Are You One of the New Disposable Workers?
Part III - American Dream or American Myth?
At the beginning of the 1900's the industrial revolution was the
new engine of the american economy and workers were a disposable
commodity. The typical worker lined up at the factory door each
morning before dawn hoping to hired on the for the day. Only a
few skilled workers (tool and die makers and machine set-up
specialists) were "full-time", and there were no regular raises,
holidays, vacations, or benefits. Corporations and "trusts"
called the shots and workers took what they could get.
Part of our barbaric "Robber Baron" past you say? Think again.
Fast forward 100 years and the working world is beginning to
look very much the same. Approximately 25% of our workforce is
comprised of temporary workers and that number is projected to
grow to 40% by the year 2010! The largest employer in the U.S.
is Manpower Inc., a huge "temp" agency trading the latest
commodity...your labor. The difference between now and 100 years
ago is that its not just the labor of muscle and sweat, it is
the labor of skill and specialized knowledge, and includes
attorneys, accountants, college professors, scientists, software
engineers, and business executives. This growing army of
"contingent workers" typically works for 8 to 40% less than
their "full-time" counterparts, without benefits, and on an
as-needed "just-in-time" basis.
Is this new employment model an evil plot by corporate america
to suppress the american worker? Not really. Corporations just
do what they are structured to do. They minimize costs
(including labor) and maximize profits for their shareholders
within the boundaries of the market place and the market for
labor is now global. During the last 20 years or so the american
corporation has quietly evolved and restructured. In large part
they have just adapted to a new global and digital economy. It
would not be a stretch to say that we are in the middle of a
"new economy" revolution every bit as disruptive as the
industrial revolution a hundred years ago and that labor
(skilled and professional), especially american labor, is at the
short end of the stick.
The old corporate model was rigid and highly structured. It was
one of high vertical and horizontal integration, somewhat slow
to make and implement decisions, highly controlled, and formally
structured. It was also highly unionized with a relatively
permanent workforce that enjoyed high wages, pensions, and
health insurance (i.e. General Motors and U.S. Steel). This
model dominated after WWII when the U.S. dominated the world
economy and U.S. corporations faced very little global
competition.
However, global competition, free trade, and a digital age
required a new model capable of rapid change and maximum
flexibility. As corporate america evolved into this new model,
american workers experienced "re-engineering", downsizing,
"rightsizing" (after mergers), off-shoring, outsourcing, the
death of pensions and the birth of 401K's, shared healthcare
costs, and the rapid rise in population of the just-in-time or
"contingent" worker. At the extreme the "new" corporation is
"virtual", with a few key employees and executives at the core
and a network partner companies and contingent employees always
in flux to meet the demands of a rapidly changing global market.
This new trend of contingent labor has also spread to the public
sector and shows no sign of slowing down or stabilizing. Many
highly skilled and educated workers have been turned into
reluctant "free agents" whose value has been bid down by a
global labor market. These workers may think they are
entrepreneurs, but they are really just employees without health
benefits, no different than the factory worker of a 100 years
ago lining up at dawn and hoping to be hired on for the day.
About the author:
John Van Doren is former turnaround and startup executive in the
manufacturing sector. His is currently an independent
entrepreneur with a website {www.youramericandream.info} devoted
to redefining the American Dream in the context of a digital and
global economy.
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