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Workers of the mill : local labour market change and restructuring of the sugar industry in northern.. 2011

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 WORKERS OF THE MILL:  LOCAL LABOUR MARKET CHANGE AND RESTRUCTURING OF THE SUGAR INDUSTRY IN NORTHERN NEGROS OCCIDENTAL, PHILIPPINES 1946-2008   by   Patrick Vince Oabel  B.E.S., York University, 2000 M.A., University of British Columbia, 2003       A THESIS SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF   DOCTOR OF PHILOSOPHY   in   The Faculty of Graduate Studies  (Geography)   THE UNIVERSITY OF BRITISH COLUMBIA (Vancouver)   December 2011       Patrick Vince Oabel, 2011  ii Abstract  This dissertation is about the restructuring of a local labour market in the Global South.  The central research question asks: how are local labour market processes and their various social outcomes reconfigured by industrial restructuring?  On the ground, this meant asking: what are the ongoing labour market consequences for workers and the geographies they make? Employing concepts from the theoretical areas of the labour market, labour control, and labour geography, the dissertation pursues these questions by examining the development of the Philippine sugar industry and the evolution of an industrial labour market located in Victorias City in the central province of Negros Occidental.  Drawing on analyses of historical documents, interviews, and 10 months of ethnographic research conducted during 2007, the study’s discussion focuses largely on the changing conditions, experiences and activities of the primary workers of the Victorias sugar mill.  After identifying the broader regulatory social tendencies related to the economy and labour in Negros over the roughly 150 year history of the industry, I demonstrate how places like Victorias helped drive the wider institutional arrangements of Philippine export dependency and American imperialism during the early and mid twentieth century.  As a distinct institutional environment that evolved on the ground, the industrial locality was a place-particular social context inherent to Philippine sugar production during the time of American neo-colonial capital accumulation.  With the industry in decline since the mid- 1970s, the increasing disintegration of the Victorias labour market during the 1990s and 2000s further signaled major shifts in the structure and distribution of power over sugar as Chinese- Filipino traders and industrialists continued to partially consolidate various areas of the industry. Enduring the retrenchments and the reorganization of their workplace, workers and their families struggled with the new employment conditions.  Their efforts to sustain and improve their lives through new livelihood strategies have reshaped the economic landscape in important ways. Besides providing additional contextual variability with which to view the application of theoretical concepts oriented to labour, this study further supplements understandings of capitalism’s uneven development from the post World War II period to the current era of neoliberal globalization.       iii Preface  The research conducted for this dissertation was approved by the University of British Columbia Behavioural Research Ethics Board (Certificate of Approval number B06-0669).                                             iv Table of Contents  Abstract ..................................................................................................................................... ii Preface ...................................................................................................................................... iii Table of Contents..................................................................................................................... iv List of Tables .......................................................................................................................... viii List of Figures .......................................................................................................................... ix List of Illustrations ................................................................................................................... x List of Abbreviations ............................................................................................................... xi Glossary of Pilipino Terms (Hiligaynon/Ilonggo)............................................................... xiii Acknowledgments ................................................................................................................... xv Dedication............................................................................................................................... xvi CHAPTER 1 - INTRODUCTION .............................................................................................. 1 1.1 Introduction........................................................................................................................... 1 1.2 Negros Occidental and the Philippine Sugar Industry........................................................ 13 1.3 The Victorias Milling Company......................................................................................... 15 1.4 Structure of the Dissertation ............................................................................................... 17 CHAPTER 2 - THEORIZING LABOUR MARKETS, LABOUR CONTROL AND LABOUR GEOGRAPHY.......................................................................................................... 20 2.1 Introduction......................................................................................................................... 20 2.2 Local Labour Markets......................................................................................................... 21 2.3 The Politics of Labour Control ........................................................................................... 26 2.3.1 The Geography of Labour Control.................................................................................30 2.3.2 Spatial Forms of Labour Control ...................................................................................31 2.4 Labour Geography.............................................................................................................. 36 2.5 Uneven Development, Social Regulation and Local Labour Markets ............................... 39 2.5 Summary and Contributions to the Discipline ................................................................... 44 CHAPTER 3 - METHODOLOGY: LABOURING FOR THE STUDY OF LABOUR MARKETS .................................................................................................................................. 45 3.1 Introduction......................................................................................................................... 45 3.2 Research Motivations and Producing Knowledge of Negros............................................. 45 3.3 Research Strategies and Issues ........................................................................................... 50 3.3.1 Primary and Secondary Sources ....................................................................................51  v 3.3.2 Field Interviewing..........................................................................................................52 3.3.3 Surveying .......................................................................................................................55 3.4 Summary of Major Research Themes ................................................................................ 55 3.4.1 Evolving Forms and Structures of the Local Labour Market ........................................56 3.4.2 Shifting Spatial Strategies of Labour Control................................................................56 3.4.3 Forms of Workers’ Agency ...........................................................................................57 3.4.4 Changing Social and Cultural Identities ........................................................................57 CHAPTER 4 - SUGAR INDUSTRY, SUGAR WORKERS AND THE STATE IN NEGROS OCCIDENTAL ......................................................................................................... 59 4.1 Introduction......................................................................................................................... 59 4.2 Weak State .......................................................................................................................... 60 4.3 The Evolution of the Sugar Industry in Negros.................................................................. 62 4.3.1 The Sugar Industry during late Spanish Colonialism (1855-1890s)..............................67 4.3.1.1 Labour Regulation ................................................................................................ 69 4.3.2 The Sugar Industry during American Colonialism (1898-1946) ...................................71 4.3.2.1 Spatial Development, Labour Process, and Industry Culture............................... 77 4.3.2.2 Industrial Labour Regulation and Labour Geography.......................................... 81 4.3.3 The Sugar Industry during American Neo-Colonialism (1946-1974) ...........................88 4.3.4 Restructuring and Crises in the Sugar Industry during the Marcos Era (1972-1986) ...92 4.3.4.1 The National Federation of Sugar Workers and Increased Militarization of the Countryside....................................................................................................................... 95 4.4 The Sugar Industry in the 1990s and 2000s...................................................................... 100 4.4.1 Recent Trends in Sugar Production .............................................................................105 4.4.2 Restructuring of the Milling and Refining Sectors ......................................................107 4.4.3 The Provincial Labour Market .....................................................................................115 4.5 Summary........................................................................................................................... 120 CHAPTER 5 - THE PATERNALISTIC COMPANY STATE, 1946-1991......................... 122 5.1 Introduction....................................................................................................................... 122 5.2 Factory Beginnings and the Company State..................................................................... 124 5.3 Family and Paternalism as Institutional Environment under the Ossorios (1946-1965).. 127 5.3.1 Working Conditions in the 1950s and Battered Bodies...............................................129 5.3.2 Social Organization of the Firm...................................................................................130 5.4 Local Labour Geography: The VIWA Company Union .................................................. 133  vi 5.4.1 Cornerstone Worker Benefits: The Beginnings of Institutionalized Paternalism........137 5.5 Working Conditions under Luzuriaga, Jr. (1966-1991) ................................................... 139 5.5.1 Social Groups and Networks within the Factory .........................................................142 5.5.2 Workers’ Interests and the Internal Labour Market.....................................................143 5.5.3 Recruitment as Patronage and Labour Control ............................................................146 5.6 The “Vicmican Family” as Discursive Strategy for Labour Control ............................... 148 5.6.1 Being Vicmican as Workplace Practice.......................................................................150 5.7 Conclusions ...................................................................................................................... 152 CHAPTER 6 - WORKER IDENTITIES: THE VICMICANS OF SUGARLANDIA........ 154 6.1 Introduction....................................................................................................................... 154 6.2 Theorizing Masculine Labour Market Identities .............................................................. 157 6.3 The Capital of Sugarlandia ............................................................................................... 160 6.3.1 The “Vicmican Family” as Labour Market Discourse ................................................161 6.3.2 Making the VMC Area ................................................................................................163 6.4 Spatial Strategies of Labour Control ................................................................................ 165 6.4.1 The Central Fortress under the Ossorios (1946-1965).................................................166 6.4.1.1 The Vicmico Gazette .......................................................................................... 166 6.4.1.2 Reproduction, Socialization and St. Joseph the Worker Church........................ 169 6.4.2 Company Housing and the Canetown Subdivision under Luzuriaga, Jr. (1966-1991)172 6.5 Being "Vicmican" and the Geography of Identity............................................................ 175 6.5.1 Being “Vicmican” as Mill Worker Identity .................................................................176 6.5.2 Being “Vicmican” as Managerial Identity ...................................................................181 6.6 Conclusions ...................................................................................................................... 184 CHAPTER 7 - LAST OF THE LABOUR ARISTOCRATS: VMC’S RESTRUCTURING, 1991-2008................................................................................................................................... 186 7.1 Introduction....................................................................................................................... 186 7.2 Labour Market Restructuring and the Flexibility of Labour ............................................ 188 7.3 Bankruptcy: Shifting Management Structures, Shifting Class Structures........................ 190 7.4 Management Transition and the Rehabilitation Plan, 1997 to 2008 ................................ 194 7.4.1 Enter Lucio Tan, the Chinese Filipino Taipans and Arthur Aguilar............................194 7.5 Dissolving Institutionalized Paternalism .......................................................................... 199 7.5.1 Shifting Social Organization of the Firm.....................................................................200  vii 7.6 Rupturing Local Labour Geography: Workers’ Interests and the Efforts of Arthur N. Aguilar (ANA)........................................................................................................................ 205 7.7 “Recovery” and the Flexible Workforce .......................................................................... 213 7.7.1 "Recovery" and “Rehabilitation” as Discursive Strategy for Labour Control.............214 7.7.2 Breakdown of the VIWA Union and Labour Relations during the Tan Takeover ......218 7.7.3 “Recovery” as Workplace Practice ..............................................................................226 7.8 Conclusions ...................................................................................................................... 230 CHAPTER 8 – THE “STANDBY” LABOUR MARKET .................................................... 232 8.1 Introduction....................................................................................................................... 232 8.2 Labour Markets and Livelihoods as Networked Space .................................................... 235 8.3 Changing Spatial Strategies of Labour Control (1997-2008)........................................... 237 8.3.1 Where Have You Gone Don Miguel? Breakdown of the Central Fortress .................238 8.3.1.1 The Vicmico Gazette, The VMC Bulletin.......................................................... 238 8.3.1.2 The Company Schools........................................................................................ 239 8.3.1.3 Company Housing and the Canetown District ................................................... 240 8.4 Changing Extra-Local Networks of the VMC Area ......................................................... 244 8.5 "Standby" Labour Market Experiences and Splintering Spatial Fix ................................ 246 8.5.1 VMC’s Standby Workers.............................................................................................248 8.5.2 No Longer Vicmicans, No Longer Working Men .......................................................250 8.5.3 New Lives, New Labour Market Networks .................................................................252 8.5.4 Changing Expectations of Work..................................................................................255 8.6 Conclusions ...................................................................................................................... 258 CHAPTER 9 – CONCLUSIONS ............................................................................................ 261 References.................................................................................................................................. 271 Appendix A: List of Interviews ............................................................................................... 293             viii List of Tables  Table 4.1: Nationality of Controlling Interests in Sugar Centrals and Percentage of the US Sugar Quota, 1939-1940 ......................................................................................................................... 86 Table 4.2: PSTC, Capacity Utilization, Sucrose Recovery (Crop Years 1970/71 to 2002/03).. 110 Table 5.1: Victorias Milling Company Workforce, 1964........................................................... 131 Table 5.2: Labour Representative Certification Election, 1960 ................................................. 135 Table 5.3: Vicmican Benefits, 1963 ........................................................................................... 138 Table 5.4: Additional Vicmican Benefits, 1976 to early 1990s ................................................. 140 Table 7.1: Shrinking Number of Permanent VMC Workers, 1960 to 2008............................... 201 Table 7.2: Victorias Milling Company Workforce, 1964........................................................... 202 Table 7.3: Victorias Milling Company Workforce, 2006/2007 ................................................. 203 Table 7.4: VMC’s Aging Workforce 2004................................................................................. 206 Table 7.5: Number of Temporary and Rank-and-File Workers, 1981-2008.............................. 228                              ix List of Figures  Figure 4.1: Map of the Philippines and Negros Occidental.......................................................... 63 Figure 4.2: Map of Victorias City and the Victorias VMC Area ................................................. 64 Figure 4.3: Philippine Sugar Exports and the U.S. Sugar Quota, 1909-1985 .............................. 90 Figure 4.4: Age and Sex Structure of Negros Occidental, 2000 ................................................ 119 Figure 4.5: Age Structure of City of Victorias, 2010 ................................................................. 119                                         x List of Illustrations  Illustration 6.1: “VMC Model Family” Plaque (Roger’s House)............................................... 168 Illustration 8.1: Abandoned Property in Canetown .................................................................... 242 Illustration 8.2: Old Railway Line .............................................................................................. 243                                            xi List of Abbreviations  AFTA   ASEAN Free Trade Area  AIM   Association of Integrated Millers  ASEAN  Association of Southeast Asian Nations  AWA   Allied Workers Association  BCC   Basic Christian Community  BISCOM  Binalbagan-Isabela Sugar Company  CAFGU  Citizens Armed Forces Geographical Unit  CARP    Comprehensive Agrarian Reform Program  CARSUMCO  Cagayan Robina Sugar Milling Corporation  CGOV   City Government of Victorias  CHDF   Civilian Home Defense Force  CONFED  Confederation of Sugar Producers Association  FFF   Federation of Free Farmers  FOF   Federacion Obrera de Filipinas  FVW   Free Visayan Workers  NASUTRA  National Sugar Trading Corporation  NFSP   National Federation of Sugarcane Planters  NFSW   National Federation of Sugar Workers  NONSUCO  North Negros Sugar Company  NPA   New People’s Army  PAFLU  Philippine Association of Free Labour Unions  PHILEX  Philippine Exchange Company  PHILFOODEX Philippine Food Exporters Association  PHILSUCOM  Philippine Sugar Commission  xii  PNO   Province of Negros Occidental  PSMA   Philippine Sugar Millers Association  PSTC   Piculs of Sugar per Ton of Cane  SONEDCO  Southern Negros Development Corpororation  SRA   Sugar Regulatory Association  SSS   Social Security System  TELA   Talisay Employees and Labourers Association  UNIFED  United Sugar Producers Federation of the Philippines  URC   Universal Robina Corporation  URSUMCO  Universal Robina Sugar Milling Corporation  VIWA   Victorias Milling Company Industrial Workers’ Association  VICMICO VMC   Victorias Milling Company                         xiii Glossary of Pilipino Terms (Hiligaynon/Ilonggo)  amo   employer, master  artista  actress/actor  barangay an administrative district/ward or village  barkada peer group  bayebaye sweet rice cake snack  biro  soot  cabo   foremen  central/ sentral  sugar mill  centralista owner/manager of a sugar mill/central  dumaan labradores resident labourers  encargado plantation overseer  hacendero plantation/hacienda owner/sugar planter  inum-inum to take a few (hard) drinks  karenderya public eating place  karga-tapas sugarcane loader/cutter  mestizo(a) a person of mixed race  pulutan finger foods usually taken with hard drinks  sacada  seasonal migrant sugarcane worker  sari-sari small convenience shop  sikad  bicycle rickshaw transport  taho  ginger tea  taipan  tycoon    xiv tambay estambay standby/loafer  templa  to mix  tikalon  boastful (person)                                             xv Acknowledgments  My first experience on a sugarcane plantation was in Barotac Viejo in eastern Iloilo in the early 2000s.  While accompanying my aunt, who was there to purchase rice harvesting machinery, I had wandered off onto a nearby hacienda and almost got lost.  Little did I know at the time, that this experience, as well as the fortuity of circumstances, would inform greatly the contours of my next major academic project.  In this sense, the uncertainty, haphazardness and serendipity of the research process played a large part in leading me to tell this particular version of the story of the Negrense sugar industry and the everyday life of the Victorias sugar mill. Although quite challenging, engaging in doctoral studies at UBC has been one of the most rewarding experiences in my life.  And there have been several people who have made the long road to completion more enlightening and enjoyable.  My deepest gratitude goes to my supervisor Dr. Jim Glassman.  He is an inspiring scholar and I feel extremely fortunate to have learned so much from him over the years.  I also owe a great deal to Dr. David Edgington for his guidance and professionalism.  I thank Dr. Nora Angeles of UBC’s School of Community and Regional Planning for her support and encouragement.  I thank other faculty who helped me during earlier stages of the degree: UBC geographer Dr. Juanita Sundberg, for her insights on area studies and research methodologies; and Dr. Philip Kelly, a geographer at York University, for my involvement in the ChATSEA (Challenges of the Agrarian Transition in Southeast Asia) research project and for the intellectual and financial support that it provided.  My thanks go to the members of my examining committee.  In addition to my advisors, these include the exam chair Dr. Jean Barman (Educational Studies), the university examiners Dr. Jamie Peck (Geography) and Dr. John Roosa (History), and Dr. Michael S. Billig, an anthropologist from Franklin and Marshall College in Pennsylvania, who agreed kindly to act as the external examiner.  For preparing the maps used in the final version of the thesis, I thank the departmental cartographer Eric Leinberger.  I must also acknowledge all of my friends, too numerous to name here, especially those from St. John’s College (2001-2005), and from the department (2001-2011), particularly members of the Glassman Group of graduate students, for all the adventures and memories. During my time in the Western Visayas, I am grateful to my aunt and grandma for facilitating my stay in Iloilo.  In Negros, my warmest thanks go to my anonymous Victoriahanon patrons.  Without their help, I would have never been able to gain further access to the social networks of the sugar central.  I am appreciative of the kindness shown to me by my research assistant Mary, and from my other friends in Canetown: Jenny, Mario and Bruce.  I thank all of the mill workers, dumaans, and their families for opening up their homes and sharing their lives and experiences with me.  Their stories and struggles are really what made this study possible. Finally, doing a doctoral degree and writing a dissertation is inevitably an all-consuming endeavour.  I thank my family in Toronto, and especially my parents, for keeping my spirits high and for giving me added purpose.  I am also very lucky to have not been alone for most of this journey.  I thank Courtney for her love, patience and support during the years it took for this project to come to fruition.  I acknowledge kindly the financial support of University Graduate Fellowships (2004- 2005), funds and scholarships from UBC’s Department of Geography, and a generous Doctoral Research Grant from ChATSEA (2007-2009), during various stages of the degree.       xvi      Dedication   for Mom and Dad, be well                                          1 CHAPTER 1 - INTRODUCTION  1.1 Introduction This dissertation is about the restructuring and reorganization of a local labour market in the central Philippines.  It mainly focuses on the changing conditions and activities of the primary workers of an industrial sugar mill located in Victorias City in the province of Negros Occidental.  For them and many other Negrenses who work in the more than dozen milling districts spread across the province, the production of sugar remains an important part of their everyday lives.  Most engage in arduous seasonal labour on sugar plantations, others are involved in its shipping and transport, while a smaller number are employed as workers within the industrial mills.  Much of Negrense, and in many ways Philippine history, can be told through the landscape’s involvement with sugar.  From serving as the original well spring for the fortunes of the current capitalist and political elite, to being emblematic of American colonial and neo-colonial relations, to helping characterize in the present day what Bello et al. (2005) call the “anti-development state”, sugar continues to be an important thread in the developmental narrative of the Philippines.  Viewed in this fashion, sugar production in its many dimensions and forms (economic, political, social, cultural and spatial) is symptomatic of the country’s uneven social and spatial development, often acting like a barometer of social, political and economic change.  As a small contribution to the history and analysis of labour in the province, the following study attempts to cast light on the past and present lives of workers in an industrial sugar mill.  Their experiences not only help constitute these wider political and social currents tied to the past and present economic development of the Philippines, but they also show how variability in the experiences of work are intertwined with the distinct histories of a local place. Here, the stories of three workers and their families are instructive.  Looking for Eddy’s house in Canetown, a district of workers’ housing located next to the renowned sugar central the Victorias Milling Company (VMC), proved to be an interesting task for a foreigner.1  Everywhere you go, ashfall, the soot (biro) from the mill’s towering smoke stacks remind locals and visitors alike of the lifeblood of the area.  The streets, homes, roof tops and garden walls of Canetown are covered by different hues of dark gray and charred black dust. When the mill is running during the day, the air you breathe has an unusual and confusing smell,  1  Sugar mills in the Philippines are also referred to as sugar centrals (or sentrals in the Ilonggo spelling, Ilonggo being the local dialect spoken in Negros Occidental and the Western Visayas region).  The use of the term refers to the mill’s location in the centre of a sugar milling district and to the centrifugal process used in industrial production.  In another way, the term also metaphorically represents the central importance of the mill to the life and welfare of a milling settlement or rural township.  2 a combination of a sweet, foul and suffocating aroma of freshly roasting (and at times rotting) corn.  Passing the abandoned homes and the cows left grazing in the vacant lots, I motioned to the sikad (a local form of bicycle rickshaw transport) to pull over at the next house.  Eddy was sitting on his front porch with a cigarette in hand and two empty bottles of Red Horse beer at his feet.2  Even before I went to speak with him, people in the area warned me of his ferocious drinking.  Now in his early sixties, Eddy was a well dressed, short, dark, and skinny man with a somewhat tired looking and worn out face.  He had reason to be bitter.  It has been a difficult adjustment for him and his family ever since the VMC declared bankruptcy more than ten years ago.  “When I started here, it was a progressive company run by the Americans.  Now they’re all thieves robbing the offices, passing the company from one bank to another,” he said while shaking his head.  Eddy began as a temporary worker at the firm before taking a permanent entry level position in 1967.  Gaining seniority through the years, he was promoted a handful of times and reached the level of division supervisor in the 1990s.  He was also a delegate in the local company union that negotiated the terms of work with the mill.  He and his family made the most of the VMC’s “womb-to-tomb” benefits.  They lived in the mill’s distinctive green and white “block housing” before moving to their own home in Canetown.  His children attended the local company schools where they received skills training for specific jobs in the mill.  The family made use of the company hospital, and their private loans and rice subsidies.  They took part in all of the community events and enjoyed the big holidays on the VMC calendar.  Eddy’s in-laws and relatives were also employed in different areas of the company, many under his watch within his own department.  In 1999, after 32 years of employment at the firm, he was retrenched.  Eddy’s time at the mill spoke to his position within the firm and in the local labour market.  As a former supervisor in one of the most prosperous and prestigious companies within the region and industry, his position was a marker of skilled status where he received a level of compensation and benefits that afforded him and his family economic security and some degree of social standing. Within the firm, he performed an important gendered role since labour discipline relied on patriarchal social structures and the male’s familial authority.  His retrenchment took away many of the key everyday practices that for decades helped to inform broadly his social identity.  Feeling too old to try a new job, Eddy and his wife today rely on money given to them from their two sons currently employed as contractual workers at the mill, and on irregular remittances sent to them from a daughter in Manila.  Formerly the breadwinner  2  To protect their identities, all interviewees and informants are given pseudonyms.  3 and a figure of importance in the workplace and in the community, the work experiences of Eddy’s past serve as a somewhat painful reminder of what he used to be in his former job.  Like Eddy, Roger, 71 years old, had a similar employment history at the VMC.  A very robust man originally from the neighbouring province of Iloilo, his first job at the firm was in 1960 doing karga-tapas (sugarcane cutter and loader) on the company’s plantations.  He then took on a permanent job as a stevedore in the mill’s warehouses during the mid 1960s, and then worked as a timekeeper until 1980.  He was then promoted to assistant supervisor and kept the job until he retired in 1998.  With strong political connections inside the mill, and relied upon by the “big bosses”, he too made the most of his perks on the job as well as with the firm’s benefits program that covered his large family.  When his children grew older, many became employed in the company.  Most notably, one of his eldest daughters, Sally, 48 years old, taught at the company’s school for girls, St. Mary’s.  Another one of his daughters, Roni, 40 years old, worked as a nurse for a number of years at the company hospital, and several of his sons worked in a handful of other departments.  Unlike Eddy who was retrenched, Roger decided to retire in his early 60s after 38 years at the VMC and continues to receive his company pension.  The vibrant purple color of his home seemed to echo Roger’s memories of his time at the mill.  He lived through the glory years of the VMC when it was at its height.  And even though this time had ended, he believed that being a “Vicmican” (pronounced Vic-mee-can or Vic-mi-can) mill worker was something to celebrate.  Designated by the management as a “model employee” having a “model family”, you could still sense the authority in his voice as patriarch over a family of eleven children and a small army of grandchildren.  More than this, his kids had done very well after the mill’s bankruptcy.  Many migrated to different urban centres both within and outside the country partly in reaction to the retrenchments that began in the late 1990s.  Sally is married to a seaman and they recently moved to a new house in a subdivision in Iloilo City. Roni is working as a nurse in London, England while her husband (also a nurse) is working in al- Khobar, Saudi Arabia.  Roger also has a trio of sons working as seaman on ships that periodically dock at Manila. Surrounding the borders of the VMC industrial fortress, and the seemingly “closed” world of mill workers like Eddy and Roger, are thousands of hectares of sugar lands.  Lorna, a 64 year old widow, lives on a small rice farm just beyond neighbouring Hacienda Cuaycong. Her home is located southeast of the mill and more than an hour away on foot.  She was employed as a VMC sugarcane worker during the 1980s and 1990s and increased her income by rotating among several other private haciendas since each had varying planting and harvest  4 times.  This was backbreaking work that involved laboring in the intense Negrense heat for most of the day.  During the lean months, she works her land which produces enough rice to feed most of her family throughout the year.  She is also a part-time domestic helper in one of the grandest mill manager’s homes in Canetown where she has been employed for more than a generation. She especially likes this sort of work since it is easier on her body given her older years.  While one of her sons works both as a karga-tapas on the VMC sugar lands and as a casual worker in the mill’s foundry department, none of her children were able to attend the American style schools within the VMC compound.  Nor was she able to access the company’s extensive benefits program even though she worked for the firm for almost twenty years.  Like many other temporary and seasonal labourers tied to the VMC complex, for most of Lorna’s working life she has only been able to witness, and never experience herself, the immense symbolic and material wealth tied to the production of sugar at Victorias.  Many themes can be gleaned from these stories.  Although the company union failed to protect workers like Eddy, other retrenched employees such as Roger’s children were able to individually improve their living and working conditions.  Eddy and Roger’s past recollections also point to the complexity of worker identities and their relational, contradictory and situated nature, that the meanings they draw from the past are constantly made and remade in significant circumstances of the present day, such as the restructuring of the Victorias mill.  By contrast, Lorna, like other workers on the outside, was systematically excluded from the local institutions of which Eddy and Roger were a part, such as the central, the local union, and company schools, and engaged in practices that will likely prolong her marginal status with little hope of making significant social, economic, or political gains. At another level, these experiences illustrate the active role that workers play in the making and evolution of the economic geography of the Philippine sugar industry.  They provide insight into how processes of capital accumulation found expression in the sugar industry that boomed during the decades following World War II, and how these were shaped by the practices of workers, the power of local capitalist and political elites, American neo-colonial ties, and shifts in the global economy of sugar.  Following the decline of the sugar trade with the US and two severe sugar crises in the 1970s and 80s, the experiences of these workers also speak to the changes and continuities marking the current “regime of accumulation” as the industry continues to undergo a slow but gradual transformation.  Their experiences reveal the human consequences of capitalist restructuring and how working class traditions and a masculine workplace culture have been gradually dismantled over time.  As in the past, the practices of labour, as both a  5 collective agent and individual actor, help constitute the current structural conditions found in particular places of production within the sugar industry. Attempting to make sense of worker histories and practices of this kind led to the central research question of this thesis which asks: how are local labour market processes and their various social outcomes (economic, social, cultural, political and spatial) reconfigured by industrial restructuring?  On the ground, this meant asking an important related sub question: what are the ongoing local labour market consequences for workers, their families and the labour geographies they make? To address these questions, I draw on concepts from within three related theoretical perspectives to guide my inquiry: labour market approaches, theories of labour control and labour geography.  In applying these ideas, the study focuses largely on the skilled, permanent rank-and-file industrial workers (both past and present) of the Victorias mill.  First, contrary to the universalizing assumptions found in neo-classical and orthodox approaches to the labour market, economic geographers over the last twenty years have demonstrated how spatial processes and local variability are vital to the way labour markets work and function.  Peck (1996) has conceptualized local labour markets as socially regulated conjunctural structures that shape, and are shaped by, a range of activities operating at different spatial scales.  The interaction of socially produced forms of labour supply, labour demand and state interventions, together with the social specificities tied to various places give rise to the “distinctive regulatory milieux” involved in local labour market outcomes (107).  Local labour markets, therefore, are not only geographically distinctive but are also strongly woven into wider social structures and regulatory processes.  My initial observations of Negros’ monocrop economy led me to ask: why do some workers fare better than others in areas entirely devoted to the production of sugar? And in more abstract terms: how is the valuing and devaluing of labour linked to capitalism’s uneven development as constituted by processes occurring at, and interacting between, different spatial scales?  The local labour market in Negros, best typified by the industrial mill and the sugar plantation, is marked by deep divisions due to the interrelated labour processes involved in both the cultivation and manufacturing of sugar.  Against a historical setting of Spanish colonialism and American imperialism, it remains a social and spatial instrument of power tying together labour (mill workers, sugarcane labourers), capital (traders, industrialists, landowners), and various levels of the state.  As politicized sites, many labour markets in Negros serve to maintain the power and autonomy of local capitalist and political elites, while at the same time marginalizing different groups of workers and undermining their efforts toward social change.  6 What is noticeably lacking in the current literature, one largely oriented to places in the Global North, is how industrial restructuring affects local labour markets and the way they function in geographic contexts of the Global South, especially in light of the structural changes wrought by present forms of economic globalization and how these speak to wider issues of inequality and the “casualization” of labour confronting workers the world over. Second, central to labour market processes, the issue of labour control figures significantly in perpetuating social inequalities and maintaining the imbalance of power in many worker communities.  A generation ago, Burawoy (1985) argued that the nature of workplace control was influenced significantly by state intervention and labour legislation.  He attempted to capture these dynamics through his concept of the “factory regime”, a process identifying the underlying despotism or hegemony, the coercion or consent based work strategies that characterized local struggles over the organization of work (the labour process), and their relationship to broader working class struggles and state politics.  Though the social scope for gaining worker consent has expanded beyond class categories (Lee, 1998; 2009), and though issues of labour control are now more “place-sensitive” and involve a larger socio-spatial context beyond sites of production (McKay, 2006: 12; Jonas, 1996), much of the recent discussion in Southeast Asia and the Philippines continues to focus on the movement of global foreign capital intersecting with local regulatory institutions and exploiting local sites of (typically female) labour. Against the backdrop of a non-interventionist state within sites of sugar production, the evolution of the Victorias Milling Company and its labour market dynamics is a story of contrasting forms of despotic domination.  Given its long history and ongoing restructuring, Victorias illustrates how a negotiated social order has changed over time with significant effects for its workers and their experiences and expectations of the labour market.  Seeing such changes firsthand raised the question: how are social identities - “Vicmican workers” in the past and “Standby workers” in the present - made and re-made given the mill’s restructuring and changes to its work practices?  The distinctive labour process previously adopted at the mill produced a unique brand of worker identity along with political effects that strongly influence the ability of present day workers to shape the local labour market.  In this way, the Victorias Milling Company and the workers within its industrial complex present a peculiar case when compared to current studies on production politics, labour control and economic restructuring. By focusing on the changing ownership of a Filipino company, locally oriented forms of capital, and a male dominated division of labour, this thesis will illustrate that additional variation exists  7 for production regimes in the developing world especially when considering an older agro- industrial sector, and the changing spatial dimensions of discursive and ideological forms of labour control found within the workplace. Third, over the last two decades labour geography has emerged as a vibrant sub- discipline within human geography.  Emerging in response to the ‘capital’ centred analyses informing past and present economic geographies, the approach accounts for the critical role that workers play as spatial agents in producing economic landscapes.  Labour’s agency, the perspective argues, is conditioned by the local specificities grounded in different places, as well as by the spatial and scalar relations inherent to particular industries and their contexts of capital/labour interactions (Herod, 2001; 2003).  Like the operation of local labour markets, workers’ activities and the “spatial fixes” they create are geographically distinctive.  The approach, however, is not without its criticisms.  Geographers readily admit that the idea of “labour” encompasses a wider purview beyond the activities of organized worker unions (Herod, 1997), and that there are “multiple scales” that serve the interests of labour in addition to the discipline’s more recent focus on large scale organized worker movements (Kelly, 2002: 398-9). While a number of studies within the literature demonstrate that globalization and economic restructuring often encourages a response by labour and the expansion of union activity (Herod, 1995; 2000; Castree, 2000), in many instances the opposite can occur--the combination of these processes along with a host of contingent factors have the effect of preventing the rise of workers’ struggles and containing their activities, while reinforcing patterns of oppression.  But in witnessing the various strategies of action/inaction and resistance on the part of sugar workers, how does the ongoing segmentation of the Victorias labour market and the restriction of its labour collectivity affect forms of worker agency and the making of the economic landscape? Following these lines of criticism aimed at the labour geography literature, this thesis will illustrate how the presence and activities of workers (especially at the local scale) shape the economic geography of capitalism as it relates to the Philippine sugar industry.  Although the restricted local practices of workers is reflective of capital’s dominance over the region through its strategies of labour control, the Victorias case can also be seen as one in which industrial workers imposed a particular spatial fix that best served their interests over a particular period. Thus, this study will also show how the legacies of unionization and industrial employment, that were inherent to this past spatial fix, have consequences for different groups making a living on the labour market periphery, and on the ability of different workers to shape the economic landscape.  8 To sum up the main argument, the dissertation is concerned with how a local labour market operates in a particular site in the Global South.  It will attempt to practically resolve these issues, within the theoretical perspectives mentioned, through a threefold research problematic.  First, the dissertation focuses on broadening the scope of labour market research beyond countries of the global core by investigating how economic restructuring affects the dynamics of a local labour market in a specific geographic and social context.3  Second, it investigates additional variation in despotic production regimes of the global periphery by looking at the political and spatial effects of the labour process, and the changing spatial dimensions of labour control and identity formation in a locally oriented and stagnating agro- industrial sector.  Third, it posits a labour geography of the Global South showing significant social inequality, where the factors and conditions restricting labour’s agency are selective and unevenly experienced by organized and disorganized workers alike.  By adopting an economic- historical-geographical analytical approach, and by using the local labour market as a research canvas, it will attempt to paint an empirical picture of a locality that weaves together the ideas from these three interrelated theoretical narratives while also addressing their deficiencies. Besides providing additional contextual variability with which to view the application of these theoretical concepts, this study attempts to “theorize back” at mainstream economic geography and its broader conceptual approaches to capitalism’s uneven development.  In an important research agenda-setting article, Yeung and Lin (2003) demonstrate how the development and advancement of theoretical ideas within economic geography have historically emanated from a few core Anglo-American research centres, and were based largely on empirical research limited to the experiences of the advanced industrial economies of North America and Western Europe.  Given the historical marginalization of the Asian experience in contributing to the development of key conceptual ideas within mainstream economic geography, they argue that the contemporary economic changes taking place in Asia present an opportunity to advance further the production of new knowledge and new insights generated by the discipline.  Through grounded empirical research they suggest: (1) the application of “Western” theories of economic geography in the Asian context need to be challenged and interrogated critically in theory making (109, 120); and (2) new types of theorization are needed to make sense of the dynamic forms of change occurring in Asia which can thus develop further existing theories in the discipline (110).  Consistent with the tenets of “new economic  3  In this sense, and at the national scale, the study also broadens the scope of labour market research beyond the primate city of Manila and its extended metropolitan region by focusing on a rural industrial settlement located  9 geography” and its inherent openness, reflexivity, and use of a diverse range of social theories, Yeung and Lin (2003: 111) advocate the growth of “global economic geographies” that are “built on comparative understandings of economic and geographic processes emerging from and interconnecting different regions of the global economy” (emphasis in the original).  In this way, Yeung (2007: 341) explains in a later piece that “theorizing back” at “Anglo-American economic geography can be understood as either making original theory that emanates from research on sites outside of Anglo-American countries or remaking key economic-geographic concepts in light of new insights from [South] East Asia (emphases in the original).”  The findings of this thesis further supplement theoretical and empirical understandings of Fordist development processes.  The long period of stable capital accumulation known as Fordism that was experienced in different national contexts of North America and Western Europe following World War II, was sustained partly by heavily regulated international spatial relationships and a global geopolitical environment policed by the United States.  Combined with the regulatory interventions of the Keynesian welfare state, this period of growth gave rise to relatively stable, full male employment, job security, decent wages and benefits, basic welfare standards, and to the presence of strong industrial worker unions.  As the empirical chapters of the study will show in the case of the Philippine sugar industry, Fordist processes had their parallels in the Global South.  Through the workings of international political-economic arrangements between the Philippines and the United States during the greater part of the twentieth century (i.e. free trade agreements, the deployment of the large US sugar quota, and the pursuit of American geopolitical concerns) many local industrial labour markets in Negros witnessed a period of relative stability and subsequent restructuring similar to the pattern experienced in the West.  Akin to their US counterparts who were employed in robust manufacturing based industries during the post war decades, and as workers in one of the Philippines’ leading industries at the time, the industrial mill workers of Victorias (the Vicmicans) experienced a level of prosperity that included secure employment, relatively good pay, and a respectable standard of living.  But similar to the industrial workforces of the advanced industrial economies, they too had to endure the adversity and negative effects brought about by industrial restructuring.  For these reasons, their experiences both speak and theorize back at understandings of Fordist development processes.  They challenge significantly broader conceptual Fordist approaches to labour that have radiated from the Global North by revealing how the activities of workers beyond the regions of North America and Western Europe were  within a resource supply region dependent on a single industry.  10 able to secure respectable working conditions in a prevailing context of underemployment and underdevelopment within the region. To address such questions about the local labour market and worker geographies assumes implicitly critical engagement with the non-local and global processes of which they are a part. In her study of post-apartheid South Africa, Hart (2002: 12) explains, “globalization - both in the sense of intensified processes of spatial interconnection associated with capitalist restructuring, and of the discourses through which knowledge is produced - is deeply infused with the exercise of power”(emphases in the original).  Hart argues that economic globalization in its discursive neoliberal guise is often expressed in terms of an “impact model” (the global on the local), often drawing upon images of “inexorable market and technological forces that take shape in the core of the global economy and radiate out from there” (13).4  She adds that such discourses have disabling effects by perpetuating binaries, making rigid social categories such as the local, space and gender, and by restricting the types of practical political action possible.  In order to activate a more engaging view of globalization, and to gain a better sense of the diverse forms of capitalist development and social struggles, Hart employs the concept of “multiple trajectories” and a method of “relational comparison”:  [M]ultiple trajectories [are] spatially interconnected sets of practices - with their associated discourses and power relations - that actively produce and drive processes we call ‘globalization.’  By insisting that we understand the multiplicity of historical geographies not simply as the effects of global flows and processes but as constitutive of them, the concept of multiple trajectories and the method of relational comparison fundamentally disrupt impact models and open the way for more politically enabling understandings and critical practices (Hart, 2002: 14, 52 emphases in the original).  Here, “relational comparison” is used to negotiate between general and specific knowledge claims, that “specificities arise through interrelations between objects, events, places, and identities; and it is through clarifying how these relations are produced and changed in practice that close study of a particular can illuminate the whole” (14).  Attentive to deeply historical and geographically defined processes, and to the importance of situated socio-spatial practices, Hart’s approaches illustrate how power and social struggle occur in “multiple, interconnected arenas … operat[ing] simultaneously on multiple fronts” and in multiple places (33).  I draw on these approaches within this thesis, but adapt them to the changing conditions found in the Negrense context.  4  Many of these ideas are reviewed in a series of essays in Progress in Human Geography (see Hart 2001; 2002a; 2004).  11 In a historical sense, sugar production in Negros precedes the current neoliberal era by almost a century (1870s vs. 1970s) and is consistent with earlier forms of globalization, mainly through three rounds of colonialism and occupation by Spain, the United States and Japan.5  The so-called modern sugar industry arrived in the province near the end of a period (1850-1940) that Bosma and Knight (2004) call a global “technological convergence” which introduced steam power and the use of railway into sugar’s industrial labour process.  The emergence of the industry and its technologies coincided with the objectives of the colonial state whose combined activities left an array of political and economic legacies tied to Filipino social structures, labour processes, and the uneven historical integration of its different regions into the global economy. During the colonial and neo-colonial American era of the early to mid twentieth century, places like Victorias helped constitute what Neil Smith (2003) describes as America’s pursuit of globalism.  This was a new type of spatial grammar and spatial organization used by the United States to reinvent and articulate its global imperial aspirations.  Victorias was a site in a resource supply region, which together with other economies in the global capitalist periphery, drove processes of uneven capitalist development that linked accumulation processes in peripheral areas with core areas of the capitalist system.  Though a degree of territorial control remained a priority, of greater concern to the American regimes was power over global, economic, political, cultural and social infrastructure, which rested on American ideological influence and military might.  In the case of the Philippines, one of the few US colonial territorial acquisitions, empire was asserted through the introduction of finance capital, the expansion of foreign direct investment, with an emphasis on the political importance of trade.  In this way, the interests of both local Filipino capitalists and internationally oriented American capitalists required alliances spanning the two countries that were facilitated by the US government, and Filipino elites who were eventually infused into different levels of the post-colonial state.  Thus, in order to deploy the global infrastructure of American empire, powerful actors occupied and moved along networks linking multiple arenas and places.  So too, was Victorias a spatial node in this global American schema.  My analysis will reveal how sites of the so-called global periphery (Negros, Victorias, Bacolod, and Manila) were simultaneously interconnected with sites in the capitalist core (Greenwich Connecticut, New York, Washington and the educational establishment at Harvard, Yale and Cornell), mainly through VMC’s founder, the Spanish-Filipino turned American capitalist Miguel Ossorio and the sons of the Ossorio family.  5  As many observers note, small scale commercial sugar production on Negros did exist prior to the 1870s (see McCoy, 1982: 314; Larkin, 1993).  12  While strongly integrated into previous forms of globalization, then, the present day sugar industry of Negros confounds some of the major rhetoric accompanying the current era of neoliberal globalization.  Even with the ongoing restructuring of the milling and refinery sectors, partly caused by the end of the large US sugar quota and the plundering of the industry by Ferdinand Marcos during the 1970s and 80s, the more recent sets of practices by many of Negros’ main political and economic actors, for the most part, do not actively seek to “produce” or “drive” globalization processes as Hart suggests.  Rather, they are geared towards “preventing” and “driving away” its market based and technological influences thus serving to maintain patterns of underdevelopment within the region.  The interests of domestic industrial food processors and traders who seek to further liberalize or “re-regulate” the sugar industry by allowing a greater inflow of foreign sugar (both raw and refined) into the country, strongly contrasts with the position of the traditional agrarian elite and their penchant for protectionist state policies, limited market competition, and the institutional status quo (see Billig, 2003; 2007).  In other words, through these regulatory battles, which in the 1990s and 2000s have gone in favor of the industrial food processors, the global forces of neoliberalism are impinging on the Philippine sugar industry, but at least for the time being, these processes have not superseded the local class power of the traditional sugar elites or their strong, but waning, influence within the state.  If anything, the entrance of Chinese-Filipino traders onto the sugar scene following the sugar crises of the 1970s and 1980s may not signal the industry’s turn towards greater liberalization and a market led strategy.  Instead, as my subsequent discussion of the VMC’s restructuring will suggest, the seemingly more “rational” practices of the Chinese are actively serving to redraw the borders of the monopoly/monopsony that past agrarian elites enjoyed. All of these broader economic and regulatory processes tied to industrial restructuring are constituted and magnified within Negros’ local labour markets.  These past and present regimes of accumulation rested on the exploitation of workers and a distinct geography of labour control. Through their political power, planter and industrial capitalists have been able to stifle labour militancy and perpetuate a slow pace of technological change within the mills and on the plantations.  This Philippine pattern contrasts strongly with variable forms of industrial cultivation and manufacturing found in the Australian or Brazilian sugar industries.  The nature of state and capital interventions into the labour market also continues to hamper labour’s ability to collectively act as a significant agent of social and economic change.  Unable to transform the broader terrain of Negros’ regional and local political economy or to create a larger geographic scale of bargaining and social action, many workers (especially in the Victorias case) have taken  13 it upon themselves to improve their lives through their migration and livelihood strategies.  In many instances these worker practices alter the labour market’s extra-local and global connections, thus allowing workers to make spaces in their own image both as a means of resistance and as a means of self-reproduction.  Simultaneously a legacy of American imperialism and a place of power in the present day that confounds the so-called inevitability of neoliberal economic outcomes, Negros and its sites of sugar production like Victorias provide an interesting lens to view how previous forms of globalization and uneven development were indigenized at the local level, along with how such sites operate currently to both resist and help drive these wider structural processes.  1.2 Negros Occidental and the Philippine Sugar Industry In a variety of ways the settings of Victorias City, the province of Negros Occidental, and the Philippine sugar industry were ideal for pursuing research queries of this kind.  As the previous section suggested, the earlier experiences of the Philippines in previous rounds of globalization and uneven development saw provinces like Negros and its local labour markets become highly integrated into networks and translocal activities that were global in scale.  By the turn of the twentieth century, the rise of the modern sugar industry and its ties to American imperialism reinforced the social class structures laid down by the Spanish.  During this American colonial era, sugar based capitalists secured a number of advantages that increased their power to defend the interests of the industry, further embedding the patterns of social and economic inequality that largely fell on the everyday worker.  In the years following World War II up until the end of the large American sugar quota in 1974, the industry benefited from unrestricted access to the American market and from protectionist policies that reduced foreign competition.  This period not only saw greater autonomy for the sugar elites, but it also entrenched the structural conditions that allowed the planter enough political power to “insulate the Negros plantation from changes in the world sugar economy” (McCoy, 1992: 110). This form of capital accumulation had a profound effect on Negrense society, its various class strata and its local labour markets.  As the milling and planter capitalists prospered, their workers experienced a range of standards concerning their welfare and quality of life.  Patterns of paternalism, landlessness and low-wages characterized the conditions of many hacienda labourers who even today continue to form a significant proportion of the lowest income groups in the country.  It was also during this period that many sugar mills embarked on extensive work practices, mainly in response to the major social conflicts that have shaped the labour history of  14 the province.  The crafting of these strategies emerged from a need to satisfy the requirements of production by securing a steady industrial workforce and labour supply, and to preserve both the mill and landowner’s  source of political and economic power by safeguarding the central and plantation from the episodic periods of social unrest that have occurred in the region.  On the haciendas, these forms of control were often expressed through coercive measures, harsh discipline, and paramilitary acts of violence.  While in some industrial areas, these developments gave rise to lasting traditions of employment and in-house company unionism.  By selectively recruiting labourers into the mills, limiting benefits to industrial workers, and maintaining power through the social, political and spatial control of their central compounds and “open-air” hacienda factories (McCoy, 1982: 325), the miller and the planter have played important roles in separating the industrial and rural segments of the province’s local labour markets. Reflective of both Negros’ past and present, the sugar elites have ensured both their political influence and hold over the Negrense sugar industry.  This has been achieved by retaining a strong presence within the state and by more or less maintaining an integrated strategy of provincial labour control that politicized the conditions surrounding the labour market and contained the scale of labour struggles to individual milling complexes and sugar plantations.  As a result, independent trade unions both provincial and national in their scale of operations have been relatively unsuccessful in mounting and sustaining their efforts to organize workers both within the mills and on many plantations, especially in northern Negros.  The activities of unions and other socially progressive groups have often forced the hand of the miller and planter who draw on their private armies, and their political and military connections to conduct surveillance and intimidate those contesting their territorial control.  These instances have actually served to further circumscribe local labour collectivities rather than expand the scope and scale of workers’ struggles.  For these reasons, the spaces of many Negrense labour markets are pulsating with an undercurrent of violence. In decline since the mid 1970s, the Philippine sugar industry no longer carries the same political and economic influence that it wielded during the greater part of the twentieth century. Now oriented largely toward the domestic economy, the sugar elites of present day Negros have been able to maintain an outdated system of production on their haciendas, and have struggled to upgrade the machinery and technology of their ageing mills.  Furthermore, Chinese-Filipino traders, who are more ethnic Chinese in their parentage and business practices, have asserted increasingly their dominance over the last twenty years, especially in the purchase of mills and the building of refineries.  Their activities have directly challenged the traditional customs of the  15 older and long established millers and planters as they continue to partially consolidate various areas of the sugar industry (Billig, 2003; 2007; Angeles 1995).  These more recent trends combined with the very “limited” liberalization of the national market to foreign sugar imports that began during the 1990s, has altered the structure of many sugar producing regions and reconfigured the dynamics of local labour markets.  To remain competitive, sugar mills have engaged in an array of work organization strategies in order to streamline the labour process, increase efficiency, develop a leaner and more flexible workforce, and dismantle the paternalistic social attachments that formed the bases of many previous factory regimes.  Formerly protected and insulated by their centralista managers,6 many mill workers currently experience greater unemployment and temporary job status, and are often forced to take on secondary sector jobs or look for work elsewhere.  1.3 The Victorias Milling Company The Victorias Milling Company (VMC or Vicmico), an agro-industrial complex located in Victorias City in northern Negros, was not immune to these wider changes presently affecting the Philippine sugar industry.  Established in 1919 by a Manila born Spanish capitalist named Miguel J. Ossorio, the VMC is the largest individually integrated milling and refinery operation in the nation and one of the largest in Asia.  Widely considered the sugar capital of Negros Occidental or the “Sugarlandia” of the Philippines, the VMC remains one of the leading sugar firms in the country.  Throughout the history of the mill, the management was successful in warding off attempts by independent trade unions to organize workers both within its central fortress and on its agricultural lands.  These struggles have segmented the labour market in important ways.  Amidst general labour unrest in the area about a decade following the end of World War II, the mill workers sought to defend their status as skilled specialized labourers and together with the VMC management later founded a local company union in 1962.  The paternalistic factory regime that emerged gave rise to a localized pseudo labour aristocracy that tied generations of mill workers and their families to American and later mestizo style largesse. Governed through familial relations, permanent employees experienced all of the trappings that an elite Negrense paternalism had to offer and enjoyed extensive benefits and welfare programmes within the spaces of the VMC complex.  To secure and reproduce an adequate supply of skilled labour, the firm established company schools that specialized in vocational, technical and later management training with networks to other educational centres in the  6  A centralista is an owner of a sugar central (see Giusti-Cordero, 2007: 180).  16 province and in Manila.  Though ultimately serving the needs of the management, the union represented the interests of permanent employees and their families for almost forty years, and restricted effectively the supply of labour into their ranks.  The formation of the company worker union combined with the mill’s repeated refusals to extend their company benefits to its haciendas, further deepened the patterns of social exclusion experienced by VMC’s sugarcane workers and reinforced their contingent status in the labour market.  Denied a long list of benefits, access to skills training and the elite “Vicmican” status given to unionized employees, most workers on the company haciendas continue to be subjected to unstable and seasonal forms of work, earning just enough to survive and feed their families.  Although essential to the sugar production process, the conditions experienced by these labourers reflects the uneven distribution of power amongst working classes within the labour market, as well as the extent of management’s control over the labour process. VMC’s bankruptcy in 1995 and its subsequent period of restructuring have led to major changes in the social organization of the company.  Indicative of Negros’ shifting economic landscape, Chinese-Filipino traders and industrialists of varying influence competed for ownership of the firm, mainly through their ties to the creditor banks that seized the company following its collapse.  Coinciding with a state sanctioned rehabilitation plan and an eventual change in managerial control, the mill’s past paternalistic despotism was gradually replaced by a flexibly despotic regime and involved a series of retrenchments that drastically decreased the size of the workforce and decimated morale.  Over the course of a decade, the 4,000 plus permanent Vicmican workforce that the mill maintained during the 1970s, 80s and 90s was reduced to roughly 800 workers by the end of 2008, and was fully eliminated by mid 2010. Generally subdued and passive in their organized and everyday responses to the plans implemented by the new management, workers were conditioned strongly by the VMC’s past loyalty systems and forms of labour control.  Yet, reflective of the reorganization of power in the Victorias labour market and of the uneven effects of restructuring on those retrenched, the former Vicmicans and their families responded to these circumstances in a number of ways. Many reluctantly joined the ranks of the growing pool of skilled unemployed labour in the area or assumed lower paying and temporary secondary sector work as they dealt with the harsh realities and competitive conditions of the job market for the first time.  Others have helped redefine Victorias’ translocal connections and networked spaces by making the most of their experience as highly skilled labour and engaging in work overseas.  Regardless of their activities, the shift in the VMC’s work practices deeply affected the lives of the mill workers and  17 their families.  Their struggles to regain the prestige of their former lives through their prospective livelihood strategies have reshaped the economic landscape in important ways.  1.4 Structure of the Dissertation In the chapters ahead, I examine the major factors and key institutions that have shaped the operation of the Victorias labour market both before and after the restructuring of the VMC, and evaluate how these findings speak to the theoretical perspectives mentioned at the outset. These factors can be divided into three distinctive groups of interacting causal processes: production, reproduction and social regulation, or the social workings of labour demand, labour supply and state interventions.  Factors falling under these headings include: the historical workings of the Philippine political economy, colonialism and the sugar industry; labour conflict and evolving forms of labour control; different levels of state regulation; and the initiatives of different workers.  Throughout these chapters, I argue that the colonial experience and rise of the modern Philippine sugar industry afforded capitalists a great deal of autonomy in running their mills and haciendas, and allowed them the political power to shape provincial labour market conditions and thwart social challenges from the left.  In the case of Victorias, the run of the mill during the golden years of the industry was guided by a unique factory regime that informed workers’ practices and their social identities.  Ongoing political struggles over the industry’s relationship to the global sugar economy, combined with sugar’s structural reorganization at the national scale, and the specific local conditions responsible for Victorias’ restructuring, have reorganized the local labour market resulting in changes to worker practices and a major re- negotiation of their labour market identities.  Following this introduction, the next two chapters deal with the theoretical and methodological issues that pertain to the dissertation.  Chapter 2 places this study within three interrelated theoretical perspectives: labour market research, labour control theories, and labour geography.  I argue that the findings taken from the Negrense and Victorias context have much to contribute in both supplementing and addressing the theoretical and epistemological deficiencies of each area.  Chapter 3 discusses the methodologies and techniques used to research a labour market of this kind in the central Philippines.  More specifically I examine how issues of research positionality and non-academic social networks play important roles in both enabling and restricting certain research possibilities. The “Generative Structures of the Labour Market” are then empirically examined with Chapters 4 to 8 each investigating a different dimension of the Victorias labour market.  Chapter  18 4 focuses on the broader historical, political, social and spatial context shaping Negros’ labour market dynamics.  Here, I trace the formation and changing organization of the Philippine sugar industry, the complexity and conflict surrounding current state initiatives shaping its development, and the general features of the Philippine and Negrense labour market.  The analysis moves to the locality and factory level in Chapters 5 and 6, covering the decades following World War II up until the years prior to the mill’s bankruptcy (1946-1991).  Focusing on labour demand factors, Chapter 5 documents the evolution of the firm’s labour control practices and the particular social context that forged its internal labour market.  During this period, VMC’s labour relations were guided by a “Vicmican Familial” ideology that formed the basis of a paternalistic factory regime that contained workplace struggles and segmented the labour market in specific ways.  Focusing on labour supply issues, Chapter 6 examines the larger spatial geography of VMC’s labour control.  Disciplinary tactics extended beyond the work areas and control boards of the grinders and boilers.  The firm intervened in almost all aspects of everyday life in the community, from sites of reproduction (welfare and education) to places of consumption (housing, stores, festivals, religion).  These spatial strategies gave rise to a set of social institutions that defined the VMC locality and its emerging workplace culture, while also shaping the “Vicmican” identities of the workers and their families living within its borders who often contested these relations of control. Chapters 7 and 8 investigate the devastating effects resulting from the restructuring of the Victorias mill.  Focusing on the drastic changes to labour demand at the central, Chapter 7 begins by examining the distinct set of social forces responsible for the firm’s bankruptcy.  It then explains how the new management implemented an array of flexible labour practices while playing upon a refashioned “Vicmican Family” social ideology in order to gradually breakdown VMC’s internal labour market and further shift power in their favor.  Chapter 8 looks at the reorganization of the VMC’s labour supply and related labour market effects.  The changes to the mill’s spatial strategies of labour control, mainly the management’s withdrawal of its socially thick community investments especially in areas of labour reproduction, have led to transformations in Victorias’ local and extra-local labour market connections as former employees look for new sources of income.  In trying to regain the social status tied to their former jobs at the mill, being “Vicmican” has given way to the “Standby” identities of the retrenched workers.  Former Vicmicans of all stripes are literally “standing by” as they struggle with their current work realities and grapple with the difficulties and opportunities inherent in  19 their new livelihood strategies.  As a consequence, these practices have remade Victorias’ labour geography.  The concluding chapter summarizes the findings of the empirical chapters and discusses how they speak to the theoretical perspectives and methods given at the outset.                                             20 CHAPTER 2 - THEORIZING LABOUR MARKETS, LABOUR CONTROL AND LABOUR GEOGRAPHY  2.1 Introduction A number of key arguments were made in the Introductory Chapter concerning local labour markets and their related processes.  First, the point was made that there is a great deal of historical, institutional, social and spatial variability inherent to labour market dynamics and forms of labour control.  Second, both local labour markets and local configurations of labour control are constitutive of, and integrated into, wider political-economic processes and forms of geographically uneven capitalist development occurring at different spatial scales.  Third, I argued that workers’ agency and their ability to shape contemporary labour geographies, while progressive and geographically expansive in many instances, is also highly restricted and limited in other places.  This chapter expands on these theoretical arguments before investigating them in the empirical chapters that follow. The chapter is divided into four main sections that together assemble a theoretical framework that will be used to analyze my observations of the Victorias locality.  For each section, I explain the significance and limitations of the theoretical perspective and comment on how this study contributes to the related body of scholarly work.  The next section examines how local labour markets have been conceptualized in the academic literature.  I discuss general processes of labour market segmentation, the internal labour market, the presence of marginal groups, and the politicization of external labour market conditions.  In the third section, I examine the politics and geography of labour control.  I begin with Burawoy’s idea of “colonial despotism” and the “company state” as a way to shed light on the relationship between state politics, capitalist expansion, and the regulation of the labour process and its potential for transformation within colonial and post-colonial contexts of underdevelopment.  I then discuss how geographers have advanced and further refined Burawoy’s ideas through broader definitions of labour control and the concept of the local labour control regime.  As an extension of this discussion, and to gain further insight of how the disciplining of workers is enacted on the ground, I briefly review approaches related to spatial and discursive forms of labour control. The fourth section explores some of the more recent scholarly work done within labour geography and engages with a number of related debates concerning the scale and agency of workers’ activities.  The fifth section examines processes of capitalism’s uneven development and its relationship to the social regulation of local labour markets in the Global South.  The final section summarizes the main arguments of the chapter.  21  2.2 Local Labour Markets Since the early 1990s, geographers have contributed a great deal to the theoretical debates on labour markets and labour market segmentation.  Moving beyond neo-classical economic approaches that treat labour as a simplified commodity exchangeable on the “free market” and as another factor in the production process, geographers have brought a sharper spatial sensibility to labour market analysis by demonstrating how they are constituted by local social processes and the uneven effects of labour institutions (see Martin, 2000).  In his definitive work, Peck (1996; see also 1989) has shown how social context and geography play vital roles in shaping the regulation and segmentation of local labour markets.  Guided by regulation theory, he argues that the “the indeterminate intersection of several generative structures” mainly labour demand, labour supply and the regulatory strategies of the state, combined with the uneven institutional effects occurring at different spatial scales (such as activities tied to trade unions, labour legislation, workplace culture and industrial mores) give rise to unique labour market outcomes (1996: 94).  Put another way, labour market processes speak to general processes of uneven capitalist development and industrial restructuring, but at the same time are “embedded in the peculiarities of local culture, history, identity and social relations of power” (Kelly, 1999: 57).  Treating the labour market as a regulatory space influenced by different institutional arrangements, Peck (1996: 35) not only reveals its inherent geographic and social character, but also points to the labour market’s politicized nature and how this affects the way it functions.  Thus, a major part of his analysis addresses how the politics of the employment relationship (labour-capital relations), along with the politics surrounding participation and exclusion from waged work, are expressed and reproduced within and outside the segments of the labour market.  The labour politics of these different social spheres, then, are implicated in processes of labour market segmentation.  Many geographical and sociological approaches share the idea that disparities resulting from the job strategies of firms, the activities of workers, and the matching process involved in filling specific job segments, are set within social relations of power that exist on both the labour demand and labour supply sides of the labour market (Hanson and Pratt, 1995; Rubery and Wilkinson, 1994; Tilly and Tilly, 1994).  In this regard, current research remains grounded in the ideas of previous generations of segmentation theory and their takes on how labour market outcomes and inequalities are generated.  On the demand side, earlier institutionalist and Marxist segmentation perspectives (see Doeringer and Piore, 1971; Gordon,  22 Reich and Edwards, 1982) argued that job hierarchies and the organization of work within firms were largely determined by industrial structure, the technological requirements of the labour process, levels of competition in product markets, and by the need to control labour by dividing up job tasks according to skill (Peck, 1996: 60-61).  Essential to these dualist models was the concept of the internal labour market that viewed labour markets as having both primary labour markets characterized by better pay, job security, and chances for promotion, and secondary labour markets, characterized by dead-end jobs, harsher conditions, unstable work status, and greater labour turnover.  In this sense, the segments of a given firm’s internal labour market consist of primary and secondary job sectors likely defined according to the level of technological skill needed in production and to changes in general product market conditions. Furthermore, different sets of rules and norms are assumed to govern different labour segments.  By viewing the labour market as an “institutional space”, the practices of social institutions (e.g. firms, unions and training agencies) are connected to the allocation of jobs, wages, and forms of discrimination with individual localities having a specific “institutional configuration” and a variable mix of “workplace cultures, and labour traditions” (Martin, 2000: 463-4).  As Tilly and Tilly (1994: 293-6) note, internal and secondary labour markets reflect different “worker-employer interactions” linked to specific labour pools with varying levels of compensation and promotion affecting the degree of worker effort and loyalty, the bargaining power of labour, and a firm’s overall stability.  These varying sets of rules and regulations that guide the behavior of workers in different labour segments suggest that a variety of “logics” are operating within the labour market that go beyond “human capital” considerations.  Hence, labour segmentation and the creation of internal labour markets are not only strongly influenced by industrial structure as argued by earlier dualist theories, but also by political, social, cultural and other non-economic factors. Critiquing the limited explanatory scope of the early dualist models, Rubery (1994) expands the conceptual range of the internal labour market by providing a more integrated analysis that considers how issues of labour demand and labour supply structure both a firm’s internal organization and wider labour market conditions.  She argues that the internalization of labour within a firm occurs for a number of reasons that include collecting returns on skills training, ensuring labour effort and commitment, improving worker skills and a firm’s capacity, and as a way to satisfy the needs of labour unions or prevent labour organizing (45).  In her view, the development of internal employment policies is further complicated by financial and organizational constraints tied to a firm’s previous or existing systems of pay, security, and  23 promotions, as well as by managerial strategies.  External labour market conditions are given equal explanatory force in Rubery’s discussion and are shown to be crucial factors affecting internalized employment schemes (51-55).  Accordingly, the availability of a skilled labour pool, sufficient or inadequate training systems at different institutional levels, labour poaching among firms, limited employment opportunities, and the presence of disadvantaged groups, all influence the extent of a firm’s internalization policies.  For these reasons, “the type of ‘internal labour market’ system in use may thus be linked directly to workers’ opportunities in the external labour market”, potentially giving firms “greater discretion” over levels of pay, job security and the chances for promotion (54). Besides the interventions of firms, the labour segmentation literature identifies a number of additional factors that condition the supply side of the local labour market.  These influences include the uneven effects of state led programmes and institutions (Peck and Theodore, 2008), the gendered and spatial relationships tied to household divisions of labour (Hanson and Pratt, 1995; Chant and McIlwaine, 1995), the role that the family, peer groups and the community play in socializing the young and influencing their expectations of work (Bauder, 2001; Willis, 1977), in addition to the exclusionary effects caused by labour unions and professional associations restricting entry into specific job segments (Tilly and Tilly, 1994: 289, 303). Another major influence shaping both the supply side of the labour market and the employment strategy of firms is the existence of disadvantaged or marginal groups.  Current segmentation theory maintains that the creation of social divisions within the labour market and the inevitable social inequalities it generates, are ultimately shouldered by disadvantaged groups who form the ranks of secondary or contingent workforces, and whose activities are essential to the overall operation of the labour market.  Peck (1996: 30) posits that “labour market disadvantage tends to be distributed in accordance with the ascribed rather than achieved characteristics of workers, varying more closely with ethnicity, gender, and age, for example, than with education, training, and skill (emphases added).”  He also identifies a number of general conditions likely experienced by such populations.  First, such groups are politically and culturally constructed as having low social status or carry some type of social stigma, patterns that are reinforced and reproduced by their continued participation in the labour market (71). Second, such groups are treated by institutional actors (employers, unions and state agencies) as having “alternative roles” and weak or temporary attachment in the labour market (31).  Third, the collective agency of such groups and their ability to politically mobilize is restrained by their relationships to specific institutions which prevent them from gaining social, economic and  24 political power (31).7  Their activities (or inactivity) thus contribute to processes of labour segmentation and ongoing patterns of social oppression.  The presence of such marginal groups and their alternative roles is also critical to the broader political and social regulation of the labour market (Offe and Hinrichs, 1985), in accounting for changing levels of labour demand, shaping the allocation of primary and secondary jobs, and balancing the social conditions of both participation and non-participation, and waged and non-waged work.  Though the labour market plays a part in perpetuating and intensifying such inequalities, the disadvantage and discrimination of marginal groups are part of “broader social forces” existing in the wider social system (Rubery, 1994: 53).  As a consequence, political forces strongly affect labour market dynamics. The existence of marginal groups throws light on the active roles that political factors and state interventions play in politically shaping the labour market and worker-employer relations. As McKay (2006, 15-16; 2004) illustrates in the case of the Philippines, the activities of the state and the “politicization of the production context” serve to minimize the bargaining power of workers within and before entry into the labour market in order to ensure the high degree of political and economic stability necessary to attract and retain foreign investment.  In his study of multinational electronics firms in the provinces of Cavite and Laguna, he shows how the deployment of the state’s national export processing zones (EPZs) programme, in different spatial contexts, is used as a means to ward off labour organizing, reduce labour militancy, and maintain an anti-labour climate.  At the local level, selective state interventions exist in the interplay between the labour control schemes adopted by firms and the involvement of local and provincial government officials in referring and screening workers, a process that builds their political support and assists firms in dealing with labour problems.  These can also take the form of non-interventions on the part of the state through their lack of enforcement of the Philippine Labor Code that supposedly enshrines the fundamental rights of workers.  In this vein, the activities of different levels of government have the effect of weakening labour’s ability to collectively organize, while at the same time “providing local institutional levers for worker control and labour market regulation” (McKay, 2004: 194-95).  By contrast, as I will show in Chapter 4, throughout sugar’s long history of industrial employment and social conflict, Negros’ class elites have drawn on their private armies and the military arm of the colonial and post- colonial state to effectively crush the province’s periodic social uprisings.  7  Research in the North American context has explored the relationship of marginal workers to institutions such as the prison system and temp agencies (see Peck and Theodore, 2008 and 2001).  25  To sum up this section, there are a number of conceptual areas of the local labour market that are important to the theoretical analysis of this thesis.  First, this brief review has suggested that the autonomous, yet interacting, processes of labour demand and labour supply help structure the organization of the local labour market.  On the demand side, I highlighted the concept of the internal labour market as a way to demonstrate how basic labour segments are formed, and how they are potentially governed by different rules and different labour conditions. On the supply side, I emphasized the presence of marginal groups and their relationship to the labour market’s broader political conditioning.  Second, the politicization of these different social spheres points to the labour market as a space of class and political struggle.  Though employer policy is influenced by a wide array of internal and external factors, the operation of the labour market can be seen as both an arena where capitalists attempt to consolidate their control over production, and as a place where power is unevenly distributed among the working classes.  I draw on these segmentation approaches and their class and social underpinnings in order to make sense of the stratification and segregation of different worker groups at the Victorias mill. While labour market research has received considerable attention in the developed world, it is contexts in the Global South such as Victorias that are sorely missing within the academic literature.  This thesis contributes to a growing body of work examining labour market dynamics in Southeast Asia and the Global South more broadly (see Kelly, 1999; Porter et al. 2001; Rigg, Bouahom and Douangsavanh, 2004; Fan, 2002).  My focus on the sugar industry in Negros and the Victorias mill in particular, offer a different institutional and geographic lens with which to view the social and political construction of the labour market, and its evolution and restructuring.  As will be shown in the chapters ahead, a unique mix of local and non-local labour market factors were mainly responsible for the recent emergence of the VMC’s flexible work strategies and for the particular form that industrial restructuring has taken in the Victorias locality.  The first part of my diachronic analysis begins in the post World War II period and traces how VMC’s employment strategy, which involved creating an internal labour market and monopolizing a segment of the local labour supply, gave rise to a distinct workplace culture and community traditions under successive management regimes (Chapters 5 and 6).  In the second part of the analysis, I examine how these labour practices have changed given the local conditions unique to the firm and the wider structural shifts occurring in the Philippine sugar industry (Chapters 7 and 8).  At another level, employees’ experiences of work produced particular labour market identities that have also undergone significant social transformations.  I  26 discuss conceptual ideas surrounding labour market identity in Chapter 6.  At the heart of VMC’s internal labour market policies and their later restructuring were issues of labour control involving the productivity of workers and the firm’s production stability.  Both labor market forces and the imperatives of the labour process drove the strategies of the mill’s managers.  2.3 The Politics of Labour Control  As suggested in the previous section, labour-capital negotiations over the employment contract are mirrored in the segmentation of the labour market.  Once workers sell their labour power (the capacity to work), they enter Marx’s “hidden abode of production” where the capitalist manager devises strategies of control that encourage varying degrees of worker effort and loyalty.  Firms attempt to manage their workers in order to maintain profitability, productivity and stability (Tilly and Tilly, 1994: 293), while workers negotiate for better wages, benefits and working conditions.  Capital’s need to attract and retain workers but at the same time weaken or disable their collective organization is one of the fundamental contradictions found in the capitalist labour process.  Analyses of these workplace struggles over the employment relation have been a long standing tradition of labour process studies.  Given the objectives of this study, ideas concerning labour control and the social relations of production tied to the labour process are crucial to a better understanding of wider labour market dynamics and have much to say about the conditions that characterize different labour segments, and of the ability of different social groups to improve their lives.  In the case of the Negrense sugar industry, how then can we explain an antiquated labour process on the plantations, and the slow pace of technological change and inefficiencies within the mills?  To make sense of this situation, I draw on the influential ideas of Burawoy and his treatment of the labour process under colonial and post-colonial conditions in the developing world.  In his most famous work, Politics of Production, Burawoy (1985: 87) expounds on his concept of the factory regime - a relationship involving “the labour process, activities and relations involved in the transformation of raw materials into useful products, from political apparatuses of production, the institutions that regulate and shape struggles in the workplace.” He contends that the independent political effects produced by each social area give rise to distinct factory regimes or politics of production.  His two main generic types, despotic and hegemonic factory regimes, or the way capitalists sought control over the labour process by trying to ensure the “labour potential” of their workers through coercive or consent based work strategies, are greatly influenced by levels of state intervention.  Under coercive, despotic  27 regimes, workers’ survival depends on selling their labour power for a wage, a rate determined by their performance at work.  Yet, state intervention in welfare provisions and in labour legislation that guaranteed standards in worker protections and the right to collectively bargain, limit both worker dependence and performance.  These conditions give rise to hegemonic regimes where “consent prevails” and where “workers must be persuaded to cooperate” (126). Thus, in addition to the labour process and market competition among firms as factors shaping production politics (88), regime types are influenced by how the state intervenes in the reproduction of labour power: “workers’ bargaining strength is critically determined by the extent of enterprise control over the reproduction of labour power.  The more independent the reproduction of labour power is from enterprise control, the greater is the ability to resist managerial offensives” (189). Through his historical periodization and analyses of different factory regimes, one type is particularly germane to this study, Colonial Despotism and the role of the Company State.  In his case study on the development of the copper industry in Zambia, Burawoy theorized two important dimensions of capitalist development in the transition from colonialism to post- colonial independence: (1) the role of the state in processes of accumulation; and (2) the nature of the labour process and the conditions for its regulation.  For him, one of the colonial state’s main functions was to establish the prominence of capitalist production and ensure its dominance in relation to other forms of production.  In this sense, the colonial state engaged with primitive accumulation on two levels: “the separation of direct producers from the means of producing in generating labour supplies for industrial capital, and the extraction of surplus from pre-capitalist modes of production by merchant capital” (214).  Here, primitive accumulation refers to the “removal of agricultural producers from the countryside and consolidation of more privatized control over resources” (Glassman, 2006: 609), and thus assumed a process of proletarianization or the making of waged labourers.8  Through a number of state led interventions, such as forced labour, taxation, land expropriation, and pricing policies, Burawoy illustrates how industrial labour supplies were generated in Southern Rhodesia during the first half of the twentieth century, and the consequences this had for local class transformations and the workings of the colonial political structure.  Once primitive accumulation was substantially organized and the  8  As Glassman (2006: 621-22) notes in contexts of the Global South and North, current processes of primitive accumulation, and by extension of the definition - accumulation by dispossession and accumulation by ‘extra- economic means’ - are marked by extreme “heterogeneity and geographical-historical complexity.”  More than a simple societal “transition”, primitive accumulation is simultaneously a historical phase and an ongoing process, that is manifested in a variety of social and spatial forms, and thus “integral [to analyses] of global capitalist development everywhere” (622).  28 superior status of capitalist production firmly established, the state took on a new form mainly concerned with the expanded accumulation and reproduction of capital (or expanded reproduction).  In his estimation, this necessitated the reinvestment of capitalist surplus into the “settler dominated” territories of the new post-colonial state and a reorientation of surplus transfer “via economic mechanisms” to the metropolitan core through alliances between local and international capitalists (245).  In both colonial and post-colonial contexts, the state’s varying concerns with capitalist development affected the nature of its interventions in industrial relations and working class struggles. Under these conditions, Burawoy postulates that the labour process was regulated in distinctive ways with different trajectories for its possible transformation.  He asserts, “If the colonial state is not primarily concerned with the expanded reproduction of capital, the consequence is not that expanded reproduction does not take place but that alternative institutions take over its regulation. … [T]hese are the apparatuses of the company state - the compound system of the mines of Southern Africa, which closely monitors the day-to-day life of African workers” (220).  In other words, the company state facilitated the accumulation process, regulated the labour process, and allowed for the stabilization and reproduction of the workforce. He further elaborates:  What distinguishes industrial production under colonialism is not the labour process, for the same relations in production could as easily develop under other political and economic conditions.  Rather, the particular mechanisms through which production relations are regulated - the particular political apparatuses of the mine - are the distinctive factor.  I call this form of production regime colonial despotism: despotic, because force prevails over consent; colonial, because one racial group dominates through political, legal and economic rights denied to the other.  It is very different from the despotisms of the nineteenth-century Britain, where coercion stemmed from the economic whip of the market.  Although a colonial labour market obviously existed, Africans’ survival did not depend on the sale of their labour power, for they always had access to some kind of subsistence existence in the rural areas.  The arbitrary power exercised by the dictatorial ‘Bwana’ (white boss) was based on the control of life outside of work.  An overt and explicit racism was the organizing principle behind these production apparatuses (emphasis added) (226).  Articulating his power through the company state and compound, the capitalist boss oversaw the various systems of bonuses, fines and ticketing, and the strategies of force that were the bases of coercive relations of domination over the workers.  The “almost totalitarian surveillance” of the company state extended the bosses influence into the reproductive and consumptive spaces of their workers (e.g. beer halls, dancing societies and religious groups) (229).  Yet, the  29 paternalistic thrust of such strategies had the effect of encouraging the solidarity of workers into collective action.  To monitor and quell such activities, white managers drew on their networks of local “native” elders within their workforce.  In this way, the better the company state was able to directly shape the lifeworlds of workers, the more successful it was as a system of control. Burawoy also explains how the relationship between production politics and state politics varies under colonial and post-colonial rule.  Under the colonial conditions of primitive accumulation, the production politics of the company state were largely isolated from the activities of the colonial administration.  In other words, the state was non-interventionist in the affairs of the mines.  While under the post-colonial circumstances of expanded reproduction, the combination of Africans Advancement in the workplace and the rise of national mineworkers’ trade union served to weaken the company state as a production apparatus.  As a result, the state began directly intervening in industrial relations by introducing weak forms of legislation as “mechanism[s] for the regulation and absorption of class struggle at the level of the firm” (245). This led to a degree of convergence between production politics and state politics in the Zambian case, where industrial conflicts became wider conflicts against the state. This convergence of interests affected the labour process in different ways.  At the local level, the reorganization of production relations through the advancement of Zambians in the workforce, along with the influence of a national labour union, allowed for the transformation of the workplace, but in other operations related to the production of ore, the colonial labour process remained.  Burawoy attributes these continuities to the ability of managers to exploit cheap labour supplies, the high cost of technological change, and the “political requirements” tied to such processes (236-9).  With the support of the state and its ability to shape the broader nature of industrial struggles, managers could continue to implement coercive production relations even though it resulted in ongoing class conflict in the mine. Why did the company state break down during Zambia’s post-independence era while it remained robust in many localities in Negros around the same period?  Part of the answer is geographical.  As we will see in Chapter 4, in the decades after Philippine independence the Negrense elites were able to protect the political power of their plantations, and draw on their influence within the state in order to undermine the power of unions, and perpetuate the milling compound apparatus and a colonial style labour process on the haciendas.  In this sense, colonial despotism provides a useful general framework for understanding industrial production and the labour process in older industries with a colonial and post-colonial history.  Although Burawoy  30 examines factory regimes in various historical and geographical contexts, he does not directly address the explicit spatial dimensions of production politics.  A significant theme of his work is to identify the mutually constitutive relationship between shop floor politics and wider state politics, and to link together struggles over the labour process with broader working class struggles.  Inevitably, production politics and forms of labour control are socially, spatially and temporally variable, and involve a wider array of institutional arrangements beyond the micro- scale of the factory floor and the macro-level of the nation state.  Here, the work of geographers and other spatially oriented analysts have been important in building upon a number of Burawoy’s arguments.  2.3.1 The Geography of Labour Control  As implied in the previous section, processes of labour control are constituted by factors and conditions that go beyond the point of production and the immediate spaces of the workplace.  Again, Peck’s (1996) work has been instrumental in integrating both the dynamics of the labour process and the labour market into a broader conception of labour control.  He maintains, “labour control refers to reproduction of the social relations of both the labour process and labour market.  [It] embraces the interrelated processes of (1) securing an appropriate labour supply, (2) maintaining control within the labour process, and (3) reproducing this set of social relations” (179).  Illustrating how “industries and labour processes both shape and are shaped by urban labour markets” (169), Peck draws attention to the analytical importance of labour market dynamics and its relationship to the labour process.  He adds that these processes strongly affect forms of industrial restructuring.  Further elaborating on the complexity of these arguments is Jonas’ (1996) concept of the local labour control regime (LLCR).  In a similar fashion, Jonas provides a wide-ranging theoretical framework to analyze the crucial role that LLCRs play in socially regulating the labour market and labour process.  He argues that LLCRs are “modes of social regulation” formed through complex sets of social and spatial relationships between actors and institutions that combine at the point of production to shape the reproduction of the workforce and worker behavior.  They provide “a stable institutional environment for capital accumulation”, coordinating the time-space reciprocal relations between the local domains of production (the workplace), reproduction (education, welfare and community), and consumption (housing and recreation) within a local labour market (325, 328).  As a means of analysis, labour control regimes capture the spatial tendency of capital to embed in particular localities, while also  31 accounting for the interaction of the distinct historical, geographical, social and cultural processes that shape the nature of worker-employer relations in specific places (cf. Massey, 1995).9  What is more, as Coe et al. (2007: 266) note, “every local regime is ‘nested’ within labour control regimes operating at larger scales.”  As with Peck’s conceptualization of the local labour market, and the linking of the macro and micro levels in Burawoy’s analysis of the labour process, LLCRs by definition are integrated into wider national, global and regional production and regulatory processes.  And similar to the labour market and the factory floor as sites of class and social conflict, a LLCR is constantly shifting and struggled over by the various actors and institutions functioning at multiple scales which help to form it.10 Hence, by considering both Burawoy’s discussion on colonial despotism and Peck’s broader definition of labour control in terms of Jonas’ conceptual framework, the LLCR approach as it relates to the restructuring of dependency relations between the Philippines and the United States, becomes very useful in the comparative analysis stressed in this dissertation.  I discuss this issue at length towards the end of the penultimate section on uneven development, social regulation, and local labour markets. Although the “socio-territorial structures” and reciprocities of the LLCR will vary “between and within [labour markets]” as well as according to different fractions of capital as Jonas (1996: 355) suggests, so too will be the particular strategies of labour control and how they are spatially articulated in specific localities.  2.3.2 Spatial Forms of Labour Control  In order to maintain a stable, manageable and productive workforce, while at the same time weakening their collective bargaining power, firms engage in a wide array of spatial strategies of labour control.  As Jonas (1996: 330) duly notes “the labour control problem boils down to a contradiction between the need for companies, on the one hand, to have unrestricted access to ‘freely’ mobile labour power and, on the other, to bring stability to the labour market by controlling the conditions under which workers enter the labour market and restricting the  9  Implied in the local labour control regime are elements of Massey’s (1995) “spatial divisions of labour.”  In a very general sense, the perspective argues that rounds of capitalist development assign to certain geographic places a set of technical functions associated with distinct sets of social relations.  The inscription of such social structures onto the spatial landscape then shapes future rounds of potential investment and economic development in a given area. 10  The Local Labour Control Regime (LLCR) conceptual framework has been implemented in many different industrial and geographical contexts (see Coe and Kelly, 2002 on Singapore; Kelly, 2001 on rapidly industrializing provinces in Manila’s extended metropolitan region (EMR); Suarez, 2001 on Ireland, Puerto Rico and Singapore; and McKay, 2004 on export processing zones in Cavite; for a brief review on LLCR, see Coe et al., 2007: 266-7). McKay (2006), in particular, employs a similar theoretical definition of labour control that combines Peck’s conception, the LLCR approach, and Burawoy’s production politics, and applies them to new forms of flexible accumulation in his study of electronics firms in the Philippines.  32 mobility of labour.”  Following the LLCR, employers can only buy the time of workers for part of the day through wages, but they can further encourage workers’ commitment to their company by shaping their welfare (reproduction), things they need to consume in their everyday lives (consumption), and their behavior within the workplace (production).  Indeed, returning to Burawoy, an underlying geography is implicit in his rendering of the Zambian “company state” and compound system.  To ensure managerial dominance, spatial strategies of labour control and containment were used to conduct surveillance and maintain intimidation, while the creation of socio-cultural boundaries served to govern, differentiate, and command the lives of the people who lived within the company state.  In many instances, the compound system went far in shaping the local institutional domains of labour control, but stopped short of the complete stabilization and proletarianization of the workforce.  The “renewal” of workers, a process involving the raising of young and tending to the elderly still depended on the village (Burawoy, 1985: 230). In the East and Southeast Asian contexts, geographers and other social scientists have only recently given attention to the inherent spatial nature of labour control strategies (see Rofel, 1997; 1999).11  As Kelly (2002: 395) explains, “space is a potent tool in labour control and must be explicitly considered alongside the identity-based control strategies and institutional structures that have usually informed studies of labour regimes in newly industrializing contexts.”  Kelly