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Posts Tagged ‘EMPLOYERS RESPONSIBILITY ACT’

A SIGN OF UNEMPLOYMENT: PART TWO (OF SIX)

In Business, Law, Politics, Social commentary on March 15, 2013 at 12:00 am

In its June 8, 2011 cover-story on “What U.S. Economic Recovery?  Five Destructive Myths,” Time magazine warned that profit-seeking corporations can’t be relied on to ”make it all better.”

Click here: What U.S. Economic Recovery? Five Destructive Myths – TIME

Wrote Rana Foroohar, Time‘s assistant managing editor in charge of economics and business:

“There is a fundamental disconnect between the fortunes of American companies, which are doing quite well, and American workers, most of whom are earning a lower hourly wage now than they did during the recession.

“The thing is, companies make plenty of money; they just don’t spend it on workers here.

“There may be $2 trillion sitting on the balance sheets of American corporations globally, but firms show no signs of wanting to spend it in order to hire workers at home.”

In short:  Giving even greater tax breaks to mega-corporations–the standard Republican mantra–has not persuaded them to stop “outsourcing” jobs. Nor has it convinced them to start hiring Americans.

While embarrassingly overpaid CEOs squander corporate wealth on themselves, millions of Americans can’t afford medical care or must depend on charity to feed their families.

Yet there is also a disconnect between the truth of this situation and the willingness of Americans to face up to that truth.

The reason:

“The Republicans have pulled off a major (some would say cynical) miracle,” writes Foroohar.

They have convinced “the majority of Americans that the way to jump-start the economy is to slash taxes on the wealthy and on cash-hoarding corporations while cutting benefits for millions of Americans.

“It’s fun-house math that can’t work.  We’ll need both tax increases and sensible entitlement cuts to get back on track.”

Now, fast-forward one year later–to a June 11, 2012 CNNMoney investigation, which raised the question: “Why is the jobs recovery still so sluggish?”

And the answer?  “These 8 companies recently announced layoffs in the thousands.”

8 job killing companies – Hewlett-Packard slashes 27,000 jobs (1) – CNNMoney

The companies:

  • Hewlett-Packard – cutting 27,000 jobs.
  • American Airlines – slashing 13,000 jobs–with most of the cuts affecting maintenance and ground workers.  That’s something to think about the next time you’re thinking of flying American.
  • Sony – eliminating 10,000 jobs.
  • Proctor & Gamble – axing 5,700 jobs.
  • PepsiCo – slashing 8,700 jobs.
  • Yahoo – wiping out 2,000 jobs.
  • First Solar – cutting 2,000 jobs.
  • Kraft Foods – slashing 1,600 workers.

Of course, some companies have legitimate reasons for cutting back on employees:

  • Sony has failed to revive its losing television business, which hasn’t turned a profit in eight years.
  • And PepsiCo has suffered a fall-off in customers as Americans switch from soda to healthier drinks.

But there are also sinister reasons why millions of willing-to-work Americans remain unemployed.  Or remain trapped in part-time, no-benefits jobs far below their levels of education and experience.

Chief among these is the refusal of Congressional Republicans to create job opportunities for their fellow Americans.

U.S. Senator Bernie Sanders (I, Vermont) made just that argument to guest host Ezra Klein on the June 12 edition of “The Rachel Maddow Show.”

U.S. Senator Bernie Sanders

SANDERS: Everybody knows you have to invest in infrastructure. We can create millions of decent paying jobs in the long term and I speak as a former mayor, you obviously save money because you don’t have to do constant repairs as we’ve just seen.

The simple reason is I’m afraid that you have a Republican mindset that says, “Hmm, let`s see, we can repair the infrastructure, save money long time, create millions of jobs, bad idea. Barack Obama will look good.  And we’ve got to do everything that we can to make Barack Obama look bad.”

So, despite the fact that we had a modest bipartisan transportation bill, roads, bridges, public transit pass the Senate with over 70 votes, Inhofe, the most conservative guy in the Senate, working with Barbara Boxer, one of the most progressives, we can’t get that bill moving in the House of Representatives.

So if you’re asking me why, I would say 100 percent political. If it’s good for America, if it creates jobs, if it’s good for Barack Obama, we can’t do it.

Here’s another reason for America’s unemployment miseries:

More than 12 million Americans are now unemployed because many employers have designed “hiring” systems that simply don’t work.

So says Peter Cappelli, the George W. Taylor professor of management at the Wharton School at the University of Pennsylvania.  He is also the author of  Why Good People Can’t Get Jobs: The Skills Gap and What Companies Can Do About It.

Amazon.com: Why Good People Can’t Get Jobs: The Skills Gap and What Companies Can Do About It

Why Good People Can't Get Jobs: The Skills Gap and What Companies Can Do About It

Employers often whine that they can’t find the talent they need.  Today’s applicants, they claim, lack skills, education and even a willingness to work.

The truth is altogether different.

A SIGN OF UNEMPLOYMENT: PART ONE (OF SIX)

In Business, Law, Politics, Social commentary on March 14, 2013 at 12:00 am

Linda Smith, a resident of Menifee, California, wants to help her daughter land a job.

Lisa Smith, 36, has been out of the job market for almost 20 years.

Not that she hasn’t spent those years working.  She has–as a caregiver for her mother.

In 1996, Linda, now 61, was hit by a drunk driver and left with mild dementia.  She couldn’t remember names or safely travel by herself.  Holding down a steady job was impossible.

So Lisa quit her job as a full-time commercial model to care for her mother.  They lived off of Lisa’s part-time jobs, a government caregiver stipend, and Linda’s disability money.

But in June, 2012, a doctor found that Linda was well enough to live alone.

That was the good news.  The bad news was: There would be no more caregiver funds.

As Lisa’s applications for full-time work went unanswered, Linda wanted to help. So, in late February, she began standing on the side of the road, holding a sign.

Linda Smith holds her sign in Menifee, Calif.

Linda Smith

And offering $500 cash to any employer willing to hire her daughter at at least $15 an hour or more for an office job, such as an executive assistant.

This will be no easy task.  California has an unemployment rate of 9.8%–one of the worst in the nation.  And it’s a truism that if you’ve been out of the workforce more than six months, employers don’t want to know you.

You might have won the Medal of Honor or be the next Einstein or Steve Jobs.  But it doesn’t matter.

The basic employer mentality goes: “If someone else wasn’t responsible enough to hire you, why should I be?”

An article in the March, 2011 issue of Reader’s Digest gives the lie to the excuses so many employers use for refusing to hire.

Entitled “22 Secrets HR Won’t Tell You About Getting a Job,” it lays bare many of the reasons why America needs to legally force employers to demonstrate as much responsibility for hiring as job-seekers are expected to show toward searching for work.

Click here: 22 Secrets HR Won’t Tell You About Getting a Job | HT Staffing

Among the truths it reveals:

TRUTH NO: 1: Once you’re unemployed more than six months, you’re considered unemployable.

TRUTH NO. 2: As you’ve always suspected: It’s not what but who you know that counts.

TRUTH NO. 3: If you can, avoid HR entirely and seek out someone in the company you know. If you don’t know anyone, go straight to the hiring manager.

TRUTH NO. 4: Don’t assume that someone will read your cover letter. Many of them go straight into the garbage can.

TRUTH NO. 5: You will be judged on the basis of your email address–especially if it’s something like “Igetwasted@aol.com.”

TRUTH NO. 6: Don’t assume you’re protected against age discrimination just because it’s against the law. If you’re in your 50s or 60s, leave your year of graduation off your resume.

TRUTH NO: 7: Don’t assume you’re protected from unemployment just because it’s illegal to discriminate against applicants who have children. Many managers don’t want to hire people with children, and will go to illegal lengths to find out their parental status–like checking an applicant’s car for child safety seats.

TRUTH NO. 8: It’s harder to get a job if you’re fat. Hiring managers make quick judgments based on stereotypes.

TRUTH NO. 9: Many managers will assume you’re a loser if you give them a weak handshake.

TRUTH NO. 10: Encourage the interviewer to talk–especially about himself. Ego-driven interviewers love hearing the sound of their own voices and will assume you’re better-qualified than someone who doesn’t want to listen to them prattle.

The United States has reached the depths of shame when a willing-to-work American must bribe fat-pockets employers to show a sense of hiring responsibility.

Millions of Americans continue to blame President Barack Obama for the nation’s high unemployment rate. But no President can hope to resolve this problem until employers are legally required to act like patriots instead of predators.

Their responsibilities should encompass more than simply fattening their own pocketbooks and/or egos at the expense of their fellow Americans.

Such behavior used to be called treason.

It’s past time to recognize that a country can be betrayed for other than political reasons.  It can be sold out for economic ones, too:

  • Employers who enrich themselves by weakening their country—by throwing millions of qualified workers into the street and moving their plants to other countries—are traitors.
  • Employers who set up offshore accounts to claim their American companies are foreign-owned—and thus exempt from taxes—are traitors.
  • Employers who systematically violate Federal immigration laws—to hire illegal aliens instead of willing-to-work Americans—are traitors.

And with a new definition of treason should go new penalties–heavy fines and/or prison terms–for those who sell out their country to enrich themselves.

It is time, in short, to put a long-overdue end to the Theory of the Divine Right of Employers.

TAX FAVORS FOR THE RICH

In Business, Law, Politics, Social commentary on March 12, 2013 at 12:02 am

On December 10, 2012, Oregon Governor John Kitzhaber summoned lawmakers for a special (interest) session of the legislature.

The reason: To give Nike, Inc., a guarantee that it would be taxed only on in-state sales.

Nike had promised to spend at least $150 million and create at least 500 jobs in Oregon–if the legislature approved such a tax-guarantee bill.

Multinational corporations such as Nike and Intel relish the state’s current tax policy–which took effect in 2006. The reason: It saves them millions of dollars on state income taxes.

Oregon caters to such well-heeled companies because they provide thousands of jobs and revenues from personal income taxes for state programs.

The catch: Its tax policy–called the single-sales factor–taxes companies on their sales in Oregon while ignoring their worldwide operations.

Nike reported revenues of $6.5 billion for 2012.

Asked why he needed the bill so quickly, Kitzhaber said Nike officials were expressing “a sense of urgency” and he didn’t want to risk losing what could be a significant job-creation opportunity.

“They have to make their move as soon as possible,” he said.

In short, Nike is threatening to leave Oregon if it doesn’t get a tax-break guarantee.

Kitzhaber’s haste to appease a giant multinational sportswear company is yet another reason why America needs an Employers Responsibility Act (ERA).

Such legislation would ensure fulltime, productive employment for millions of capable, job-seeking Americans.  And it would achieve this goal without raising taxes or creating controversial government “make work” programs

If passed by Congress and vigorously enforced by the U.S. Departments of Justice and Labor, an ERA would legally require employers to demonstrate as much initiative for hiring as job-seekers are now expected to show in searching for work.

Among its provisions would be one to cover the above-mentioned type of corporate extortion:

The seeking of “economic incentives” by companies in return for moving to or remaining in cities/states would be strictly forbidden.

Such “economic incentives” usually:

  1. allow employers to ignore existing laws protecting employees from unsafe working conditions;
  2. allow employers to ignore existing laws protecting the environment;
  3. allow employers to pay their employees the lowest acceptable wages, in return for the “privilege” of working at these companies; and/or
  4. allow employers to pay little or no business taxes, at the expense of communities who are required to make up for lost tax revenues.

Employers who continue to make such overtures would be prosecuted for attempted bribery or extortion:

  1. Bribery, if they offered to move to a city/state in return for “economic incentives,”
  2. Extortion, if they threatened to move their companies from a city/state if they did not receive such “economic incentives.”

This would protect employees against artificially-depressed wages and unsafe working conditions; protect the environment in which these employees live; and protect cities/states from being pitted against one another at the expense of their economic prosperity.

To return to the Oregon story, “creating at least 500 jobs in Oregon” may sound like a lot, that doesn’t necessarily mean they will be high-paying, professional ones by which an employee can support himself and a family.

“Jobs” could also mean part-time jobs, which come without medical insurance benefits.

In the “Careers” section of Nike’s website, a prospective employee will find the following:

NIKE, Inc.’s competitive benefits program provides employees with the opportunity to stay fit, ensure the wellness of their families, and create a positive working environment. That is why every geography provides for variable health coverage, fitness center memberships, time off, retirement savings, and more.

Your particular benefits package will depend on your position, location, and years with the company. Here’s a look at what you might be eligible for.

  • Health insurance
  • Life & Accident insurance
  • Disability insurance
  • Retirement Savings Plan with a company contribution
  • Employee Stock Purchase Plan (15% discount)
  • Paid vacations and holidays
  • Paid sabbaticals
  • Product discounts
  • Onsite fitness center/fitness discounts
  • Transportation allowance/discount
  • Tuition assistance

Note the sentence: “Your particular benefits package will depend on your position, location, and years with the company.”

That sentence contains a lot of “if’s”–and the less time an employee has been with the company, the less likely s/he is to be found eligible for a fuller package of benefits.

It’s a safe bet that those who have just been hired–such as under Nike’s doing so in the immediate future–will not be eligible for full benefits.

Thus, these newly-hired employees may well find themselves struggling to pay for health and/or disability insurance.

And here’s another matter for consideration: Kitzhaber claimed that the average pay at Nike is a little above $100,000 a year–roughly twice the average for the rest of the state.

But how does Nike–or Kitzhaber–arrive at that figure?

On its face, it seems as though Nike is paying its avewrage employee $100,000 per year.  But that’s highly unlikely if the employee is acting as simply a glorified shoe salesman.

So Nike might have arrived at that figure by simply adding the total salaries of all its Oregon employees and then dividing that figure by the number of those employees.

At moments like this, it’s well to remember the warning of former British Prime Minister Benjamin Disraeli: “There are three kinds of lies–lies, damned lies and statistics.”