Issue No 59 | 23 June 2000 | |
TechnologyD-Day for VC?
NSW Labor Council secretary Michael Costa explains the motivations behind the new Get on Board computer-internet venture.
When former ACTU secretary Bill Kelty shook hands with Steve Vizard and his partners in a venture to deliver them access to the trade union movement's network of members for a computer package I was highly critical of the deal. Why, I asked, was the ACTU giving away its greatest asset in the new economy, its network of members, for next to nothing? It was, I argued, akin to the American Indians, with their different values, selling Manhattan Island to property-hungry Europeans for a few beads. In principle, there's nothing wrong with the idea of bundling cheap home computers and net access for a weekly rate - although with its focus on hardware, it's certainly not cutting edge. Since the venture was announced, as I predicted, hardware is being given away by companies seeking to tap the real value of the information economy - the network. Twelve months on, Virtual Communities has been relatively successful, signing up an estimated 30,000 union members and has significant raised funds from the market valuing the company at more than $360 million. VC's glossy newspaper and TV ads have been funded by astute corporate players as like Packer and Pratt. But the notable absentee from this list are the trade unions who made it happen. It is estimated that unions have less than five per cent equity in the venture. In response to the Virtual Communities' model, the Labor Council today launches it's own computer deal, 'Get on Board' for working people around the country. One of its aims is to correct the deficiencies in the VC model. It provides high-quality hardware and software at a competitive price and extensive low-cost web access. But most importantly it ensures that the union movement is properly rewarded for the asset it brings to the venture. Combined with our partner, the ALP, we will initially hold two-thirds of the equity in the company. This means the business will be majority owned by working people and their representatives. As the new economy develops, organizations that consolidate their membership networks will have a sound footing to deal with the fast-changing world and the challenging times ahead. By pooling our bargaining power, union members will get the best deals available in the market to provide the online opportunities for their families. And because the asset remains largely in the labour movement's hands, profits from the venture can be channeled back into improving the union movement's presence on the Web. In this way the collective power of the union membership base not only delivers cheap home computers today, it ensures a strong web presence into the future. Another concern is that Virtual Community focuses in their business model on building a self-contained portal. One just has to look at their site to see significant resources have been poured into a so-called "virtual town" that they hope will meet all the key needs of their subscribers. It is fundamentally a closed model, that relies on keeping union members inside the site so that it can harness e-commerce opportunities. In many ways, it runs counter to the logic of the Net, which promotes diversity and open-access. Our model is more synch with web culture, providing free access to 4,000 of the most popular Australian websites, while delivering cheaper access to the rest of the web. It encourages people to roam rather than stay at home. Our competing deal should be welcomed by all in the trade union movement for offering choice and an alternate model to the one that Bill Kelty left to the ACTU. If it succeeds, as I believe it will, 'Get on Board' will secure the union movement's presence in the information age by providing both access to union members and their families and the resources to maintain our presence. Our members will have their beads, but we'll be able to keep the bulk of Manhattan Island. This piece was first published in the Sydney Morning Herald
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Interview: Holding the Line Diwan Shankar, Assistant National Secretary of the Fiji TUC, is in Australia to consolidate support for his members and plead for ongoing bans. Technology: D-Day for VC? NSW Labor Council secretary Michael Costa explains the motivations behind the new Get on Board computer-internet venture. Legal: Knock, Knock - Who's There? When the nine year old son of CFMEU construction division state secretary Andrew Ferguson recently responded to a Saturday door knock, it was neither a friend nor a Jehovah's Witness. Unions: Are You a Good Listener ? Mark Hearn goes inside the Energy Australia call centre to find a workplace where there is a code for evrything - even trips to the toilet. International: Union Observers Barred from Zimbabwe Poll Five observers from the Congress of SA Trade Unions (Cosatu) and 19 other South Africans aligned to Zimbabwe's Catholic Commission for Peace and Justice are among 233 observers barred by the Zimbabwean government from monitoring the parliamentary elections. History: Community, Class, and Comparison Despite its occasional romantic tendencies, new labour scholarship is mapping collective action within working class communities. Satire: Rural Poor Return to Labor Thrilled by the great new branding, the new Country Labor party has caused scenes of great rejoicing in the country. Review: The Wicked Webs We Weave LaborNet web-meastro Paul Howes trawls the web for some hot sites for all you political junkies.
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