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Transcript of Americas Choice: Class Conflict or a New Social Contract at Work The Future of Work Conference...
America’s Choice: Class Conflict or a New Social Contract at Work
The Future of Work Conference
Thomas A. Kochan
MIT Institute for Work & Employment Relations
MIT Workplace Center
London
June 23, 2003
The Issue: Mismatch of Policies & Institutions with Work & the Workforce
Key Facts:
– Changes in Work & the Workforce– Policies & Institutions Designed in 1930s
Result:
– Mismatch creates gap between winners & losers and limits economic performance and innovation
– A breakdown in the old social contract
The Challenge
– Break the policy impasse by reframing the debate, engaging new voices, & building on local innovations
– Building a social contract for the future
The Puzzle: Why the Deafening Silence?
Decade of boom & bust leaves working families with:– Stagnant, declining incomes– Increased inequality– Longer working hours– Less retirement savings; fewer health care benefits– Broader job insecurity– Breakdown in trust in corporate leaders– Loss of worker voice in society
Current government policies producing:– Further cuts in services & jobs – Tax policies that further increase inequality– Deep divisions over war policies – Direct attacks on workers, unions, and core values
One Scenario: An Era of Tension, Division, Conflict, Decline, and Potential Backlash
Government service cuts at state & local level International tensions and anti-Americanism intensify Anti-globalization protests Racial tensions Widening income inequality—domestic and global Work and family conflicts Loss of confidence in key institutions Growing sense of Helplessness High potential for backlash and extremism
An Alternative Scenario: A New Social Contract
Engaging the Public: Can it be a force for Change?
Revisiting basic values: The moral foundations for work
Work & its Role in Society
Expanded View of the Key “Actors” & Institutions
Multiple Stakeholder View of the Firm
Expanded Roles for Unions/Associations
Expanded Role for Labor Market Intermediaries & Community Groups
Recast Government as a Catalyst for Change
Starting Points: The Moral Foundations for Work
Efficiency: Necessary but not Sufficient Work as a Source of Dignity and Personal Development A Living Wage Respecting Diversity & Equality of Opportunity Solidarity & Social Cohesion: The Common Good Voice & Participation Local Control: Solving Problems at the Source Integrating Work, Family, and Community Responsibilities A Social Contract
Economic Function
• security
• standards
of living
• efficiency
• quality
goods &
services
Individual Value
• dignity•
respect•
identity•
voice•
social interaction
World of Work
Place in Society
family
community citizenship
A Holistic View of Work in Society
The Firm & its Multiple Responsibilities
The Firm
Shareholders& Customers
UnionPartnerships
Communities
Labor MarketNetworks
Employees
Suppliers &Contractors
GovernmentAgencies
The Challenge
“Managing a company, not a share price, means balancing the requirements of shareowners, customers, employees, and communities. And managing a company for the long-term, not just the short-term, requires building sustainable value for shareowners and customers and employees and communities. And these relationships of sustainable value require real trust and real candor.”
Carly Fiorina, CEO, Hewlett Packard, October 12, 2002
The Opportunity
“There has never been a time when corporations have had the reach, the resources, the knowledge, and the expertise to make a difference that we do today. Now, more than ever, corporate leaders have an opportunity to redefined the role of the corporation on a world stage; to leverage our ability to improve the live of people, communities, and nations for the better.”
Carly Fiorina, CEO Hewlett Packard, October 12, 2002
Realities: Changing Role of the Firm
The New Business Model: Core Competencies– More difficult to perform labor market functions– Unstable boundaries: Unstable Partnerships– Premium on Flexibility; Adaptability to Uncertainty
Increased Role of Knowledge/Human Capital– Knowledge “Workers” or “Work Systems?
Must Work Collaboratively with other Institutions Today’s Reality: Diversity in Organization Forms Transparency, Trust, & Accountability: Laws, Leadership,
& Employee Voce
Multiple Purposes of the Next Generation Unions
NextGeneration
Unions
PoliticalVoice
DirectParticipation
CoalitionPartner
Mobility &OccupationalCommunity
CollectiveBargaining
StrategicPartnerships
The Realities: Void in Worker Voice
Workplace– Pre-depression levels of union membership– Representation Gap increasing
Collective bargaining in decline– Can’t take wages out of competition– Declining power of the strike
Enterprise—struggling to find a forum– Partnerships, ESOPS, Shareholder Resolutions….
Absence of voice in national political affairs
Will there be a Next Generation Labor Movement?
Diverse Labor Force Wants & Needs Diverse Forms of Participation & Representation
Unions as Extended Networks Require:– Continuous membership over full career– New approach to membership recruitment– New sources of power– New coalitions– Different structures--coordination across union
boundaries Question: Can the labor movement adapt and
reform or will it require a rival movement?
Emerging Labor Market Institutions
Labor Market Intermediaries &
Community Groups
Job Matching
CoordinatingNetworks
InformationServices
Family Advocacy& Services
Training & LifeLong LearningWorker
Advocacy &CoalitionBuilding
Intermediaries & Community Groups
Multiple Functions– Job Matching– Life Long Learning– Advocacy: Living Wages; Work & Family– Institution Building
Major Challenges: – Sustainability– Building Power– Moving to Scale: Having a National Impact
Government: A Catalyst for Change?
Government
Linking MacroPolicies
SupportingMobility
Investing inHuman Capital
Experimentingwith Self-
Governance
Setting &EnforcingMinimumStandards
UpdatingLabor Law
Experimentingwith ADR
Promoting State& Local
Experiments
Current Realities
Demise of the U.S. Department of Labor
– From the days of George Shutlz & John Dunlop– To a silent White House Puppet
Current Assaults on Worker Rights
– Department of Homeland Security: “Collective bargaining cannot be allowed because it is a threat to national security.”
Continuing Business-Labor Gridlock
A Shadow Government Policy: A Realignment of Roles
Federal Govt. as Catalyst for Change
Increased Role for State & Local Govt.
Increased Role for International Agencies
– ILO, IMF, World Bank, WTO…and NGOs
A Comprehensive Reform/Updating of labor and Employment Law
Greater reliance on private institutions for enforcement/dispute resolution
Return to Professional Leadership in Labor & Employment Policy
The New Approach in Action: Building a Family Centered Labor Market Policy
Firm-Based “Family Friendly” Policies
Employee Participation to Support Use and Adapt Government Regulations
Collective Bargaining to Expand Coverage
Networks to Promote Family Based Model
State, Federal Policies to Fill Gaps, Extend Coverage, Provide Resources, Support Local Adaptations & Experiments
Making it Happen
New Ideas
More Innovations
Public Engagement
Full Range of Voices:
Labor, Management, Community Groups, Women & Family Advocates….
National Leadership?