Q. Good Morning, Mr. Squeam. Welcome back. Let me begin by describing a restraint on the scope of our interests. While there are many other important subjects we might consider, all pertinent in some manner to a decline in the level of civilisation, we are restricting our concerns to just those basic factors which immediately underlie civilisation itself. So my questions to you today are directed primarily to those aspects. You are here as a voluntary witness, and we appreciate that. As a formality, I remind you that you are still under oath. Are you ready to proceed, Mr. Squeam?
A. Yes, I am. Thank you.
Q. Let me begin by making reference to the concept of personal honour, especially that area associated with an intent and desire to speak the truth. Are you following me, Mr. Squeam?
A. I think so, yes.
Q. Such an intent is of the essence in making agreements between individuals. Do you agree?
A. Yes, certainly.
Q. A term frequently used relative to making and performing agreements is "keeping one's word." The implication is that several conditions are operative. First is the implication of clarity, that all the elements of the agreement are understood. The second touches on the intent to perform the agreement in the exact manner and spirit in which it is made. Do you agree?
A. Yes, certainly.
Q. You are aware of the frailty of the human memory, especially over time, are you not, Mr.Squeam?
A. Yes.
Q. This weakness is overcome by a requirement that significant agreements be reduced to a written form, the absence of which may preclude a successful application for judicial relief. Are you familiar with the importance of the contract, as a foundation for civilisation, Mr. Squeam?
A. Yes, I am.
Q. Now ... may I ask if you have noticed any departure from high ethical standards in the making and performance of contracts, especially among the members of the more active and developed societies on Earth?
A. No, I am not aware of any particular problem.
Q. Where subsequent issues arise regarding a contract, as when one of the parties alleges a failure to perform, there are established procedures for addressing the specific allegations, is that not correct, Mr. Squeam? I am referring to the remedies offered by the various judicial systems.
A. Yes, that is true, although I should point out that contracts requiring legal interpretation in the event of a breach are probabily not profitable to either party.
Q. You feel that the best contracts are those where performance is as agreed?
A. Yes.
Q. In your opinion, is there still a general respect for the contract, and for the judical systems that oversee and enforce it?
A. Yes, for commercial purposes it still seems to work well in most jurisdictions. There is no suggestion that it is under amendment.
Q. Do you think the success of the contract is based on the integrity of the parties to it, and the trust that that integrity generates?
A. Yes, I believe implicit trust is still intact.
Q. That is what we want to investigate, Mr. Squeam. There is growing suspicion that a loss of trust has occurred ... a perception that integrity is compromised. We are a apprehensive there has been a diminution in the fundamental honesty of contracting parties, and that this dishonesty is an important contributing factor to the deterioration of civilisation that becomes more apparent with time.
A. I'm not sure I can help you, because I don't feel there is any problem.
Q. I see. That may well be so, I mean your caution that your testimony might not be helpful, but I would still like to ask you a few questions, Mr. Squeam.
A. Certainly.
Q. Are you a believer in what is called the "free enterprise system?"
A. That depends on how you define it.
Q. Suppose we say it is basically the conduct of business affairs without the imposition of any governmental regulation. Would you say you are a supporter of that?
A. OK. Generally speaking, I am.
Q. What is your view on the question of taxes, duties, stamps and other levies?
A. They are all restraints on trade, of course, and should be limited to covering the costs of government.
Q. So you favor free trade?
A. Yes, in most cases I believe that is true.
Q. But there may be exceptions?
A. Yes, but at the moment I can't think of any.
Q. What is your view on wages?
A. In what respect?
Q. What do you feel is the role of wages?
A. I consider wages to be a fundamental part of the equation. The worker is entitled to a fair share of the profit of the enterprise.
Q. Do you perhaps mean something else? Profits arise after the cost of wages has been met.
A. Yes, you are right. What I mean is that the worker should receive fair compensation for the time and effort made as a contribution to the success of the enterprise.
Q. You agree that the question of what fair compensation is varies with time and place? And that there is a competitive aspect to it?
A. Yes. Wages are always competitive, both in the sense that uncommon skills are better rewarded than common skills, and an excess of workers tends to lower wages.
Q. Are you are familiar with the history of the union movement?
A. Yes, in general terms.
Q. Do you recall instances of injustice, many leading to violence?
A. Yes, there is that aspect.
Q. Is the question of wages a continuing source of contention in business affairs?
A. Usually not. I think wage issues are settled with a minimum of fuss and bother these days.
Q. And the agreement which establishes the level of wages is generally recorded in the form of a written agreement?
A. Yes.
Q. Is the level of wages an important consideration in the initial planning for site location?
A. Yes. It is an important factor, at least when it is pertinent.
Q. Would you say that a low level of wages makes a site more competitive relative to another with a higher level?
A. Yes.
Q. And sometimes there is re-location, from a site with higher wages to a site with lower wages?
A. Yes, these are typical management decisions, and are generally made with overall profitability in mind.
Q. In the decision regarding a possible site re-location, to a region with lower wage costs, is the welfare of the displaced workers a consideration?
A. The workers generally prefer not to re-locate, especially where their wages will be substantially less. So I would say their views are not solicited, nor are they welcome, since they are almost always opposed to a move.
Q. Can te threat of site re-location be used as a bargaining point in negotiating wages?
A. Yes. It can be, but not always.
Q. So there is not only local competitive factors that determine wages, there are also distant competitive factors?
A. You mean globalisation? Moving manufacturing facilities to countries with low wage levels? Is that what you are getting at?
Q. Yes, that's part of it. Globalisation encompasses a wider range of economic activity. Are you familiar with the trend of moving manufacturing to lower wage countries?
A. Yes. And I think it is accelerating. May I ask where this line of questioning is headed?
Q. Certainly. We are discussing the subject of integrity; especially the integrity of those who make major contracts. Among the more significant contracts in any society are those establishing workers' wages and benefits, and the parties to those contracts are corporation executives and union officials. So we are looking into those first. Does that answer your question?
A. Partly. But why does the question of integrity touch only on corporate figures?
Q. We will get to that in a moment. First, let me ask you if you favor the establishment of the corporation as a legal entity, with identical rights to an individual man?
A. I know that is the situation, but I don't think I have any particular view on the matter. Why do you ask?
Q. There is a perceived lack of accountability in this arrangement, and the corporate executive has access to concentrations of funds that can be used to undermine the fundamental rights of the citizen, along with the rights of the wage-earner. Even the theory of democracy is placed at risk. For this reason, there must be integrity, so we are laying a foundation for the investigation of that. That is why I am soliciting your views in this area.
A. Are my answers helpful? So far, I mean?
Q. Yes, yes, of course, Mr. Squeam, and we thank you for that.
At this time we will take the morning recess. Please return at 2:00 PM. You are excused.
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