typed and sent back to insurance companies.  Although this task is relatively simple and takes little training, Ireland has been enjoying a high income per capita relative to earlier times.  By hiring a consulting firm to conduct research for high-demand skills, Newfoundland could be ensured of training its fishermen with useful skills. 

.....    In recent months, after some drilling was completed, large deposits of diamonds were discovered in Labrodor.  The completion of the Hibernia oil project is also nearing.  What does this mean for Newfoundland?  If prices for oil and diamonds remain at profitable levels, then both these projects will be in need of skilled labour to extract the respective resources.  Newfoundland might want study the need for this labour, and if it exists, act immediately to train the fishermen with the necessary skills to acquire those jobs.

.....    The last option, which most Newfoundlanders would like the least, would be the relocation of employment to another area of the country where job prospects are less bleak.