Credibly Connect

(Former) American Manufacturing Jobs Cannot Be Cajoled Home

2012-02-05T09:10:00.000-06:00

Wouldn't it be nice if American business would return what President Obama terms "American manufacturing jobs" back to America? Wouldn't it be great if the great labor arbitrage to China would suddenly abate?

The answer to both questions is "no."

In an excellent article reprinted in Reason magazine, Shikha Dalmia observes that "If American CEOs should make business decisions based on their nationality, then shouldn’t foreign CEOs as well? If they did, it wouldn’t work out too well for America. Foreign-owned companies employ close to 5.5 million Americans and generate about $3.1 trillion in economic value. Does Obama want their CEOs to fold their businesses up and return home to do their patriotic duty?" Doubtful.

Yet that is a truth worth consideration as is the inconvenient fact that it is not the Chinese worker who has taken the American manufacturing job, but rather, his job was more likely than not taken by a machine. Daimia notes that ". . . even though manufacturing employment has declined - America has lost roughly 6 million manufacturing jobs since the sector’s peak in the 1970s—manufacturing output has been going up. Indeed, total output today is 2.5 times its 1972 level in adjusted dollars. In 2010, America produced $1.8 trillion in goods (in 2005 dollars) — about $100 billion more than China, but with only about a tenth as many workers, thanks to automation and technological advances that have vastly increased American productivity. Goods that took 1,000 American workers to produce in 1950 now take 177. The choice for American companies, then, is not between American workers and Chinese workers, but between American machines and Chinese workers. Given how much more American workers cost in wages and benefits, U.S. companies that relocate to America would have to develop even more labor-saving technologies or watch the market for their products simply disappear."

Finally, the President's not so subtle threat to punitively tax American companies that open plants overseas will, if implemented, have serious unintended consequences. "The President pledged in his State of the Union to give tax breaks to multinationals that keep “American jobs” in America and to raise taxes on those that move them overseas—as if every job comes endowed by its creator with a domicile. But, far from protecting U.S. jobs, such protectionism will actually kill them by encouraging companies to outsource completely and move their headquarters overseas, especially since the U.S. already has the second-highest corporate tax rate in the world after Japan, which is set to lower its rate in April."

There may be answers to America's employment problem, but the President is looking in the wrong place to find them.

The article by Shikha Dalmia entitled "Obama's Flawed Case For Insourcing" is recommended and can be found here: http://reason.com/archives/2012/01/31/obamas-insourcing-phony-baloney/singlepage

Guest Post: Stupid Union Tricks: The UAW's Grievance Against Ford

2012-01-26T15:06:00.000-06:00

Stupid Union Tricks: The UAW's Grievance Against Ford

By Anthony McCourt

Old habits die hard. The United Auto Workers union is pressing a grievance against Ford Motor Co., arguing this month in continued arbitration proceedings that assembly workers are owed some money. It seems that in 2010--Ford's second profitable year after losing almost $30 billion in the three prior years combined--the automaker reinstated raises, tuition assistance and 401(K) matches for white-collar workers. Since the company didn't give back concessions made by the union during the lean years, the UAW filed an "equity of sacrifice" grievance. The union is complaining that they didn't get any of the spoils of Ford's recovery until the new labor contract was ratified this past September.

After three years of finally acting like they were living in a crisis, the union is sending exactly the wrong message. Last fall, UAW workers at Ford got the best four-year labor deal in Detroit. Each union worker will get about $10,000 in bonuses and profit sharing this year. Workers at GM will get about $9,000 over the life of the four-year labor deal. Chrysler workers get considerably less. Ford also promised to hire 12,000 more UAW workers and they raised entry level workers pay by between $2 and $3 an hour to get them above $16 for new hires. That's pretty good considering today's unemployment rate. Oh, let's not forget that the UAW represents about one-quarter the 1.5 million workers it had in its ranks in 1979.

Let's hope that this isn't a return to the senselessness of years past for the union. To be fair, there was plenty of stupidity that led to Detroit's demise, and it can't be all laid at the feet of labor. Executives invested money and resources in non-automotive business at all of the Big Three. Then they sold those other businesses years later and uses the cash to buyout workers as they downsized the car business that they were ignoring. They let quality slip and fell behind in technology. The list of sins is long.

The union demanded unsustainable benefits like indefinite paid layoffs which made labor a fixed cost. That made managing a cyclical business like making and selling cars almost impossible. They got to retire after 30 years, sending a generation of 50-somethings on the pension rolls with free healthcare for life. Those retiree costs were a loadstone on Detroit balance sheets for years and a nasty hit to the income statement. Retiree benefits played a big role in sending GM and Chrysler into bankruptcy.

Over the past few years, the UAW has come to its senses. A healthcare deal in 2007 unloaded healthcare costs into a Voluntary Employee Benefits Association that pays medical costs the way pension funds pay retiree benefits. That stripped the costs off the income statement. GM used to pay some $1,600 a car in healthcare costs. That's all gone.

New hires on the assembly line start in about $16 an hour. That was a big concession by the UAW. The starting pay was $14 an hour until the new labor contract was ratified. In inflation adjusted dollars, that $14 an hour the same as Henry Ford's $5 a day. Talk about America moving in reverse. With that concession in 2007, the UAW set manufacturing wages by a century.

That's where the union needs to focus. Forget about duking it out in arbitration just to get a check for veteran workers who already make $28 an hour, which is almost all of Ford's union workforce. Those workers will still retire after 30 years with a defined benefit pension and a better medical plan than most people have. It's the new laborers, the ones starting at $16 an hour with much weaker benefits that the union can help. If they are at loggerheads with management over another check for the well-aid old guard of union workers, the UAW will have wasted political capital that could have been spent giving a new generation of factory workers a hand up.

Do you wonder why the US can't compete anymore?

2012-01-02T17:40:00.000-06:00

Do you wonder why most US businesses can't compete in the global markets (unless they have moved everything except their headquarters overseas?)

I hope not.

We are being stomped like a narc at a biker rally by most of the rest of the world because their costs are lower. You get it. But why? In large part because employers in the rest of the world don't have to deal with nonsense like this: the EEOC in what amounts to a private letter ruling has just said that an employer requiring a high school diploma to get a job might violate the Americans With Disabilities Act on the theory that fewer mentally challenged people actually graduate from high school. No, this is not a joke.

The story is here: http://p.washingtontimes.com/news/2012/jan/1/eeoc-high-school-diploma-might-violate-americans-w/?page=all#pagebreak

What's next? I would bet even money that the government will soon take the position that requiring a high school diploma discriminates against blacks and other minorities who don't graduate from high school in the same percentages as caucasians. We shall see.

In the meantime, some advice: Get out now while you still can. Move your production to Singapore or Hong Kong if you're high tech and to Mexico or Brazil if you're not. If you are in a service industry who can't leave, bend over. The federal agencies under Obama don't even pretend to be fair anymore and if you have to hire illiterates, so be it.

-Karger

Debt and Unemployment: Government Cuts Numbers From Whole Cloth

2012-01-01T06:20:00.000-06:00

As we have pointed out in this blog throughout 2011, the government's numbers, whether GDP, debt, growth, inflation, or unemployment, are pure fiction. Perhaps the most perplexing are the debt and unemployment figures released by the federal government regularly which bear no relationship to reality and on which businesses rely to make critical decisions. Even more disturbing is the blind acceptance by mainstream media and the people of these fabrications.

Thanks to WorldNetDaily for the following summary rarely reported by mainstream media. The story can be found at: http://www.wnd.com/?pageId=382753

"The true rate of unemployment and inflation and the real state of the U.S. economy . . . is far worse than reported.

"When the Obama administration prepared to finance a 2011 budget deficit expected to top $1.6 trillion, the American public was largely unaware that the true negative net worth of the federal government reached $76.3 trillion last year.

"The figure was five times the 2010 gross domestic product of the United States and exceeded the estimated gross domestic product for the world by approximately $14.4 trillion, according to economist John Williams.

"Statistics compiled by Williams, based on the 2010 Financial Report of the United States Government, demonstrate the real 2010 federal budget deficit was $5.3 trillion, not the $1.3 trillion reported by the Congressional Budget Office.

"The difference between the $1.3 trillion "official" 2010 federal budget deficit numbers and the $5.3 trillion budget deficit is that the official budget deficit is calculated on a cash basis, where all tax receipts, including Social Security tax receipts, are used to pay government liabilities as they occur.

"The government cannot raise taxes high enough to bring the budget into balance," Williams said. "You could tax 100 percent of everyone's income and 100 percent of corporate profits and the U.S. government would still be showing a federal budget deficit on a GAAP accounting basis."

"Meanwhile, the government's own statistics showed in December that if the same number of people were seeking work today as in 2007, the jobless rate would be 11 percent.

"While the Obama administration touted a November unemployment rate of 8 percent, much of it was a result of people leaving the labor force, not because they've become sick or too old, but because they have been unable to find a job and have stopped trying.

"What's more, the seasonally-adjusted rate adjusted for long-term discouraged workers – who were defined out of official existence in 1994 – was more than 22 percent in November.

"The Bureau of Labor Statistics broadest measure of unemployment, which includes the short-term discouraged and other marginally attached works, along with part-time workers who can't find full-time employment is more than 15 percent.

"Methodological shifts in government reporting also have depressed reported inflation. If inflation were calculated the way it was in 1990, the annual rate would be nearly 7 percent."

Read more of the most ignored stories of 2011? http://www.wnd.com/?pageId=382753#ixzz1iCvvstaD

Thinking about year end bonuses? Think again.

2011-12-20T15:49:00.000-06:00

The article reproduced below is from Science Daily and may be found here: http://www.sciencedaily.com/releases/2009/12/091209121225.htm>

Money Changes What We Think Is Fair

"Thinking of rewarding your sales department for a job well done? You might not want to make cash part of the pay-off.

"A study to be published in an upcoming issue of Psychological Science, a journal of the Association for Psychological Science, shows that when it comes to distributing resources, people's ideas about what's fair change depending on what's being handed out. If it's something that has its own intrinsic value -- in-kind goods such as food or vacation days -- people are more likely to see equal distribution of such items as fair.

"But if it's something that is only valuable when it's exchanged -- such as money or even credit card reward points -- ideas of fairness shift to a more market-based attitude. In that case, the thinking is that people should receive according to what they've contributed.

"What exactly is it about money that causes people to treat it so differently than other resources?" asks Sanford DeVoe, an assistant professor of organizational behaviour, at the University of Toronto's Rotman School of Management who co-wrote the paper with Columbia University's Sheena Iyengar.

"The paper shows that it is the property of money being a medium of exchange," Prof. De Voe says. "When you allocate something that only has its value in what it can be exchanged for, that is what activates a market mindset and really invokes these strong norms about input and effort leading to reward."

'The findings have applications for how companies cope with negative situations too. A firm that wants to cut costs might consider giving employees all the same time off rather than making equal pay cuts across the board that could potentially lead to disgruntlements from a sense of unfairness.'

The Unemployment Numbers: Government Spins Chickens_hit Into Chicken Salad

2011-12-03T11:02:00.000-06:00

I am in Puerto Vallarta this week for Save A Mexica Mutt, Www.saveamexicanmutt.org

But I took the time yesterday to review the unemployment numbers that resulted in all the glad-handing in Washington and all of the government news channels (CNBC), the combination resulting in me shorting the market hard near the open and in finding this excellent parsing of the unemployment picture which was better than my own. Read 'em and weep and know this as a matter of certainty -- when the government gets this animated about anything, they are lying.

Here is a sad, but classic, example:

http://www.zerohedge.com/news/key-charts-nfp-report-records-jobless-duration-and-people-who-want-job-civilian-labor-force-plu

Review the four charts in that article and ask yourself, "For whose benefit was it to spin the unemployment numbers from the chickenshit they are into the chicken salad they want us to believe they are?"

Therein lies the answer to the lies.

NLRB Changes Election Rules - Much Ado About Something

2011-12-01T15:00:00.000-06:00

The Obama Labor Board has been hard at work for organized labor before the term of its most infamous member, Craig Becker, expires at the end of the year. At issue is the all important time period between the filing of a petition to represent employees by a union and the election wherein employees can vote on whether or not to be represented. Currently, the period is six weeks (42 days) giving both sides ample opportunity to make their respective cases.

If you are interested in the blow by blow political bruhaha, you can find it here:

http://online.wsj.com/article/SB10001424052970204012004577070602824548644.html?mod=dist_smartbrief

If you are interested in the bottom line, here it is: The new rules prevent employers from challenging certain aspects of union elections before the voting occurs, including whether certain workers are eligible to vote and be part of a bargaining unit. Oftentimes, employers or unions argue that certain workers should be classified as supervisors, and therefore be ineligible to unionize. These issues have always been resolved before voting for the obvious reason - you only want those eligible to actually vote.

It doesn't sound like much of a problem, but it is. For example, if an employer allows an employee to vote who is later determined to be a supervisor under the National Labor Relations Act the election can often be set aside and rerun at additional time and expense. This puts employers into a tough position -- to vote or not vote an employee, knowing that if they permit an employee to vote who is later determined to be a supervisor the election may have to be rerun. On the other hand, if an employer prevents an employee believed to be a supervisor from voting and who is later determined not to be a supervisor, they may face unfair labor practice charges and a rerun election. Not a good position to be in. The Labor Board doesn't care.

What is more troubling is what is not said -- the number of days between the filing of a petition by a union for representation and the election. For many years it was 50 days. It was then reduced to 42 days. Implications are Regional Directors of the Labor Board may reduce the number of days again on their own motion. There are ways of forcing the issue of time and I have done so many times. For example, if the Labor Board is unreasonable as to the number of days employees have to hear both sides or on the dates and times of the election I have told them. "Fine. But you won't be having the election on employer property." They hate that and I have yet to have to hold an election offsite. There are other tricks of the trade but just know this is moving in the wrong direction and depending on what the final rules provide it will mean employers have less time to make their case to employees once a union is involved.

More as we know more . . .

Gratitude: A Credible Connection Worth Remembering

2011-11-26T15:18:00.000-06:00

Happiness is not so much in having more as much as it is being grateful for what you have.

We made this point many times in the book "Why Work Isn't Working Anymore . . . Tools to Transform Your Workplace As If People Mattered."

Now, there is scientific evidence to support the concept.

Giving thanks will make you happier and improve your relationship with others . . .

The article from the Harvard Business Review is here:

http://www.health.harvard.edu/healthbeat/giving-thanks-can-make-you-happier

"As The Debt Machine Grinds to a Halt, Job Creation Falls Off A Cliff" (Charles Hugh Smith)

2011-11-19T13:42:00.000-06:00

The jobs recession continues to worsen and has reached critical mass -- employment keeps falling in both nominal and real terms. More of the middle class are being forced down the economic food chain by the day. More people live in poverty in the US than ever before. Food stamps have become the norm. Hunger has reared its ugly head. Civil disobedience is growing.

Charles Hugh Smith has written an insightful article on the topic which can be found here: http://www.oftwominds.com/blognov11/debt-jobs11-11.html

I commend it to your review . . . as well as his website: http://www.oftwominds.com

Here are some excerpts . . .

" . . . the “growth” of the U.S. economy since 1980 is debt-based. Debt has exceeded growth by 136%. If debt had risen in tandem with GDP, then total debt would be a mere $22 trillion instead of $52 trillion."

" . . . every incremental increase in debt has had a diminishing effect on growth. Where $1 of debt once added 70 cents to GDP, now it adds basically nothing, or even reduces GDP."

" . . . employment hasn’t hit a bump in the road; it’s off the road and sinking into a bottomless bog. Here is the civilian participation rate, which measures how many folks in the civilian population are participating in the labor market in one way or another. By this measure, the labor market has retraced to the level of the 1981-82 recession thirty years ago."

" . . . The wheels fell off the financialization and dot-com boom in 2000, and the Federal Reserve and federal government created an even more extreme version of financialization that inflated a gigantic debt/real estate bubble. Like all financial bubbles, this one burst, and once again the Fed and federal government scrambled to inflate another debt bubble.

Since the household sector was tapped out and its primary asset, the family home, had lost a third of its bubble value, the Federal government borrowed $6 trillion to bail out the banking sector and spread trillions of dollars around as stimulus and giveaways like "Cash for Clunkers."

" . . . This is not a bump in the road; it is the exhaustion of the entire model of growth that we have depended on for the past 30 years. Once the debt saturation point has been reached, adding more debt subtracts from the economy rather than adds to it. This is reflected in the decline of employment by every metric: total number of jobs, civilian participation, payrolls per capita, and employment as a percentage of the total population.

" . . . We are past the point of debt saturation, and so we need a new model of employment, and indeed of “growth” itself. Sadly, as discussed in a recent report, the Status Quo financial witch-doctors have only prescribed more debt and more unproductive friction."

The Old, New NLRB: AmeriKa is getting depressing

2011-11-18T18:48:00.000-06:00

In the latest low-rent underhanded tactic by a government gone wild we have the NLRB, the union's advocate in the workplace, putting the pedal to the metal to push through quickie elections in order to 'balance the ledger' so to speak, even though unions already win 60%+ of the time under the current rules which permits 38 days between petitions by unions and employee-decided elections.

Wny the rush?

Politics, of course.

Obama's appointment to the National Labor Relations Board, Craig Becker, who was stomped to death by the Senate, got his place on the Board temporarily via a "recess" appointment, a Constitutional process so bastardized it is now not even recognizable without dental records.

So, the clear mandate of the socialists is to ram a 10-15 day election schedule down the throat of business before Becker is tossed into the street like yesterday's coffee grounds on January 1, 2012, insuring unions election victories in at least 80% of all cases, the avowed intent of the current Adminstration.

The only sane member of the NLRB wrote in response to this "shoot them in the back" attack was as follows: “Make no mistake, the principal purpose for this radical manipulation of our election process is to minimize or, rather, to effectively eviscerate an employer’s legitimate opportunity to express its views about collective bargaining."

Bottom line: The entire US political process has lost total credibility. Next up? Revolution. I'll return for that.

Unions Finding Success Down The Economic Food Chain

2011-11-02T07:19:00.000-05:00

We have predicted for several years that organized labor would be more successful by moving out of their comfort zone -- highly paid manufacturing employees -- and organizing lower paid workers in traditionally non-union service businesses. Unions are starting to move in that direction, recently enjoying successes in hotels, restaurants and even car washes.

Check out the link here: http://labornotes.org/2011/11/la-car-wash-workers-win-union

As the economy continues to deteriorate, lower wage workers will look for protection and labor unions will be there to fill the void left by employers not willing to do the right thing.

Large Majority Of American Workers Are Not Engaged At Work

2011-11-01T11:39:00.000-05:00

The formula to a point is easy . . .

> engagement
= productivity
= profit

And the inverse is true, which leads to the bad news -- about 70% of American employees are not "engaged" at work, says a recent Gallup survey. You will find the details here:

http://www.gallup.com/poll/150383/Majority-American-Workers-Not-Engaged-Jobs.aspx

It would be self-serving to observe that this is where credible connections with others in the workplace separates the successful from the also ran's, but it is true nevertheless.

For more information, contact us at: jimkarger@mac.com

Want your employees (and you) to be happier?

2011-10-23T15:15:00.000-05:00

Martin Seligman, author of Authentic Happiness did a study "Positive Psychology Progress: Empirical Validation of Interventions" and he mentioned two proven ways to increase happiness:

1)

"...the gratitude visit, caused large positive changes (in happiness) for one month."
Two exercises guaranteed to work . . .

Gratitude visit - Participants were given one week to write and then deliver a letter of gratitude in person to someone who had been especially kind to them but had never been properly thanked.

2). Three good things

"...three good things—increased happiness and decreased depressive symptoms for six months."

Three good things in life - Participants were asked to write down three things that went well each day and their causes every night for one week. In addition they were asked to provide a causal explanation for each good thing.

Courtesy of: http://www.bakadesuyo.com/what-are-two-easy-ways-to-make-yourself-much?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+bakadesuyo+%28Barking+up+the+wrong+tree%29

Which Is More Important to Happiness? Having More or Having More Than Your Neighbors?

2011-10-18T11:15:00.000-05:00

In "Why Work Isn't Working Anymore," Fritz and I went into some detail about the relationship between money and happiness. Studies since our book continue to confirm our observations and should act as a guide to employers on overcoming the "Myth of More."

People with the highest income are less likely to be in the highest happiness bracket.

This study theorizes that a good part of this may be because once you're very happy, becoming even happier may be a function of how you're doing compared to others:

"The relationship between income and subjective well-being (SWB) is investigated using eight waves of the British Household Panel Survey and an estimation strategy that allows us to relax some assumptions typically made in the literature. First, we use a random effects generalised ordered probit model to investigate whether income effects are heterogeneous across SWB categories, and, second, we discretise (absolute and relative) income variables to allow for the income effects to vary across income groups. We find that higher absolute income increases SWB but up to a certain level, while low income is significantly correlated with low scores in the SWB ladder. Our results are consistent with the Easterlin Paradox that has been reported in the literature. We find that high-income groups are less likely to belong in the highest SWB level, which could be partly explained by the fact that the relative income status (rather than the absolute one) is more important in determining (the highest level of) SWB."

Source: "The poor, the rich and the happy: Exploring the link between income and subjective well-being" from The Journal of Socio-Economics.

Courtesy of www.barkingupthewrongtree.com

Best Reads of The Week: Labor, Employment, Economics and Politics

2011-10-08T17:10:00.000-05:00

In this week's "Best Reads" I have included summaries of each as well as two articles I rate "Best of the Best." Special thanks to Alan Kostel, Bernie Koehne and Ken Karger for their contributions this week. Always interested in your contributions, thoughts and comments. To that end, let me know if you find this weekly addition worthy of continuation. It takes several hours a week and I am happy to continue if you find it valuable. Best, -Jim

Best of the Best

"The Fascist Threat"

"Fascism is the system of government that cartelizes the private sector, centrally plans the economy to subsidize producers, exalts the police state as the source of order, denies fundamental rights and liberties to individuals, and makes the executive state the unlimited master of society." Sound familiar? This brilliant piece comes from The Mises Institute, is highly recommended and can be found here:

http://mises.org/daily/5752/The-Fascist-Threat

"What This Country Needs Now Is Hope"

"The dialogue above occurred at the end of the dystopian movie V for Vendetta. It is a tale of revenge and restoring hope among citizens who had chosen safety and security over freedom and liberty. Even though this movie was fictional and adapted from a comic strip, its message and warnings should be heeded. Millions of middle class citizens in the U.S. sink deeper into despair every day. Day by day hope is being lost that the future for our children will be better than our past. The political, financial, and corporate leaders of our country are intellectually and morally bankrupt. The major Wall Street banks are bankrupt. Social Security is bankrupt. Medicare is bankrupt. The whole damned world is bankrupt. Anyone with an unbiased view of our planet would conclude that we are in unfathomable danger. The list of impending catastrophic issues that will blow up the world for millions in the U.S. and across the globe is virtually endless," and you will find them here:

http://www.theburningplatform.com/?p=22172

Politics and Government

Secret Panel Can Now Put American Citizens On An Assassination List

Apparently, the Bill of Rights are now just "suggestions." Truly horrifying.

http://www.reuters.com/article/2011/10/05/us-cia-killlist-idUSTRE79475C20111005

The American Empire: A Tragic Comedy in Three Acts

Do the Swiss get to send out drones to kill people they don’t know in countries they’ve never been? No! The poor yodelers go around with long faces and visit their shrinks. Americans have troops in 170 countries. Where are the Swiss? Only in Switzerland and the Vatican. Alas, they will never know the joys of nation building and people murdering.

http://dailyreckoning.com/the-us-empire-a-tragic-comedy-in-three-acts/

Government Mandates GPS In Every Cell Phone

Under the auspices of needing to find you if you make a 911 call from your cell phone, the government can track you 24/7.

http://techcrunch.com/2011/10/04/fcc-wants-gps-in-every-phone-by-2018/

Our World Is Now Ruled By Finance

A glaring problem is hiding in plain sight. Although it towers over us all, the financial industry doesn't actually make anything. You can't eat a mutual fund or build a house with derivatives, and the glossy brochures don't burn very well. The sudden explosion of finance has displaced real value in the economy. It's arguably itself a kind of massive stock market bubble. Now we have continuous economic volatility and stock markets like casinos because at the very core of Western economies, there's just a glossy brochure.

So when we see the spectacle of people in streets of New York screaming "we have to stop being a debt economy and go back to being a production economy," they have a point.

This is a pretty short read... and it encapsulates all that is wrong with our world today. The short positions that the banks hold in commodities that I talked about at length above, is one of the more visible aspects of the problem. (Courtesy of the Doug Casey organization, this comes from the Montreal Gazette).

http://www.montrealgazette.com/business/world+ruled+finance/5515951/story.html

Solyndra Paper Trail Surfaces - Obama "Telling The Truth Slowly"

The White House has released its emails surrounding the Solyndra scandal, and they reveal new connections between the Obama administration and Solyndra—adding more questions to the heated political battle over the failed energy company. An Obama administration appointee, Steven Spinner, at the Department of Energy had pressured the White House for the $533 million loan for Solyndra—even as his wife, Allison Spinner, worked as a partner at the law firm that represented the company. The White House's fumbling response to the revelations has marred the image of a team that once promised to bring change to Washington, writes The Daily Beast's John Solomon.

http://www.thedailybeast.com/articles/2011/10/07/obama-losing-credibility-with-scandal-response.html?utm_source=newsletter&utm_medium=email&utm_term=Cheat%20Sheet&utm_campaign=cheatsheet_morning&cid=newsletter%3Bemail%3Bcheatsheet_morning

Labor and Employment

Worker Confidence In Employers Plunges

U.S. workers are much less optimistic about their companies’ outlook than they were three months ago, according to a quarterly survey by Glassdoor.com, a website dedicated to workplace issues.

http://www.reuters.com/article/2011/10/04/glassdoor-survey-idUSN1E7930IN20111004

The Employment Report (Post Spin)

On Friday morning, the press was buzzing about the unexpectedly good employment number. By mid-day the market had parser it and found it's weaknesses, such as this one: "The number of workers only able to find part time jobs (or have had their hours cut for economic reasons) increased to 9.27 million in September from 8.826 million in August. This is the high for the year.". The real story is here:

http://www.calculatedriskblog.com/2011/10/employment-summary-part-time-workers.html

CEO Pay: Still Skyrocketing - Still Undeserved

If you don't understand why people are marching in the streets, read this.

http://motherjones.com/kevin-drum/2011/10/ceo-pay-still-skyrocketing-still-undeserved

Say On Pay and What To Expect in 2012

Will shareholders start saying "no" to excessive executive compensation? Here's four reasons they will.

http://blogs.hbr.org/cs/2011/10/what_was_behind_those_say_on_p.html

Cozy Relationships And 'Peer Benchmarking' Sends CEO Pay Skyrocketing

Makes me want to puke . . .

http://www.washingtonpost.com/business/economy/cozy-relationships-and-peer-benchmarking-send-ceos-pay-soaring/2011/09/22/gIQAgq8NJL_print.html

It Will Take 5 Years To Return To 2007 Unemployment Rate At 261,200 Jobs. A Month

"261,200. This means that unless that number of jobs is created each month for the next 5 years, America will have a higher unemployment rate in October 2016 than it did in December 2007. How realistic is it that the US economy can create 16.2 million jobs in the next 62 months? We leave that answer up to the US electorate."

http://www.zerohedge.com/news/us-needs-generate-261200-jobs-month-return-pre-depression-employment-end-obama-second-term

Average Duration of Unemployment Rises to New All Time High

Over 40 weeks, enough said.

http://www.zerohedge.com/news/average-duration-unemployment-rises-new-all-time-high

Layoffs In September Explode 126%

So much for the recovery . . .

http://www.businessinsider.com/layoffs-in-september-explode-126-just-from-last-month-2011-10

Salary vs. Sleep - Which Would You Choose?

Which would you prefer: An $80,000 job with reasonable work hours and seven and a half hours of sleep each night, or a $140,000 job with long work hours and just six hours of sleep? A new study from researchers at Cornell, to be published in the American Economic Review, found that most people would pick the higher-paying job with more hours and less sleep.

http://www.washingtonpost.com/blogs/post-leadership/post/salary-vs-sleep-which-would-you-pick/2011/04/01/gIQA3gL64K_blog.html

Worker Quits And Wins After Boss Begins The "Guess Who Will Be Fired Next" Contest

Would be such fun to fire this guy . . .

http://www.wqad.com/news/wqad-bosses-iowa-illinois-judge-100411,0,2222631.story

12 Attributes Of A Truly Great Place To Work

Other than not having a "whose going to be fired next contest," more than 100 studies have now found that the most engaged employees--those who report they're fully invested in their jobs and committed to their employers--are significantly more productive, drive higher customer satisfaction and outperform those who are less engaged. What does these workplaces have that yours doesn't?

http://www.fastcompany.com/1781221/the-twelve-attributes-of-a-truly-great-place-to-work

Economics

Greek Austerity Breeds A New Generation of Homeless

Two years into Greece’s devastating financial crisis, joblessness and homelessness are rife. For the first time, the middle class is having trouble making ends meet. More and more Greeks are finding themselves out of work, unable to pay their way, sleeping in their cars or even on the streets.

Resembling a youth centre or backpackers hostel, the independent Klimaka homeless centre is a rarity in Greece, where most non-state assistance is dominated by the church. Funded entirely by donations, even down to the soap and televisions, the centre is today busier than ever. People who have spent their adult lives employed and self-sufficient are now seeking refuge, food, and medication.

http://www.france24.com/en/20111007-homeless-rife-austerity-greece-depression-crisis-centre-athens-jobless

Is The US Monetary System On The Verge Of Collapse?

While the world’s many financial experts and economists sit around arguing about the direction of the ship of state, most are missing the point that the ship has already hit an iceberg and is taking on water fast.

http://assetprotection.escapeartist.com/newsletter/how-will-you-protect-your-assets-in-the-coming-monetary-collapse

California and Bust

A longish read, if you are interested in which States are going bust first, this is an essential read. The smart money says the U.S. economy will splinter, with some states thriving, some states not, and all eyes are on California as the nightmare scenario. After a hair-raising visit with former governor Arnold Schwarzenegger, who explains why the Golden State has cratered, Michael Lewis goes where the buck literally stops—the local level, where the likes of San Jose mayor Chuck Reed and Vallejo chief Paige Meyer are trying to avert even worse catastrophes and rethink what it means to be a society.

http://www.vanityfair.com/business/features/2011/11/michael-lewis-201111

Study: Income Inequality Kills Economic Growth

Corporate chieftains often claim that fixing the US economy requires signing new free trade deals, lowering government debt, and attracting lots of foreign investment. But a major new study has found that those things matter less than an economic driver that CEOs hate talking about: equality.

http://motherjones.com/mojo/2011/10/study-income-inequality-kills-economic-growth

Nearly Half Of Americans Live In Household Receiving Government Benefits

To all the neo-cons out there sucking the hind tit of Social Security, you are one of these.

http://blogs.wsj.com/economics/2011/10/05/nearly-half-of-households-receive-some-government-benefit/tab/print/

Little Businesses Trying to Tough It Out

These are the hopes for America because this is where people are hired, or better said, not hired. Though many big companies have bounced back from the worst recession since the Great Depression, many small businesses—lacking the deep pockets of their larger peers—are still struggling.

http://online.wsj.com/article/SB10001424052970204524604576611463660501834.html

12 Shocking Quotes From Insiders About the Impending Economic Crisis

The global financial system is a sea or red ink, and when we get to the point where there are hundreds of ships going under how is it going to be possible to bail all of them out? The quotes that you are about to read show that quite a few top financial and political insiders know that things cannot hold together much longer and that a horrific economic crisis is coming. We built the global financial system on a foundation of debt, leverage and risk and now this house of cards that we have created is about to come tumbling down.
http://www.zerohedge.com/contributed/prophets-doom-12-shocking-quotes-insiders-about-horrific-economic-crisis-almost-here

Here's What Is Wrong With the Economy -- And How To Fix It

The 25-year debt-fueled boom of 1982-2007 has ended, and it has left the country with a stagnant economy, massive debts, high unemployment, huge wealth inequality, an enormous budget deficit, and a sense of entitlement engendered by a half-century of prosperity. What can be done?

http://www.businessinsider.com/how-to-fix-the-economy-2011-10

The Economics Of Happiness

We live in a time of high anxiety. Despite the world’s unprecedented total wealth, there is vast insecurity, unrest, and dissatisfaction. In the United States, a large majority of Americans believe that the country is “on the wrong track.” Pessimism has soared. The same is true in many other places. Against this backdrop, the time has come to reconsider the basic sources of happiness in our economic life. The relentless pursuit of higher income is leading to unprecedented inequality and anxiety, rather than to greater happiness and life satisfaction. Economic progress is important and can greatly improve the quality of life, but only if it is pursued in line with other goals.

http://www.project-syndicate.org/commentary/sachs181/English

Obama's Millionaire Tax Collected Over Next 10 Years Will Plug 4 Months of Deficit

In order to keep the ongoing class warfare waged by the administration in perspective, today the CBO was kind enough to score the revenue impact of the proposed and much debated Buffett Tax, now appearing in non-populist literature as "Surtax on Millionaires."

http://www.zerohedge.com/news/obamas-millionaire-tax-collected-over-next-ten-years-will-plug-4-months-worth-deficit

How To Rescue The Economy

The economy doesn’t need anyone to fix it. It’s all that fixing for the last 40 years that is the problem. Unmolested, the economy will right itself. The only thing needed is for the Great Molester, the government, to surrender to a serious regimen of behavior modification and let the economy operate without suffocating interference. Then it would be able to shed its problems – not painlessly but quickly and with a minimum of pain. Here’s the protocol in an article by Terry Coxson.

http://www.caseyresearch.com/editorial.php?page=articles/way-out-our-economic-mess&ppref=GLO419ED1011B

Does Spending Money Make Us More Happy?

2011-10-07T12:40:00.001-05:00

The Myth of More discussed in "Why Work Isn't Working Anymore," is alive and well. Unfortunately, those who contine to chase the monetary version of the electric rabbit are doomed to chasing for the rest of their lives and the inability to make more become enough is responsible for much of the unhappiness an dissatisfaction most feel in their lives.

Not surprisingly then an interesting study finds that as a general rule spending money does not make us more happy, but for one circumstance.

"We examine the association between various components of consumption expenditure and happiness in the Health and Retirement Study (HRS), a nationally representative sample of older Americans. We find that only one component of consumption is positively related to happiness—leisure consumption. In contrast, consumption of durables, charity, personal care, food, health care, vehicles, and housing are not significantly associated with happiness. Second, we find that leisure consumption is associated with higher levels of happiness partially through its effect on social connectedness, as indexed by measures of loneliness and embeddedness in social networks. On one hand, these results counter the conventional wisdom that “material goods can’t buy happiness.” One the other hand, they underscore the importance of social goods and social connectedness in the production of happiness."

Source: "Does consumption buy happiness? Evidence from the United States" from International Review of Economics, Volume 57, Number 2, 163-176

From: Barking Up The Wrong Tree, http://www.bakadesuyo.com/does-spending-money-increase-happiness

Corporate Culture: The Bottom Line

2011-10-02T11:20:00.000-05:00

"Corporate culture is often thought of as a hard-to-define, or soft concept in management circles. Soft not in the sense that it isn't important—most CEOs will tell you that their ability to inculcate values and mission into the DNA of a firm is among the most important work they do.

"No, the problem arises because little research has been targeted at trying to quantify its importance on performance. In his new book, The Culture Cycle: How to Shape the Unseen Force that Transforms Performance, HBS Professor Emeritus James L. Heskett attempts just that. "Organization culture is not a soft concept," he says. "Its impact on profit can be measured and quantified."

"Heskett finds that as much as half of the difference in operating profit between organizations can be attributed to effective cultures. Why? "We know, for example, that engaged managers and employees are much more likely to remain in an organization, leading directly to fewer hires from outside the organization," Heskett writes in the book. "This, in turn, results in lower wage costs for talent; lower recruiting, hiring, and training costs; and higher productivity (fewer lost sales and higher sales per employee). Higher employee continuity leads to better customer relationships that contribute to greater customer loyalty, lower marketing costs, and enhanced sales."

via Harvard Business School and Barking Up The Wrong Tree (http://www.bakadesuyo.com/does-corporate-culture-really-affect-the-bott?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+bakadesuyo+%28Barking+up+the+wrong+tree%29)

Best Reads Of The Week (9/29/2011)

2011-10-01T13:29:00.000-05:00

Several excellent articles this week in the areas of the economy, the workplace and on privacy, all commended to your review. Best for the weekend. Jim

Economics:

"US Drops to Fifth In Global Competitiveness"
http://www.msnbc.msn.com/id/44423519/ns/business-stocks_and_economy/t/us-falls-th-global-competitiveness-survey-shows/?GT1=43001

"This Economic Collapse Is A Crisis Of Bigness"
http://www.guardian.co.uk/commentisfree/2011/sep/25/crisis-bigness-leopold-kohr/print

"The Consumer Taps Out: Savings Rate Falls"
http://www.zerohedge.com/news/us-consumer-taps-out-personal-savings-rate-drops-lowest-december-2009

"20 Reasons Millions of Young Americans Are Furious About the Economy"
http://www.businessinsider.com/us-economy-is-crushing-the-american-dream-for-young-americans-2011-9?op=1

"Poverty Affects 46 Million Americans"
http://knowledge.wharton.upenn.edu/mobile/article.cfm?articleid=2851

"Shilling Sees Deflation, China's Hard Landing and 800 on the S&P"
http://www.zerohedge.com/news/prominent-deflationist-schilling-sees-deflation-china-hard-landing-and-800-

"What Are We Spending Our Money On?"
http://blogs.wsj.com/economics/2011/09/27/what-are-we-spending-our-money-on/?mod=djemRTE_t

"Americans Spending Smaller Share Of Income Paying Debt"
http://blogs.wsj.com/economics/2011/09/24/number-of-the-week-americans-spend-smaller-share-of-income-paying-debt/?mod=djemRTE_t

Workplace

"Outsized Severance Continues For Executives Even In The Face of Failure"
http://www.nytimes.com/2011/09/30/business/outsize-severance-continues-for-executives-even-after-failed-tenures.html

"If Your Boss Is A Psychopath, Leave"
http://m.upi.com/m/story/UPI-83101317358836/

"CEO Survey Finds Less Confidence In Hiring"
http://blogs.wsj.com/economics/2011/09/29/ceo-survey-shows-less-confidence-in-u-s-hiring-outlook/?mod=djemRTE_t

"When Your Job Makes You Sick: Employees Find Little Leverage In Today's Workplace"
http://knowledge.wharton.upenn.edu/mobile/article.cfm?articleid=2851

"Cost of Family Health Coverage Doubled In Last Decade"
http://www.boiseweekly.com/CityDesk/archives/2011/09/27/cost-of-family-health-coverage-doubled-in-past-decade

"Health Insurers Push Premiums Sharply Higher"
http://www.nytimes.com/2011/09/28/business/28insure.html?adxnnl=1&adxnnlx=1317492046-B0LDgXmOvujr1svWuOW2dA

"It Is Man vs. Machine And Man Is Losing"
http://blogs.wsj.com/economics/2011/09/28/its-man-vs-machine-and-man-is-losing/?mod=djemRTE_t

"Inside The Workplace: A View From The Top And The Bottom"
http://www.economist.com/node/21530171?fsrc=scn%2Ftw%2Fte%2Far%2Ftheviewfromthetopandbottom

"Plaintiff's Lawyers Full Employment Act: Obama Proposes Prohibiting Discrimination Against the Jobless"
http://www.nytimes.com/2011/09/27/us/politics/obama-proposes-adding-unemployed-to-protected-status.html

"Why Do Companies Hire"
http://www.msnbc.msn.com/id/44423519/ns/business-stocks_and_economy/t/us-falls-th-global-competitiveness-survey-shows/?GT1=43001

"A Challenge For Unions In Public Opinion"
http://economix.blogs.nytimes.com/2011/09/02/a-challenge-for-unions-in-public-opinion/

Privacy (Or Better Said The Lack Thereof)

Facebook: "We Didn't Mean To Track You . . . But We Did"
http://www.dailymail.co.uk/sciencetech/article-2042573/Facebook-privacy-row-Social-network-giant-admits-bugs.html#ixzz1ZFuQLDzt

"GM Is Watching You - The OnStar System"
http://lewrockwell.com/peters-e/peters-e97.1.html

Checkmate: The Endgame of The American Employee

2011-09-29T13:22:00.004-05:00

When Fritz Aldrine and I wrote "Why Work Isn't Working Anymore" in 2001, I thought we'd seen the bottom of morale in the American workplace. Little did I recognize that the happiness and satisifaction of the American employee had a long way to drop.

And drop it has - like an anvil out a 10th story downtown window.

The Gallup-Healthways Well-Being Index registered 47.1 in August for the category titled "work satisfaction" -- the lowest it has been since the measurement was introduced. It means that fewer than half the employees surveyed last month answered "yes" to four questions: Are you satisfied with your job; are your natural aptitudes aligned with the job you are asked to do; does your supervisor treat you like a partner, and does he or she create an environment that is trusting and open?

Nope. Not here. Not in the American workplace.

Indeed, for most employees today there is only one place they can think of that is worse than where they are -- on the street. Everyone knows at least one or a dozen of the long-term unemployed and they know them well enough to not want to join them.

And, employers know that and most simply do not feel it necessary to engage in being nice, or encouraging managers to do so. Relationship development is no longer even discussed. For most employees, it is now "take it or leave it," although the best employers put it a little more gently.

So, employees remain unhappy, unfulfilled and afraid, not a recipe for long-term success. But, after all, many of these employees won't have to worry about the "long-term," because their work is killing them -- literally.

A study published this year titled, "Work-Based Predictors of Mortality: A 20-Year Follow-Up of Healthy Employees," found risk of mortality was significantly lower for those reporting high levels of peer social support -- i.e., the support of their co-workers.

"While higher death rates are clearly the most extreme evidence of workplace stress and job dissatisfaction, mental and physical ailments are also increasingly common, ranging from high blood pressure and heart disease to depression, ulcers and Alzheimer's. Employees faced with long hours, demanding bosses, unsupportive colleagues and unfulfilling work are typically advised to change supervisors, find another job, start their own company or consider other decisive moves. Today, because of the economy, these options are much less realistic." reports Knowledge @ Wharton.

Bottom line: For the average American employee, it is the proverbial rock and hard place. It is check and mate.

Reward Your Friends; Punish Your Enemies - A Universal Truth in Politics

2011-09-28T16:13:00.000-05:00

We remain more than a year from the next Presidential election, but that isn't stopping either side from pulling out the battle axes . . .

President Obama, in deep trouble, sporting the lowest approval rating of his Presidency, is going back to his roots -- low wage, unemployed, organized labor, poor, and the intellectual left.

In an "in your face" move to let business know just where it stands, or better said, lies, he is sending Hilda Solis, his Secretary of Labor to attend a union organizing conference. This from the AFL-CIO blog:

U.S. Labor Secretary Hilda Solis will headline a panel, along, with AFL-CIO Secretary-Treasurer Liz Shuler at the second annual AFL-CIO Next Up Young Workers Summit beginning later this week (Sept. 29-Oct. 2). Since taking office in 2009, Solis, the daughter of union members, has changed the direction of the Labor Department from one that favored employers to one that protects working people."

To put this into perspective, what do you think would have happened if George Bush had sent his Secretary of Labor to a "union busting" conference hosted by a business group? The collective scream would have been palpable.

Then, in a "two-fer," the President proposes to add the "unemployed" to the list of legally-protected classifications -- the same as race, sex, religion, national original, disability, and age. However, unlike those classifications which really shouldn't make a difference as to whether someone gets a job, being unemployed really does often have something to do with one's employability -- i.e., the market for labor has determined that some people simply don't have the skill sets to deserve a job in today's tough economic environment. But, no mind says the President. The plaintiff's attorneys will sort it all out. Indeed they will.

And, what should an employer do? Or, better said, what will smart employers do in response to being relentlessly sued by the unemployed? A good friend and mentor had this to say, "Now, every time a company hires an employee who is still employed elsewhere, they are looking at a potential law suit by every applicant who applied that didn't have a job. What to do? Reduce hiring and use contract workers or temps as much as possible. If it is to fill a high skill or high tech job, farm it out to China, India, Pakistan, etc." Indeed, the law of unintended consequences at work again if this politically-motivated, pandering, ridiculous piece of legislation is pushed through both Houses of Congress.

Finally, (not as in the end, but only that this is getting long enough for now), there is ObamaCare. The President has appealed the decision finding the mandate to purchase insurance is unconstitutional. The response from the marketplace is more of the same: raise premiums, which, of course, has the unintended, but very real, consequence of putting more employees and their families outside the system.

No one in government seems to "get it": The high premiums are the effect, not the cause, of a system that is broken. The reason the premiums are so high is the entire system is corrupt. Big business, including the doctor-business and the insurance business and the big pharma business are all on the same team with government. Forced participation in a busted, corrupt system isn't the answer, and neither side seems to have latched on to that little fact.

More to come and it should be an interesting ride . . .

Take your 2012 employment litigation budget and add 50%

2011-09-27T11:30:00.000-05:00

If the government can't bribe or cajole employers into hiring, they have another idea . . .

Threaten them.

President Obama has proposed legislation that will prohibit discrimination In hiring against the unemployed just as it prohibits discrimination based on race, sex, religion, national origin and age.

Net-net: Plaintiffs' lawyers full employment act. Anyone unemployed who identifies himself as unemployed and who does. Ot get a job can file a charge which you will be required to defend.

More can be found here at the New York Times:

http://www.nytimes.com/2011/09/27/us/politics/obama-proposes-adding-unemployed-to-protected-status.html?pagewanted=print

New CrediblyConnect Feature: "Best Reads Of The Week"

2011-09-24T08:36:00.000-05:00

Each weekend I will be blogging my "best reads of the week," along with their links. Thanks to everyone who sends me salient, creative and critical articles. Many of them will appear here each week . . .

Economics

America's Debt Woe Worse Than Greece (And an out of the box way to fix it)
http://www.cnn.com/2011/09/19/opinion/kotlikoff-us-debt-crisis/index.html?hpt=hp_t1

Every Age Group In America Is Getting Poorer, Except One
http://www.businessinsider.com/every-age-group-is-getting-poorer-in-america-except-for-one-2011-9

Student Default Rates Rise Sharply (Especially in For Profit Universities)
http://www.nytimes.com/2011/09/13/education/13loans.html?_r=1

Forgive Student Loans? Worst Idea Ever
http://www.freakonomics.com/2011/09/19/forgive-student-loans-worst-idea-ever/

US Housing Starts Fall 5% in August
http://www.marketwatch.com/story/us-housing-starts-fall-5-in-august-to-571000-2011-09-20?siteid=bnbh

Feds Discouraging Americans From Saving Money
http://sayanythingblog.com/entry/feds-discouraging-americans-from-saving-money/

Poverty In America: A Special Report
http://www.zerohedge.com/node/438067

US Poverty Rate Hits Record High In 2010
http://www.charlotteobserver.com/2011/09/13/2605070/census-us-poverty-rate-hit-52.html

Median Male Worker Makes Less Now Than 43 Years Ago
http://www.zerohedge.com/news/median-male-worker-makes-less-now-43-years-ago

Middle Class Death Watch: As Poverty Spreads, 28% Fall Out Of Middle Class
http://www.truth-out.org/middle-class-death-watch-poverty-spreads-28-americans-fall-out-middle-class/1316275699

Only Advanced Degree Holders See Wage Gains
http://blogs.wsj.com/economics/2011/09/19/only-advanced-degree-holders-see-wage-gains/tab/print/

Wealthiest 5% Take Most Of Gains
http://blogs.wsj.com/wealth/2011/09/16/the-top-5-grabbed-most-of-the-americas-gains/?mod=e2tw

For US Workers, The Lost Decade of Opportunity
http://www.theglobeandmail.com/report-on-business/economy/for-us-workers-the-lost-decade-of-opportunity/article2169290/singlepage/#articlecontent

More Than One-Fifth of Mortgages Underwater
http://www.dsnews.com/articles/more-than-one-fifth-of-mortgages-underwater-report-2011-09-13

Doug Casey Answers The Hard Questions About Hard Times (Excellent Interview)
http://www.caseyresearch.com/doug-casey-answers-hard-questions-about-hard-times

Politics

The Great Obama Catharsis
http://pajamasmedia.com/victordavishanson/the-great-obama-catharsis/?print=1

Is Romney Obama lite?
http://pajamasmedia.com/blog/romneys-electability-card-is-a-joker-to-perrys-four-aces/?singlepage=true

Another Judge Finds ObamaCare Unconstitutional
http://www.zerohedge.com/news/median-male-worker-makes-less-now-43-years-ago

Government Inefficiencies and Corruption

Man Works One Day For Chicago - Receives $158,000 pension
http://globaleconomicanalysis.blogspot.com/2011/09/man-works-1-day-for-chicago-goes-on.html

Why A Patriotic American Became An Expatriate
http://www.escapefromamerica.com/2011/09/patriotic-american-dave-vonkleist-expat-in-argentina/

Scientists On Trial For Failing to Predict Italian Earthquake (Overcriminalization taken to the extreme)
http://www.msnbc.msn.com/id/44596501/ns/technology_and_science-science/t/scientists-trial-failing-predict-italian-quake/#.Tn3Nntl5mSN

Does Fear of Losing Your Job Make You More Productive? Creative?

2011-09-23T12:42:00.000-05:00

Good news for employers - employees are afraid of leaving with nothing but their lunchbox and family photos work harder.

Bad news for employers - those same employees are less creative in their work.

"Lack of job security makes people more productive and less creative. This may say a great deal about the era we are in right now.

"Organizations frequently downsize in the hopes of creating a ‘lean and mean’ company able to be flexible and quick to adapt to changing environmental needs. The purpose of the current research was to assess the effects of job insecurity on productivity, counterproductivity, and creativity in a simulated organizational environment and a field setting.

"In the first study, 104 non-traditional undergraduate students (M= 30.48 years) participated in a laboratory experiment that manipulated the threat of lay-offs (job insecurity) and measured creativity and productivity over two time periods. Compared to control group participants, results indicate that participant productivity increased in the condition of higher levels of job insecurity, whereas creative problem solving decreased.

"In the second study, 144 employees in five organizations completed a survey measuring their job insecurity perceptions, enactment of counterproductive work behaviours, and creative problem-solving ability. Regression analyses indicate that job insecurity predicted lower creativity scores, yet was also related to lower numbers of counterproductive work behaviours.

"Taken together, these studies suggest that job insecurity may have adverse effects on creativity, yet moderately beneficial effects on productivity. Results are interpreted in light of the increasing prevalence of job insecurity and organizational downsizing in today's workplace."

Source: "Productivity, counterproductivity and creativity: The ups and downs of job insecurity" from Journal of Occupational and Organizational Psychology, Volume 80, Issue 3, pages 479–497, September 2007

Courtesy of: http://www.bakadesuyo.com/

"What's An NLRB?"

2011-09-22T17:14:00.000-05:00

A recent survey illustrated the importance of the National Labor Relations Board in the minds of the General Public, as follows:

"Do you have a favorable or an unfavorable opinion of the National Labor Relations Board? If you do not have an opinion or have never heard of it, just tell me and we’ll move on."

13%FAVORABLE (NET)
5%STRONGLY FAVORABLE
8%SOMEWHAT FAVORABLE

15%UNFAVORABLE (NET)
6%SOMEWHAT UNFAVORABLE
9%STRONGLY UNFAVORABLE

44%HEARD OF/NO OPINION
18%NEVER HEARD OF

9%DO NOT KNOW (VOLUNTEERED)
1%REFUSED (VOLUNTEERED)

That's right. 44% of America either have never heard of this 75 year old federal agency or just don't give a _hit. Another 15% don't like the idea. That's nearly 60%. You couldn't do better if you asked 1000 people the time of day.

Which leads me to a thought -- let's do away with the NLRB.

I made this argument in a speech recently in which union officials were present and it goes something like this . . .

1. The NLRB is, well, worthless. No, they are less than worthless. They don't do much except interfere with the free market for labor, and they also interfere with employees rights' to exert economic pressure on their employers, e.g., secondary boycotts, hot cargo agreements, reserved gates, etc. In other words, they stop unions from doing the only thing that works -- shut the damned facility down with a mass of humanity at the entrances and exits. In short, organized labor is powerful not because of the government but in spite of the government -- because they can (in some cases) get employees to withhold services and close facilities.

2. Labor, all of it, is a commodity. Let the market decide what it is worth. Propping up $10 an hour labor to $20 an hour only insures the ultimate failure of the business involved and loss of jobs. In the case of government jobs, it results in people objecting to having to pay for whatever they are getting, or not getting. Hell, some people even leave the country out of frustration.

3. The battle between labor and capital shouldn't be sanitized. It's a battle, after all. Let's get it on! No cops, no federal agencies, no badges. Mano a mano. As long as no one brings a gun to the party, let's take the gloves off and resolve the dispute over who gets what. To insert the NLRB into the mix only delays the inevitable result and makes it a whole lot more expensive.

4. And, dear clients, this is the best of all. You wouldn't have to deal with me, a relentless critizer and bitcher and complainer who always believes the steaming pile in the floor was left there by you.

So, write your Congressman and tell him/her to "End the NLRB." Who knows, as the economy burns to to the ground, the government is going to be looking for agencies to eliminate and my vote is firmly in the court of those who ask, "What's an NLRB?"

Ready For A Facebook "Flash Mob?"

2011-09-22T10:55:00.000-05:00

Read the current account from the labor dispute at Kroger and ask yourself, "Is my company ready"

Kroger union workers stage 'Facebook flash mob'
Date: Monday, September 19, 2011, 10:53am EDT
Kroger Co. employees from Ohio Valley stores posted numerous messages on Kroger’s Facebook page on Wednesday, expressing concerns about unfair treatment and wages.
The United Food and Commercial Workers Local 23 called it a “Facebook flash mob,” posting a stream of comments on the page starting at 4 p.m. and continuing until about 7 p.m. yesterday.
“This action is an outgrowth of the Kroger employees’ concern over wages, their passion for their jobs and their customers, and their growing frustration with Kroger,” Tony Helfer, president of the UFCW Local 23, said in a news release. “The idea arose because the employees in these stores have expressed their concern and frustration on Facebook and used it to support each other very actively. This comes from them.”
UFCW Local 23 represents about 1,000 workers at 12 Kroger stores in West Virginia and Ohio. Kroger and the union have been in labor negotiations, though workers have already authorized a strike.
Keith Dailey, Kroger’s spokesman, said the company’s focus remains on reaching an agreement at the bargaining table.
“Social media is an open medium, and we aren’t the first company to see someone attempt to use a Facebook page for PR and I’m sure we won’t be the last,” Dailey said.
Negotiations are scheduled to resume Friday after talks broke down before Labor Day.
People posting as Kroger employees continued to make comments on Kroger’s page throughout the week.
On Kroger’s Facebook page, Tonya Gatts posted, “I know you keep deleting my posts but I am hoping someone is still reading them, so they will understand the employees, we really do deserve a raise and affordable insurance, just as much as the managers did. Thank you.”
Kroger has put pay increases, affordable health care and 100 percent company-paid pension on the bargaining table, Dailey said.
Cincinnati-based Kroger operates 2,439 supermarkets and multidepartment stores in 31 states. The company also operates 788 convenience stores, 361 jewelry stores, 1,046 fuel centers and 40 food processing plants in the U.S

Really, don't kill the messenger . . .

2011-09-20T11:34:00.002-05:00

In 30+ years of working with senior managers in corporate America, one of the most glaring weak points in most has been their open display of disdain for bad news. Indeed, in many, if not most, organizations, communication is hindered by the fear of being the bearer of bad tidings and I have often wondered how those companies would have been better served had there been a culture of openness.

A new study of 300,000 employees confirms not only my anecdotal perspective that there is a real problem, but goes further to confirm that those companies where there is no fear of communicating bad news are nearly three times as profitable.

The study is found here:
http://www.executiveboard.com/corporate-integrity/pdf/Open-Door-Policy.pdf

IRS, Department of Labor and States Targeting Employers Using Independent Contractors

2011-09-17T16:18:00.000-05:00

In a first joint strike, the Department of Labor is teaming up with the Internal Revenue Service and State governments to go after home builders and others who allegedly misclassify emplyees as independent contractors, thereby avoiding the payment of overtime compensation and the withholding of taxes.

According to a report by the Wall Street Journal, "allegations of worker misclassification in the construction industry generally come in two forms: that builders misclassify laborers they hire directly as independent contractors, or they knowingly hire subcontractors who misclassify workers. The Labor Department's efforts focus at least in part on holding large builders accountable for classification violations by their subcontractors, according to person familiar with the matter."

A statement by the Department of Labor makes it clear this is only one of many industries they intend to target, including hospitality, janitorial services, agriculture, day care, health care and restaurants.

Bottom line: If you utilize independent contractors, regardless of industry, you are vulnerable. The proper classification for a worker depends on a number of sometimes complex factors including how much control or direction an employer wields over the workers. Contact us if you have questions.

You can find the Journal article here:
http://online.wsj.com/article/SB10001424053111903927204576574892314453196.html?mod=WSJ_hp_LEFTWhatsNewsCollection

The Economy . . . Getting It Real

2011-09-16T09:40:00.001-05:00

While I do not provide economic counsel to my clients . . . I do occasionally throw water on particularly terrible ideas, like this one . . .

"Jim, we are thinking the economy is turning up. Might start hiring in anticipation of increased demand," eager anticipation in his voice.

"Really? You want to hire "in anticipation" of demand, in the face of continuing intractable unemployment, a long term poor housing market, low business confidence, unsustainable growth in sovereign debt, uncertain political and global leadership, and debt problems in Europe?"

"Either you are very lucky and know it, or you don't read the newspaper," I reply, non-plussed. "How about you wait and see some of that "anticipated demand" before hiring?" I add.

"You are negative," came the disappointed reply.

"Correct, I am."

Peter Schiff Deconstructs Obama's Jobs Bill

2011-09-15T18:54:00.000-05:00

20 minutes worth your time . . . Peter Schiff's recent testimony before Congress . . .

http://www.youtube.com/watch?v=_BHLguFEN3M&feature=youtube_gdata_player

Competing to Hire The Best and to Motivate the Rest

2011-09-15T08:00:00.000-05:00

"Surveys have suggested that about four out of five employees would leave their current job if they could, but most think they would have trouble finding another one at the moment. A global Gallup survey found that at the average big firm only 33% of employees describe themselves as fully engaged in their work, 49% say they are not engaged and 18% say they are “actively disengaged”. At what Gallup calls “world-class” companies, the proportions are 67%, 26% and 7% respectively."

Sound familiar?

An excellent article in this week's Economist I commend to your review . . .

http://www.economist.com/node/21528436/print

With a view from an employee's perspective . . .

2011-09-07T20:28:00.000-05:00

Courtesy of: www.zerohedge.com

An Obituary For Labor Day, 2011

2011-09-05T13:01:00.000-05:00

There is little I can say about the economic and political situation that I have not already said in this blog. So, instead, I thought I would share an obituary that came to me via a friend that acts as either a predictor, or as a warning, your choice, of what is in store for us if change is not on the horizon.

In 1887 Alexander Tyler, a Scottish history professor at the University of Edinborough, had this to say about the fall of the Athenian Republic some 2,000 years prior:

"A democracy is always temporary in nature; it simply cannot exist as a permanent form of government. A democracy will continue to exist up until the time that voters discover that they can vote themselves generous gifts from the public treasury. From that moment on, the majority always votes for the candidates who promise the most benefits from the public treasury, with the result that every democracy will finally collapse over loose fiscal policy, (which is) always followed by a dictatorship."

"The average age of the world's greatest civilizations from the beginning of history, has been about 200 years. During those 200 years, these nations always progressed through the following sequence:

From bondage to spiritual faith;
From spiritual faith to great courage;
From courage to liberty;
From liberty to abundance;
From abundance to complacency;
From complacency to apathy;
From apathy to dependence;
From dependence back into bondage."

As we watch government struggle to solve our problems, i.e., the same ones our elected representatives created, think about where we might be in this progression and more importantly how to reverse it. I suggest that looking to government to solve the problems we now face is akin to asking the arsonist who lit your house on fire to put it out.

Government Has No Tools To Fix What Ails Us - Time To Man Up

2011-09-02T10:16:00.002-05:00

14 million Americans are unemployed, and the real number is actually much larger.

So, what's news? Most of the same 14 million are going to be jobless this time next week, month and probably next year.

But, you ask, "What about the President's new jobs program?" And you would be referring to the upcoming, "Obama does his impersonation of FDR," live on primetime TV.

Dead on arrival. It took Congress and the White House two days to agree on a time for the President to address Congress. Bohner has already scheduled his rebuttal and he hasn't even heard the President's plan to insert government further into America's rectum to find the source of our pain.

Teamsters president Jimmy Hoffa, Jr., on the other side of the ledger, already doesn't like it, either -- it doesn't go far enough. He hasn't heard the President's grand plan, either, but according to Jimmy it needs to give everyone a good government job fixing something. Jimmy doesn't know, or perhaps he forgot that the US government is dead broke, can't afford a stick of gum on a cash basis, and but for the printing press, would have burned up it's creditors long ago.

We have a problem here - a fundamental belief that government is somehow going to pull out the right tool and make it all better. The Republicans and Democrats are just arguing over whether the tool should be a scalpel or a meataxe.

In fact, it should be neither. Government isn't the solution. It is the problem. It is why we find ourself on this predicament. What we have is not an employment problem. That is not a cause. It is the result of our inability to compete in a global marketplace. We have lived on our reputation and our credit for too long and now reality is setting in and our creditors want to be paid in something other than the US dollar which hasn't had a good run over the last 100 years, having lost 94% of it's value. The Federal Reserve is working overtime to insure that the last 6% meets the same fate.

The White House reminds me of the old USSR - central planning via next five year plan. Sounds good, but didn't work out so well for the Ruskies.

The National Labor Relations Board is a good example. This agency has become so politicized, so liberal, that some Republicans are urging it's only Republican member to resign, not in protest, but so that the remaining members will not have a quorum and effectively shut the agency down. Based on it's recent decisions that turns labor law on it's head and anticipating, as we should, that they fully intend to shorten the period between a union petition and the date employees vote such that only one side (the union side) has time to be heard, it is understandable. And, the NLRB's attempt to force Boeing to close a billion dollar plant in South Carolina and move the work back to it's union plants in Washington state is breathtaking. If the government wins, it would not be surprising to see all Boeing aircraft being made in Mexico, Brazil and even China in not too many years.

The Republicans have no better record even though they are assuming the noble pose. George W. Bush still is undefeated in profligate spending and running up the national debt. He just did it in a different way -- by blowing things up and letting the global financial elite not only run the country, but own it.

No one is going to say it, so I will. It is time for a good old fashioned Depression to fully deleverage America and start over again with a clean balance sheet.

And whether I say it or not, that is the most likely scenario, sooner or later.

Government has no tools in it's bag to fix this one.

It Really Is About Relationships . . .

2011-09-01T12:07:00.001-05:00

In the book "Why Work Isn't Working Anymore," now almost 10 years from its writing, Fritz Aldrine and I hypothesized (based on statistical as well as substantial anecdotal evidence) that what was missing in most workplaces was satisfaction and further that the failure of employers to engender and support positive relationships with co-workers was the primary reason.Now, 10 years later, "using the rich data set of the German Socio-Economic Panel (GSOEP) this article analyzes the effects of job characteristics on job satisfaction as well as the conditions under which low job satisfaction leads to job search, and under which job search leads to job changes. Individual fixed effects are included into the analysis in order to hold unobserved heterogeneity constant. According to the empirical results, the strongest determinants of job satisfaction are relations with colleagues and supervisors, task diversity and job security. Furthermore, job satisfaction is an important determinant of the self-reported probability of job search, which in turn effectively predicts actual job changes. The effect of job search on the probability of changing jobs varies with job satisfaction and is strongest at low levels of job satisfaction. The effects of job dissatisfaction on job search and of job search on quits are stronger for workers with lower tenure, better educated workers, workers in the private sector and when the economy and labor market are in a good condition."See: "The Interaction of Job Satisfaction, Job Search, and Job Changes. An Empirical Investigation with German Panel Data" from JOURNAL OF HAPPINESS STUDIES, Volume 10, Number 3, 367-384, via http://www.bakadesuyo.com/Takeaway: Satisfied and happy employees are more productive. Satisfaction is most predictive among those employees who share positive workplace relationships. Providing opportunities and training in cultivating positive and functional relationships in the workplace is time well spent.

Beyond What Point Is The Money Not Worth Earning?

2011-08-31T18:17:00.002-05:00

For most, the question is a non-sequitur. More money equals more happiness. So more is always better. And more never becomes enough if only because there is always more. So goes the argument . . . Unfortunately for those who operate on this paradigm, the news is not good. Studies of Americans at different income levels reveal the following:"...money might bring you some happiness, but beyond that magic point, any additional income isn't going to make you happier." That magic point has, apparently, been deduced as approximately 75,000 USD a year, according to a recent study by two Princeton University researchers who looked at the data of approximately 450,000 Americans. What they found was that as income increased, emotional well-being also went up, but the line flattened out from the $75,000 mark. "Perhaps $75,000 is a threshold beyond which further increases in income no longer improve individuals’ ability to do what matters most to their emotional well-being," the study reported. This means that people in the US who make $75,000 US a year are just as happy as those who make $150,000. Any higher income is not going to increase emotional well-being, but a lower income is associated with less emotional well-being."Once basic needs of food, shelter, clothing (and some say a basic education) have been met, the rest is window dressing. Many believe this precept at an intellectual level, but it is hard to find more than a handful who have made the choice to have less as a way to happiness, compared to the far more common paradigm of having more, or at least wanting more. It is more than an interesting fact. Courtesy of Knowledge@SMU via Barking Up The Wrong Tree

Employees Fear More Layoffs - Correctly

2011-08-31T10:15:00.000-05:00

as one supervisor I recently interviewed said as he looked out a plant window over a community decimated by closures and layoffs, "Welcome to hell.".

Statistically, he is on the money.

A recent Gallup poll shows that 31% of American employees believe the next layoff will be soon and they will be victims.

Paranoia?

Hardly.

US employers announced plans to lay-0ff 51,144 people in August up 47% from a year ago, according to a just completed survey by Challenger Gray.

There were only 90,000 jobs created last month in an economy that needs over 200,000 just to take care of those entering the workforce.

So, it can't be surprising that consumer confidence fell 15 points (6th largest single month drop ever) to levels not seen since the bottom fell put in 2009.

August will close out the markets with a sickening loss of at least 6%, enhancing the altogether correct belief among many employees that "I will never be able to retire."

Home prices are still well below where they were a year ago, and food and clothing are up no matter what government's skewed inflation numbers may indicate to the contrary.

What We Learned From The Great Recession

2011-08-29T08:13:00.002-05:00

After the most severe recession in a generation, some would say several generations, one would think hard lessons would be learned -- the primary ones of which would be to stop spending and start saving. And, for a few brief quarters, it appeared the cure had taken.

But, not so fast . . .

This morning it was reported Americans increased their spending in July much more than expected. Indeed, spending jumped 0.8%, the biggest gain in five months, says the Commerce Department.

Ironically, income rose only 0.3%.

So, you may be asking, "Where did the American consumer come up with the other .5%?"

Out of his savings, of course. The saving rate slowed to 5.0, down exactly a half percent from the month before.

Of course, Wall Street heralded the disturbing development as good news, the Wall Street Journal trumpeting it as "a surprising sign of strength for the economy going into the second half of the year," ignoring the fact it is completely unsustainable.

Consumerism is the methamphetamine of the average American, and the addiction will prove equally as dangerous.

Litigation Nation: Another Headwind America Can No Longer Sustain

2011-08-28T14:36:00.000-05:00

15 million lawsuits will be filed in 2011 across the U.S.
A new lawsuit every 2 seconds
One lawsuit for every 12 adults
21 U.S. states are facing a medical liability crisis
$248.1 billion = the cost to the U.S. tort system (personal injury) in 2009, or $808 per person
The cost per capita of tort related lawsuits has increased 800% between 1950 to 2009

As the United States competes for its historic position at the top of the economic heap, some would say to remain the leper with the most fingers, there are dynamics that are simply inexplicable, indeed disturbing. One of these is America as the nation of litigation and its cost to business, taxpayers and government.

This is not a new phenomenon, but one that remains unsolved indicating either a satisfaction with the way it is or an active negligence toward the issue by an otherwise apathetic General Public.

Regardless, it is unsustainable. The headwind caused by a nation of victims with a legal system willing to litigate any foul, or perceived foul, is simply too much to bear when added to our uncompetitive compensation, lagging educational system, and the collective assumption that the only thing left is to haggle over the ruins. But, perhaps that is what victims do.

An excellent graph of this sad dynamic can be found at: http://www.zerohedge.com/contributed/infographic-america-lawsuit-happy-nation

NLRB Exceeding Its Mandate And Taking Away Your Rights Simultaneously

2011-08-27T14:07:00.000-05:00

We, the Sheeple, have become so used to Big Government treading on and over our rights that something as seemingly insignificant has having to post still another notice in the workplace is getting little reaction.

And, that's too bad.

Regulation is incremental -- sort of like going from:

1. the parking lot to your airplane, then

2. from the parking lot to a metal detector to your airplane, then

3. from the parking lot to a x-ray device that strips your clothes and photographs your body.

I suggest that had we gone from the parking lot to a naked photo scanner there would have been some serious push back.

The same is true here.

I took the following from today's post by the National Right To Work Foundation that summarizes it as well as I have seen it done. I commend it to your review . . .

" . . . the NLRB has two chief functions.

"First, it administers union certification and decertification elections. Second, it adjudicates cases when workers, employers, or union officials file unfair labor practice charges against either unions or companies.

"But now the NLRB has invented out of whole cloth a new unfair labor practice without Congressional approval. No other federal agency has ever made it unlawful to fail to post a notice that wasn't required by Congress.

"Any job provider that fails to post the biased notice could find itself forced into a lengthy and costly legal battle.

"Mom and Pop can't afford that.

"What makes the new rule even more troubling is that anyone can file the unfair labor practice charge -- not just the company's employees.

"The new rule hands aggressive union organizers another weapon in so-called "corporate campaigns" in which they drag a business through the mud in the media with frivolous accusations of employer misconduct.

"Union bosses only back off after the business agrees to throw its employees under the bus and let the union launch an abusive "card check" organizing campaign.

"This "top-down" union organizing strategy frequently involves a team of union agents showing up at workers' homes and browbeating them with misleading statements, outright lies, and even intimidation until the worker agrees to sign a so-called "union authorization card" instead of a secret-ballot election.

"Meanwhile, experts believe the NLRB is scheming to impose card check "neutrality agreements" on businesses found to have committed labor law violations.

"Media reports in the Boeing case revealed that the NLRB's Acting General Counsel tried to force Boeing into a settlement to let union officials gain monopoly bargaining power over employees through card check.

"This latest power grab is yet more evidence of its desperate desire to pay off Big Labor before the next election, and it's an invitation to Big Labor to run card check campaigns everywhere in America.

"Moreover, the posting's pro-forced unionism bias couldn't be clearer.

"No mention of workers' right to decertify an unwanted union.

"No mention of workers' right to demand a secret-ballot election if aggressive union organizers try to strong-arm their way into a workplace.

"No mention of workers' right to divert forced union dues to a charity if they have a conscientious, religious objection to union membership.

"No mention of workers' right to refrain from financially supporting union-boss politics or, if they work in a Right to Work state, to opt out of paying any forced "fees."

"Federal labor law is supposedly intended to help workers protect their rights.

"The biased and ideologically-charged Obama Labor Board, however, has turned into an organizing tool for Big Labor.

"And it's all designed to give union bosses and unelected bureaucrats even more power over workers and job providers alike -- at a time when our economy continues to languish."

Advice: Call your Senators, Congressmen and join the National Right To Work Foundation. And, explain this Notice and the law in a balanced, accurate way to your employees before posting. Your right to free speech is also under attack but for now you can still state the facts, and your opinion.

National Labor Relations To Require Employers To Post Pro-Union Notices In The Workplace

2011-08-25T09:19:00.000-05:00

See notice below and link from the National Labor Relations Board.

Still another union bailout by the Obama Administration.

At the behest of unions who are mostly too lazy to get out and organize, employers will now have to assist. Starting November 11, 2011 every employer is now going to have to post a notice in the workplace that is, in effect, pro-union.

It may sound like much ado about nothing but it is a lot more . . . posting these notices is essentially an invitation to union organizing, an invitation to your employees to call a union anytime they are unhappy about anything. What's worse is that the notice makes it sound as if the employer is neutral.

Recommendation: A ommunications plan should be developed to put this notice into proper context.

Notice from National Labor Relations Board

The National Labor Relations Board has issued a Final Rule that will require employers to notify employees of their rights under the National Labor Relations Act as of November 14, 2011.

Private-sector employers (including labor organizations) whose workplaces fall under the National Labor Relations Act will be required to post the employee rights notice where other workplace notices are typically posted. Also, employers who customarily post notices to employees regarding personnel rules or policies on an internet or intranet site will be required to post the Board’s notice on those sites. Copies of the notice will be available from the Agency’s regional offices, and it may also be downloaded from the NLRB website.

The notice, which is similar to one required by the U.S. Department of Labor for federal contractors, states that employees have the right to act together to improve wages and working conditions, to form, join and assist a union, to bargain collectively with their employer, and to refrain from any of these activities. It provides examples of unlawful employer and union conduct and instructs employees how to contact the NLRB with questions or complaints.

The Board received approximately 6,500 comments during the 60-day comment period following publication of the Proposed Rule in the Federal Register, and accepted an additional 500 that arrived after the deadline. In response to the comments, some parts of the rule were modified. For example, employers will not be required to distribute the notice via email, voice mail, text messaging or related electronic communications even if they customarily communicate with their employees in that manner, and they may post notices in black and white as well as in color. The final rule also clarifies requirements for posting in foreign languages. Similar postings of workplace rights are required under other federal workplace laws.

Board Chairman Wilma B. Liebman and Members Mark Gaston Pearce and Craig Becker approved the final rule, with Member Brian Hayes dissenting.

The rule will be published in the Federal Register tomorrow, and will take effect 75 days later. A fact sheet with further information about the rule is available.

12.5%

2011-08-22T10:55:00.000-05:00

12.5%

That number reflects the minimum percentage of Americans who are unemployed.

9.1%, the party line number, is pure fiction.

Why? Because it doesn’t include Americans who have left the workforce temporarily, mostly due to being "discouraged," a cruel euphemism used by government to remove the chronically unemployed off the books.

While Federal Reserve economists pretend that the unemployment picture has improved since their last intervention, the facade is disingenuous at best.

If we look back to 2007, we can see where the missing got lost. Then, the labor participation rate was 66.4%. In July 2011, it hit a new recessionary low of 63.9%. That 2.5% might not seem like a lot, but it would have meant nearly 6 million more people in the labor force. If you add those people into the workforce, then the unemployment rate last month would have hit a new high of 12.5%, much higher than the official 9.1% reported.

What Percentage Of Your Employees Need To Buy "The Vision" To Make A Difference?

2011-08-15T13:36:00.001-05:00

Every company of any size has a "vision."

Most companies of all sizes have failed to inculcate that vision into its workforce.

Most blame it on the size of the job, meaning the belief that a large majority must adopt the vision and be engaged in it.

Not true.

The good news is not many employees must believe. Indeed, 10% who are true believers can will change a culture.

"Malcolm Gladwell's The Tipping Point was a great examination of how little trends become massive phenomenons . . . the key number is 10%:

"Scientists at Rensselaer Polytechnic Institute have found that when just 10 percent of the population holds an unshakable belief, their belief will always be adopted by the majority of the society. The scientists, who are members of the Social Cognitive Networks Academic Research Center (SCNARC) at Rensselaer, used computational and analytical methods to discover the tipping point where a minority belief becomes the majority opinion. The finding has implications for the study and influence of societal interactions ranging from the spread of innovations to the movement of political ideals.

"When the number of committed opinion holders is below 10 percent, there is no visible progress in the spread of ideas. It would literally take the amount of time comparable to the age of the universe for this size group to reach the majority," said SCNARC Director Boleslaw Szymanski, the Claire and Roland Schmitt Distinguished Professor at Rensselaer. "Once that number grows above 10 percent, the idea spreads like flame."

"An important aspect of the finding is that the percent of committed opinion holders required to shift majority opinion does not change significantly regardless of the type of network in which the opinion holders are working. In other words, the percentage of committed opinion holders required to influence a society remains at approximately 10 percent, regardless of how or where that opinion starts and spreads in the society."

That's the good news.

The bad news is getting 10% of any group to buy into a paradigm-shifting belief has proven difficult, sometimes impossible, in most organizations.

Wny? Either an ineffective message or an ineffective messaging system.

Either is not fatal. The effort to inculcate a vision can be successful with the right message, one that is not only true, but believable, achievable, and specific, one with a communications system in place, one that utilizes multiple modes of communication and all levels of management and supervision, one that is integrated and for which results are tracked via survey and anecdotal follow-up.

If you would like more information, e-mail jimkarger@mac.com

Source: Science Daily
Source: Barking Up The Wrong Tree

Was Karl Marx Right After All?

2011-08-14T17:47:00.001-05:00

For sure Marx didn't get it right regarding socialist theory, but according to economist Nouriel Roubini, a/k/a "Dr. Doom," who predicted the 2008 financial crisis down to the last detail, Marx got it right when he criticized capitalism.

Marx argued that capitalism had a fundamental contradiction that would cyclically lead to crises, and that, at minimum, would place pressure on the economic system.

Companies, Roubini said in a Wall Street Journal interview, are motivated to minimize costs, to save and stockpile cash. Good on its face, but it leads to less money in the hands of employees, which means they have less money to spend and flow back to companies.

In the current financial crisis, consumers, in addition to having less money to spend due to the above, are also motivated to minimize costs, to save and stockpile cash, magnifying the effect of less money flowing back to companies.

“Karl Marx had it right,” Roubini said, "At some point capitalism can self-destroy itself. That’s because you can not keep on shifting income from labor to capital without not having an excess capacity and a lack of aggregate demand. We thought that markets work. They are not working. What’s individually rational . . . is a self-destructive process.”

We are not economists here, but there is plenty of evidence that Roubini has it right (which may mean Marx had it right, too.) Savings rates soared after the crisis, both corporate and individual, with corporate balance sheets ballooning with cash (not being paid as wages and not being spent to hire new employees). Employees, and former employees, were just surveyed and provided the worst consumer confidence number since 1980, leading one to wonder where the demand for products and services will come from, and if it doesn't come will lead companies to continue to hoard cash, not hire, and continue the cycle.

Interesting times, indeed.

(See: International Business Times, "Nouriel "Dr. Doom" Roubini: "Karl Marx Was Right" for Wall Street Journal interview summary.)

Just How Important Are Friendships At Work?

2011-08-11T09:15:00.000-05:00

We know that as an element of workplace satisfaction, friendships at work are important.

It appears they are also important in getting promoted. This courtesy of "Barking Up The Wrong Tree":

Employees who are the most unwilling to develop workplace friendships seem to be the least likely to be promoted, according to research by Shawn Achor, author of The Happiness Advantage. In a blog post on HBR.org, he says he divided employees into quartiles on the basis of their willingness to initiate work relationships, such as by inviting coworkers out for drinks. Just 5% of the bottom quartile were extremely engaged in their work, and just 7% had been promoted in the past year. About 40% of employees in the other quartiles had received promotions.

Source: HBR Daily Stat

It might also keep you alive:

Dr. Sharon Toker of the Department of Organizational Behavior at TAU's Leon Recanati Graduate School of Business Administration says that employees who believe that they have the personal support of their peers at work are more likely to live a longer life. "We spend most of our waking hours at work, and we don't have much time to meet our friends during the weekdays," explains Dr. Toker. "Work should be a place where people can get necessary emotional support."

Dr. Toker and her TAU colleagues Prof. Arie Shirom and Yasmin Alkaly, along with Orit Jacobson and Ran Balicer from Clalit Healthcare Services, followed the health records of 820 adults who worked an average of 8.8 hours a day through a two-decade period. Those who had reported having low social support at work were 2.4 times more likely to die sometime within those 20 years, says Dr. Toker.

Source: Science Daily

Buy The Ticket, Take The Ride . . .

2011-08-04T16:34:00.000-05:00

"Buy the ticket, take the ride."

That fine phrase came from none other than Dr. Gonzo himself, Hunter S. Thompson. In the context of writing, it means that once you've penned it and released it, you have no idea where it will end up but you can absolutely count on someone remembering it at the wrong moment.

Indeed, on more than one occasion, I've found my old newspaper columns that had been taped on refrigerators for years torn off and in my mailbox with notes to the effect, "Remember writing that, you fool?"

And, I always remember.

Tim Geithner has to remember, too. It was only a year ago that he wrote an article mistitled, "Welcome To The Recovery" in none other than the New York Times. In it he nearly beat himself to death patting his boss on the back for saving the world . . .

"The economic rescue package," he said, "[the one] that President Obama put in place was essential to turning the economy around. The combined effect of government actions taken over the past two years — the stimulus package, the stress tests and recapitalization of the banks, the restructuring of the American car industry and the many steps taken by the Federal Reserve — were extremely effective in stopping the freefall and restarting the economy."

Fast forward until, say, today. Today would be a good day to look at that prurient pontification, that altogether incredible claim of unmitigated success.

The Dow was down 512 points today, making it 9 days of 10 that the markets were shredded, and that didn't happen because things are going so well.

No, it appears the "stimulus" package(s) that Timmy revered did, well, nothing, except add zeros to already disturbing debt numbers.

The "restructuring," a foul euphemism for bailing out the rich and their banks did, well, just that -- kept the rich rich.

And the unidentified "steps taken by the Federal Reserve," only one of which I remember -- the relentless printing of money -- had the net effect of delaying today and the many days that will follow today.

The cat's out of the bag. The emperor is butt-naked and almost everyone knows it. Except for the media, of course, who know it but are dominated by those in whose best interest it is that average Americans don't march to their houses in the middle of the night and start burning them down.

Joe is told to stick with his "buy and hold strategy," which over the last 10 years has translated into a "buy and lose your ass strategy."

Those of us who can watch a ticker on and off during a day can avoid some of the carnage, not all, but a lot of it.

But what about poor Joe Lunchbucket? He has his "retirement" tied up in his 401k or IRA and when he gets home tonight after a hard day's work he is going to get on the Internet and get some very bad news and he will lie his head on his hands and weep and wonder if he will ever be able to retire. Tomorrow some 401k moron or CNBC talking head will attempt to calm Joe by telling him that markets "ebb and flow" and that if he hangs on long enough he has nothing to worry about. It is modernity's version of "bread and circuses."

After all, those who have made millions or billions lying to Joe for the last 30 years don't want Joe and a few million of his friends in the streets in a drunken rage with shotguns and serious grudges to settle, now do they?

No, they don't.

Preparing Your Employees for a Default?

2011-07-24T13:26:00.000-05:00

While we (and nearly everyone else) still believe the Debt Ceiling Show in Washington is just more political theatrics in anticipation of a new show rolling into town next year, there is always a chance one of the actors might accidentally slip off the stage and fall to his death inadvertently taking an audience member or two with him.

You, me and your employees are all in that audience, front row.

So what if we are wrong and egos won't let either side pull out of the tailspin? What if there is an actual default on U.S. sovereign debt?

I'm not sure what would happen, but if this goes on much longer, it would be a nice thing to know and educate your employees on the possibilities, all of which affect them.

Most likely a default on U.S. debt would result in a downgrade of that debt from AAA to something less which, in turn, would result in higher interest rates the government would have to pay to service its massive debt which now approaches 100% of GDP, making further defaults more likely as more bonds reset at those higher rates. (Watch your toilet flush and you'll get the idea.)

So what?

Well, here is so what: interest rates for everyone would likely move up in tandem. Corporations would find it more difficult to borrow, expand and hire, as if they are hiring anyway. Higher rates would result in higher interest being charged for mortgages, pushing the housing market off the edge on which it has been teetering ever since we were told "the recession is over." Credit card interest would likewise rise making it more difficult for the consumer to consume, putting more pressure on business that makes widgets for consumption. This all would lead to an even softer job market, more layoffs, and unfortunately that is where your employees might enter the picture.

Most employers will not broach the subject at all even if there is a default. They will either find it too political or not in their best interest to warn the audience, their employees, of the actor that just fell off the stage. A few will address the topic, educate their workforce, let them know what the contingency plans are for the company, and, if they can say it and mean it -- how the company is going to try to protect its employees and their jobs in the event we hear that dull thud all the actors are still professing to avoid even as they wander nearer to the edge of the stage.

Open First Thing Monday Morning: Great News For Those Whose Jobs Suck!

2011-07-23T16:00:00.000-05:00

So, let's begin with the obvious - your job sucks.

Oh yes it does! Don't go into denial on me now. You saw the title of this blog and you opened it -- for a reason. And that reason is you hate your job, or if you don't hate it, at least we can agree you would be doing something else with your time than working for the man, if you had a choice. Right?

Right.

The good news (which may seem like bad news until you finish this article) is that you are probably going to lose your job soon. Indeed, more employees will be laid off and fewer hired says the US Chamber of Commerce survey of small businesses earlier this month -- 64% of the executives surveyed reported no plans to add workers, while 12% had plans to cut jobs. And, you have almost no chance of hooking up with a big U.S. company unless you are willing to learn Mandarin and move to Shanghai. Didn't think so.

So, about now you are saying to yourself, "Where's the Jack Daniels?" Good question but before shooting your fear and loathing through the whiskey prism, consider this conclusion from a recent study of people just like you . . .

". . . perceived job insecurity ranks as one of the most important factors in employees' well-being and can be even more harmful than actual job loss with subsequent unemployment."

In other words, it is worse right now, worrying about losing the very job you despire, than when you are actually fired (which should be soon.)

Now, let's fast forward. Picture yourself fired. No more crappy job. No more power-freaks telling you what to do. No more alarm clock. No more making crap that ends up in landfills. No more crunching numbers you could care less about. But, alas, no more paycheck either, which is, of course, what you are really worried about.

What happens to your psyche after you have lost the crappy job you are so desperately trying to keep, the one that has sucked the last bit of life out of you?

Still more good news, Lunchbucket . . .

"American workers who are emotionally disconnected from their work and workplace -- known as 'actively disengaged' workers -- rate their lives more poorly than do those who are unemployed. Forty-two percent of actively disengaged workers are thriving in their lives, compared with 48% of the unemployed," so says another study.

Wow! Things are looking up for you if only because you can't get any further down. Today is the worst day you will ever have on this crappy job until they pull the trigger and send you into the street with your "box 'o crap."

So, relax. It is all down hill from here.

Organized Labor's Best Argument - "The American Worker Is Getting Hosed"

2011-07-21T13:11:00.000-05:00

"The American worker is underpaid."

That's it? That's all?

That is all it is going to take to organize a lot of employees if unions can get the message right, if only because there are compelling economics to support it.

The argument they can make, and probably will, was the subject of a Washington Post Opinion piece entitled, "Corporate America's Chokehold on Wages," by Harold Meyerson, executive editor of The American Prospect, a liberal magazine based in Washington. See: http://www.washingtonpost.com/opinions/corporate-americas-chokehold-on-wages/2011/07/19/gIQAL2ieOI_print.html

The economics are these - numbers not taken from some liberal think tank but from Michael Cembalest, the chief investment officer of J.P. Morgan Chase. In “Eye on the Market,” a report forwarded to its private banking clients, he concludes that “US labor compensation is now at a 50-year low relative to both company sales and US GDP.”

Specifically, "profit margins (the share of a company’s revenue that goes to profits) of the Standard & Poor’s 500 companies are at their highest levels since the mid-1960s, despite escalated health-care costs, environmental compliance and other regulations about which corporate American often complains."

He studied the rise in profit margins “from peak to peak” — that is, from their high point in 2000, just before the dot-com bust, to their high point in 2007, just before the financial crisis. In those seven years, profit margins rose from just under 11 percent of the S&P 500’s revenue to just over 12 percent. (Today, they’re near 13 percent.)

Why the increase? “There are a lot of moving parts in the margin equation,” Cembalest writes, but “reductions in wages and benefits explain the majority of the net improvement in margins.” This decline in wages and benefits, Cembalest calculates, is responsible for about 75 percent of the increase in our major corporations’ profit margins.

Or, according to the editorial, "to state this more simply, profits are up because wages are down. That’s not the only reason profits are up — innovation and offshoring factor in as well — but among the reasons, it’s a doozy."

Indeed it is a doozy and as inflation begins to take hold of the American worker at his dinner table, the American employee will reach for help anywhere he can get it.

It Is A Good Thing That Most Americans Are Bad At Math

2011-07-17T15:59:00.000-05:00

It is a good thing that most Americans are bad at math. It is even better that they don't understand statistics, and perhaps the best thing is they are not curious about their history.

Because if they were, there would be a revolution -- about now.

They would know, for example, about a term economists use called "median wage stagnation," which is fancy language for a simple concept: the average American worker hasn't gotten an inflation-adjusted raise since 1973 -- almost 40 years ago. They would also know that the top 1% have tripled their income during the same period of time. 40 years ago, the heads of corporations were paid about 26 times the average employee's wage. Today, that multiplicand is over 300.

This is what revolutions are made of.

But in order to have a revolution one needs a population who is interested, informed and committed to righting the wrongs of history, hardly descriptors of the average American who is fat, uninterested in economics beyond the fantasy of the lottery, suffers from a disturbing lack of imagination, and isn't interested in righting the wrongs of history, mostly because he doesn't know any history and even if he did, seems only interested in being "rich and famous," as if those were vocations.

Admittedly, that is a pretty nasty evaluation of mankind, but it is also, well, accurate.

And, it is why the power elite in our country have no worries, not yet.

History will judge them harshly, no doubt, but Joe Lunchbucket and Mary Cubicle just want to make it to the weekend and have a few dollars to buy something, anything, if only because it eases the pain and fear for a moment.

In the words of a friend, "Their shit is broken."

Indeed it is.

And it is about to be smashed into unintelligible pieces since today in America an employee has a smaller chance of moving up to a higher income bracket than in almost any other developed economy. Good thing he doesn't know that, either. It's the new "Rags to Rags" story that replaces the American Dream which was mortgaged and foreclosed upon.

Now, without a home to use as an ATM, credit cards maxed out, student loans overdue for educations that won't buy living wage jobs, the average American is broke, dead broke. Most hate their jobs but, like a heroin addict hates the fact he is an addict, doesn't stop either from looking for their next fix.

It has taken nearly 40 years to get from there to here. Many a dream has been shattered. Most Americans couldn't last a month without their jobs. 40 million have already hit the wall and are on food assistance. The ones who still believe themselves "upwardly mobile" are mostly hopeless optimists, or are up the ladder in the banking system, or are lawyers ready to haggle over the ruins.

It didn't have to be this way. Jefferson said that the key to a successful democracy is an informed electorate which has slowly disintegrated into Cheeto-chomping TV zombies who substitute their strident volume for knowledge, credit for savings, and still believe it all works out for them in some undetermined future, if only because they have no usable knowledge of how they ended up in the discount aisle of the Dollar Store this Sunday afternoon.

Bernanke Makes Me Want to Wet My Pants

2011-07-09T16:54:00.000-05:00

John Mauldin in a recent CNBC interview observed, ". . . if the market knew what Bernanke and the leadership of the central banks talked about after their third glass of wine, the market would wet its pants."

He took a lot of heat over that remark but he was right. If you take a look at the cold (very cold) and hard (very hard) facts about the employment situation which is tied ever so directly at the hip to the consumer spending situation upon which the manufacturing and services sectors rely, bringing us full circle back to jobs, or better said, the almost complete absence of new jobs, I wouldn't be surprised if Bernanke isn't wetting his pants these days.

If you're Helicopter Ben (or President Obama) these are the facts you can't deny just before shooting your latest "solution" to these "situations" through your whiskey prism:

- there were only 18,000 jobs created in June, the lowest since September 2010. (May was revised down by 29,000 jobs and April down another 15,000.) Let me summarize it for you -- there are no new jobs.

- Total employment fell by 445,000.

- Full-time employment is down by 0.5% in the last year, while part-time is up 3% and that's not because most of these 3% want to work part-time.

- The total number of unemployed rose to over 14 million. If you count discouraged workers who, according to government are no longer unemployed even though they would beg to differ, the total number rises to 20.6 million, up 483,000 last month.

- The average duration of unemployment rose to an all-time high.

- 44% of the unemployed have been looking for work for at least 6 months.

And, “[E]ven if you buy the White House’s argument that the $800 billion package created 3 million jobs, that works out to $266,000 per job. Taxing or borrowing $266,000 from the private sector to create a single job is simply not a cost effective way of putting America back to work. The long-term debt burden of that $266,000 swamps any benefit that the single job created might provide." (Larry Lindsey)

This is the kind of reality that will drive men to the bottle and based on the "solutions" provided thus far, they must be hitting it pretty hard, probably hiding half-pints of Old Crow in executive lavatories and bottom desk drawers.

Bernanke and Obama know they don't have any answers as evidenced by the fact that the same answers continue to hit the wall like Mr. Magoo playing Jai-Alai.

The real question is how long can they keep kicking the proverbial can down the road before the market wets its pants and brings down the whole house of cards?

I can visualize Bernanke putting the Old Crow to his lips, tilting his head back and sucking hard enough that his eyes roll back in his head until he gets his next big idea, which we'll call "QE 3" because that is what it will be.

And, like the market, knowing that makes me want to wet my pants, too.

Just Plain Frightening

2011-07-08T13:59:00.000-05:00

There are not enough expletives to describe the jobs number today . . .

Plus 18,000 when it takes 250,000 a month just to take care of new entries into the workforce.

Not surprising that the jobless rate ticked to 9.2% -- which in plain English terms means about 17% if only because the unemployed don't just disappear after their benefits run out as assumed by the federal government -- or 25% if you count all the people are unemployed or employed part-time only because they are looking for a full-time job.

Fact: Fewer people are employed in the U.S. now than at anytime during the recession, which is supposedly over.

What is worse is a big picture look at the situation compared to other recessions vis a vis number of jobs lost and how quickly they were recovered.

Take a look here -- one of the most frightening charts you'll ever see: http://www.businessinsider.com/chart-of-the-day-percent-jobs-losses-in-post-wwii-recessions-2011-7

Not sure a comment is necessary here. Look at the chart and fill in the blank.

-Karger

Do Good Jobs Make Happy Employees Or Are Happy People Just Happy Regardless of Their Work?

2011-07-06T14:59:00.000-05:00

Great question and we get the scientific answer courtesy of http://www.bakadesuyo.com

"The current meta-analysis examined the relationship between job satisfaction and subjective well-being (SWB). Consistent with the spillover hypothesis, we found positive relationships between job satisfaction and life satisfaction, happiness, positive affect, and the absence of negative affect. In addition, an examination of longitudinal studies suggested that the causal relationship from SWB to job satisfaction was stronger than the causal relationship from job satisfaction to SWB."

In English, this means it is more likely someone is happy and finds something to like in their job or work than it is to find someone whose work actually changed their level of happiness.

It doesn't mean the quality of the job or the work doesn't matter. It does mean that looking for happy people to hire will pay dividends, all else equal. No surprises there, I hope.

Source: "A meta-analytic examination of the relationship between job satisfaction and subjective well-being" from Journal of Occupational and Organizational Psychology

Want Your Employees To Be Happier? Here's a simple exercise that works . . .

2011-07-05T19:09:00.000-05:00

Remember, happier employees are more productive employees.

And, how about you? Could you use little boost in your worldview?

We all could.

This from the excellent blog at: http://www.bakadesuyo.com/whats-an-easy-way-to-be-much-happier

"Jeremy Dean's amazing Psyblog provides us with three studies that show a consistent theme: take the time to write down the things you are thankful for on a regular basis and you can improve your level of happiness:

"Emmons and McCullough (2003) were surprised to find that happiness could be increased by a simple gratitude exercise. Participants took the time to write down 5 things they were grateful for each week, for 10 weeks. At the end of the study this group were 25% happier than a comparison group who simply listed five events from the week.

"Lyubomirsky et al. (2005) compared practising gratitude three times a week with once a week. They found that only those who carried out the exercise once a week were happier. This suggests overdoing the gratitude is not beneficial - perhaps because of habituation.

"Seligman, Steen, Park and Peterson (2005) carried out a randomised, placebo-controlled study. They followed participants up 6 months after they had begun carrying out a simple gratitude exercise and found they were happier and less depressed than a control group. In this study, though, participants initially wrote about what they were grateful for every day for a week."

Sound like so much of that "soft-skills" stuff in a hard, tough, and getter tougher by the day business world?

It is and at this point in time, it is easy to fall into a cynical despair. But, look around. Count your blessings. 30% percent of the world will go hungry tonight.

For me, today, the need to look around and be grateful is more important than ever. One of my former law partners, Hershell Barnes, from whom I learned much and whom I respected highly died of a heart attack this morning in Dallas, Texas. I am grateful he was in my life. I am thankful I still have a life.

And, mostly, I am thankful for the people who make it rich, rewarding, and yes, occasionally even exciting.

Why Unions Are About To Make A Resurgence

2011-07-04T15:50:00.000-05:00

I know what you're thinking. You are thinking this is going to be another of the thousand or so commentaries on the recently proposed "quickie election" regulations by the National Labor Relations Board (NLRB).

But you would be wrong.

What has been said about Craig Becker and AmeriKa's new NLRB are true, except the allegations that Becker and his buddies are "socialists." They are not. Real socialists would take offense to the moniker. Rather, they are more aptly described as fascists, meaning they view their role much as President Obama views his -- government and business in a grand partnership, with the first directing the grand plan to the second.

Ignoring a clear and unequivocal rejection of eliminating democratic elections in the workplace by Congress, the NLRB did the next worst thing -- take the right of one party, i.e., the employer, to respond to the representations and promises of the other, i.e., the union, vis a vis an election period so short that there is no time to prepare an intelligent response.

Making matters even more bizarre, the NLRB has given employers four (4) days to offer themselves up to testify, or forever hold their tongues. The proposed comment period more or less mirrors the proposed election period. No problem, they say, we're the government and we know what is best for you.

Today I want to focus not on regulation but on basic economics and my assumptions about the economy going forward which plays into the hands of organized labor, to-wit:

First, wages are likely stuck in neutral for the foreseeable future. (In May, annual real wages fell 0.6% over the year, having decelerated for 5 of the 7 months since November 2010. Real wages may pick up, but it takes time and jobs growth much faster than the 0.67% annual pace in May 2011.) It is unlikely this will happen anytime soon.

Second, wealth effects caused by a rebound in the stock market are slowing - the trajectory of the S&P has decelerated and housing prices continue to fall.

Third, inflation in commodities are being felt by those whose grocery prices matter. The government can cook the books on inflation all it wants but the average American family knows better when they buy, well, anything, other than a house, that it cost more than last month.

All totaled this means the American worker is feeling poorer, mostly because, with real inflation he is poorer and he is finding his obligations harder to meet.

Enter someone, anyone, who can make a credible claim to get him/her more money. Enter organized labor.

Are their claims credible? Not really, although there are a lot of businesses out there sitting on a mountain of cash that will be hard to explain away in a union campaign not to mention executive compensation which in some cases has become obscene. This will especially be tough on employers if the NLRB has its way, because the opportunity for an employer to address the issues with its employers will end just about the time it begins.

Advice? Explaining economic reality (sometimes referred to as "campaigning") should no longer be viewed as something that is done when a union shows up.

Success will be defined by effective preemption.

More as this unfolds . . .

"Good morning, I Despise You . . ."

2011-06-19T19:04:00.000-05:00

That's a message from your employees, if your employees are like most in America.

Here are the facts . . . read 'em and weep . . .

"It doesn't matter how many batches of cookies are shared in the break room, how many team-building exercises are completed or how many times the office has shared a fleeting burst of pride from a job well done.

"It just isn't the same.

"The harsh economic climate has frayed relationships between middle-class workers and their employers. An already-strained sense of loyalty has been further damaged by stagnant wages, rapid-fire mass layoffs and persistent fears of job loss."

"Few people still in the workforce realistically expect 30-year careers at one employer, a luxury that manufacturing workers . . . enjoyed a generation ago. But most expect better than what they have.

"For now, many middle-class workers think they have too much work, too little job security and too little pay. And those who have been laid off, and are fighting to stay in the middle class, believe employers may have stacked the deck against them."

The fallout from the strained employee-employer relationship can be seen in several key ways.

- Workers are networking aggressively, not for fun but because they fear they could lose their jobs.

- Workers are taking fewer professional risks in the workplace, and that lack of innovation may hurt both workers' career prospects and companies' bottom line.

- Workers are increasingly ready to jump ship to new jobs. Positions are scarce now, but when the economy heals, companies may risk an exodus of talent. In one 2011 study, more than one in three workers hoped to be employed by a different company in the next 12 months, and fewer than half felt a strong sense of loyalty to their employer.

"I don't think that there is such a thing as loyalty anymore," said John Challenger, chief executive officer of Challenger Gray and Christmas Inc., a global outplacement firm. Loyalty has been replaced by what Challenger calls "commitment."

"Loyalty is a thing of the past, in terms of company and employee relationships, because companies can't promise a long-term job and people think of themselves as free agents," Challenger said.

Thirty-six percent of employees hope to work for a different employer in the next 12 months, according to MetLife's ninth annual Study of Employee Benefits Trends, which was released this year.

The study notes that employee loyalty hit a three-year low. Just 47 percent felt a strong sense of loyalty to their employer and only 33 percent felt that their employer was loyal to them. That was down from 59 percent and 41 percent, respectively, in 2008.

The study surveyed more than 1,400 workers and 1,500 "benefits decision-makers" at companies during the fourth quarter of 2010.

Meanwhile, employers' perception of workers' loyalty was virtually unchanged from two years ago. In 2008, 2009 and 2010, roughly half of the employers surveyed said that workers were loyal to them.

While middle-class workers may be eyeing the exits, it appears that few have the confidence to quit, according to regional figures from the U.S. Bureau of Labor Statistics."

(Thanks to Jahna Berry at The Arizona Republic)

What to do?

Credibly Connect - a paradigm and experience of multi-level communication combined with sincere empathy and understanding by supervision. Contact: jimkarger@crediblyconnect.com

Have a great week.

Your homework for the weekend . . . "What would your employees say . . ."

2011-06-17T15:44:00.000-05:00

As the economy (and confidence in it) by the American employee hits the can again, we are seeing a lot of the carnage in the form of unnecessary turnover (of the best people), productivity problems, and union organizing, just to name The Big Three.

What are most employers doing about it?

Ignoring it, of course.

And a few others with exhibited problems from which they cannot avert their gaze have sent their HR departments into the field to lead cheers for home team.

No sale. No one's buying.

So, what's the alternative?

Great question. But rather than answer it, best for everyone that you read this about what isn't working from one of my favorites, Charles Hugh Smith at OfTwoMinds.com. (Note: He is not talking about you, of course, but those other companies that are not so enlightened.)

Corporate America Really Really Cares About Its Employees (Really) (June 17, 2011)

Scrape away the Human Resource Department rah-rah about "our mission" and how much your loyalty is "valued," and what's left? A paycheck and a sucking sound.

Let's state the heretical obvious: Corporate America, you suck. We could count the ways--subverting democracy via your lobbying and campaign contributions, your sabotage of competition via regulatory capture, and so on--but what really matters is how you treat your employees.

We know: you really really care about your employees. Really. The propaganda would be laughable if it wasn't so bald-faced. Do corporate managers really believe in the Big Lie theory, that the bigger the lie, the easier it is to sell?

Here is reader C's experience of Corporate America's transition to wonderfulness and caring. An outlier or "what everybody inside knows"?

I occasionally read your postings linked to Jesse's Cafe Americain and I just want to confirm what you posted about corporate bankruptcy. (The Bankruptcy of Corporate America) I was disappointed with the Reagan administration which imo was the beginning of the takeover of our government by corporations and elites. Still, having a new family, I was fortunate to get an union job at the big telco and now work in the belly of the beast.

At first it was a great place to work, proud of our knowledge & expertise helping customers, but after 2-3 mergers, the overlords have increased our workload 100% (shutting down depts. in other parts of the country and giving us their work), reduced benefits, monitor everything and have rolled out methods & procedures that have totally dehumanized the workforce; we're just button pushers. Nearly everyone there is now miserable and it's a soul crushing, mind-numbing existence. Sorry that I have nothing good to say about it all, just hoping & praying for it get swept away and that my preparations to be free of the system work out ok.

Correspondent K.R. recently submitted this account, and some advice for young people:

In March 2000, I was working for a fairly large biotech company in pharmaceutical development, many of my co-workers were PhD's. When I got out of my car in the company parking lot one morning I saw many of my coworkers walking back the their cars. I asked "what's the matter?" What we discovered that morning is that if your swipe card that gave you access to the building did not work you were laid off. If your card worked and the door opened, you still had a job.

Best advice I could give a young smart person? Skip the corporate rat race altogether. Do not get car payments, mortgages and all the other debts that chain you to your debt enslavement. Enrich your life, work for yourself or for an important cause. Nobody should waste their life on corporate Amerika.

The modern global corporation devotes considerable attention to creating a simulacrum of common purpose via human resource department’s empty cheerleading. But participants know it is only a hollow, cynical ritual that everyone shuffles through in order to keep their jobs. The reality in Global Corporate America is that every employee is dispensable, and their position is inherently contingent. The purpose is the deliver profits to shareholders, and the corporation buys a facsimile of loyalty and presents a façade of purpose to keep the work environment from becoming overtly depressing to the human spirit. The reason they must play this game is the profits, of course; dispirited workers aren’t very productive.

Given that 13% of global Corporate America’s revenues are pure profit ($1.67 trillion last year, or about 12% of the nation's GDP) and another significant percentage is overhead to support the grossly overpaid corporate bigwigs, a vast command-and-control structure and a costly Panzer division of crack tax attorneys to keep income taxes paid near-zero, then it’s clear that smaller enterprises could easily beat the Corporate America Plantation Store in price and service because a third of the corporate expenses are overhead needed by a massive, costly hierarchy and 13% net profit margins demanded by Wall Street and the Financial Elite owners.

Since the top 5% of households collect 72% of corporate profits and bond income and the top 10% collect 93% of the nation’s financial income, the immense profits skimmed from local communities do not flow back to the communities. They flow instead into the elite enclaves of those who own the vast majority of the nation’s financial assets.

The vaunted “efficiency” of Corporate America's cartels is largely a myth. The Plantation Store’s “edge” is not efficiency but these four factors:

1. exploitation of global wage arbitrage

2. access to cheap Wall Street financing

3. eliminating taxes and competition via capture of regulatory and legislative governance

4. a reliance on cheap oil to fuel their global strip-mining operations.

Take those away and much of global Corporate America is revealed as high-cost, uncompetitive sitting ducks awaiting slaughter by lower-cost decentralized competitors.

Local residents lose twice when global cartels collect much of the local income and send it to centralized corporate headquarters, as a percentage of the profits are spent subverting democracy with lobbying and millions of dollars in campaign contributions to political factotums. Local residents lose not only control of their income streams but of their political rights as cartels sabotage democracy by capturing regulation and elected officials.

A key feature of local enterprise is that it retains and recycles local income in the community, rather than sending it to some distant and unaccountable corporate headquarters tasked with maximizing profits globally. Thus even if local earnings decline in recessionary times, local enterprises can still thrive simply by taking some of the cartels' vast income stream and returning it to the community.

As investors, we have been brainwashed into seeing ourselves as disembodied zombies who float around the world, seeking higher returns wherever we might find them. We are disconnected from where we live, and are constantly told that our self-interest is only served by investing in fast-growing global corporations making money from goods and services generated elsewhere. Those who eschew investments in evil are mocked and derided; the only god for investors is maximizing profits, and how those profits are reaped and where they are reaped makes absolutely no difference.

This is how we end up with what we have now: a glorified Colonial Plantation Economy.

Ken R. submitted this story from the U.K.'s Independent on the reality behind the "maximizing profits is all that matters" facade: the human cost: Behind corporate walls, the masters of the universe weep:

In a recent blog post on the Harvard Business Review web site – and praise be to them for publishing it – Haque let rip on some of the absurdities of contemporary business and economic life. “Just ask yourself,” he wrote, “if you were to walk into any corporation, would you find faces brimming over with deep fulfillment and authentic delight – or stonily asking themselves, ‘If it wasn’t for the accursed paycheck, would I really imprison myself in this dungeon of the human soul?’”

That's a good question. What do think an honest answer would be for most employees?"

That's your assignment. Reach deep enough inside yourself to answer that question for your employees. That is, under current circumstances, how would the employees in your company answer that question? (Your answers would be appreciated in the "Comments" section of this blog post.)

Once we get in touch with reality, we will talk about answers. There are some that make sense, that work for the company, for employees, and allow you to shave in the morning without averting your gaze from the mirror.

Have a good, and reflective, weekend.

What Can Employers Learn From Denmark? More Than They Believe.

2011-06-12T16:18:00.000-05:00

Hopefully, we can learn a lot. After all, the Danes are the happiest people in the world.

The article that began a wide-ranging discussion among social scientists and even a few of us workplace observers was found in The Atlantic at http://www.theatlantic.com/life/archive/2011/06/the-worlds-happiest-people/239971/

Bottom line? What is essential to happiness are supporting networks between people and groups that enhance social capital. Social capital is a major predictor of national happiness, according to new research in the 2011 Journal of Happiness Studies. A 2004 Cambridge University study concluded that mutual support and trust in society leads to well-being in Denmark and elsewhere. The research finds that the citizens of countries that scored highest for happiness also scored highest for trust in their governments, their laws, and each other. Where trust was lacking, "even the well off tended to be unhappy," according to the study.

And, what of our workplaces? In the United States, as trust in leadership wanes, so does work satisfaction. As employees see the rules changed to secure desired results, i.e., "situation ethics," trust is diminished. Where employees view each other as competitors rather than as teammates, mutual support lags as does satisfaction and happiness. We call it the absence of "credible connections."

Contact me at jimkarger@mac.com for more information on installing Credible Connections in your workplace.

Employee Satisfaction and Happiness: What Is An Employer's Role, If Any?

2011-05-27T12:54:00.000-05:00

"What is the proper role of an employer in employee satisfaction and happiness?"

It is a question often asked and the answers reflect differences of opinion.

If employee satisfaction and happiness had no impact on productivity and profits, some, perhaps most, employers would answer the question, "While I'd prefer my employees be happy, it really doesn't matter because it doesn't translate to shareholder return which is my only real responsibility."

But, employee satisfaction and happiness are related to productivity, which leads to a different answer and a new question: "How can I increase employee satisfaction and happiness?"

Most employers, protestations aside, still believe more money is the answer that fixes most problems. More importantly, employees also believe it.

Yet, many studies have belied the linkage, e.g., once an economy reaches an income per person of about $15,000 (measured at purchasing-power parity), economic growth ceases to add to happiness. The United States, for example, is considerably richer than Denmark, but Americans are no more satisfied with their lives.

But, even if money isn't the answer beyond a certain level, most employees don't know it and don't believe it. In that case, is it the employer's obligation, duty or just intelligent business practice to nudge its employees in the right direction? And, what if they don't want to be led?

The aame question was asked in an article entitled, "The Joyless or the Jobless" in today's The Economist, not with regard to employers, but to governments and their duties, if any, regarding the satisfaction and happiness of their citenzry.

The analysis is interesting.

"Sometimes people have the knowledge and the self-command to choose happiness, and they still fail to do so. That is the surprising finding of a recent study by Daniel Benjamin, Ori Heffetz and Alex Rees-Jones, three economists from Cornell University, and Miles Kimball of the University of Michigan. They persuaded hundreds of people to answer conundrums such as: would you rather earn $80,000 a year and sleep 7.5 hours a night, or $140,000 a year with six hours’ sleep a night?

"About 70% of people said they would be happier earning less money and sleeping more. Likewise, almost two-thirds would be happier making less money and living close to their friends, rather than more money in a city of strangers. In response to another question, over 40% said they would be happier paying twice the rent to enjoy a shorter commute of ten minutes, rather than 45.

"These findings support the notion that money isn’t everything. But ask people what they would actually choose, as opposed to what would make them happy, and their answers can sometimes surprise: 17% of those who say they would be happier sleeping for longer and earning less also say they would still choose the higher-paying job; 26% of those prizing short commutes over low rents would still take the cheaper home; and 22% of those who value friends over money would still move to where the money is."

For the employer, like governments, it may be in the best interest of citizens and employees, governments and employers, that people in their charge be happy and satisfied. But whether they choose to be satisfied is uniquely individual and what role government and employers can effectively play is a question for another time.

Have a great weekend.

Why Work Isn't Working Anymore? Let's begin with what makes us happy . . .

2011-05-25T19:32:00.000-05:00

'FOR more than 70 years, economists have been fixated with measuring economic ouput. Their chosen measure, gross domestic product, has limitations—it takes no account of natural-resource depletion and excludes unpaid services such as volunteering. On May 24th the OECD launched its alternative measure of well-being which includes 20 different indicators across 11 sectors in its 34 member countries, from life satisfaction to air pollution. It has produced an interactive tool which allows users to change the weight of each sector according to their own view of its importance. The chart below shows the results of its headline Better Life index (which is equally weighted) plotted against GDP per person at purchasing-power parity (which adjusts GDP for differences in the cost of living across countries).' (The Economist, May 24, 2011)

There is much worth discussing in this report and we will be doing just that at the CrediblyConnect blog over the next several weeks. Suffice it to say there are some surprises that are relevant to the workplace and to all of our lives vis a vis understanding human satisfaction, from where it emanates and mostly where it does not.

How Should We Measure Success. -- GDP or SWB?

2011-05-18T19:33:00.000-05:00

"Puritanism is the haunting fear that someone, somewhere may be happy." H.L. Mencken observed that religious dynamic a century ago, but much has changed between then and now. Whereas it once was considered selfish, if not downright sinful, to focus on personal happiness, in modernity it is hard to find someone who isn't focused on it most ofmthe time, most often in the form of the question, "Why am I not happier?"

In our book, "Why Work Isn't Working Anymore," Fritz Aldrine and I spent a lot of time on this question vis a vis work and its role in happiness and satisfaction, but mostly how work has failed to make us happier and why. The book is regretfully out of print but remains available at www.Crediblyconnect.com in PDF format.

With a broader inquiry, some of the most knowledgeable are debating the issue of happiness, its measurement, and whether by measuring Gross Domestic Product we are missing the point which is happiness and satisfaction which can also be measured but which has been all but ignored.

You can follow the debate at http://www.economist.com/debate/days/view/702&fsrc=nwl

Ed Deiner, a leading authority on the measurement of subjective well-being and oft-cited on "Why Work Isn't Working Anymore," observes the following to kick off what will be a lively discussion:

"We analysed the relation of subjective well-being (SWB)to income in the Gallup World Poll, covering over 150 nations, for a five-year period. We see that in general income and life satisfaction correlate both in cross-section and longitudinally. Despite the high correlation between income and life evaluations, there are instances of poorer nations, such as Costa Rica and South Korea, being much happier. Furthermore, although income and SWB move together over time on average, there are many instances where income rises and SWB does not, and even where they move in opposite directions. These exceptions indicate that other important factors can influence the SWB of societies. In addition, and importantly, income correlates at much lower levels with enjoying life than it does with life satisfaction. By measuring SWB we can understand more about factors other than GDP that affect the quality of life of nations."

The SWB of workforces is the focus of our Credible Connections program, used by companies large and small worldwide.

The only requisite to participate is to believe that people matter and that employees are more than units of labor and deserve communication, positive relationships and respect.

More on this discussion as it proceeds . . .

The New "I'll Sue You App" Courtesy of the Department of Labor

2011-05-11T13:58:00.000-05:00

This problem is simple and straightforward. Follow along carefully . . .

1. Employers have the legal obligation of correctly tracking the time worked by non-exempt employees.

2. Many employers effectively "round" by assuming 40 hours a week for employees who don't put in for overtime compensation.

3. In the old days, i.e., yesterday and the days before yesterday, employees would occasionally complaint to the US Department of Labor that they were not being paid for all of their overtime hours. It was a liar's contest and, if the employer was keeping any records, it was difficult to prove they were in some way insufficient.

4. Move forward to this day. The game has changed. The Department of Labor is providing an "app" to employees that runs on their I-Phones, I-Touches and I-Pads that allows them to carefully track each and every hour worked (and perhaps some that were not, including the time it actually takes to learn and use the app). It even contains an handy e-mail application so they can mail their hours directly to the Department of Labor along with their complaint.

5. Now they have their records which they testify (truthfully or not) were kept on a real-time basis. Most employers can't say the same. Net-net: Employees will begin winning and filing more wage and hour claims.

Answers to questions you are asking:

1. Yes, fleeing the country is always an option.

2. Yes, you can "win" (or at least have a fighting chance) in this game by a simple change in your procedures. Ready?

Have every non-exempt employee sign a sheet each week showing the hours you believed they worked that week stating that "the hours reflected below/above accurately reflect the hours I worked." Give them a space to contest the hours the company calculated and resolve the issue right then and there if there is a dispute. If not, with their signature, their I-Phone app won't mean as much to the endgame.

And, what if employees insist on working overtime even though they are told to keep to 40 hours a week? Don't dock them. That's what the government wants you to do -- big problems there. Rather, write them up. Discipline, if necessary. Even fire if it comes down to that.

But, to let an employee with an I-Phone start calculating their own hours which you will learn about much too late to do anything about it is an expensive way to do business.

You heard it here.

Now, how lucky do you feel?

The Best Use For Government Payroll Numbers . . .

2011-05-09T18:52:00.001-05:00

When I heard that American employers hired 244,000 new employees last month, I pictured employees going back to work in manufacturing plants and maybe some new computer programmers coming out of college finding work at some new high-tech startups.

But when I pulled back the curtain I found . . .

The Bureau of Labor Statistics added 175,000 of those 244,000 jobs through their "hedonic adjustment birth/death model." In short, that means there is no evidence that a single one of these jobs was actually created. Rather, through "modeling" they were assumed into existence.

Another 65,000 of those jobs were what I call "sort of real," created via the McDonald's road show -- the hamburger king ran simultaneous job fairs in April all over the country to show what a good corporate citizen it is. It would only be fair to mention that fast food turns over more than a hundred percent of its restaurant employees each year, meaning a very high percentage of these newly hired low wage workers will be back on the street soon. Most are part-time students and those unfortunates who can't find work that will support a family.

Which leaves about 4,000 "other" jobs that, if we can assume the wizard behind the curtain isn't pulling another fast one, might, just might be what we'll call "real jobs."

Reality: No new jobs are being created. None. Not on a net basis.

Which brings us back to the question . . . What do we do with these numbers?

Step 1: Carefully print them out

Step 2: Lay paper on which they are printed in the floor

Step 3: Show dog the paper

Step 4: Wait

Step 5: Pick up both dog and government crap and put in trash can

That is the highest and best use for the US government numbers on employment.

Millenials -- Did you get the memo?

2011-05-09T08:07:00.000-05:00

What is wrong with this picture?

71 percent of millennials reported in the survey by DeVry University that "meaningful work" was now one of the three most important factors in determining their career success, only 11 percent of hiring managers surveyed said that they felt meaningful work was most important to millennials.

Indeed, 30 percent of these 21-31 year olds identify meaningful work as the single most important measure of a successful career.

Managers thought millennials were most concerned with money, followed by having a high level of responsibility. High pay is still important — ranked as most important by 27 percent surveyed. But a "sense of accomplishment" ranks nearly as high at 24 percent.

Hiring managers who tend to be older than the Millenials they are hiring are still singing out of the old hymn book -- good, steady work, competitive pay, and a career path.

The young aren't buying. They have seen their parents (or a friend's parents) lose their jobs. They are hip to "outsourcing" and they know the dirty little secret -- there is no job security. None. Nada. They understand they will hit the street on the first bad earnings report. It is OK. They can live with that fact as long as you give them what they really want.

"Job security" is a bad joke and telling it makes companies look like liars, or at least disingenuous.

What they want is to feel they are in some way making a positive difference based on the decisions they make in their jobs.

How to get that done? A topic for another blog. In the meantime, make sure your HR department the memo, this memo.

When Work Really Doesn't Work Anymore . . .

2011-05-06T14:42:00.000-05:00

. . . some employees just, well, kill themselves.

Such is the plight of Foxconn, a Taiwanese company that makes some of the world's most sought-after high tech gadgets, mostly in China.

After 16 suicides or so and protests by SACOM (Students and Scholars against Corporate Misbehavior), Foxconn determined that rather than deal with 80 hour workweeks, frequent and open humiliation of employees, and working conditions which sometime include the inability to sit down, the best way to handle the problem was to compel all employees to sign "the pledge" in which they promise not to kill themselves.

That's right, they have to promise that no matter how bad things get, they won't commit suicide, not anymore.

I am not sure of much these days, what with so many workplaces holding together like cheap suits, but my guess is that this is not the solution.

Have a great weekend and before you leave today, don't forget and sign "the pledge."

Managing Despair

2011-03-30T16:17:00.000-05:00

Once we get past the endlessly repeated and pained assertion by government that the economy is "on the mend," we run headlong into what we'll call the "facts," because that is what they are . . .

- January home prices fell for the sixth month in a row, edging closer to a double dip. The S&P/Case-Shiller home price index covering 20 major markets fell 3.1% year-over-year, hovering near the market's bottom set in April 2009. Sales of existing homes were off nearly 10% in February and new homes sales were at a record low. Because most employees have most of their "wealth" (to use the term loosely) tied up in their dwellings, this does not come as good news.

- The U.S. Conference Board Consumer Confidence Index declined in March to 63.4 (1985=100) from 72.0 in February. Why? The American employee has reached desperation level when it comes to expectations. Inflation expectations rose significantly in March and income expectations soured, "a combination that will likely impact spending decisions,” according to the Conference Board. The percentage of consumers expecting rising incomes declined to 15.3 from 17.4 per cent. Because household spending accounts for 70 per cent of U.S. gross domestic product, it matters.

- The real unemployment rate is something in the neighborhood of 22%. The 9.5% number promoted by the Fed is created from whole cloth. 22% reflects current unemployment reporting methodology adjusted for long-term discouraged workers who were defined out of official existence in 1994. The fact is they are with us.

- The Consumer Price Index is another number manipulated by government until it means nothing. True inflation in the US is currently something over 8%, taking into account both food and fuel which almost everyone uses.

Bottom line? If you add up inflation expectations, consumer confidence and unemployment, you get Misery. Indeed, the Misery Index (inflation plus unemployment), would now be at an all time high if the government were up to shooting straight with the numbers, which it is not. Perhaps the record food stamp usage month after month is the most telling statistic of how tough it really is out there.

Now, here's the punchline employers -- ready?

Employees know all this, they feel it, even if they might not be able to recite the statistics and even if they don't tell you. They are the ones having to buy cheaper, often less nutrition foods for their families, the ones who have a hard time putting enough gas in their cars to get to work everyday, the ones who make sacrifices they never believed were in the cards. They smile everyday but live in fear.

Answers? Not many. Most employers are not good at delivering bad news, having been trained to spin the bad into good, often raising expectations that are later shattered when the quarterly numbers crumble under the weight of a struggling economy. Better to present bad news as bad news, help them understand WHY things are happening they way are happening and, if true, share how YOU have shared the pain.

Under the heading of DON'T EVEN THINK ABOUT IT, please don't put lipstick on the pig. It makes you look silly, disingenuous and many will believe you are lying. Some in corporate America are so far out of touch with the suffering, they paint the problem as one of "employee attitude," and offer up such inanities as motivational talks to remedy their productivity problems. As one employee who was demoted and suffered a pay decrease aptly described it, "Putting up a motivational speaker up there in times like this is like offering a hand job to someone whose soul is dying." (Thanks to Barbara Ehrenreich for that descriptive bit of wisdom.)

Thought: Call if you need help in producing your next executive address. It may not be "motivational," but it will be effective, honest, straightforward, and provide realistic expectations for those who hang on your every word.

How About We Stop Playing With Ourselves?

2011-03-24T18:12:00.000-05:00

All the smiley-faces drawn by government pointing to a recovering economy doesn't change reality which goes something like this:

Almost three-quarters of the U.S. economy comes from the American consumer. It follows that unless consumer shops, there can be no real growth.

And that's why there's no real growth -- adjusted for inflation, the wage of the average American employee is lower today than it was in 1973.

So, you may be wondering, "So, if wages didn't go up how did we buy all this crap?"

Good question and here is the answer: We borrowed the money. Indeed, total consumer debt has gone from about 150% of GDP to over 370%.

Until 2007, the feds overruled every correction by turning on the money faucet.

But, about 2008, that dog would no longer hunt. The private sector economy was saturated with debt. It could hold no more.

So, the government took over the position of resident deadbeat and has been borrowing and printing money like there is no tomorrow. The country supposedly in "recovery," can no longer even pay the interest on its debt. Rather, it's now borrowing the interest, too, and "paying" (to use that term loosely) interest on the interest by borrowing some more.

Joe Lunchbucket, on the other hand, can't borrow now and wouldn't even if he could. He took the butt-kicking of a lifetime the last time he tried borrowing and found out his home, which he confused for an ATM machine, ran out of cash.

What about the recent increase in consumer credit? Most of it is simply an increase in borrowing from the government in the form of student loans which themselves have a shocking default rate, not to even ask the question, "What are these young people doing exactly with these 'educations'?"

Bottom line? The average American employee, and some not so average American employees, are not going to drive the economic recovery promised by the federal government if only because they can't. The ones who have jobs are trying to keep them and pay off debt, while the ones who don't have jobs don't have credit. Both, however, do have houses that are falling in value like a sack of dead cats and they know it and they are buying (or better said "not buying") like they know it.

The only cheerleaders for this economy besides the government are those invested the stock market which not so miraculously has recovered much of its losses since 2008. Amazing what a few trillion dollars injected into an economy can do. And, we're about to see what happens when you jerk the whiskey nipple away from the alcoholic since QEII is supposed to end in June.

So, what's an employer to do? The same as always -- tell the truth. Don't paint a smiley face on a pig and call it a purse. Encourage employees to do what many of them are doing for the first time in their lives -- living within their means.

I Almost Killed My Computer Today . . .

2011-03-23T17:36:00.000-05:00

After slogging through the mythology that is the government's reporting of inflation and unemployment, I pulled out a pistol with the distinct intent of killing my computer. As I took aim, I was reminded of the time I threw my Sprint cell phone into a lake due to what I called "non-performance." It gave me momentary pleasure but the endgame wasn't fun at all. So I holstered my pistol and reviewed the numbers again which went something like this . . .

The most recent inflation numbers (according to the federal government) ahow prices rose 0.5% in February or 6% annualized. Doesn't sound good, does it?

No worries. We are cautioned by government to pay no attention to this number, but rather to look at what they call "core" inflation, which means the cost of buying things except the things that are going up in price, namely food and energy. Indeed, because housing is apparently taking its second dip, we're told that's "good news" because when housing is factored in, we have very little inflation to be worried about. The fact that most Americans are underwater on their mortgages is irrelevant, at least to the Fed.

Same with unemployment. Don't pay any attention to the fact that half your block is out of work, but rather, look at the government's "seasonally adjusted" number which means a number that means nothing -- absolutely nothing -- except that fewer people get up and go to a job each day even as unemployment, according to government, is dropping.

So, you may be asking, "What is the truth?" Great question.

The truth is what you see with your own eyes everyday: inflation is skyrocketing, the US dollar is plummeting, unemployment is going up, and the government finds it all plausibly deniable.

More On Happiness . . . Are You Listening Corporate America?

2011-03-11T12:45:00.000-06:00

"Social Animal," a new book by David Brooks is scheduled to be published soon. In the meantime, a small piece was published in "The New Yorker" under "Annals of Psychology," and the excerpt is interesting.

Mixed in the story are a number of fascinating statistics and studies about happiness and satisfaction, including this:

"There's a debate in our culture about what really makes us happy, which is summarized by, on the one hand, the book "On The Road" and, on the other, the move "It's a Wonderful Life." The former celebrates the life of freedom and adventure. The latter celebrates roots and connections. Research over the past thirty years makes it clear that what the inner mind really wants is connection. "It's a Wonderful Life" was right.

"Joining a group that meets just once a month produces the same increase in happiness as doubling your income. According to research by Daniel Kahneman, Alan B. Krueger, and others, the daily activities most closely associated with happiness are social -- having sex, socializing after work, and having dinner with friends. Many of the professions that correlate most closely with happiness are also social -- a corporate manager, a hairdresser."

So, what does this information offer corporate America?

Only that increasing meaningful connections in the workplace will result in a happier workforce, and as we have known for at least 50 years, happier people are, in general, more productive.

As yet, most of corporate America has turned a deaf ear to the importance of connections, i.e., relationships with others, in their workplaces. It has and will continue to be everyone's loss.

Here's One Thought Why There Is A Nascent Sense of Dissatisfaction Among Employees

2011-03-07T15:24:00.000-06:00

Not that most employees, or even many, could articulate the following, but my sense in working with managers over the last few years is employees know something is desperately wrong. Government statistics guru John Williams explains the economic circumstance as follows:

"If you look at the government’s latest statistics - the poverty survey of 2009, which is the most recent release, with average and median household income adjusted for inflation (and they use a really gimmick low inflation rate with that one) - it shows that not only has household income been falling the last year or two, but it’s below its near-term peak before the 2001 recession. Household income has not recovered above that, and if you use the CPI-U (the usual inflation rate to deflate that by instead of the gimmick one) it shows that household income today is below where it was in 1973. Again, the average household has not been able to keep up here. If income growth is not keeping ahead of inflation, very simply you can’t have consumption growing faster than inflation on a sustainable basis." - John Williams

P.S. If Williams is right (and I believe he is) this should be saying something to business, too.

So, If Employees Are As Unhappy As Studies Show, Why Don't They Do Something About It?

2011-03-03T10:35:00.000-06:00

Here’s a question: If employees are as unhappy as studies show, why aren't more of them turning to unions?

Clearly they are not. The Bureau of Labor Statistics finds the following:

In 2010, 11.9% of wage and salary workers were members of a union, down from 12.3% a year earlier. This is a long fall from 1983, not ancient history, when the union membership rate was 20.1%.

Today, union membership looks like this:

Union membership of public sector workers at 36.2% is five times the rate for private sector workers (6.9%)
Workers in education, training, and library occupations had the highest unionization rate: 37.1%
Black workers were more likely to be union members than were white, Asian, or Hispanic workers, and
Emnployees in northern States have a much higher unionization rate than those in the southern States.

Which leads to the question: Why are employees not organizing in larger numbers?

Two explanations often heard are:

Employees are afraid -- make waves and lose your job; and/or

The image of unions is tainted, either as being ineffective or corrupt.

Is it one of these or is it something else? I believe the issue goes deeper, but I'm interested in what you have offer.

Please post your comments by using the link provided.

(Thanks to HR Morning for the query.)

Numbers and Preposterous Lies From the Federal Government - But I Repeat Myself . . .

2011-03-01T19:55:00.000-06:00

In a brief but interesting article entitled, "US Department Of Truth Goes Full Retard After ISM Employment Index Prints At Highest Since 1973," Zero Hedge observes that the federal government actually wants those of us who follow the employment numbers to believe that everything is great. Indeed their Employment Index just printed at 64.5, the highest since 1973, ignoring the fact that real unemployment rate is somewhere above 17% when you ignore fantasies such as when someone's unemployment insurance runs out that they are no longer looking for a job. Really? What are they doing then? According to the federal government, nothing, because they don't exist anymore.

Reality is there is no reality upon which we can judge the employment picture, or the economy for that matter. Just as the employment numbers are insults to intelligence, the financial numbers are cut from whole cloth as are the "balancing the budget" numbers, projections of future growth (which have proven to be a bad, bad joke), and, of course, the inflation statistics which tell us that in spite of $3.50 gas and groceries that are up 30% or more, there is no inflation -- none.

So, neither I nor anyone else should really comment on "the numbers," because there are no numbers, none that are real anyway. So, I'll stop here. Right here.

The article mentioned above can be found at: http://www.zerohedge.com/article/us-department-truth-goes-full-retard-after-ism-employment-index-prints-highest-1973

Union Firefighters: Making An Appointment To Be Sick

2011-02-16T17:59:00.000-06:00

For the naysayers who still believe that they can operate as efficiently with a union as without, this from Las Vegas via the Mises Institute (with thanks):

The press in Las Vegas has stumbled on to a secret calendar between firefighters indicating who is going to be sick on certain days and who can fill in and earn time and a half.

The calender wasn’t posted in the firehouse near the shinny pole, but was kept at the firefighters’ private homes to avoid scrutiny.

Three of the people listed on the calender are Fire Battalion Chiefs with total annual pay and benefits in 2009 of $315,000 to $345,000.

I never knew why so many kids wanted to grow up to be firefighters . . . but I do now.

The Disconnect Between The Global Elite and The American Middle Class

2011-02-09T17:41:00.000-06:00

In a recent article in The Atlantic entitled, "The Rise Of The New Global Elite," Chrystia Freeland makes the following startling observation:

"The good news—and the bad news—for America is that the nation’s own super-elite is rapidly adjusting to this more global perspective. The U.S.-based CEO of one of the world’s largest hedge funds told me that his firm’s investment committee often discusses the question of who wins and who loses in today’s economy. In a recent internal debate, he said, one of his senior colleagues had argued that the hollowing-out of the American middle class didn’t really matter. “His point was that if the transformation of the world economy lifts four people in China and India out of poverty and into the middle class, and meanwhile means one American drops out of the middle class, that’s not such a bad trade,” the CEO recalled"

It is interesting (and disturbing) that the heyday of globalization, i.e., from 1980 through the present, has seen the middle class in America stagnate in terms of income.

Is there a connection?

Probably so. The best argument is that made by Charles Hugh Smith in a brilliant article entitled, "We Don't Need No Stinkin' Jobs (In The U.S.) and can be found here: . He argues: "The erosion of the American middle class is of little concern for one simple reason: it no longer matters much on the global stage. All that Global Corporate America needs from America is a stable foundation that won't offer up any surprises or spots of bother. As the discretionary purchasing power of the American middle class erodes, four times as many new potential customers appear elsewhere, hungry to taste the Oreos, become consumed by the iPhone, etc., and ten times as many are potential buyers of toothpaste and other basics."

Which brings us to the question -- does corporate America owe anything to America or is its sole duty to its shareholders who, for the most part, don't care whether the profits come from India or Indianapolis?

-Karger

Employee Relations Rule No. 6987: Do Not Waterboard Your Employees

2011-01-26T11:07:00.000-06:00

Waterboarding is not a "team-building" experience.

You already knew that?

Well, some employers apparently do not . . .

See: http://www.employerlawreport.com/uploads/file/Hudgens.pdf

Indeed, in the complaint the employee filed with the court, he alleged:

¶3 This case arises from an incident that occurred on May 29, 2007. At that time, Mr. Hudgens was an employee of Prosper under the direct supervision of Mr. Christopherson. During the ten months that Mr. Hudgens worked for Prosper, Mr. Christopherson had engaged in numerous questionable management practices. Specifically, when an employee did not meet performance goals, Mr. Christopherson would draw a mustache on the employee using permanent marker or he would remove the employee’s chair. Additionally, he would patrol the employees’ work area with a wooden paddle, which he would use to strike desks and tabletops. Prosper was aware of Mr. Christopherson’s actions and encouraged his behavior because it led to increased revenue.

¶4 On May 29, 2007, Mr. Christopherson asked for volunteers for a new motivational exercise. He offered no explanation to his team members regarding the nature of the exercise. In his search for volunteers, Mr. Christopherson challenged the loyalty and determination of his team members. Mr. Hudgens volunteered to be a part of the exercise to prove his loyalty and determination. Mr. Christopherson then led his team members to the top of a hill near Prosper’s office. Once on the hill, Mr. Christopherson ordered Mr. Hudgens to lie down, facing up, with his head pointed downhill. Mr. Christopherson ordered other team members to hold Mr. Hudgens down by his arms and legs. Mr. Christopherson then slowly poured water from a gallon jug over Mr. Hudgens’s mouth and nose so that he could not breathe. 2 Mr. Hudgens struggled and tried to escape but, at Mr. Christopherson’s direction, the other team members held him down. After concluding the exercise, Mr. Christopherson instructed his team members that they should work as hard at making sales as Mr. Hudgens had worked at trying to breathe.

¶5 Mr. Hudgens reported the incident to Prosper’s human resources department. Prosper took no action in response to the incident prior to the time that Mr. Hudgens quit working for Prosper. Mr. Hudgens quit working because the waterboarding incident caused him to suffer sleeplessness, anxiety, depression, and to feel sick to his stomach at work. Because of the distress caused by the incident, Mr. Hudgens has undergone psychological counseling and has suffered physical and emotional harm.

P.S. Drawing indelible mustaches on employees is also not a good idea and violates Rule No. 8463.

Class dismissed.

Employees Stressed; Employers About To Be . . .

2010-12-21T15:38:00.000-06:00

In news that will surprise no one, most employees in America are strung tighter than banjo strings. A survey by ComPsych finds that:

* 68 percent of employees say they are highly stressed, extremely fatigued and feel out of control.
* 27 percent have constant but manageable stress.
* 5 percent have low stress levels.

Who cares? Employers should. 44 percent of workers say their stress costs them at least an hour of productivity a day.

And, on the union front, the Obama Administration is wasting no time giving consolation prizes to organized labor after they could not force through the Employee Free Choice Act.

The latest appears tomorrow in the Federal Register with the National Labor Relations Board proposing that all employers post a notice in their workplaces notifying employees of their rights to join unions. After 60 days, the NLRB is likely to make this the rule. Be thinking about how you'll answer this question that will be asked many employees after seeing the notice:

"Why shouldn't we have a union here?"

Stressful, hey?

Have a happy holiday, and don't forget to take your blood pressure medication . . .

Corporate America: Mistake #4,679: Hiring Young Over Old

2010-12-16T12:11:00.000-06:00

Those of you who read "Why Work Isn't Working Anymore," recall that Fritz and I spent a lot of time delving into and analyzing studies of happiness and well-being since it has long been known that the happiest people are also the most productive.

Now, new studies indicate that the happiest people are those beyond age 50 and they are, indeed, often the most productive, less like to stir the hornet's nest of the workplace, have fewer conflicts and come up with better solutions to conflict. They are better at controlling their emotions, better at accepting misfortune and less prone to anger. Regrettably, for no rational reasons they are often passed over for the 30- or 40-somethings who are often still struggling with the present moment, which seems never good enough.

Summaries of these studies were published in this month's Economist magazine and can be found here. I commend it to your review: http://www.economist.com/node/17722567?Story_ID=17722567&fsrc=nlw|hig|16-12-2010|editors_highlights

A very happy holiday to all!

Jim

So, Who Breaks First -- Employees or Employers?

2010-12-02T16:00:00.000-06:00

U.S. employers axed 8.4 million employees from December 2007 to December 2009. The result has been employers getting more for less -- leaner staffs mean increased productivity.

In 2009, productivity rose 3.5 percent. Since January, 2010, productivity has averaged a much slower 1.5 percent growth rate indicating that employers may have squeezed the last bit of increased productivity from their employees.

Psychological studies of employees may indicate the same thing. Workers are experiencing extremely high stress levels. After all, they are doing more with less all while worrying their jobs may go next.

A survey from the American Psychological Association shows the long-term impact of stress on the physical and emotional health of workers as well as their family members and most especially their children.

75% of Americans say they experience stress that exceeds what is healthy. They are at risk for illnesses such as heart disease, diabetes, and depression, all exacerbated by stress.

So, the question is simple and straightforward: Will U.S. employers break down begin hiring or continue pouring on the pressure until employees (and their families) break?

If you have an opinion, post a comment.

QEII: What Does It Mean For Your Employees?

2010-11-15T12:00:00.000-06:00

Nearly everyone has weighed in on the second round of quantitative easing (QEII) which government is implementing to "jump start" a recalcitrant economy. There is something about the term "quantitative easing" that just doesn't sound dangerous. Indeed, it is almost soothing, until one realizes it is a cruel euphemism for printing money backed by nothing.

The question addressed in this brief and admittedly dark essay is, simply, "What will QEII mean to the American worker and the ones who have already lost their jobs (who we will call "former workers," mostly because that's what they are)?"

The argument for QEII by government is simple and straightforward: Government will print money and pump it into the economy; business will borrow it; business will hire American workers; American workers will spend money on American goods; and American workers and businesses will pay it all back through increased tax revenues. (It is a bit more complicated, but close enough.)

While the government's argument is, indeed, simple and straightforward and easy to understand, it is altogether wrong for many reasons, the main one being that QEII does nothing to address the most fundamental problem in the American economy -- our unmitigated lack of global competitiveness. QEII, as did QEI, and perhaps a lot of unheralded, but very real, QE's before those, all ignored the one billion 5-pound gorillas in the room -- those billions of factory workers in other parts of the world who are glad to earn $5 a day to make stuff -- the stuff we want.

No amount of money pumped into the American economy changes that reality one wit. And, by failing to address the obvious, what is the most likely scenario going forward?

First, unemployment in the U.S. will remain high, if only because American business will continue to ship jobs overseas, and when all that new money has been spent, the only thing that will be high are stock prices.

Second, when the money runs out, the stock market will return to earth, too, kind of like a 787 that loses power at 30,000 feet. What consumption there is at the time will fall further, such that the last recession will seem like a walk in the park compared to Recession 2.0 which (and I will go out on a limb her with my own saw) will likely begin sometime before the end of 2011.

But, I could be wrong, at least temporarily. There could be a QEIII which might sustain the bubble a while longer, drive stocks and asset prices way beyond real value and set up for a fall no one alive has ever witnessed before.

Regardless of when, the net effect of all this money printing is exactly what the Chinese, Germans and others are bitching about -- the U.S. dollar will turn into play money and that's a problem for them for two reasons: 1. They lent us real money and aren't happy about getting Monopoly money in return; and 2. With the U.S. dollar at all time lows, their goods will be more expensive for the U.S. consumer who will already be battered and bloody from the experience, which means their economies are at risk by our hand.

The American workers' (and former workers') 401k plans will be decimated (again) in the ensuing crash simply because the money printing machine will keep down bond prices which will continue to encourage excessive risk taking by the little guy. Joe Six-Pack will miss the sleight of hand and will run the market up gleefully believing all is well even as institutional investors are exiting stage left. They will be holding the bag (again) when it hits the fan.

So, what is a worker (or former worker) to do? They are, after all, not multi-national corporations that can simply blow off the U.S. and move to other markets.

No, most will be sitting right where they are, frozen in position, their faces masks of terror when they are ravaged by an economy with an attitude of a pit bull on speed.

In the interim, most employees will do nothing, if only because they have no idea what any of this means and little interest in finding out. They just want an I-Pad for Christmas. Others, the few, who sense something has gone dreadfully wrong will hope. (Definition: "Hope" - the excuse for a business plan for those who don't understand business.)

So, that's it, except for the most important part.

Where do "credible connections," (communications from management to employees at all levels) come into play?

Right here. Right now.

Employees need to know the facts. They need to understand the business, your business. They need to know exactly what will be required of them to keep their jobs safe. After all, even if all of the above is true, all is not lost, not for everyone. BMW and others in Europe compete with wages and benefits at least as high their counterparts in the U.S. and not only survive, but thrive globally. Why? Productivity that justifies the wage and benefit package.

In short, employees should not be left guessing, wondering and worrying whether their jobs are next on the chopping block. Rather, they should be told what they need to accomplish to save them, to be competitive and successful in an ever more difficult environment.

And, it wouldn't hurt to give them a little third party counseling on personal finance, investing, and the importance of being ready for a rainy day. I, for one, can see clouds on the horizon. Many employers offer smoking cessation and weight management counseling as perquisites of employment, as a way to keep their employees healthy. How about some counseling on how not to become a financial victim? Makes sense to me and I have seen it done effectively.

Could I be wrong about all of this? Of course. QEII might end up working magic and we will all be sipping Mama Bear's soup this time next year wondering what all the to do was about.

I'd hope that was the case, but then, hope is not a business plan.

"Work Sucks."

2010-11-11T19:12:00.000-06:00

We began our book, "Why Work Isn't Working Anymore," with a two word sentence that set the tone for the entire tome:

"Work sucks."

Indeed work does suck for a large majority of people, and over the next few weeks I will get more into that issue here -- why and what, if anything, can be done about that unfortunate reality.

In the meantime, Drew Carey perhaps said it best, “Oh, you hate your job? Why didn't you say so? There's a support group for that. It's called EVERYBODY, and they meet at the bar.”

Just a note to say "thank you"

2010-11-11T08:54:00.000-06:00

Those of you who read "Why Work Isn't Working Anymore" may remember the "Care Card," a tool to let others know you appreciate and value them, not only for their work but as people.

As has been the case with many of the anecdotal observations in that book, there is now some statistical support. This from an article called "12 Health Boosts" in Prevention Magazine.

Pen a thank-you note

Health boost: Feel 20% happier

Students who wrote letters expressing gratitude to someone special were happier and more satisfied with their lives, researchers at Kent State University found. Other research has shown that expressive writing may improve immune, lung, and liver function; reduce blood pressure; and provide a greater sense of well-being.

But be sincere: "It has to be a heartfelt sentiment showing significant appreciation," says researcher Steven Toepfer, PhD, an assistant professor of family and consumer studies. Dashing off a quick e-mail or texting a pal might not have the same effect, adds Toepfer, who says taking the time to put pen to paper allowed students to reflect: "Through the process of writing, they had time to think about the links they established between themselves and others and to count their blessings a bit, which made them feel more grateful."

So, in this beginning of the holiday season, it might be time to develop a new habit -- the habit of writing simple thank you notes to those who have helped your road of life be a little smoother.

P.S. For those who haven't read "Why Work Isn't Working Anymore," it is, regrettably, out of print. However, the e-book is still available at

Unions Are Back . . . Winning With A Vengeance

2010-11-05T10:35:00.000-05:00

Union organizing is up, not particularly surprising.

But this might be . . . unions are wining 7 of every 10 elections. Indeed, in the first half of 2010 unions won 69.2% of 812 private sector elections. And note the recent election won't matter -- unions have friends in high places, the most important one of which is the National Labor Relations Board and they are appointed and they will be there a while.

The Bureau of National Affairs breaks down the numbers as follows:

Most Active Unions: The Teamsters led all unions, participating in 217 elections and winning 59.9% of the time. The SEIU organized the most workers (5,833) and won almost 70% of its elections.

Service Sector Focus: Over 40% of all representation elections during the first half of 2010 occurred in the service sector, including healthcare, with unions winning 72% of those elections.

More Manufacturing Victories: For only the third time since 1990, unions won more than 50% of the elections in which they participated in the manufacturing sector.

Unions Target Smaller Bargaining Units: Unions continue to target smaller bargaining units. Approximately 67% of all elections occurred in bargaining units with less than 50 workers.

Bottom line: The only way to win this game as an employer is not to play it. That means the training of supervision, not only in how to engage in early detection of union activity, but by enhancing their abilities to satisfy their employees and to be able to spot and deal with dissension and dissatisfaction affirmatively and pro-activity.

More information on "Avoiding Unionization: Doing The Right Thing," e-mail: jimkarger@mac.com

Why Unions Are Focusing on the "Service" Industries

2010-10-30T11:48:00.000-05:00

I get this question more often these days . . . from employers in the service industries -- hotels, food service, and the like, to include employers in technology who have never had to worry about their employees being approached by union organizers.

Why? Why me?

The answer is simple and straightforward -- as a percentage of the American workforce, the service sector has grown dramatically over the last 30 years while manufacturing has been not so slowly disappearing.

From its peak of 19.5 million in 1979, manufacturing employment has declined, on average, by about 1.5 million jobs each decade until 2001. Then it fell off a cliff: America lost 2.5 million manufacturing jobs from 2001 to 2007 and almost that much again during the latest recession.

Bottom line? 5 million American manufacturing jobs have disappeared since 2001, an astonishing 29% plunge in less than 10 years. Another way of looking at it -- the United States has lost more than 42,000 factories during that time.

Of course, unions stick to what they know as we all have a tendency to do, but there is less of what they know still around. Which leads to understanding the adage, "necessity breeds invention." And, from organized labor's standpoint, the disappearing manufacturing sector has become the mother of invention. Unions know that if they are to survive and thrive, they must go to where the people are and in the United States they are in hotels, restaurants, offices and retail stores.

So, what has the American employee learned from the recession?

2010-10-29T05:25:00.000-05:00

Here's a question . . . What's the lesson the American worker has learned from being unemployed, underemployed, or just afraid of losing his job?

The common answer I hear is, "He's learned to appreciate his job and his work."

And, like most common answers, it is wrong.

To the contrary, a recent study by Florida State University reveals that the ravages of recession has focused employees away from work and toward home and family -- their most credible relationships.

Respondents to the survey said that the hard times has helped them appreciate the "value of people," increased appreciation for their families and increased hostility toward their employers and former employers who they feel have often betrayed them and discarded them or their co-workers, i.e, "I gave my everything to my job and they never really appreciated it."

Today, more than a third of all employees are questioning the importance of work in their life picture. This is especially true among the Millennial Generation (born between the mid-1970's and the early 2000's). They have seen their parents put everything into their work and question just how much they got back. As a generation, work is of lesser status compared to other dynamics of life to include friends, family and leisure.

Next question: What's the American employer to take away from these facts?

You tell me.

NLRB Continues To Implement EFCA Unilaterally

2010-10-25T14:03:00.000-05:00

The National Labor Relations Board is working overtime to implement proposed provisions of the Employee Free Choice Act which the Obama Administration could not force Congress to pass.

As per a blog sent last week, expectations are for a dramatically-shortened election period which will put employers at a huge disadvantage in NLRB-supervised elections where employees decide whether or not to embrace the representation (as well as the costs and risks) of a labor union.

In the interim, the NLRB has issued two important decisions that will act to chill an employers' decisions to terminate employment and that will chill their freedom of expression on union issues:

1. Back pay. For the past 50+ years, when the NLRB ordered reinstatement and back pay to an employee, the interest was calculated on a simple interest basis. Now, the Board has decided that is not punitive enough and that in the future back pay will be based on a "compounded daily" formula.

2. Notices. The NLRB has compelled employers to post notices in the workplace in the past for past infractions. Now, they have granted themselves the power to require employers to put such notices not only on bulletin boards but on company intranet sites, and to require employers to e-mail such notices to their employees.

The impact of these decisions can only be speculated, but here's one speculation . . . First, some employers will be more reticent to terminate, even when there is just cause, for fear that this NLRB will judge their guilt or innocence and that if found guilty, the price of poker has just gone up. Second, the ignominy of having to post an NLRB notice on a company's intranet will cause PR-sensitive companies to limit campaign rhetoric for fear they will be forced to submit to a government-imposed humiliating display on their own in-house Internet site.

More to come . . .

Have you heard the one about "debt?"

2010-10-21T18:49:00.000-05:00

Of course you have.

You have heard plenty -- banks, auto companies, government, consumer.

Can there be anyone else in deep debt trouble?

Not surprisingly, "yes."

Corporate America.

Especially companies in Corporate America whose employees are represented by unions and who are in what are known as "multi-employer pension plans."

The long, but mostly short of participating in one of these plans is this: If 10 employers are contributing to one of these plans and 9 go bankrupt, the 10th company is odd man out and is liable for the entire unfunded pension liabilities of the other 9 employers.

That's nothing new, but this this: The Financial Accounting Standards Board (FSAB) is about to issue new rules that will require employers to identify these contingent liabilities on their balance sheets. For heavily unionized employers, their books are going to look a lot different to Wall Street and their shareholders.

Which leaves the only real question in these days and times -- will this be the next bailout using money hot off the presses?

We shall see soon enough.

"Engagement" -- Does Anybody Care Anymore?

2010-10-13T12:59:00.000-05:00

According to a recent Gallup study on employee engagement, 54 percent of employees in the United States are not engaged, 17 percent are actively disengaged, and only 29 percent are engaged.

What is "engaged?" The short answer are employees who like their work, like their jobs, like their bosses, and voluntarily go beyond what it takes to get a gentleman's "C" on their performance reviews. They "own" their work.

Engagement was the hot issue 5 years ago when things were good. Companies strove to "engage" employees, from relationship development to communications, work-life balance to perquisites.

But that was then and this now.

The recession to end all recessions crushed corporate America and corporate America, in turn, turned to more immediate needs -- like staying in business, for example.

"Engagement" was out. Layoffs were in.

Now that layoffs are slowing down (at least for the moment), what about "engagement?" What happened to "engagement?"

Does anyone really care anymore?

The answer (the truthful answer) is "a handful."

A few forward thinking employers still read and recognize the intersection of engagement and financial performance. A recent Towers Perrin study concluded that companies with a highly engaged employee population turned in significantly better financial performance (a 5.75 percent difference in operating margins and a 3.44 percent difference in net profit margins) than did low-engagement workplaces.

What about the rest of employers, the huge majority?

They are still playing defense, remaining as lean as possible, disregarding employee needs and wants if only because they can. After all, most employees who have jobs know that "engaged" or not they have to perform to keep those jobs since there are a lot of would-be employees in the wings waiting for a chance.

What these majority of employers are getting is what I call "sugar engagement," kind of like a sugar high -- real but temporary. Fear can make employees do amazing things, one of which is put on a pretty good act of being engaged.

The problem with fear, admittedly an instant motivator, is that fear doesn't last. It is a poor long-term motivator. People don't stay afraid. At some point they take a leap of faith and change their circumstance and my guess is the best of those will look for employers where "engagement" remains relevant.

EFCA: Being Implemented Now -- Piece By Piece

2010-10-08T15:13:00.000-05:00

And you thought you'd have to wait to know whether the Employee Free Choice Act would become law . . .

You don't. Part of it already has become law, no legislation necessary.

The Acting General Counsel of the National Labor Relations Board (NLRB) took it upon himself to issue new rules, some of which look remarkably like provisions in the Employee Free Choice Act (EFCA) which has been shot down legislatively more than once.

EFCA, for example, would add language to the National Labor Relations Act requiring the prioritization of unfair labor practice charges occurring during an organizing campaign, including unlawful discharges. The same is true with the new NLRB rules that streamlines the handling of what are called "10(j) cases" that involve firings during union organizing campaigns. Section 10(j) allows the NLRB to seek an injunction from a federal court in certain situations, including discharge cases in which the injunction requires the employer to reinstate the employee pending the outcome of the NLRB’s administrative process. While it has been on the books a long time, it has been rarely used. Under the new process, expect many (if not most) discharges during an organizing campaign to be reviewed by the NLRB to decide whether or not to seek an injunction.

Practical impact: While firing decisions during organizing campaigns are always risky, terminations will be even more difficult now since the NLRB will seek injunctions requiring immediate reinstatement when employer decisions are questionable (in the NLRB's opinion.)

The net effect in cases where injunctions are sought and granted will be this -- the union will take credit for "getting the employee's job back" and the employer will lose most of those campaigns, thus making the decision to discharge an employee not just a matter of right and wrong, but one that could (and perhaps will) affect the outcome of the election.

Dems Readying For the "Nuclear Option" In The Lame Duck Session

2010-10-04T15:15:00.000-05:00

As we've reported for many months, EFCA (the Employee Free Choice Act) is not dead.

It should be dead. But it is not dead.

Why?

Because of the period between the elections in November and the seating of a new Congress in January, 2011.

Even the most optimistic Democrats know they are about to be taken to slaughter by the General Public in November but they also know that they remain in Congress, even if they lose, until January.

Hence, the "lame-duck" session where the losers have nothing left to lose and can vote their consciences or at least pay back those whom they owe.

Which brings us to EFCA. The threat is to resurrect EFCA after the elections in November during the lame-duck session. It would pass Congress by a large majority and, depending on who wins and who loses in the Senate races, a possibility that it might pass there also. The chances of President Obama signing it if it hits his desk are 100%.

A good example of other legislation recently proposed in anticipation of the losers electing what we'll call the "nuclear option" is California Congressman Brad Sherman's (D) legislative proposal to repeal the “Right-to-Work” laws in 22 states. With less than a month before the mid-term elections and five weeks before a lame-duck session in Congress, Sherman introduced legislation that would otherwise be laughed out of Washington. (Note: there are 22 states in the U.S. that have laws where workers who are employed at companies that are unionized have a choice whether or not to join or pay the union. These states are known as Right-to-Work states. And in the 28 Non-Right-to-Work states (also called union security states), it is legal for a union to negotiate a “union (income) security clause” that requires all workers covered by the union to pay the union does or ‘agency fees’ as a condition of employment. If the workers refuse to pay the union, under a “union (income) security clause,” the union can have them fired from their jobs. The point of this legislation is to require every employee in a union environment to join the union and pay dues, regardless of their personal wishes or beliefs.

This is a clear finger in the face of the voters who have opposed both EFCA and have supported "right to work" laws for more than 50 years.

In the end, politics is not about satisfying the majority. It is about satisfying who contributes. And that is why we must remain vigilant against attempts by the "lame ducks" in November from changing the future of America for many years to come.

It's the "R-word" - Get it?

2010-10-02T17:21:00.000-05:00

30% of American workers are physically affected by work stress. Indeed, some who have studied the topic believe it is the leading cause of absence from work.

What's the answer?

There are a lot of them, but a Portfolio Magazine poll showed that 87% of workplace stress is due to an unmotivated workforce that arises from the dissatisfaction of having a poor relationship with the boss.

Relationship - the "R" word.

Companies that are working to improve relationships, what we call "Credible Connections," are destined to reduce stress, increase productivity and crush their competitors, all else equal.

What is your company doing?

Another Reason The General Public Is Unhappy -- No Raise in 40 Years

2010-10-01T15:20:00.000-05:00

We have known for a long time that the happiness, satisfaction and contentment of the average employee in the United States has been on the decline for years. The question is why and the answers are numerous. One is basic economics -- the average Joe hasn't gotten a raise (on an inflation adjusted basis) in about 40 years . . .

This is excerpted from an article entitled, "Fragging Your Own Money" but Bill Bonner in today's Daily Reckoning. The link to the website to read the whole article is published at the end of this piece. Highly recommended . . .

"From the end of the Napoleonic wars until the beginning of World Wars of the 20th century, the world’s money system was backed by gold. You couldn’t “manage” it. You couldn’t devalue it. You couldn’t talk it up or talk it down. You couldn’t beggar thy neighbor by cheapening it or enrich him by making it more dear. It was what it was. The new experimental money system began in the Year of Richard Nixon, 1971. Thereafter, the supply of money could increase much faster than the supply of goods and services. US money supply (M2) rose 1,314% between 1970 and 2008, from $624 billion to $8.2 trillion. What did all this ersatz new money do? First it flattered…then it corrupted…and finally, it robbed.

"America’s working stiffs were the first to get whacked. Inflation made them feel like they were earning more; but they haven’t had a real, hourly raise since the system was put in place 4 decades ago. And now, America is struggling to make sure they get none in the future either. Lowering the dollar against the [Chinese] renminbi increases the cost of probably 90% of the goods in Wal-Mart and Costco – where the working classes shop.

"But this has been going on ever since the managers began taking liberties with the dollar. In the 1960s, the working man – 90% of the population – got 60% of the income gains of the period. By the end of the bubble years – 2001- 2007 – he got just 11%. This has resulted in a “record income gap,” says this week’s news. Half the nation’s income goes to the top 20% of the population, nearly twice as much, compared to the bottom 20%, as in 1967; it’s the biggest gap since they began keeping track."

The average worker probably can't cite these statistics, but they know the impact -- at a cellular level -- which may explain why work is despised by so many American employees (even as they smile for the boss and the cameras.) Given a chance to quit and not starve, most businesses in American couldn't field a punt return team. Not nice, but a fact nevertheless.

The article appears here: http://dailyreckoning.com/fragging-your-own-money/

-Karger

If We're So Great, Why Are We So Unhappy?

2010-09-30T19:51:00.000-05:00

First, the numbers . . .

We're getting more depressed in the United States.

"Major depression is a common and treatable mental disorder; a study conducted during 2001--2002 estimated that 6.6% of the U.S. adult population had experienced a major depressive disorder during the preceding 12 months. Among the 235,067 adult respondents in the sample for survey years 2006 and 2008, 9.0% met criteria for current depression, including 3.4% who met criteria for major depression.

The prevalence of major depression increased with age, from 2.8% among persons aged 18--24 years to 4.6% among persons aged 45--64 years, but declined to 1.6% among those aged ≥65 years. Women were significantly more likely than men to report major depression (4.0% versus 2.7%), as were persons without health insurance coverage compared with those with coverage (5.9% versus 2.9%), persons previously married (6.6%) or never married (4.1%) compared with those currently married (2.2%), and persons unable to work (22.2%) or unemployed (9.8%) compared with homemakers and students (3.0%), persons employed (2.0%), and retired persons (1.6%)."

- From Current Depression Among Adults --- United States, 2006 and 2008

The connection? The connections within the spreading unhappiness in America is the absence of connections -- credible connections. Whether it is the absence of a spouse, i.e., single/divorced/widowed, the absence of co-workers, i.e., unemployed, or the absence of friends, all studies seem to point in the same direction: in order to be happy, satisfied, and content, people need other people and the connections to those people need to be credible, that is, believable and dependable.

Such is the message of Credible Connections(tm) and its approach to creating them in the workplace.

More info available at: jimkarger@mac.com

Congress Passes Still Another Bailout - This One For The Teachers' Unions

2010-09-29T11:44:00.000-05:00

Before moving to the serious topic of the impending and altogether purposeful bankruptcy of the United States, a little humor . . .

The Kentucky Department of Labor claimed a small Nelson County farmer was not paying proper wages to his help and sent an agent out to investigate him.

Department of Labor Employee: "I need a list of your employees and how much you pay them."

Farmer: "Well, there's my farm hand who's been with me for 3 years. I pay him $ 400 a week plus free room and board."

"Then there's the mentally challenged worker. He works about 18 hours every day and does about 90% of all the work around here. He makes about $10 per week, pays his own room and board, and I buy him a bottle of bourbon every Saturday night so he can cope with life. He also sleeps with my wife occasionally."

Department of Labor Employee: "That's the guy I want to talk to...the mentally challenged one."

Farmer: "That would be me."

Little too close to home? Well, this should add insult to injury . . .

Nancy Pelosi got her $26 billion teachers' union bailout passed in the House today.

Pelosi and the gang are up to it again -- rewarding bad behavior. State governments spend too much money. So when they run out of money the "solution" is to give them more money, e.g., banks, automakers.

Cutting spending is not in the cards.

Government at all levels is addicted to spending and we, those who elect our government representatives, seem hell-bent on feeding that addiction by continuing to bow to those who spend profligately, including States via public unions who make demands resulting in getting what they want, and then waiting for the Fed to come to the rescue with freshly printed money backed by nothing.

I am tempted to engage in wild comparative hyperbole here but nothing I could say would trump the pathetic truth.

EFCA: Coming Up In the Lame Duck?

2010-09-09T11:57:00.000-05:00

Harry Reid has promised a lame duck session between the upcoming Congressional elections in November and the seating of a new Congress early next year.

The lame-duck session could give retiring and defeated lawmakers a sense of feeling more free to vote for legislation they might not have otherwise supported, especially if Republicans will take over the House and maybe the Senate early next year.

Democrats have not been specific about what they might pursue during the lame-duck session, but it is anticipated it will include an aggressive energy and climate bill and the Employee Free Choice Act (EFCA, or "card check").

In short, there are a lot of Democrats in both the House and Senate who are for EFCA but have failed to support it fearing a backlash from their electorate. Those who are defeated in November have nothing to lose and may vote for EFCA and other legislation they feared supporting publicly when reelection was still a possibility.

We're not out of the woods yet.

More to come . . .

She Didn't Get Mad -- She Got Even . . .

2010-08-21T13:18:00.000-05:00

I've seen a lot of different ways of quitting, from just not showing up to lighting the building on fire . . . but this is cool, if not classy.

This young lady, tired of her boss (as so many employees are), decided to quit publicly via a series of e-mails. Check it out:

http://thechive.com/2010/08/10/girl-quits-her-job-on-dry-erase-board-emails-entire-office-33-photos/

States vs. The Feds: Predictions of Things To Come

2010-08-13T20:03:00.000-05:00

As a general rule, the individual States have lived in peace with the federal government. At least they were silent in their seat at the table, what with so much of their money coming from Uncle Sam.

But that was then and this is now.

Arizona, tired of the feds not enforcing immigration laws, decided to do it themselves. The U.S. government has sued Arizona. Coming to the aid of Arizona are now several other States threatening to pass their own immigration laws. The Feds have threatened to sue them, too.

The Feds passed ObamaCare. Before the ink was dry, several States sued the federal government.

The U.S. House appears ready to pass the Employee Free Choice Act (again) and States fear that the U.S. Senate will do the same in the lame duck session between November and January. Arizona, South Carolina, South Dakota and Utah are conducting referendums to determine whether a secret ballot election for workers trying to unionize should be mandated. In short, the states are trying to pre-empt the effect that the Employee Free Choice Act will have if passed.

Historically, the States have not fared well in litigation with the federal government, mostly because of the Supremacy Clause in the Constitution which provides, in essence, that if the Feds have entered the fray, then the States have to step aside or, at least, cannot pass laws contrary to federal law.

What this new level of conflict between the States and the federal government means remains to be seen but it indicates a strong divide between Main Street and Pennsylvania Avenue and how each believes this country should be run and who should run it.

How To Motivate Employees? Stop Demotivating Them

2010-08-12T15:47:00.000-05:00

I received this e-mail yesterday from a bright guy I know who is doing what it takes to get through this rough patch in the economy . . . (names changed to protect the guilty)

Today, my bosses boss catches me just after lunch and asks: "Did you see that email?". To which I replied, "um no, what is about?" He says, 'Bob (my immediate supervisor, and his direct report) said he received an email from HR that they're 'adjusting' your pay rate back twenty-four cents an hour. To which I replied, "that's not even near funny enough to be a joke." He responded, "I'm not kidding, they really did this."

So, I sallied over to the computer to find the email and I'll be damned if he didn't scrap off a lousy $9.60 per week for themselves.

I graduated FROM THEIR PROGRAM top-of-class, have maintained a perfect attendance record, worked every scrap of overtime asked of me, showed up in the freak snowstorms when nobody else bothered to and have passed every single qualification exam to be certified across three distinct aircraft; been lauded by teams I've worked for and THIS, THIS is how they acknowledge my promotion to Aircraft Mechanic C, Level 7?

I took this job to get access to more credible, higher paying salaried positions, whilst learning the trade-craft of modifying airframes for certain foreign and domestic customers to become a better manager of the processes used to create the value.

Did the bosses boss step up and make a move to correct the correction? Nope.

There is no way this company could undo this kind of kick to the balls. Of course, they asked to me come in and work early once again, and the weekend too. For what?

Thoughts?

Yes, I have a thought. Short the stock of that company hard. It will only be a matter of time before that quality of management kills the business and I have always found it easier and more satisfying betting against the losers than for the winners.

Even though job openings at businesses fell to 2.54 million in June from 2.6 million in May, meaning there is now five unemployed workers on average for every job opening, those numbers don't tell the whole story . . .

The government says there are 227,000 open manufacturing jobs, more than double the number a year ago. One hundred eighty-three thousand have been created since December, the strongest seven-month streak in a decade.

And, it's hard to fill these jobs because they require people who are good at math, good with their hands and willing to work on a factory floor.

Obviously this company both fails to value its employees and doesn't understand that replacing a skilled technician on a factory floor, even in this labor market, will be tough.

I suspect they will find out soon enough . . .

So what are smart companies doing right now?

2010-08-11T16:13:00.000-05:00

Get real and get creative . . .

Real comes first, and this is real: Company job openings fell for the second straight month in June, a sign that hiring isn't likely to pick up in the coming months. Businesses aren't adding enough new workers to bring down the unemployment rate, currently 9.5 percent. Why? Because the government-sponsored "recovery" has been a show and the market is not buying it, not anymore. This is not to say it won't continue to try and print its way out of the recession (or avoid the next one) but only that it has never worked and isn't likely to work this time. Indeed, recent data suggests the second-quarter growth rate was far weaker than initially reported -- so weak that it might even have slipped back into negative territory were it not for federal government spending and inventory building.

Which means what? A likely double-dip.

The last time around there was a reasonable argument that "we didn't see it coming." That argument is no longer reasonable.

And that means companies need to be ready . . . not just in the traditional ways of "cut, cut, cut" via layoffs. After all, most companies have cut to the bone. There's not much left other than red meat.

Which means getting creative on the cost side of fringe benefits . . .

There are dozens of examples and we'll ferret through some of them in this blog, but today's focuses on getting control of medical costs which, by the way, the new government program is not going to accomplish.

One of the most creative alternatives I've seen is called "Travel Surgery." It goes something like this . . .

Medical care in the U.S. is prohibitively expensive and there are lots of darts to throw at the guilty. But, putting the guilty aside for a moment, let's look at reality - medical care, especially surgical care, is far less expensive and just as good in many other countries. Travel surgery is an opportunity to save money on expensive procedures like knee and hip replacements, hysterectomies and open heart surgeries that put many self-insured medical plans far into the red every year.

Examples: Sending employees to India can lower surgical costs on average by 80%. In the U.K., prices are about 25% less even after you take into account airfare and hotel. Mexico has many world-class hospitals and doctors that charge 30-40% of the going U.S. rate.

California-based medical travel facilitator PlanetHospital has specialized in overseas health care since 2002. Of the 21 countries in its network, the top recommendations include Australia, Singapore, South Korea, Panama, Costa Rica and Mexico.

Besides having hospitals with international accreditation, these countries also have a less onerous visa process with minimum savings to employers of at least 50%.

Are there hurdles? Sure, not the least of which is convincing employees to take a "surgical vacation." But, if employers begin the process now, they will be in a position of saving big dollars when they need them the most.

Learn more about Travel Surgery at: http://money.cnn.com/2010/08/11/news/companies/health_care_medical_travel/index.htm

Recessions Brings Happiness? Yes, it has.

2010-08-08T10:45:00.000-05:00

Today's New York Times reported that "amid weak job and housing markets, consumers are saving more and spending less than they have in decades, and industry professionals expect that trend to continue. Consumers saved 6.4 percent of their after-tax income in June, according to a new government report. Before the recession, the rate was 1 to 2 percent for many years. In June, consumer spending and personal incomes were essentially flat compared with May, suggesting that the American economy, as dependent as it is on shoppers opening their wallets and purses, isn’t likely to rebound anytime soon."

Bad news? For business, probably so. But for people, it might be the best thing that has happened to them in decades.

New research suggests that consuming less makes people happier. Studies of consumption and happiness show, for instance, that people are happier when they spend money on experiences instead of material objects, when they relish what they plan to buy long before they buy it, and when they stop trying to outdo their neighbors.

The question that remains is whether this is only temporary, and whether conspicuous consumption will raise its head again when (and if) the economy improves substantially. Or, is this a wake-up call, a forced lifestyle change for millions that will make them healthier and happier in the long term and result in a recognition that more never becomes enough?

Time will tell.

The Fundamental Problem: Labor As Commodity

2010-08-04T14:02:00.000-05:00

"They keep piling more and more work on us, but they want to pay us less and less. It’s a slap in the face." - Michelle, an employee at a Mott’s apple juice plant in Williamson, N.Y., where 300 workers have been on strike since May 23 over company demands for a $1.50-an-hour wage cut.

Comment seen on Facebook: "So? [What is she supposed to do] quit and go find another job? Oh, wait, the economy stupid, you can't find another low-paying shitty job. Or CAN you?"

One more anecdote that captures the fundamental problem faced by the American workforce -- globalization. Indeed, when a company can get good labor for $4 an hour in Mexico and $2 an hour in China making apple juice, for example, there appears to be little competitive advantage remaining in the United States, at least as a manufacturer. Of course, there are exceptions, e.g., certain high-tech manufacturing operations and manufacturers servicing other U.S. manufacturers that require just in time delivery or inure to the benefit of geographical proximity. But they are just that - exceptions to a general rule.

The fundamental problem for the American worker is the great leveling, where most labor is pure commodity in the global marketplace and, like the price of gold, it must the same in Dubai as it is in Mumbai as it is in New York.

The government can intervene (and has) to avoid the inevitable which will only act to delay it. And the inevitable is that the market decides what gold is worth on any given day, and it so decides what labor is worth on that same day.

That is immutable truth and nothing you do, I do, or the government does will change it.

In the end, each individual who wants to survive this great leveling must develop a skill set that, even on a global playing field, is in demand. Such is the primary rule of the market.

Employee Free Choice Act - Tyranny of the Majority?

2010-08-01T20:43:00.000-05:00

Just when the last of the dirt was thrown onto the grave of the misnamed Employee Free Choice Act (EFCA), it is resurrected by the likes of Harry Reid.

Not happy that the Republicans have been able to stymie his plan to create the United States of France through use of the filibuster, he has a new plan -- do away with it.

Indeed.

Discussed in detail in this week's Time Magazine, http://www.time.com/time/politics/article/0,8599,2008012,00.html, the plan goes something like this . . .

Wait for the lame duck session after the elections in November when the lame ducks have nothing left to lose and then amend the Senate rules to limit or eliminate the filibuster in Senate which has been a political delaying tactic since the adoption of the Constitution.

If they can pull this off, we will know first hand what the "tyranny of the majority" really means. We'll also see the unionization of America. EFCA is a sure thing to pass the House between now and the time a new House is seated next January. The only hold-up has been the Senate which may no longer be the case. We shall see.

Stakes are high.

Suggest you consider contacting your Senator and let them know how you feel.