I know someone who recently moved his family across the country to accept a new job. The company put him and his family up in a nice hotel while he looked for housing. In two weeks he had leased a nice apartment, had his kids registered in their new school. In three weeks his department was phased out. The company gave him two weeks pay and apologized.
Screwing the employees to protect profits, is not just tolerated today, it's become part of the business model.
That's total bullshit, the company screwed up all right, but to suggest it's part of anyone's business model is absolute bullshit. And to imply that such is common place is also absolute bullshit.
No, its not B.S. Its real. Screwing the employees has become part of the corporate culture. Its often not by malicious intent. Its just considered good business. Profit is not a goal of business today. It is the only goal. In order for management to meet an ever-increasing demand for higher growth rates either revenue must increase or cost must come down. Cutting cost usually means cutting employee expenses.
With the decline of unions, has also come a more liberal interpretation of the FLSA rules for determining exempt employees. The result has been an increase in number of employees exempted from the wage and hour laws. More employees are being forced to work longer hours and having to bring work home. Families across the country are suffering from either the lack of employment or problems that result from overworked parents. Two parents working 50 to 60 hours a week can have a devastating effect on the family.
With high unemployment unethical hiring practices are becoming the rule not the exception. Companies are hiring people into permanent positions offering great benefits but meager pay. But theres one catch. Youre on probation for 90 days and at the end of the 90 days most of the new hires are terminated. The company avoids the higher cost of hiring temps. Another common one is over staffing personnel in new stores in order to provide excellent service for new customers. Theres nothing wrong with that providing you tell the new hires that their job is not likely to be permanent. Often 20 or 30 people are hired into what they believe are permanent positions with benefits. Then a month before the benefits kick in, only the tops 10 are kept and remainder are terminated. The employee handbook for new hires looks like it's headed for the scrap heap.
Another tactic the big corporations are using is the threat of plant closure. They use this to coerce employees to accept cuts in pay, benefits, and increased work. This can really be effective today since moving operations offshore can have dramatic increases on the bottom line.
With unions on the decline and federal and state regulations that protect employees and their communities under attack, it appears the unfettered business environment that big business covets may be just around the corner.
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