The High Tech 
              Sector: Conditions & Opportunities (page 1 of 
              2) 
              By the High Tech Committee of the National Organizing Committee 
                Introduction 
              This report 
                began as an internal discussion document of the High Tech Committee 
                of the National Organizing Committee. Philosophically, the NOC 
                tries to begin with an assessment of the world as it is. So this 
                report attempts to summarize the objective situation in key areas 
                of the high tech arena, including employment, the National Information 
                Infrastructure (NII), intellectual property, and the high tech 
                police state. The objective situation reveals opportunities for 
                our work, which are also discussed below. 
              The 
                High Tech Sector of the Economy 
              High tech 
                is a key sector of the economy. According to the Bureau of Labor 
                Statistics, more workers in the U.S. are employed in electronics 
                than in automobile production. Much of the growth in electronics 
                employment and related industries over the past three decades 
                has been at the expense of traditional industries, as companies 
                replaced workers with electronics and the requisite software to 
                control electronic-based machinery. However, the same forces affecting 
                other industries have affected the electronics industry itself, 
                in the past four years. This is an expected development, as electronics 
                permeates the economy, and the industries mature. 
              These forces 
                can be summed up as:  
             
            
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                    A glut 
                      in the market, with a corresponding crisis in profitability 
                      (or, the extraordinary profits of the previous period begin 
                      to come in line with overall profitability). For example, 
                      software companies are facing the saturation of the business 
                      software market, forcing companies to cut into their fat 
                      profit margins -- "$500" software packages being 
                      dumped at "introductory" prices of $50 or $100. 
                      (That is, the price of technology, especially software, 
                      is sinking to its value). 
                   
                 
               
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                    Waves 
                      of new technology making older architectures obsolete, and 
                      jeopardizing the companies that championed them. The mainframe 
                      and mini-computer companies are the primary victims here 
                      (IBM, DEC, Amdahl, Groupe Bull, etc.), where less labor 
                      is necessary to produce state-of-the-art systems (these 
                      computers are smaller, and require fewer resources to manufacture). 
                   
                 
               
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                    In a 
                      related move, a shift from complexity in manufacture (expensive 
                      to replicate) to complexity in software (inexpensive to 
                      replicate). "Massively parallel processing" computers, 
                      where hundreds of relatively simple processors work in tandem, 
                      are replacing the old model of larger chips and larger systems. 
                      Another example is the move to "reduced instruction 
                      set computing" or RISC, away from the trend to larger 
                      and more complex chips -- the designs tend to get simpler 
                      and faster, and the software to coordinate and run them 
                      gets more complex. 
                   
                 
               
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                    Cuts 
                      in military spending. There are several reasons for this 
                      -- the end of the Cold War has undermined the rationale 
                      for a heavily subsidized military-industrial complex (or 
                      at least for particular types of weapons systems). Forces 
                      of a technology sector without ties to the Pentagon have 
                      emerged which have pushed for more research and spending 
                      in non-military areas (these forces, identified with John 
                      Sculley, then with Apple, and John Young, then with Hewlett- 
                      -Packard were instrumental in Clinton's election). Military 
                      spending cuts can be seen as a retraction of the social 
                      bribe (defense spending as a public works project) as international 
                      capitalist competition increases, and public sector spending 
                      must be cut -- a parallel move to cuts in welfare, health 
                      care, etc. While military production-related employment 
                      cuts continue, however, the Clinton administration has retreated 
                      from more cuts in the military budget; at the same time 
                      we are seeing military technology bolstering police forces. 
                   
                 
               
             
             
               
                Companies 
                  have responded in traditional ways: 
               
             
            
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                      Companies 
                        are cutting labor costs through "smarter technology" 
                        -- in the case of High Tech, this has been through such 
                        developments as object-oriented software, computer-aided 
                        software engineering (CASE), and faster and cheaper computers. 
                        (As the head of Radius, a company that makes computer 
                        equipment, told the San Francisco Examiner recently, "We 
                        turn out (custom computer chips) with four engineers and 
                        a giant computer. That used to get done with 100 engineers. 
                        That's 96 engineers you don't need any more." 
                     
                   
                 
               
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                              Companies 
                                are cutting labor costs by exploiting cheaper 
                                labor markets (made possible by high- -speed telecommunications). 
                                Emerging new low-wage high-skill labor markets 
                                include the former socialist countries of Eastern 
                                Europe, and India, Ireland and Mexico. Particularly 
                                in the case of companies caught in the shift to 
                                new architectures, tighter profit margins, and 
                                shrinking government subsidies, companies are 
                                dumping workers as sales drop or as profitability 
                                fails to live up to investors' expectations.  
                             
                           
                         
                       
                     
                   
                 
               
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                              Companies 
                                are consolidating through mergers and buyouts 
                                (Aldus+Adobe and Novell+ Word- Perfect most recently, 
                                as well as various other partnerships). Companies 
                                realize savings by cutting unproductive (sales 
                                & marketing) labor costs especially, but also 
                                tech support workers, engineers, and the relatively 
                                few production workers where overlap occurs.  
                             
                           
                         
                       
                     
                   
                 
               
             
            
             
               
                 
                   
                    The 
                      cuts have been substantial. Domestic employment in the U.S. 
                      electronics industry fell for the fourth consecutive year 
                      in 1992. December, 1992 electronics employment was 2,291M 
                      or 99,000 (4.1%) less than the 2.39M reported for December, 
                      1991. "The only industry segment that experienced growth 
                      in 1992 was Prepackaged Software, with a modest 2,270 new 
                      jobs. On the other hand, Defense/ Commercial Guidance Systems 
                      lost 30,000 jobs last year. With one exception, U.S. electronics 
                      employment showed no month-to-month growth for 30 consecutive 
                      months. Since August 1989, our industry has lost 309,000 
                      jobs. And, when the industry's healthy software segment 
                      is removed from the total, domestic electronics employment 
                      dropped by more than 380,000 in the same period.[1]  
                    That 
                      "healthy sector", prepackaged software, only employs 
                      about 150,000 workers -- about as many people who work in 
                      cement production. 
                    One 
                      aspect of the shrinkage in the high tech labor force is 
                      the shift from full-time regular employment to contingent 
                      work -- temporary; contract and "consulting" work. 
                      This parallels trends in other industries (Manpower is supposedly 
                      the largest employer now), and is an integral aspect of 
                      the new "virtual corporation", where production 
                      is organized on a temporary, ad hoc basis, with workers 
                      being pulled together by capital as needed, and dispersed 
                      when projects are complete. The shock of economic contraction 
                      is shifted from the capitalist to the worker, as the worker 
                      must absorb training expenses, health insurance, and bear 
                      the cost of periods when no work is available. 
                     
                      The 
                        high tech workforce, especially in the weapons industry, 
                        has historically been a conservative bloc, consistent 
                        with maintaining their livelihood through inflated military 
                        spending. With the enormous job losses in that industry 
                        (an expected 1.2 million jobs in the 1992-1996 period, 
                        according to the Federal Office of Technology Assessment), 
                        there is a real danger of those workers drifting towards 
                        a fascist solution to the economic crisis. One example 
                        of this danger are the efforts of the Coalition for Visa 
                        Reform, founded last January. "Its goal is to reform 
                        the H1 visa program (and any other visa) so that technical 
                        professionals will not lose their jobs or see their pay 
                        reduced because of the cheap foreign labor being brought 
                        to this country."[2] The legitimate issue of pay 
                        equity for non-citizen workers is instead raised in the 
                        context of a nativist solution. CFVR focuses the problem 
                        on foreign workers taking jobs, instead of challenging 
                        a system that cannot provide productive the world's engineers. 
                        As more high tech work is exported to cheaper labor markets, 
                        and mobile lower-paid workers are brought in as temporary 
                        workers, "Buy American Labor" could become a 
                        popular rallying cry among unemployed engineers. 
                      The 
                        communications sector, which overlaps with high tech work, 
                        has also been hit hard over the past three years. At the 
                        same time the "information super highway" is 
                        touted as a jobs savior, some 44,000 jobs were cut last 
                        year among the companies who have laid claim to building 
                        the "infobahn." According to the Communications 
                        Workers of America, the phone companies in particular 
                        have been eliminating union positions through automation 
                        (particularly among phone installers and operators), and 
                        transferring capital to non- union sectors of the industry, 
                        through acquisitions of related concerns (e.g., cable 
                        companies). 
                      The 
                        privatization of information has resulted in the decimation 
                        of the public library system and the closing of library 
                        schools. The reality of trends in public librarianship 
                        belies government and corporate assertions of concern 
                        for equitable access to information. 
                      Layoffs 
                        and other labor cutbacks especially affect workers over 
                        40. As technical workers get older, their salaries rise, 
                        their skills age (Sun Microsystems expects 20 percent 
                        of its engineers skills to become obsolete each year [3]), 
                        and their willingness to sacrifice family and community 
                        for work ebbs. So these workers tend to bear the brunt 
                        of "restructuring", "downsizing", 
                        etc. 
                      The 
                        job market for recent college graduates is also drying 
                        up. CFVR concluded, "[t] here are at least 50% more 
                        people entering the software programming labor market 
                        than new jobs being created. This amounts to an over supply 
                        of 22,000 workers or about 4.3% of the overall labor force."[4] 
                        These figures have been challenged, but the Institute 
                        of Electrical and Electronics Engineers (IEEE) recently 
                        found unemployment among electronic engineers to be the 
                        highest in more than a quarter century, and some 200,000 
                        engineers were removed from U.S. employment rolls between 
                        1991 and 1993.[5] IEEE also describes the jobs crisis 
                        as an international phenomenon. In addition, youth considering 
                        engineering or other high tech careers face the problem 
                        of getting into college in the first place, with state 
                        colleges raising tuition and closing down programs. [6] 
                      The 
                        Digital Convergence 
                      As 
                        electronics permeates production, the product of production 
                        assumes a digital format, a form that can be easily stored 
                        and transported electronically. "Digital format" 
                        means the symbolic representation of information as 1s 
                        and 0s, which can be converted into electrical or light 
                        pulses, and transmitted over wires and fiber optic cable; 
                        or through air and space as electromagnetic waves. Electronics-based 
                        machinery at either end of the transport system encodes 
                        and decodes the symbolic traffic, and renders it into 
                        material use values. There are numerous enormous cost 
                        savings achieved by the digitalization of products: savings 
                        in storage space required, in transmission time and cost, 
                        and in the application of computers to completely automate 
                        the processing and routing of the digital rendering. [7] 
                        Just as railroads and trucks were needed to carry the 
                        product of production in the industrial era, digital carriers 
                        are required to haul the product of electronic production 
                        in the electro  
                      Every 
                        stage of technical development demands both transportation 
                        and a communication system that corresponds to that level 
                        of the productive forces. The Industrial Revolution was 
                        also a transportation and communications revolution, that 
                        is, one could not have happened without the other, as 
                        capital demanded better and faster means of coordinating 
                        production and circulating commodities and capital; and 
                        the manufacture of new communication and transportation 
                        systems, especially railroads, spurred industrial production 
                        to more and more sophisticated levels. [8] 
                      The 
                        ubiquitous debate over the so-called National Information 
                        Infrastructure" (NII), also known as the "information 
                        super highway", must be examined in this context. 
                        As modern production increasingly shifts to a digital 
                        basis, as a natural consequence of electronics spreading 
                        through production, modern production demands a commensurate 
                        means of transportation and communication. Or to put it 
                        another way, to paraphrase Marx, the old means of communication 
                        and transport handed down from the industrial period have 
                        become unbearable trammels on Modern [i.e., electronics- 
                        based] Industry. 
                      This 
                        process is most intensely affecting the information industries 
                        -- especially communications, entertainment (music, film, 
                        television and the hybrid "multimedia"), publishing, 
                        education, scientific research, financial services, and 
                        advertising. But the shift to "information-based" 
                        or "knowledge- intensive" production affects 
                        traditional manufacturing as well. Just-in-time production 
                        requires sophisticated information networks to work. Modern 
                        robotics-based production requires not so much assembly 
                        workers as computer operators to monitor the workflow. 
                        Designs and orders enter into the machinery through digital 
                        ports: "‘retooling' with the new "flexible 
                        manufacturing systems", simply means changing the 
                        software that guides the machines. The assembly line (hardware) 
                        remains unchanged. The robots, hardly pausing, begin exercising 
                        different actions in obeyance of the newly-loaded programs."[9] 
                        The production and circulation of goods is increasingly 
                        an information processing function. 
                      The 
                        terminal phase in capitalism is being driven by the expulsion 
                        of labor from commodity production. Objectively, this 
                        manifests itself as rising global unemployment, and for 
                        those able to find a market for their labor power, falling 
                        wages. The increasing use of information technology in 
                        the context of intense global economic competition is 
                        rapidly eroding wages. In 1979, 12 percent of the full 
                        time workforce earned less than the "poverty wage", 
                        so-called because it is the amount necessary to support 
                        a family of four above the official poverty level ($13,000 
                        in 1992 dollars). By 1992, 18 percent of the full time 
                        workforce was earning less than the poverty wage, an increase 
                        of 50 percent. Thus, of those workers able to find full 
                        time employment, one in five is not earning enough to 
                        support a family. [10] More >> 
                     
                   
                 
               
             
            
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