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TIME: Almanac of the 20th Century
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TIME, Almanac of the 20th Century.ISO
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1990
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93
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jan_mar
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03299936.000
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1994-04-24
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<text>
<title>
(Mar. 29, 1993) "Nobody Is Safe"
</title>
<history>
TIME--The Weekly Newsmagazine--1993
Mar. 29, 1993 Yeltsin's Last Stand
</history>
<article>
<source>Time Magazine</source>
<hdr>
SOCIETY, Page 46
"Nobody Is Safe."
</hdr>
<body>
<p>Janice Castro and Robert Reich
</p>
<p> Secretary of Labor Robert Reich has written extensively on
the dilemma of the American worker in a global economy. TIME
associate editor Janice Castro recently talked to him about the
trend toward a contingent, or temporary, labor force.
</p>
<p> Q. A lot of people were heartened by the employment
figures released this month because so many new jobs were being
created. But most of those jobs were part-time positions.
</p>
<p> A. Yes, 90% of the new jobs we created in February were
involuntary part-time jobs. These were people who would rather
be full-time workers.
</p>
<p> Q. One-third of all American workers now have part-time,
temporary or contract jobs, some sort of contingent work with
no job security and usually no benefits. Many of them had better
jobs until recently. They say they are suffering incredible
stress.
</p>
<p> A. Oh, it's enormous stress. The anxiety level is very
high, regardless of the kind of job you hold. Nobody is safe.
</p>
<p> Q. Companies now say they want to identify their basic,
core function and their core workers, and everything else can
be done by peripheral workers, part-time people or
subcontractors. Isn't this an extreme buyer's market for labor?
</p>
<p> A. I think there are reasons for pause. We have built up
in this country since the 1930s a system of employment
relationships, guaranteed by law and guided by business
practices that have become norms. The state courts have
essentially codified entire areas of workplace law having to do
with everything from unjust dismissals through areas of
labor-management relationships such as family and medical leave,
which many of the states pioneered before the federal
legislation was passed. Many people think this system needs
fundamental rethinking.
</p>
<p> Q. We have developed a two-tier work force. The contingent
workers get a different package of pay and benefits or no
benefits at all.
</p>
<p> A. Yup. And that is definitely the trend. The first step,
in the mid-'80s, was to reduce some of the benefits packages
for the lower-tier workers, and that continues. The next step
was to fire middle-level management. The third step was to
reduce benefits packages across the board for all employees. And
now we're at the fourth step, which is to do much more business
by contract, whether it is with contingent workers and
part-time workers or by contracting out.
</p>
<p> Q. In other words, the fourth step is to eliminate the
benefits entirely.
</p>
<p> A. The contingent work force is outside the system of
worker-management relationships and expectations we've created
over the years. Larger and larger numbers of Americans are
working far longer hours and often at several jobs. The nation
faces a dilemma and a challenge. Does this mean we should begin
to dismantle that system of protections? Is it simply too
expensive for employers?
</p>
<p> Q. What impact is this change having on motivation?
Creativity? Commitment to goals? How can people work well when
they are being told that they do not matter, that they can
easily be replaced?
</p>
<p> A. Unless people feel that they will be valued over the
long term, they may be more reluctant to go the extra mile, to
think a little harder, to contribute. In the same way, if the
employer feels this is not a long-term relationship, the
employer may be more reluctant to invest in on-the-job training
of that worker. There are companies that traditionally were
very, very careful about laying off workers because they were
so concerned about their corporate culture. Now they just fire
people, sometimes with very little notice.
</p>
<p> Q. Employers say they believe in empowerment. They're
talking about pushing the information down to the shop floor,
about letting the ideas and the creativity bubble up. But it
seems that all these contingent workers are being crippled, not
empowered.
</p>
<p> A. What we're seeing here is two trends on a collision
course. One trend is empowerment, in which companies are
revitalizing the core, strengthening relationships with workers.
But the countertrend is the move toward contingent work, where
there is always a question mark hanging over the relationship
as to whether it will continue in the future. You can't do both.
</p>
</body>
</article>
</text>