Skip to comments.Lay Off the Layoffs. Our overreliance on downsizing is killing workers, the economy and profits.
Posted on 02/06/2010 10:36:25 AM PST by SeekAndFind
On Sept. 12, 2001, there were no commercial flights in the United States. It was uncertain when airlines would be permitted to start flying againor how many customers would be on them. Airlines faced not only the tragedy of 9/11 but the fact that economy was entering a recession. So almost immediately, all the U.S. airlines, save one, did what so many U.S. corporations are particularly skilled at doing: they began announcing tens of thousands of layoffs. Today the one airline that didn't cut staff, Southwest, still has never had an involuntary layoff in its almost 40-year history. It's now the largest domestic U.S. airline and has a market capitalization bigger than all its domestic competitors combined. As its former head of human resources once told me: "If people are your most important assets, why would you get rid of them?"
It's an attitude that's all too rare in executive suites these days. As the U.S. economy emerges from recession, Americans continue to suffer through the worst labor market in a generation. The unemployment rate dipped in January, from 10 percent to 9.7 percent, but the economy continued to lose jobs. There are currently 14.8 million unemployed, and when you count "discouraged workers" (who've given up on job seeking) and part-time workers who'd prefer a full-time gig, that's another 9.4 million Americans who are "underemployed." While the pink slips are slowing as the economy rebounds, the lack of jobs remains the most visibleand politically troublesomereminder that despite what the economic indicators may tell us, for much of the population, the Great Recession hasn't really gone away.
Companies have always cut back on workers during economic downturns, but over the last two decades layoffs have become an increasingly common part of corporate lifein good times as well as bad.
(Excerpt) Read more at newsweek.com ...
This author has never worked in private enterprise, never run a company and never had P&L responsibilities. Typical pointy-heading liberal academic.
This is just more hoopla from a poorly informed left wingnut.
The act of becoming “lean and mean” traditionally means doing more with less labor — that is, you increase productivity. If you can’t also increase sales a comparable amount, you end up with excess workers. If sales drop but productivity keeps rising as it is now, what do all the excess workers do, take turns washing the CEO’s car?
Another one from the marxist school of economics who cites other marxists and marxist studies to support his contentions. Productivity has nothing to do with the number of workers you have, there are other factors, technology etc. Liberals and the left think the job of corporations and the government is to provide employment and a “living wage”. Nothing but pure fantasies cooked up in those ivory towers that are seldom hit with reality. Utopians havbe caused more misery in the world than anyone. Over-educated assh*les with PhD’s are still assh*les.
Another idiot that couldn’t earn a living outside of a university!
this tripe is just another example of “publish or perish”!!
“Well-managed companies don’t need layoffs.”
Government does not seem to be doing any layoffs (though some states will be forced to). Would you say, for the same reason, the governments are “well managed” if they don’t lay off workers?
I thought so. ;-)
>>Are you saying that people should have a right to a job and that companies should keep them on the payroll no matter how much it affects the firm negatively?
It’s more complicated than that and I hope you know it. Employees aren’t meat robots that can be used and discarded and jobs aren’t a lifetime entitlement either. There has to be some middle ground where we can work together.
When I was an industrial electrician in a factory, the company announced that there “might” be layoffs. I mailed out resumes and found a new job. On the day after they announced that 1/3 of the plant’s labor force would be laid off in two months, I gave my two weeks notice.
The plant manager called me in and YELLED at me for letting him down because, “with these staff cuts, I’ll need your expertise (as an automation programmer) more than ever.” (He had announced the day before that I was in the group that would still have a job for 6-12 more months). I told him that it’s nothing personal and that it’s just business (the exact phrase he had used the previous day), but he still said that he felt betrayed.
Well layoffs are not necessary bad, except rule #1 of buisness—> MBAs take care off their own.
Which means they rarely lay off the right people. It’s always the productive people who get laid off leaving behind the ass kissers and dead weight.
So while many productive employees have lost their jobs, few if any of the 6 to 7 figure dead weight positions like “Senior vice president for global support services, Director of Communications for the East Coast, Vice President of Mission Related Services, Vice President of Administrative Services, etc, etc, etc will lose theirs.
I have seen way too many times companies continue to lay off the 30-50K a year produces while leaving behind the dead weight pretty much right up until they drive the company right out of business.
That’s one of the reasons I believe the economy still has a long way to fall. American companies are still bloated with these 6 figure do nothings and once they start losing their jobs, they are pretty much unemployable at anything else (especially at their current inflated salaries). So we are going to have a lot people out there used to a 100K lifestyle not able to find any job.
Newsbleak forgets to mention that the one airline - Southwest - that didn’t have layoffs was the one who isn’t unionized. In fact, as many airlines gave up routes and terminal space, Southwest lapped them up.
Non-union Southwest laps the other airlines because they aren’t beholden to overbearing unions.
I know, I know. Cattle car. No frills. Frequent stops, etc. But Southwest has a business model that works and it’s been working for 40 years now. A lot of that has to do with managers running their business without the constant meddling of unions.
I work for a mega-corp. My branch, which is well run has had no layoffs. There was not even a hint of it from our boss.
Across town the other branch has had to layoff about half of their sales and support staff.
Same area, same product, same customer base. Two different management styles.
Yep, there is no more loyalty. Why should employees be loyal when the company is not loyal in return. We are "Free Agent Nation."
Mister Pheffer chooses to believe that we must be preposterously stupid enough to fall for his Goebbelsian, and transparent LIE.
I read last year on Glenn Becks site a letter froma small business employer who took a different route to beat the criminals in DC. To counter Obama’s destruction of the US economy is to try to maintain what you have and find ways to gain strength. If employee’s would cooperate and work closer with management and management be more truthful, open the books so to speak and allow the employee the opportunity to understand what keeps them afloat I think we can beat them at thier own game! Sacrifice, truthful honest sacrifice on both ends, employer and employee would throw a wrench in zero’s diabolical scheme to kill America.
Sometimes trying to discuss the importance of American jobs, and keeping Americans competent by (not) sending jobs overseas, it seems here on this board, there are some almost intent on living up to the leftwing caricature of selfish conservatives.
America is sinking. We are sending our jobs, our money and our technical capabilities to countries which are intent on our destruction.
All I see from our side, is cheering on, of that process.
How about we start thinking of AMERICA for a change. Before profits. There’s plenty of room for profits, but at the expense of our nation itself?
Seriously. Our current path is toward implosion. Bankrupt, technically incapable, and without any meaningful industry.
Just in case it’s not obvious to anyone, that is not a good thing.
Yeah I know, that’s commie talk. /s
This practice worked well for General Motors and Chrysler.
You left off the "Sarcasm" tag.
OK fair question.
I mean we aim our trade guns OUT.
We enact rigourous international bilateral trade policies for external trade, which require completely reciprocal trade with every nation. No exceptions, unless we have a surplus - of course that’s ok, let the other side worry about that.
Within our borders, 100% lasse faire unshackled, brass knuckles capitalism.
That’s what that means.
America first. Then we all compete with each other, rather than slave laborers around the globe.