“Due to the difficult economic times” I have lost two jobs in the past six months. But even this, to people who have been unemployed for a year or more sounds enviable. Which is part of the problem. With unemployment at 10% and people in dire straits, the prevailing attitude seems to be one of “you think you have it bad, at least you aren’t XYZ.”
And it’s true, it’s hard to muster sympathy for someone’s small raise or lack of bonus when you’ve had your pay cut or lost your job (something I’ve been guilty of over the past year). But there in lies the problem. The job situation is so bad that no one can complain; if you have a job at all you should be grateful.
But it seems that companies are using the poor economy as an excuse to screw over workers who feel trapped and turn bigger profits. It’s no surprise then that more Americans hate their jobs now than at any other point in the past 20 years, with fewer than half saying they are satisfied.
Here, a few semi-personal* examples of employers taking advantage of the recession:
- A large publisher continues to make profits in a recession. Using the rough economy as an excuse and undoubtedly safe in the knowledge that talented people are going to be hard pressed to find similar positions elsewhere, the publisher cuts salaries by 6% across the board, taking many who have been with the company less than three years the a wage less then when they started. Even if the standard “cost of living” raise of 3% is reinstated the next year, it will take two years to reach the rate that the employee was at when they started at the company (which at that point would have been five years prior).
- A large entertainment company is bought by another large entertainment company both with huge profits. The employees raises and bonuses are held or cut.
- A selective top public university continues to profit and expand during the recession due to increased applicants, yet uses the economy as an excuse to cut all employees wages by a mere 1.8% as well as cut back on benefits like comp tuition.
In all of these scenarios, the employers haven’t needed the money, they were all still profitable, and doing better even than in years past, but saw the recession as an excuse to profit from their employees who faced little other options to seek something better. Which is exactly why so many people are dissatisfied in their jobs—they are being screwed over and they just have to take it and not complain, because “at least they have a job.” The same excuse has been used to cut costs by laying off employees and making the ones that remain work longer hours without complaint out of fear of being the next to go. 
Of course this environment of fear isn’t a sustainable work model, yet it’s working pretty well right now and the lack of job growth and increased job dissatisfaction are proof.
President Obama’s proposed plan to increase job growth would give companies a $5,000 tax credit for each new worker they hire in 2010, while businesses that increase wages or hours for their current workers in 2010 would be reimbursed for the extra Social Security payroll taxes they would pay. Incentives to increase jobs and boost stagnant wages or inadequate hours are ideas that I’m mostly behind, but I wonder how many larger employers would take Obama up on the offer.
A $5,000 tax credit may sound like a decent incentive to a small business owner, but to larger companies, it’s a drop in the bucket to what they can save by simply enlisting cheap labor. And these days, with so many so desperate for work, the labor is cheaper and more experienced. Many will work for free just to keep something on their resume, and those who won’t will take positions below their skill level or as “ permant freelance” or “long-term temps,” the financial benefit for employers (aside from paying lower hourly rates) is huge cost savings in relation to benefits like health care and paid time off—a savings of well over $5,000 per employee.
It’s not that I think Obama’s plan is bad, it makes sense, I’m just skeptical that it will work. And I honestly don’t know what will aside from employees and job seekers revolting and refusing to be taken advantage of, but we aren’t really in the position of financial power to do so.
*These three stories are accounts of employers of people in my life, and I’m sure are kind of easy to figure out.
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