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Corporate Accountability and WorkPlace

How Secure Is Your Job?

By Laura Barcella, AlterNet. Posted April 7, 2006.


Author Louis Uchitelle talks about how the rising tide of layoffs in corporate America isn't just damaging the nation's job security, but our sense of self-worth.
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louis uchitelle
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In his new book, "The Disposable American," New York Times business writer Louis Uchitelle takes a sobering look at the sordid history -- and the future -- of layoffs in America.

Though the bulk of his expertise lays in the business realm, Uchitelle argues that layoffs' ascending frequency isn't just damaging America's job security, but our sense of self-worth. He writes that the ever-insidious "self-help" movement (specifically, books such as "Who Moved My Cheese?") has encouraged workers to accept more responsibility for their own job security than necessary -- unfairly placing the whole burden of fair wages, pensions and workplace stability on employees' shoulders rather than the corporate heads hiring (and firing) them in the first place.

Unsurprisingly, almost every person he interviews in "The Disposable American" seems to prove Uchitelle right. The human stories shared in the book echo Uchitelle's hypothesis that getting laid off has long-term negative effects on motivation and self-esteem, as well as making it harder to land a more challenging position the next time around.

Fortunately, though, Uchitelle isn't just the bearer of bad news. He also offers ideas for strategic solutions -- potential ways to reverse, or at least downshift, what he dubs the "U-turn" in job security that began in the late 1970s in response to rising foreign competition.

He spoke with AlterNet via telephone from his New York office.

Laura Barcella: First, tell me why you decided to write this book.

Louis Uchitelle: I have been covering the rise of job insecurity since the late '80s, and I became interested in what was happening to people. There was always this idea that we would get rid of the blue-collar workers [who] weren't pulling their weight, and it kept going, on and on, into the white-collar workers.

At the New York Times, I was the lead writer on a long, six-part series in 1996 that laid out what was happening -- and by then we had gone through so many barriers of resistance to layoffs, or of limiting them, and the Clinton administration at that point came in and said -- we'll keep the layoffs and handle it by job creation and by reconditioning workers -- education and training. And we'll cycle them back into the work force. The more I wrote about that, the more I realized that something was very wrong, and I finally put it together in a book proposal.

LB: What sorts of reactions have you received thus far?

LU: People think it's an important book Two issues that I think are very important is this myth that people can, through more education and training, cycle back into the work force with perfectly good jobs. The evidence is definitely against that. First of all, there is an oversupply of skilled people relative to the jobs that are available. And secondly, we don't properly measure the damage to the companies themselves and the productivity that comes from job security.

To people who are, in effect, told that this is a be-your-own-manager society, when they're laid off, [it's implied] that they don't have value as workers -- and that's a considerable psychological blow and a source of mental illness. I didn't realize that until I started to report this book, and ran into it over and over again among the people I was interviewing. I went to psychiatrists, and they said that there was no question about [layoffs' damaging psychological effect] on people -- some people more than others -- depending on their personality and predispositions.

But it means that people don't get back into the work force using all their old skills. They don't take risks, and they suffer. It's a memory that undermines them for many years -- and this is not a story about unemployment, it's story about layoffs. Most people go back to work again or drop out altogether.

LB: What were some of the long-term psychological effects of layoffs?

LU: I found people constantly trying to figure out what happened to them, trying to figure out if they had just done this, or had a different boss, or changed departments They kept going over and over it again; why did this happen to them? They sought, in these conversations, some peace of mind. They tried to regain their self-esteem.

There's a sociologist named Richard Sennett who, in his book "The Corrosion of Character," makes the point that we all have a life narrative, and work is part of that narrative, and the narrative is part of our identity. If you take away the work and the identity that comes with the work, you interrupt the life narrative.

I found people trying to reconstruct that narrative in various efforts, and I think you would see that in somebody like Kim Dewey, one of the mechanics [quoted in my book]. There's others, like Craigy Imperio, who got his engineering degree and who, through hard work, has managed slowly to work his way up the ladder. But others don't do it.


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Laura Barcella is an associate editor at AlterNet.


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Super Power.... Slowly dimenishing
Posted by: thinkverybig on Apr 7, 2006 12:44 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
The U.S. Government is so offtrack it's sad. The outsourcing of jobs and allowing undocumented workers to enter into the United States illegally which in turn diminishes wages for all Americans... doesn't help. The politicians are corrupt and only care about fattening their own pockets.... just look at Tom Delay and others....

The rich doesn't care about the poor... the government caters to the rich and corporations leaving others to fend for themselves. It's time for a change.... It's time for a REVOLUTION.


I'm in the process of creating a website by the name of "WeMustChange.org" and I am in need of creative volunteers to help along with a website and logo designer.

I can be reached at david@thinkverybig.com

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» Friendly advice Posted by: wheelie
» RE: Friendly advice Posted by: russianblue1
» RE: Friendly advice Posted by: thinkverybig
» YOUMustChange.lame Posted by: gotmyeyeonyou
» You need help Posted by: thinkverybig
» RE: You need help Posted by: YogiBear
Globalization and the Iron Law of Wages
Posted by: wli on Apr 7, 2006 1:40 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
The article at commondreams.org, "The Price of Globalization" outlines the emergence of Ricardo's Iron Law of Wages, which states that wages will stabilize at precisely such a level to maintain a stable population of laborers. (It's also attributed variously to LaSalle, Malthus, Marx, and sometimes others.)

There are two unstated corrollaries to the Iron Law of Wages.
1. When returning from disequilibrium a dieoff or population explosion will ensue, depending on what sort of disequilibrium happened.
2. Because populations grow indefinitely (at an exponential rate) in the absence of countervailing influences, the Iron Law of Wages implies continual mass dieoffs (famines) as a direct result of capitalism.

We're well on our ways to the Iron Law of Wages reigning supreme, and can already see precursors of the perennial mass dieoffs in the Third World.

In any event, the upper class doesn't really value human life very much, except perhaps of their own. They don't mind at all if we die en masse or suffer greatly. They even like it. This explains why layoffs make people feel so worthless. They're direct expressions of the upper class' contempt for us, hatred of us, and mockery of us as we suffer and die from the poverty and famine they impose on us at gunpoint to satisfy their sadism.

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Outsourcing secures CEO raises
Posted by: owlbear1 on Apr 7, 2006 4:02 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
That's about it.

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» RE: Outsourcing secures CEO raises Posted by: Lincoln fan
Book to help ease pain
Posted by: anothername on Apr 7, 2006 4:10 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
I will keep reminding myself that the purpose of this book is to help those people who do suffer self-esteem from layoffs to deal with their emotional concerns.

This book is not about changing the employment system. People can be helped by a change in the system, however.

I have spent years as a temporary employee (due to frequent moves and a desire for freedom). When I first started working, the idea was that people without benefits were paid more money to compensate for the lack of benefits, and to acknowledge their abilities to step in and out of places quickly and effectively. In recent years, my income does not even reach the lowest entry-level income even before that worker's benefits are included. (This, I believe, relates to the lack of collective bargaining power when individuals are expected to bear the full burden of job placement.)

Throughout the years, I have met people who want to take the risk of managing their own employment and I have met people who want stability in their pay and work. I firmly believe that both types of jobs should be allowed for and that the former should be paid more, based on their abilities. (The "based on their abilities" comment applies to both groups.)

I have never accepted that there is a value to paying workers more in salary/wages, vacation time, and other benefits merely because the workers have spent an extra year at a company. Cost of Living adjustments should be made, but not raises just for longevity. I also hestitate to push for every employer to offer benefits because it cuts into direct pay options. Once again, people who choose to work as temporaries have seen their incomes dropped as temporary agencies started offering a range of benefits accessible to just a few workers who land year-long assignments. Otherwise, alternating between agencies for job selections will prevent using health insurance, retirement, holiday pay, and other benefits from any agency, while not receiving a comparable increase in pay.

I wonder if the book's author has studied the psychological impact of working in fixed jobs for people who do not like their jobs and/or who would prefer flexible job opportunities? I also always have a nagging feeling that for most people much of the loss of self-esteem connected with layoffs comes from lower income, not from loss of a stable, identity-important, family-substitute job.

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» Good questions! Posted by: Sojourner
Connect the dots?
Posted by: numen on Apr 7, 2006 5:06 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
So now the compassionate Neo-Liberals at Alternet are starting their series of articles on mass layoffs. Are they smart enough to make the obvious connection between their love of mass immigration and our realized fears of mass joblessness?

Some of us (maybe not the naive newbies at Alternet) are old enough to have lived through all this. Our parents were laid off at least once a year back in the 70s when manufacturing plants took off for Korea. Then, in the 80s and 90s the massive downsizings hit as the corps replaced white collar workers with computers. When AT&T was "rightsizing" itself from 355,000 down to 120,000, laying off a quarter million of us (mostly guys who were the same age then as I am now), I went to five funerals in six months of guys had given their lives for the company, knew their decades of skills would never be worth more than a gas pump jockey, and just laid down and died. At least back then their companies had insurance that kept the family's mortage going a few months.

And now we have guest worker visas, offshoring, and illegal immigrants to do the final number on American workers. The H1B visas bring the employer a 30% reduction in wages for middle and upper middle class wages (starting with programmers, ending ...) and the L1 (intercompany transfer, supposedly for high level execs but actually for pedestrian workers) reduce wages 50%, and then those guest workers can take their proprietary knowledge back home and supervise offshoring where the workers make one tenth as much as here. So much for the middle class.

And then for the working class (where the computer programmers and engineers now end up), we have illegal immigrants taking all the "entry level jobs" formerly taken by minorities, the young trying to get past the "you need experience to get enough experience to get a job" barrier, and the old who need to make up for our failing safety net. So no more climbing the ladder of success.

You'd think Alternet would get a clue that the situation cannot stand. You cannot support an endless stream of immigration into an economy that is already failing those who need to work for a living...as opposed to those who get to write articles about the plight of all those poor people down there...

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» RE: Connect the dots? Posted by: gar
» RE: Connect the dots? Posted by: wmsngr
» RE: Connect the dots? Posted by: Baal_Labs
» RE: Connect the dots? Posted by: zooeyhall
» RE: Connect the dots? Posted by: dlf
For all the time that gets spent dividing us working class folks into groups and
Posted by: maxpayne on Apr 7, 2006 5:31 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
pitting us against one another, it's pathetic that the good CEOs got punished while the bad and sometimes uneducated but inherited ones got rewarded with all the stolen money. Seriously, this is just the same way the fake "conservatives" and go-along "liberals" and "moderates" distract us from reality. First it was pitting man against woman, then white against black, married against gay/lesbian/single, and now native against "illegals". The conditions in Mexico are surprisingly not a whole lot different from here and far as work and torture go. It's time to unite the working class of all backgrounds or the POPEYE working class and honest leaders will find it harder to defeat the BLUETO corrupt CEOs.

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Ask yourself...
Posted by: greentime on Apr 7, 2006 5:39 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
If you expect business to care about a society, think this through verrrry carefully.

Do for corporate profit motives generate good leadership?

Should a government be all about dominance and profit in the marketplace?
Really, are you sure?

Do you think accountants care about taking care of employees so they can be fully rewarded for their labor and have a safe and healthy life and retirement?
OK, give us some examples.

Would you leave it up to corporate CEOs to lead us towards a healthy culture and sustainable planet?
Hmmmm...

Or are we confused? What happens when we follow the money? Doesn't capital ALWAYS goes where resources and labor can be obtained most cheaply?(exploited) Isn't that what we have seen and are seeing?

Now, try this:
Turn your world map upside down.
What do you see?

What large land masses are most prominent?

Aren't these the same ones growing in economic prominence today?

How prominent does the north American land mass look by comparison?

Which countries have been bullied the most by more aggressive ones?

OK, It'll be OK, right?

We believe that the largest corporations will come right on back home and bring those big "foreign country" profits home with them, don't we? Why, won't they just put those profits to work to take care of us and educate our children just like a government by the people for the people? They'll make sure we all have some of that double digit gain stock right? They'll stop polluting right? And give us health care? They will make sure the taxes we pay and the tax breaks we give them will provide a safe and creative culture and a healthy, sustainable planet right? They won't sell out to the highest bidder will they? They belong to us, right? Oh, and they'll maks sure we have a classless society, a real Democracy, right? We're all in this together, aren't we?

Still think a corporation can be a government?

Think again.

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mm.
Posted by: bettsoff on Apr 7, 2006 5:57 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
I don't mean moving dirt from one side of the other to stimulate the economy. There's real needs out there -- for quality child care, for example, or public transportation rebuilding schools, all sorts of things.

Sounds like a call for a new New Deal to me. 'Bout fucking time, too. If we're going to be running a huge deficit, it ought to be for building schools, not bombs.

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» RE: mm. Posted by: gar
» RE: mm. Posted by: bettsoff
» RE: mm. Posted by: hms2004
» RE: mm. Posted by: Lincoln fan
Glad to see "Who Moved My Cheese?" criticized
Posted by: zooeyhall on Apr 7, 2006 7:09 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
I was really glad to see the silly and insipid "Who Moved My Cheese?" thing taken to task in this article. I don't know how many others have seen it, but I was forced to for the first time the other day. Apparently, it has become de riguer as part of American corporate propaganda that is force fed to their "work force".

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THANK THE GODDESS ...
Posted by: Ghoulman on Apr 7, 2006 8:14 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
... for this book.

I've excelled in the work force of the late Ninties/Early 00s and now, nothing. If you look at my resume not one... not one... of those companies even exists anymore. Everything from ISPs, Web developers, to biometric software.

I work in a sign shop for $10/h.

What a career.

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Cowardice
Posted by: VisionQuest on Apr 7, 2006 8:28 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
I find Uichetelle's exclusive focus on the "emotional toll" of layoffs, and groveling insistence that layoffs "can't be stopped," to be craven cowardice. As a business writer with a secure sinecure in the power elite, he isn't about to point out that we are simply witnessing a massive redistribution of wealth upward that is in no way "inevitable," but the easily traceable product of concrete, corporate-driven policy decisions. So, instead, we get a lot of mealymouthed pabulum about hurt feelings and self-esteem. But of course, it's just his job to "lay it out there," not to provide analysis or ask hard questions. The saddest part is that he is probably one of the few "journalists" in this country that even finds the issue worth addressing.

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» RE: Cowardice Posted by: badkitty
» RE: Cowardice Posted by: Lincoln fan
blue in a very redstate
Posted by: Tdstreet on Apr 7, 2006 10:23 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
How secure is your job? About as secure as Burt Reynolds' scalp!
Seriously, I was "stealth" laid off from my job at a loan
servicing company in 1997 (that is, supervisors systmatically turn on their subordinates, making their lives miserable until they resign. The wheels at our company tried laying off en mass and found that they were sued and decided non this more subtle strategy. Sometimes the lawsuits filed by the laid off (usually based on age discrimination) were successful but often settled out of court. The top execs decided that was too messy. They loved to push out anyone married over 35 especially if they had kids and replace them with 20-somethings who single for obvious reasons.

Ironic that the graphic for this story on this site
shows a person walking out head down with a box. That's what we call getting fired in our company: "getting boxed."
Anyway, in my department the supervisor in 1995 began this system of turning on employees for no reason and just ragging on them for weeks or months until the person couldn't take it anymore and resigned. Of course naive me thought that wouldn't happen to me. I have more or less fared OK since financially only because of my wife's career (in medicine) taking off pretty well, and a modest inheritance that has helped keep us out of terrible debt (just up to our waist instead of eyeballs). But I was never able to find full time work in the area I was in. From 97-01 I was a telemarketer at four different places, tempted for the 2000 census, and trained for and worked briefly as a nurse's aide. None of those salaries even reached half of what I once made.
I know my story is a "dime a dozen" and there have been books that have been written years ago that say essentially what this book is saying, so I doubt it will not tell me or anyone else in our position anything new. And the interview on the website reinforces this. I have suffered from depression since my little adventure, and the therapists I have seen all give me the crapola/mantra in the book "Who Moved My Cheese?" (I am not making this up; this book was given to me as a gift in '98 from a staunch conservative Republican relative.)
The thesis of that simple-minded book is blame the victim, get off your ass and find a job. If your'e unhappy it's all your own damned fault. The therapists I saw either push(ed) pills or come at you with this "reframing the situation" (code for Spin) and how you react to/interpret it. It was as if my therapist was telling me to create my own reality (isn't that what the Bush White House says they do?) My reply to her re-framing situations in my last session was "if the subject you are framing is shit, no matter how expensive or fancy your frame is, it's STILL SHIT. She was not able to provide much of an answer to that.
I still take medication which helps a bit, and do work in another field that is at least better that telemarketing or
being a CNA (talk about a TOUGH job). Yet there are, almost now 10 years later, days I go "Zapruder Film" on what I could have done differently: "played the game" better or whatever.
It does no damned good and is just painful. It was a job I enjoyed, was good at, paid fairly well in a city I liked. Unlike where I have to live now, because of economic necessity.

Yes, I am mostly responsible for my plight, but our corporate media with it's grossly overpaid talking heads, rich famous pop psychologists, our gutless bought- and- paid for politicians find it easy to blame others. It began when Mr. Reagan declared war on the middle class and Bush I and II and even Clinton have sustained this trend. Our society has been systematically (sanctioned selfishness) programmed for nobody to see past their own nose. We are a mean, hyper materialistic hyperindividualistic society that is reaping the bitter harvest of 25 years of corporatist government/media.

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So move!!
Posted by: russianblue1 on Apr 7, 2006 11:26 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
It's a big world out there with lots of countries that do value people (aka a natural resource). I'm saving and I would like to leave this country. Just like I don't want to be a Christian since one of the pillars of Christianity is that women are intrinsically (sp?) evil, I want to leave this country because it assigns me a value of zero. Think about it-a brain drain. The best of America is leaving-it's happening in the medical field of genetics and stem-cell research. Why not others? What is left here for ordinary people?

Perhaps I should post this on a Republican website. Think they would sponsor me?

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» that's so like, not progressive! Posted by: gotmyeyeonyou
» that's so like, NOT WHAT I STATED Posted by: russianblue1
» RE: So move!! Posted by: billfaster
The more education lie
Posted by: YogiBear on Apr 7, 2006 3:03 PM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
this myth that people can, through more education and training, cycle back into the work force with perfectly good jobs.

Man am I tired of hearing this bunk repeated. It's convinced me that every economist -- they all repeat it -- is either a liar or an idiot, and that any politician who repeats it is utterly ignorant of what life is like for the working class, and can't apply a rational thought process to globalization, and in particular, offshoring of Amerian jobs. Thank the gods (and Uchitelle) that the truth is finally getting out.

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Alternative Media
Posted by: bodo on Apr 7, 2006 4:44 PM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
Truly Alternative Media
http://www.guerrillanews.com/

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I want to say something good about AlterNet
Posted by: HawkSpirit on Apr 8, 2006 12:19 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
There are articles that AlterNet posts that I really do not relate to and I don't read them. There are a lot of people out there that working at jobs that pay then less than a living wage. There are people like me, who are retired and really worried about my husband's pension being secure, as we as Medicare and Social Security. There are many social issues in play right now because this government is an equal opportunity basher of anyone and everyone. All of us that read these posting are not of the same progressive mode and many of us are democrats and liberals, who really care about people, children and trying to help those who need it.

I lived in border states all my life and wet-backs as they were called were always an issue. Ranchers used to shot the border patrol, who were trying to round up illegals. Are the corporations any different today? They want cheap illegal labor who have no rights. Until we take back our local grassroots organizations to make sure the people we support are accountable to us, it will just get worse.

AlterNet is one place where many ideas are posted. They have the easiest comment section I have found, also I can comment directly about someone else's comment. It is a big tent, so to speak and we must learn to work together. One of the best way I have found is trying to understand others points of view. If we want to win in November we need to accept that there are many different views that need a venue where they can be discussed like AlterNet.

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If 'who moved my cheese' got you down, don't click on this link
Posted by: crabby_milwaukeean on Apr 8, 2006 8:56 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
oops, here it is
Posted by: crabby_milwaukeean on Apr 8, 2006 9:01 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
this link

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Memories from the other side... the factory floor
Posted by: Leighm on Apr 9, 2006 4:51 PM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
A little of my personal history. From 1973 to 1976 I was employed by the Eagle Square plant of Stanley Tool Works in Shaftsbury Vermont, just north of Bennington. The plant was an early 1900s model situated near a creek which had undoubtedly powered belt driven machinery in it's original incarnation as a furniture factory. Every Stanley utility knife of the time was manufactured there, along with high quality bubble levels, tri-squares, and carpenter/framing squares.
The working conditions were spartan, but safe.

The union there was a remnant of an upholsterer's union that was ineffectual in it's entirety. The 'young turks' (Yeah, that was me, and a couple of others) on the contract negotiating committee took to demanding Groundhog Day as a paid day off, as we had no real clout, no support from the national upholstery union (if it really existed at all) and the best we could do was make management's life miserable.

New Britain Connecticut, the headquarters location, was rapidly becoming a slum city, and Stanley Works was trying to expand and diversify it's product line, adding items far outside it's traditional realm, like imported garage door openers, in a desperate attempt to compete with foreign imports, as was their main U.S. competition New Britain Tool. That was, IMHO, the organization's "beginning of the end" in American industry, right before the advent of the American service industry's rise to the top of the financial food chain.

//lcm

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Layoff due to two causes
Posted by: Bobsays on Apr 12, 2006 8:51 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
The corporate layoffs are due to two factors: the outsourcing of jobs to the developng world, and the influx of illegal migrants into the US. Both take the pressure off employers and enable them to shape the job market in their favour. And of course their favour is to have an 'oven ready' workforce that can be hired and fired at will.

Countries that eschew this model have better emplyment rates and prosperity. I am thinking of scandinavia and japan. Both places instead invest in their people to remain competitive. They are both places of intense creativity and invention. It is the only route to take if the US or any other western country wants to remain a developed nation.

The current model is taking us on a path to being a third world country. It is misguided and economically fatal.

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Who cut the cheese?
Posted by: Bobsays on Apr 12, 2006 8:57 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
I need to ask again why we buy the well-worn BS that mas illegal migration is anything but harmful to the economy? It just doesn't stand up under analysis. If it was true that countries became poorer without mass illegal migration, then most of Europe would be super poor, Japan and South Korea would be poor - it just doesn't compute. All these places have a standard of living equal to or superior to the US. It is all about working smarter, having high standards, working together (sharing common values, not wasting time and money on fighting over spurious multiculturalism), and have good policies that build peoples capacity.

At present, the US is failing in all these areas. It is time for better political leaders and movements.

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