Another way an Employers Responsibility Act (ERA) could promote fulltime employment: It would nicely dovetail with the 1946 Employment Act.        

Codified as 15 U.S.C. § 1021, this is a United States federal law. It states: “It is the continuing policy and responsibility of the Federal government…to promote maximum employment, production, and purchasing power.”

Unfortunately, that act has been seriously neglected, according to the late Wallace C. Peterson, George Holmes Professor of Economics Emeritus at the University of Nebraska-Lincoln.

Peterson, who died in April, 2012, was a proponent of Keynesian economics and authored a textbook on macroeconomics that was widely adopted in colleges and universities through eight editions.

He authored a second economics textbook, five specialized economics books and over 60 articles.

He was elected president of the Association for Evolutionary Economics (AFEE), president of the Association for Social Economics, president of the Midwest Economics Association and was the 1992 recipient of the Veblen-Commons award.

“No administration since the Kennedy-Johnson presidencies in the 1960s has taken the Employment Act seriously,” wrote Peterson in a letter to this columnist.

“President Kennedy established a 4% unemployment rate as an interim target on the road to a full employment economy.  But after President Johnson left office in 1969, full employment has not been an important policy objective for any administration, Democrat or Republican.

“The nation needs a modernized full employment policy.”

Wallace C. Peterson

Such a full-employment policy “would not only seek to bring the unemployment rate down to 3% or less, but would also aim at the creation of ‘good jobs’—jobs that carry with them an income appropriate to middle-class hopes and aspirations,” wrote Peterson.

“Too many of the millions who have lost good jobs in the last two decades have not been able to find new, fulltime jobs. or have had to take significant reduction in pay even if they were able to find fulltime work. 

“Government through the 1946 Employment Act has a major responsibility to promote conditions that make full employment possible. Workers have a major responsibility to educate and train themselves for the jobs that become available in a society characterized by rapid technical change.

“What of employers?  What is their responsibility?

“Such an [Employers Responsibility] Act would require employers to demonstrate as much responsibility for hiring as job-seekers are expected to display in finding work.

”This is certain to be controversial, but it adds yet another dimension to the debate on how an adequate number of good, well-paying jobs can be created….

“An Employers Responsibility Act, in combination with existing legislation such as the 1946 Employment Act and the 1935 National Labor-Relations Act, could be a powerful force in moving labor-management relations in this country away from its current adversarial character, toward a more harmonious and cooperative climate.”

* * * * *

For thousands of years, otherwise highly intelligent men and women believed that kings ruled by divine right. That kings held absolute power, levied extortionate taxes and sent countless millions of men off to war—all because God wanted it that way.

That lunacy was dealt a deadly blow in 1776 when American Revolutionaries threw off the despotic rule of King George III of England.

But today, millions of Americans remain imprisoned by an equally outrageous and dangerous theory: The Theory of the Divine Right of Employers.

Summing up this employer-as-God attitude, Calvin Coolidge still speaks for the overwhelming majority of employers and their paid shills in government: “The man who builds a factory builds a temple, and the man who works there worships there.”

America can no longer afford such a dangerous fallacy as the Theory of the Divine Right of Employers. 

President Donald Trump has repeatedly crowed over the passage of the Tax Cuts and Jobs Act, passed by the Senate on December 19, 2017, and signed into law by him on December 22. 

Yet former Secretary of Labor Robert Reich warned before the bill became law:  

“What corporations have done [with past tax cuts] is raise executive salaries and also buy back shares of stock, in order to raise stock prices. They don’t invest the money in additional jobs or additional machines or additional equipment or things like that because there is no reason for them to unless they have got more demand for their goods and services. And this bill is not going to create more demand.”

In short: The powerful never voluntarily behave responsibly or surrender their privileges.

Americans did not win their freedom from Great Britain—and its enslaving doctrine of “the divine right of kings”—by begging for their rights.

And Americans will not win their freedom from their corporate masters—and the equally enslaving doctrine of “the divine right of employers”—by begging for the right to work and support themselves and their families.

And they will most certainly never win such freedom by supporting right-wing political candidates whose first and only allegiance is to the corporate interests who bankroll their campaigns.

Corporations can—and do—spend millions of dollars on TV ads, selling lies—lies such as the “skills gap,” and how if the wealthy are forced to pay their fair share of taxes, jobs will inevitably disappear.

But Americans can choose to reject those lies—and demand that employers behave like patriots instead of predators.

America can end this national disaster—and disgrace—of willing-to-work Americans being unable to find willing-to-hire employers.    

The solution: A nationwide Employers Responsibility Act (ERA).     

Such legislation would legally require employers to demonstrate as much initiative for hiring as job-seekers are now expected to show in searching for work.

Two of its provisions have already been offered. Here are another 10.

(3) Employers would receive tax credits for creating professional, well-paying, full-time jobs.

This would encourage the creation of better than the menial, dead-end, low-paying and often part-time jobs which exist in the service industry. Employers found using such tax credits for any other purpose would be prosecuted for tax fraud.

(4)  A company that acquired another—through a merger or buyout—would be forbidden to fire en masse the career employees of that acquired company.

This would be comparable to the protection existing for career civil service employees. Such a ban would prevent a return to the predatory “corporate raiding” practices of the 1980s, which left so much human and economic wreckage in their wake.

The wholesale firing of employees would trigger the prosecution of the company’s new owners. Employees could still be fired, but only for provable just cause, and only on a case-by-case basis.

(5) Employers would be required to provide full medical and pension benefits for all employees, regardless of their full-time or part-time status.

Increasingly, employers are replacing full-time workers with part-time ones—solely to avoid paying medical and pension benefits. Requiring employers to act humanely and responsibly toward all their employees would encourage them to provide full-time positions—and hasten the death of this greed-based practice. 

(6) Employers would be encouraged to hire to their widest possible limits, through a combination of financial incentives and legal sanctions. Among those incentives: Employers demonstrating a willingness to hire would receive substantial Federal tax credits, based on the number of new, permanent employees hired per year.

Employers claiming eligibility for such credits would be required to make their financial records available to Federal investigators. Employers found making false claims would be prosecuted for perjury and tax fraud, and face heavy fines and imprisonment if convicted.

(7) Among those sanctions: Employers refusing to hire could be required to prove, in court:

• Their economic inability to hire further employees, and/or
• The unfitness of the specific, rejected applicant.

Companies found guilty of unjustifiably refusing to hire would face the same penalties as now applying in cases of discrimination on the basis of age, race, sex and disability. Employers would thus fund it easier to hire than to refuse to do so. Job-seekers would no longer be prevented from even being considered for employment because of arbitrary and interminable “hiring freezes.”

(8) Employers refusing to hire would be required to pay an additional “crime tax.”

Sociologists and criminologists agree that “the best cure for crime is a job.” Thus, employers who refuse to hire contribute to a growing crime rate in this Nation. Such non-hiring employers would be required to pay an additional tax, which would be earmarked for agencies of the criminal justice system at State and Federal levels.

(9) 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.

(10)  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,” or
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.

(11) The U.S. Departments of Justice and Labor would regularly monitor the extent of employer compliance with the provisions of this Act.   

Among these measures: Sending  undercover  agents, posing as highly-qualified job-seekers, to apply at companies—and then vigorously prosecuting those employers who blatantly refused to hire despite their proven economic ability to do so. 

This would be comparable to the long-time and legally-validated practice of using undercover agents to determine compliance with fair-housing laws.

(12)  The Justice Department and/or the Labor Department would be required to maintain a publicly-accessible database on those companies that had been cited, sued and/or convicted for such offenses as

• discrimination,
• harassment,
• health and/or safety violations or
• violating immigration laws. 

Employers would be legally required to regularly provide such information to these agencies, so that it would remain accurate and up-to-date. 

Such information would arm job applicants with vital information about the employers they were approaching.  They could thus decide in advance if an employer is deserving of their skills and dedication.

More than seven million willing-to-work Americans can’t find willing-to-hire employers.         

And where there are victims, there are always people ready to profit from their desperation.

Consider the following email sent out by Steve Poizner, former Republican State Insurance Commissioner of California (2007-2011).

A successful Silicon Valley high tech entrepreneur, Poizner founded SnapTrack, Inc. and Strategic Mapping, Inc. In June, 2011, he co-founded the Encore Career Institute with the Sherry Lansing Foundation and Creative Artists Agency.

Thus, the email sent out on July 2, 2012, to advertise “Empowered UCLA Extension”:

Dear friends,

I wanted to share with you some news before my new venture – Empowered Careers – launches around the country….I’ve started this company to help address one of the key issues we face today — jobs. Our venture aims to close the skills gap through an innovative career development program — all delivered via the iPad.

It’s all designed specifically for baby boomers seeking to make a career change, get ahead professionally, or get back into the workforce.

Note the line: “Our venture aims to close the skills gap,” which it assumes to be a reality.

And the ad says nothing about closing the “greed gap” between what employers demand from workers—and what they are willing to pay in return.

The Encore Careers Institute will offer online non-degree certificates for out of work adults and baby boomers looking to switch careers.

When did a non-degree certificate ever convince an employer to hire? Even a hiring-inclined employer?

Using our Empowered app, the iPad will transform any adult’s living room into a modern day classroom or transform a park bench into a study group while the kids are at soccer practice.

But transforming “any adult’s living room into a modern day classroom” will not compel those employers who refuse to hire to begin doing so.

Nor will it change the behavior of employers who:

• Will hire—but only on a part-time, no-benefits, minimum-wage basis;
• Continue to throw hard-working American employees into the street; and
• Move their companies to China, Mexico or Singapore.

And note that this program is aimed at those who can afford an iPad—and $9,800 for the course. So if you’re poor because you’re jobless, this program has nothing to offer you.

But America can end this national disaster—and disgrace—of willing-to-work Americans condemned to poverty by unwilling-to-hire employers.

A policy based only on concessions—such as endless tax breaks for hugely profitable corporations—is a policy of appeasement.

And appeasement only whets the appetite of those appeased for even greater concessions.

It is past time to hold wealthy and powerful corporations accountable for their socially and financially irresponsible acts.

This solution can be summed up in three words: Employers Responsibility Act (ERA).

If passed by Congress and vigorously enforced by the U.S. Departments of Justice and Labor, an ERA would ensure full-time, permanent and productive employment for millions of capable, job-seeking Americans.

And it would achieve this without raising taxes or creating controversial government “make work” programs.

Such legislation would legally require employers to demonstrate as much initiative for hiring as job-seekers are now expected to show in searching for work.

An Employers Responsibility Act would simultaneously address the following evils for which employers are directly responsible:

• The loss of jobs within the United States owing to companies’ moving their operations abroad—solely to pay substandard wages to their new employees or avoid American health/safety laws.
• The mass firings of employees which usually accompany corporate mergers or acquisitions.
• The widespread victimization of part-time employees, who are not legally protected against such threats as racial discrimination, sexual harassment and unsafe working conditions.
• The refusal of many employers to create better than menial, low-wage jobs.
• The widespread employer practice of extorting “economic incentives” from cities or states in return for moving to or remaining in those areas. Such “incentives” usually absolve employers from complying with laws protecting the environment and/or workers’ rights.
• The refusal of many employers to provide medical and pension benefits—nearly always in the case of part-time employees, and, increasingly, for full-time, permanent ones as well.
• Rising crime rates, due to rising unemployment.

Among its provisions:

(1) American companies that close plants in the United States and open others abroad would be forbidden to sell products made in those foreign plants within the United States.

This would protect both American and foreign workers from employers seeking to profit at their expense. American workers would be ensured of continued employment. And foreign laborers would be protected against substandard wages and working conditions.

Companies found violating this provision would be subject to Federal criminal prosecution. Guilty verdicts would result in heavy fines and lengthy imprisonment for their owners and top managers.

(2) Large companies (those employing more than 100 persons) would be required to create entry-level training programs for new, future employees.

These would be modeled on programs now existing for public employees, such as firefighters, police officers and members of the armed services.

Such programs would remove the employer excuse, “I’m sorry, but we can’t hire you because you’ve never had any experience in this line of work.” After all, the Air Force has never rejected an applicant because, “I’m sorry, but you’ve never flown a plane before.”