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Posts Tagged ‘EMPLOYERS’

ENDING THE “I WIN/YOU LOSE” POWER OF GREEDY EMPLOYERS

In Bureaucracy, Business, History, Politics, Social commentary on December 1, 2022 at 12:10 am

All those who have written upon civil institutions demonstrate…that whoever desires to found a state and give it laws, must start with assuming that all men are bad and ever ready to display their vicious nature, whenever they may find occasion for it. 

“If their evil disposition remains concealed for a time, it must be attributed to some unknown reason; and we must assume that it lacked occasion to show itself.  But time, which has been said to be the father of all truth, does not fail to bring it to light.” 

—Niccolo Machiavelli

Niccolo Machiavelli knew what he was talking about.

As of January 1, 2018, it became illegal for California employers to ask job applicants about their former salaries and benefits.

Governor Jerry Brown signed a state privacy bill into law during the last week of December, 2017.

This is good news for applicants who believe they shouldn’t be judged on how much—or little—money they earned in the past.

For decades, employers have used “salary histories” to discriminate against applicants who earned large—or small—salaries in their previous jobs.

For example: If an applicant had been paid a miserly wage even though he had performed major tasks for an employer, the new potential one would use that low salary as a weapon against him: “Well, it says here you earned $—– in your most recent job. Why should we pay you more than that?”

And if an applicant had earned a high salary, an employer would often use that against him: “We can’t afford to match that, let alone give you more than that.” In many cases, employers simply refused to give a reason for refusing to hire the applicant.

In either case, it was clearly an “I win/You lose” situation.

And, naturally, when employers whine about how expensive it was to pay a living wage to those who made their profits a reality, they never mention the exorbitant salary paid to their own CEO.

Even CEOs who are fired—even for reasons of outright criminality—usually receive severance packages in the tens of thousands of dollars—a gift that no ordinary employee can expect to receive.

According to Glassdoor: “The estimated total pay for a Chief Executive Officer is $403,919 per year in the United States area, with an average salary of $186,399 per year. Additional pay could include cash bonus, commission, tips, and profit sharing.”   

CEO’s of major corporations often wail that they can’t afford to hire more employees—or whine that, to “cut costs,” they must fire tens of thousands of existing ones. But they almost never offer to trim their own bloated salaries.

One job-seeking applicant tried to finesse the salary history demand by filling out the job application form except for the salary history part.  He then attached a cover-letter, which read:

“I am interested in speaking with you or one of your representatives about the above-named position. I have filled out the required application—-with the exception of the box inquiring into my Current/last Income.

“I have been paid on a per-hour basis, a per-assignment basis, and on a bi-weekly basis. Each of these salaries was for a different job, and each job required a specific set of skills and efforts on my part.

“I am prepared to discuss in detail how my skills and experiences can prove of use to your company. But I do not discuss past salaries earned with anyone but the Internal Revenue Service.” 

But the relationship between employers and job-seekers has always been a lopsided one, with the “rights” of employers far exceeding those of applicants.

Since January 1, 2018, California job-seekers no longer have to worry about that part of the application.

Supporters of the law believe it will help reduce the notorious wage-gap between male and female employees.

Related image

“Women negotiating a salary shouldn’t have to wrestle an entire history of wage disparity,” said the bill’s principal author, California Assemblywoman Susan Talamantes Eggman.

California’s law also requires potential employers to disclose a salary range for the job in question, should an applicant ask about it.

This arms job seekers with valuable information because they will now know how much a company is willing to offer for that position.

In the past, employers held that information close to the vest as one more way of gaining control over their potential employee.

Although California has long been a trailblazer in employee/employer relations, it was not the first state to pass such a law. Oregon, Delaware and Massachusetts had already passed laws forbidding employers from asking about salary history.

Many employers and their paid shills believe that President Calvin Coolidge was right when he said: “The man who builds a factory builds a temple; the man who works there worships there.”

Cheryl Behymer, an attorney for the law firm Fisher & Phillips, which represents employers, said: “Here’s another point where the government is dictating to an employer how to conduct its business and employers resent that.”

She speaks for all tyrants forced to relinquish any part of their tyranny.

REIGNING IN CORPORATE TYRANTS

In Bureaucracy, Business, History, Politics, Social commentary on January 3, 2018 at 2:38 am

All those who have written upon civil institutions demonstrate…that whoever desires to found a state and give it laws, must start with assuming that all men are bad and ever ready to display their vicious nature, whenever they may find occasion for it. 

“If their evil disposition remains concealed for a time, it must be attributed to some unknown reason; and we must assume that it lacked occasion to show itself.  But time, which has been said to be the father of all truth, does not fail to bring it to light.”

Niccolo Machiavelli knew what he was writing about.

And now, California legislators have wisely—if belatedly—acted on that warning by reigning in the vicious nature of corporate employers.

As of January 1, it is now illegal for California employers to ask job applicants about their former salaries and benefits.

Governor Jerry Brown signed a new state privacy bill into law during the last week of December, 2017.

This is good news for applicants who believe they shouldn’t be judged on how much—or little—money they earned in the past.

The truth is that, for decades, employers have used “salary histories” to discriminate against applicants who earned large—or small—salaries in their previous jobs.

For example: If an applicant had been paid a miserly wage even though he had performed major tasks for an employer, the new potential one would use that low salary as a weapon against him: “Well, it says here you earned $—– in your most recent job.  Why should we pay you more than that?”

And if an applicant had earned a high salary, an employer would often use that against him: “We can’t afford to match that, let alone give you more than that.” In many cases, employers simply refused to give a reason for refusing to hire the applicant.

In either case, it was clearly an “I win/You lose” situation.

And, naturally, when employers whined about how expensive it was to pay a living wage to those who made their profits a reality, they never mentioned the exorbitant salary paid to their own CEO.

According to Glassdoor: “Across all companies, the average CEO pay was $13.8 million per year, the average median worker pay was about $77,800, and the average ratio of CEO pay to median worker pay was 204. In other words, on average, CEOs earn around 204 times what his or her median worker earns.”

One job-seeking applicant tried to finesse the salary history demand by filling out the job application form except for the salary history part.  He then attached a cover-letter, which read:

“I am interested in speaking with you or one of your representatives about the above-named position. I have filled out the required application—-with the exception of the box inquiring into my Current/last Income.

“I have in the past responded to ‘Salary History’ inquires and have found these have only one purpose: To elicit the lowest salary received, so that the salary to be offered can be adjusted to that level.

“I have been paid on a per-hour basis, a per-assignment basis, and on a bi-weekly basis. Each of these salaries was for a different job, and each job required a specific set of skills and efforts on my part.

“I am prepared to discuss in detail how my skills and experiences can prove of use to your company. But I do not discuss past salaries earned with anyone but the Internal Revenue Service.

“If you are prepared to hire on the basis of what I can do for your company, and not on the basis of what other employers have paid me in the past for assignments that had nothing to do with your company, please contact me at your earliest convenience.”

As of January 1, 2018, California job-seekers will no longer have to worry about that part of the application.

Supporters of the law believe it will help reduce the notorious wage-gap between male and female employees.

Related image

“Women negotiating a salary shouldn’t have to wrestle an entire history of wage disparity,” said the bill’s principal author, California Assemblywoman Susan Talamantes Eggman.

California’s new law also requires potential employers to disclose a salary range for the job in question, should an applicant ask about it.

This arms job seekers with valuable information because they will now know how much a company is willing to offer for that position.

In the past, employers held that information close to the vest as one more way of gaining control over their potential employee.

Although California has long been a trailblazer in employee/employer relations, it was not the first state to pass such a law. Oregon, Delaware and Massachusetts had already passed laws forbidding employers from asking about salary history.

Many employers and their paid shills believe that President Calvin Coolidge was right when he said: “The man who builds a factory builds a temple; the man who works there worships there.”

Cheryl Behymer, an attorney for the law firm Fisher & Phillips, which represents employers, said: “Here’s another point where the government is dictating to an employer how to conduct its business and employers resent that.”

As do all tyrants forced to relinquish any part of their tyranny.

COSTCO VS. WALMART: TWO VERSIONS OF EMPLOYER

In Bureaucracy, Business, Social commentary on July 29, 2014 at 2:30 pm

Corporations aren’t staffed by faceless machines.  They’re staffed by men and women.

And those men and women take their marching orders from the man (usually) or woman at the top.

Thus, you can learn a great deal about a CEO–and his company–by the way his employees are treated.

Consider the differences between Walmart and Costco.

REVENUES:

Costco:  In 2011, its revenues stood at $89 billion.

Walmart: In 2011, its revenues stood at $447 billion.  But profits declined by 4.6%, to $15.7 billion.

HEALTH INSURANCE:

Costco: About 88% of Costco employees have company-supplied health insurance.  “I just think people need to make a living wage with health benefits,” Craig Jelinek, Costco’s CEO and president, told Bloomberg.  “It also puts more money back into the economy and creates a healthier country.  It’s really that simple.”

Walmart: In January, 2014, the nation’s largest private employer will deny health insurance to newly hired employees who work less than 30 hours a week.

Walmart eliminates healthcare coverage for certain workers if their average work-week falls below 30 hours–which regularly happens at the direction of company managers.

Walmart has refused to say how many of its roughly 1.4 million U.S. workers are likely to lose medical insurance under its new policy.

Many of the Walmart workers who might be dropped from the company’s health care plans earn so little that they would qualify for the expanded Medicaid program.

Of course, if they live in any of the 26 Republican-controlled states refusing to expand Medicaid coverage, they’ll wind up with nothing.

“Walmart is effectively shifting the costs of paying for its employees onto the federal government with this new plan, which is one of the problems with the way the law is structured,” said Ken Jacobs, chairman of the Labor Research Center at the University of California, Berkeley.

In 2005, Susan Chambers, Walmart’s then-Vice President of Benefits, outlined how the company could remove sick workers from payrolls and avoid paying healthcare benefits.

Three major studies–in Georgia, Massachusetts and California–found Walmart employees to be the ones most reliant on government aid.  Annually, Walmart employees cost taxpayers more than $1 billion nationwide.

WAGES:

Costco:  Pays a living wage, with its employees starting as $11.50 per hour.  The average employee wage is $21 per hour, not including overtime.

Walmart: Most Walmart workers earn less than $20,000 a year.  According to Bloomberg News, the average Walmart Associate makes just $8.81 per hour.

CEO SALARY:

Costco: Its CEO and president, Craig Jelinek, made about $4.83 million in 2012.

Walmart: CEO Mike Duke made roughly $19.3 million in 2012.

According to CNN Money: Walmart’s CEO makes as much as 796 average employees.  Costco’s CEO makes 48 times more than the company’s median wage.

HOLIDAYS:

Costco:  Costco closed for Thanksgiving, giving its employees time to spend with their families.

Walmart: Forced its employees–on pain of being fired–to open its stores nationwide at 6 p.m. on Thanksgiving.

The results: Multiple instances of fistfights, taserings and knifings among shoppers whose greed had been roused to fever pitch by Walmart advertising.

PROMOTINS:

Costco: Hires from within. More than 70% percent of its warehouse managers began their careers working the floor or the register.

Walmart:  Facing mounting criticism for its low salaries, Walmart, on October 29, announced that it would promote more than 25,000 employees by the end of January, 2014.

STABILITY:

Costco: The annual turnover rate for employees who have worked at the company for more than one year is less than six percent.  For executives, the turnover rate is less than one percent.

Walmart: Since 2008, Walmart has fired or lost 120,000 American workers, while opening more than 500 new U.S. stores.

Many workers quit to find better-paying jobs.  As a result, turnover at Walmart has been correspondingly high.

ADVERTISING:

Costco:  Doesn’t advertise or rely on a public relations staff.

Walmart: By contrast, Walmart spent $1.89 billion on self-glorifying ads in 2011.

Recently, Walmart has been forced to launch a massive PR campaign to counteract its notoriety for low pay, employment of illegal aliens, lack of health benefits and union-busting tactics.

* * * * *

Some things can’t be quantified.

Goodwill, which is created by taking care of one’s employees–paying them a living wage and providing them with medical care–is one of them.

Similarly, ill will–created by paying the lowest possible wages and forcing employees to essentially become welfare clients–is another.

And some things that can be quantified don’t necessarily make for Nirvana.

In 2012, the Forbes 400 stated that the six wealthiest heirs to the Walmart empire were collectively worth $115 billion.

Yet this has not protected the Walton family from bad publicity–such as from striking workers and news media hungry for scandal.

Nor has it shielded the Waltons from ridicule–comedians like Jay Leno routinely joke about the hordes if illegal aliens Walmart “accidentally” hires.

Americans face a stark choice between two types of corporate employer–one that protects its employees, and another that essentially preys on them.

Which direction the nation chooses to go in will largely determine its course for long-term prosperity or short-term ruin.

OBAMA FLUNKS, MACHIAVELLI REIGNS

In Bureaucracy, History, Law, Politics, Social commentary on July 10, 2013 at 10:00 pm

Barack Obama is one of the most highly educated men to occupy the White House.

In 1988, he entered Harvard Law School, graduating in 1991.  He was selected as an editor of the Harvard Law Review at the end of his first year, and president of the journal in his second year.

In 1991, he accepted a two-year position as Visiting Law and Government Fellow at the University of Chicago Law School to work on his first book, Dreams of My Father, published in 1995.

He then taught constitutional law at the University of Chicago Law School for twelve years—as a Lecturer from 1992 to 1996, and as a Senior Lecturer from 1996 to 2004.

President Barack Obama

And yet, for all his experience as a scholar, there remains a truth about which he remains woefully ignorant.

It is a truth that Niccolo Machiavelli, the father of modern political science, understood all too well.

In his pamphlet, The Prince, Machiavelli laid out the qualities that a successful ruler must possess.  There were some to be cultivated, and others to be avoided at all costs.  For example:

He is rendered despicable by being thought changeable, frivolous, effeminate, timid and irresolute—which a prince must guard against as a rock of danger…. 

[He] must contrive that his actions show grandeur, spirit, gravity and fortitude.  As to the government of his subjects, let his sentence be irrevocable, and let him adhere to his decisions so that no one may think of deceiving or cozening him.

Niccolo Machiavelli

So how has Obama fared by this standard?

Consider the July 2 press release from the Treasury Department on the signature achievement of his administration, the passage of the Affordable Care Act (ACA), better known as Obamacare:

“Over the past several months, the Administration has been engaging in a dialogue with businesses – many of which already provide health coverage for their workers – about the new employer and insurer reporting requirements under the Affordable Care Act (ACA).

“We have heard concerns about the complexity of the requirements and the need for more time to implement them effectively….We have listened to your feedback.  And we are taking action.

“The Administration is announcing that it will provide an additional year before the ACA mandatory employer and insurer reporting requirements begin.”

[Boldface in the original document.]

* * * * *

In short: The administration is delaying until 2015 the law’s requirement that medium and large companies provide coverage for their workers or face fines.

Now consider how Obama’s self-declared enemies reacted to this announcement.

Since 2011, right-wing Republicans in the House of Representatives have voted 37 times to repeal or defund all or parts of ObamaCare, most recently in May.

They can only be encouraged at this latest show of timidity on Obama’s part.

And thousands of employers bitterly resent having to provide medical coverage for the men and women whom they would prefer to own rather than pay at all.

This can only convince them to dig in their heels and evade or sabotage the law any way they can.

Susan Collins, the U.S. Senator from Maine, recently confessed as much:

“I’ve heard from countless employers…who say that the onerous penalties and provisions in ObamaCare provide perverse and powerful incentives to not hire new workers or to cut back on the hours that their employees are allowed to work.”

This comment points to a self-defeating part of the legislation:

The health care law requires companies with 50 or more employees to provide affordable insurance coverage to workers. For part-time employees, who work fewer than 30 hours, the company isn’t penalized for refusing to provide health insurance.

Thus, greed-fueled employers will move even more employees into part-time positions.  They can dodge the requirement to provide health insurance and avoid paying a fine.

Obama’s enemies have called him a practitioner of hard-knuckled Chicago-style politics.  But, in reality, he is precisely the sort of other-worldly political leader Machiavelli warned against:

Many have imagined republics and principalities which have never been seen or known to exist in reality. 

For how we live is so far removed from how we ought to live, that he who abandons what is done for what ought to be done, will rather learn to bring about his own ruin rather than his preservation.

Long before he took the Presidential oath, Obama should have committed to memory this famous passage from Machiavelli:

From this arises the question whether it is better to be loved than feared, or feared more than loved. 

The reply is, that one ought to be both feared and loved, but as it is difficult for the two to go together, it is much safer to be feared than loved….

I conclude, therefore, with regard to being loved and feared, that men love at their own free will, but fear at the will of the prince, and that a wise prince must rely on what is in his power and not on what is in the power of others….