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Chapter 12 - Dealing with Employee–Management Issues and Relationships
61
PPT 12-41
The Salary Gender Gap
THE SALARY GENDER GAP
Source: U.S. Census Bureau, www.census.gov, accessed November 2014. 12-41
Age Average Salary
15 to 24 Women - $23,357
Men - $26,100
25 to 44 Women - $41,558
Men - $55,286
45 to 64 Women - $44,808
Men - $67,040
LO 12-5
1. This slide presents the inequity in earnings: what
women of certain ages earn compared with the av-
erage salary earned by a male in the same age
range.
2. Ask the students: What are some of the reasons
behind this salary gender gap? (Answers will vary
but could include issues like women working part-
time to raise children or women leaving the work-
force due to family issues.)
3. If time permits have students read Chapter 3 of
Thomas Sowell’s awarding winning book, Eco-
nomic Facts and Fallacies, which explores this is-
sue in depth and will provide for a rich classroom
discussion.
PPT 12-42
What’s Sexual Harassment?
WHAT’S SEXUAL HARASSMENT?
• Sexual Harassment -- Unwelcomed sexual
advances, requests for sexual favors or other verbal
or physical conduct that creates a hostile work
environment.
12-42
LO 12-5
• Sexual harassment laws
cover men, women and
foreign companies doing
business in the U.S.
• Violations can be extremely
expensive for businesses.
Students should realize that sexual harassment covers all
employees as well as vendors, suppliers and others who
come in contact with company employees. Businesses
need to take all allegations seriously and develop a protocol
for investigating each claim.
PPT 12-43
Kinds of Sexual Harassment
KINDS of SEXUAL HARASSMENT
12-43
LO 12-5
• Quid pro quo sexual harassment involves threats
like “Go out with me or you’re fired.” An
employee’s job is based on submission.
• Hostile work environment sexual harassment is
conduct that interferes with a worker’s
performance or creates an intimidating or
offensive work environment.
Chapter 12 - Dealing with Employee–Management Issues and Relationships
62
PPT 12-44
You Make the Call . . .
YOU MAKE the CALL…
12-44
LO 12-5
1. Two colleagues walk by you as one delivers the
punch line to a very dirty joke. You feel the joke
is inappropriate. Is this sexual harassment under
the law?
2. An employee thinks she may have been
sexually harassed when her boss
complimented her blouse. She explains the
circumstances to you and asks, “Wouldn’t you
be upset?” What’s your response?
1. Ask the students: Have you felt uncomfortable in
situations that can be described as sexual harass-
ment? How about the male students in class?
2. Discuss the situations on the slide with students
and then specifically discuss what constitutes sexu-
al harassment.
3. For the conduct to be considered illegal under spe-
cific conditions:
• The employee’s submission to such con-
duct must be explicitly or implicitly made
a term or condition of employment, or an
employee’s submission to or rejection of
such conduct must be used as the basis for
employment decisions affecting the work-
er’s status.
• The conduct must unreasonably interfere
with a worker’s job performance or create
an intimidating, hostile, or offensive work
environment.
PPT 12-45
Facing Childcare Issues
FACING CHILDCARE ISSUES
• The number of women in the workforce with
children under three-years-old has increased.
12-45
LO 12-5
• Childcare related absences
cost businesses billions of
dollars each year.
• Who should pay for the cost
of childcare – this is a
dividing issue among
employees and businesses.
Chapter 12 - Dealing with Employee–Management Issues and Relationships
63
PPT 12-46
Businesses Response to Child Care
BUSINESSES RESPONSE to
CHILD CARE
12-46
LO 12-5
• Benefits can include:
- Discounts with childcare
providers.
- Vouchers that offer payment
for childcare.
- Referral services identify
high-quality childcare
facilities.
- On-site childcare centers
- Sick-child centers.
PPT 12-47
Increasing Elder Care Challenges
INCREASING ELDER CARE
CHALLENGES
12-47
LO 12-5
• 31% of U.S. households are
providing some care to an
elderly person.
• Care giving obligations cause
employees to miss about 15
million days of work per year.
• Costs could rise up to $35
billion annually.
As the population ages caring for one’s parents and other
relatives will be a bigger employment related issue. Proac-
tive companies will develop benefits to meet this challenge.
PPT 12-48
Elder Care in the Modern Household
ELDER CARE in the
MODERN HOUSEHOLD
12-48
Source: Money, www.money.com, accessed November 2014.
LO 12-5
• More and more boomers are taking care of their
parents while still working.
- 31% say that may delay their retirement.
- The average cost of taking care of an aging parent is
$5,534.
- 76% say they enjoy taking care of their parents.
- 54% say it made them closer.
1. As boomers’ parents age, more and more have
started bringing them into their homes.
2. 25% of boomers expect to live with their parents
again.
3. Ask the students: Do you think this will delay more
retirements? What does this mean for the young
workforce?
Chapter 12 - Dealing with Employee–Management Issues and Relationships
64
PPT 12-49
Drug Use in the Workplace
DRUG USE in the WORKPLACE
12-49
LO 12-5
• Alcohol is the most widely used drug - 6.5% of full
time employees are considered heavy drinkers.
• Over 8% of workers aged 18-49 use illegal drugs
and are more likely to be in workplace accidents.
• Drug abuse costs the U.S. economy $414 billion
in lost work, healthcare costs and crime.
• Over 80% of major companies drug test workers.
PPT 12-50
Violence in the Workplace
VIOLENCE in the WORKPLACE
12-50
LO 12-5
• OSHA reports homicides account for 16% of
workplace deaths.
• Violence is the number one cause of death for
women in the workplace.
• Companies have taken action to deal with
potential problems by using focus groups and
other interactions.
PPT 12-51
Warning Signs of Possible Workplace
Violence
WARNING SIGNS of POSSIBLE
WORKPLACE VIOLENCE
12-51
LO 12-5
• Unprovoked outbursts of anger or rage
• Threats or verbal abuse
• Repeated suicidal comments
• Paranoid behavior
• Increased frequency of domestic problems
1. Managers and workers must be on the lookout for
possible signs of workplace violence.
2. Most companies do not have formal training or a
formal policy to deal with workplace violence.
3. Ask students to discuss the following question:
What actions can management take to prevent
workplace violence? (Firms that maintain positive
employee relations tend to experience fewer prob-
lems. The key to prevention of workplace violence
is being proactive.)
Chapter 12 - Dealing with Employee–Management Issues and Relationships
65
PPT 12-52
Progress Assessment
TEST PREP
12-52
• How does top-executive pay in the U.S. compare
with top-executive pay in other countries?
• What is the difference between pay equity and
equal pay for equal work?
• How is the term sexual harassment defined and
when does sexual behavior become illegal?
• What are some of the issues related to childcare
and elder care and how are companies
addressing those issues?
1. Executive pay in the U.S. is significantly higher
than in other countries.
2. Equal pay for equal work refers to giving equal pay
to men and women who do the same job. This
concept was codified in the 1963 Equal Pay Act.
Pay equity goes beyond this concept and says peo-
ple in jobs that require similar levels of education,
training, or skills should receive equal pay. For
example, the pay of an occupation traditionally
considered a women’s job, such as a bank teller,
should pay the same as a truck driver typically con-
sidered a man’s job.
3. Sexual harassment refers to any unwelcome sexual
advance, requests for sexual favors, and other ver-
bal or physical conduct of a sexual nature that cre-
ates a hostile work environment. This behavior is
considered illegal if the conduct unreasonably in-
terferes with a workers’ job performance or creates
an intimidating, hostile, or offensive work envi-
ronment. It is also considered illegal if the sexual
harassment constitutes a quid pro quo.
4. Issues of childcare or elder care are of concern to
employers, since these issues account for reduced
productivity, absenteeism and high turnover. An-
other issue to consider is who pays for the care of a
child or an aging parent. Companies are address-
ing these issues by arranging discounts at national
child care chains, subsidizing payment for child-
care, developing referral services to identify high
quality providers of care, creating on-site child care
centers or sick-child centers, offering health-
spending accounts allowing workers to set aside
pretax dollars for elder-care expenses and offering
flexible work schedules.
Chapter 12 - Dealing with Employee–Management Issues and Relationships
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lecture
enhancers
“When two men in business always agree, one of them is unnecessary.”
William Wrigley Jr.
“Never doubt that a small group of committed citizens can change the world;
indeed, it’s the only thing that ever has.”
Dr. Margaret Mead
“Any business arrangement that is not profitable to the other person will in the
end prove unprofitable for you. The bargain that yields mutual satisfaction is
the only one that is apt to be repeated.”
B. C. Forbes
lecture enhancer 12-1
THE COMPLICATED LEGACY OF HENRY FORD
Henry Ford founded the Ford Motor Company in 1903, producing an inexpensive, all-purpose
car, the Model T. His company grew rapidly after the Model T became an instant success. The close rela-
tionship he enjoyed with his skilled workers deteriorated as he installed the assembly line and hired un-
skilled workers. In 1913, dissatisfaction among workers resulted in labor turnover of over 380% in one
year alone. A small number of workers joined the International Workers of the World, which served as an
outlet for the workers’ hostility.
On January 14, 1914, Henry Ford shocked the industry by raising the average wage for his work-
ers from $2.34 to $5.00 per day. Although this, overnight, made Ford known as the defender of the work-
er, Ford’s motives were more complex. He believed that the more money he paid to workers, the more of
his cars would be bought. Although he paid his workers attractive salaries when they worked, he felt little
responsibility for their continued employment and laid them off when necessary.
During this early period, Ford instituted other worker benefits that were revolutionary. He created
a Safety and Health Department in 1914 and opened the Henry Ford Trade School in 1916 so that boys
could learn a trade while attending school. Another farsighted policy was the hiring workers with partial
disabilities, ex-criminals, people who were epileptic, and individuals who were former mental patients. In
1934, approximately 34% of Ford workers were physically disabled.
Also instituted was the Ford Sociology Department that counseled workers and management
alike. It gave workers advice on how to budget money and served as a protection for them when unscru-
pulous salesmen descended on them after they had received their paychecks. The Sociology Department
also conducted a Language School to teach foreign-born workers the English language. Labor appreciated
his reforms, and supported Ford in his unsuccessful campaign for the U.S. Senate in 1918. Many experts
feel that Ford’s reforms were the only labor reforms in the early part of the century.
But Ford was inconsistent in his dealings with his workers. During the 1920s, Ford instituted a
cost-saving campaign. The assembly line was increased in speed so that workers performed their jobs in
less time. Discipline was strict, and workers were driven to work as hard as possible. Even the Sociology
Department was disbanded. The Ford Service Police, a 3,000-person group, was created to enforce the
speed-up and other discipline measures. Workers who were involved in union activities were often physi-
cally assaulted.
Chapter 12 - Dealing with Employee–Management Issues and Relationships
67
Ford, who was once hailed as the workers’ hero, was now viewed as a reactionary. During the
Great Depression, layoffs in all industries resulted in massive unemployment. In March 1932, the Ford
Hunger March took place. Several hundred workers marched on Ford, demanding a six-hour workday,
two daily rest periods, and an unemployment bonus of $50 per worker. The marchers were greeted by
gunfire that resulted in four deaths. Henry Ford steadfastly maintained a hostile attitude toward any union
activities.
The Wagner Act was passed in 1935, establishing a national policy of protecting the rights of
workers to organize and collectively bargain. Under the protection of the Wagner Act, the United Auto-
mobile Workers began a systematic campaign to organize the automobile industry. By 1937, they had
succeeded, except for Ford.
In May 1937, the UAW began its campaign to unionize Ford. Walter Reuther headed the cam-
paign and planned to distribute circulars to Ford workers on their way home. The union members sta-
tioned themselves on a bridge over a road leading to the Ford Rouge River plant. Ford Service Police or-
dered them to leave, and when the union supporters started to comply, the police attacked them. The Bat-
tle of the Bridge ended with Reuther and several others, including women, requiring hospitalization.
Even though Ford prevented unionization one more time, time was running out. When the UAW
began another organizing effort in 1941, it succeeded. After the head of the Ford Service Police fired
eight Rouge River workers for union activities, the workers spontaneously walked off their jobs. They
surrounded the plant and refused to let food and water be sent in to the Ford Service Police in the plant.
On April 11, 1941, Henry Ford agreed to recognize the union.
lecture enhancer 12-2
EMPLOYEES STAND BY THEIR CEO AT MARKET BASKET
For many “regular” Americans who work at big companies, the job security of the CEO is not a
major concern. After all, executives tend to have a fortune to fall back on if they get fired. That’s certainly
the case for Arthur T. Demoulas, who remains a major shareholder in the Market Basket grocery store
chain despite being ousted as chief executive in July. But employees aren’t happy about Demoulas’ de-
mise. In fact, the beloved CEO’s termination has prompted mass protests and staff walkouts that have
forever altered the Boston company’s public image.
Demoulas, or Arthur T. as most people call him, is well known to his employees as a generous, persona-
ble boss. Not only does he provide his non-union staff with ample benefits and above average pay, many
of them consider the executive a friend. Employees say Arthur T. always has a moment to talk, and he
even attends his staff’s weddings and other family events.
So why did this immensely popular CEO get shown the door? Market Basket has been a family-
owned company for more than a century, but that doesn’t mean the current generation sees eye-to-eye.
Arthur T. was forced out by his cousin Arthur S. Demoulas following years of feuding. In some cases, the
family’s battles for company control included instances that wouldn’t be out of place in a soap opera.
Fake identities, secretly taped meetings, and other odd acts of subterfuge all played a part in the drama of
the Demoulas clan. Market Basket’s employees aren’t concerned with these petty power plays, however.
Many staffers walked off the job on July 18 following Arthur T.’s dismissal. A boycott that followed
shortly after ensured Market Basket’s shelves remained bare for weeks. Management ordered the compa-
ny’s errant employees to return on August 15, though most of them ignored that directive. Meanwhile,
Arthur T. is attempting to buy out his cousin’s shares and retake control of the company. The friendly
CEO and his loyal employees’ fates still very much remain in the balance.i
Chapter 12 - Dealing with Employee–Management Issues and Relationships
68
lecture enhancer 12-3
ADDITIONAL LABOR–MANAGEMENT TACTICS
Additional Tools Used by Labor to Fight Management
In addition to those discussed in the text, other tools that labor uses in its efforts to achieve con-
cessions and “fair treatment” from management include:
1. Slowdowns. Slowdowns occur when workers decrease their work output voluntarily to let man-
agement know of their dissatisfaction.
2. Blue flu. A form of slowdown occurs when a large number of workers suddenly “become ill” and
call in sick. The end result is a slowdown in productivity—at least, until the workers are back on
their jobs. Public sector employees often use the blue flu as a tool against management.
3. Sabotage. Putting glass soda bottles inside car doors, slipping faulty bearings into machines,
slashing tires, and even planting live grenades under the beds of managers—as has been done in
past wars—are ways of showing workers’ dissatisfaction with a company and causing it to lose
money, as well as public support and confidence in its products.
4. Political power. Endorsements from labor unions are often very important to elected officials.
The threat of withholding support or promise of actively providing advocacy can be an effective
weapon, especially in the areas where elected officials have large union constituencies or sympa-
thizers to the union movement.
5. Financial influence. Unions can contribute funds to the campaigns of elected officials that sup-
port labor issues and withhold support from those who are known for their anti-union voting pat-
terns. Unions also have large pension funds and operating accounts that they can deposit in sup-
portive financial institutions and invest in organizations that treat their workers and unions fairly.
Unions can also withdraw their pension funds and operating accounts from institutions that show
an anti-union bias.
6. Publicity battles. With growing media attention to business events, union leaders have become
adept in presenting their causes to the public, seeking sympathy, understanding, and support. A
classic case where a union used publicity to try to persuade the public to go against a company
was the Amalgamated Clothing and Textile Workers Union going against J.P. Stevens, the huge
textile firm. The Steelworkers Union tried to wage a publicity campaign against U.S. Steel (now
USX). PATCO sought public support in the air controllers strike but did not get much of it.
Additional Tools Used by Management to Fight Labor
In addition to those discussed in the text, management has the following tools to combat labor:
1. Harassment of union members and their families. The goal is to get the members to drop out
of the unions or become less active in supporting union causes. Harassment may be direct or sub-
tle, using many subliminal techniques.
2. Modern “yellow dogs.” Companies can often gauge the feelings of employees regarding unions
and try to discourage them from joining as a condition of employment. While this practice is ille-
gal, it still exists.
3. Political power. Companies, like unions, have vast resources that can be used to contribute
workers and money to elected officials who advocate their causes or to try to defeat pro-union of-
ficials.
4. Financial power. Companies can direct their financial resources to institutions that are pro-
business and withhold investments from organizations that have a pro-union bias.
Chapter 12 - Dealing with Employee–Management Issues and Relationships
69
5. Pacts and mutual support organizations. Sometimes firms within a given industry share infor-
mation about union strategies before collective bargaining begins. They decide to unite to hold
down wage-cost increases and thwart union demands. They often agree to help each other finan-
cially in case one of them is confronted with a strike; because increases in wages at one firm can
spread to another.
6. Publicity. Large firms have established public relations departments and teams that can procure
favorable news stories at no cost. Management can use publicity and promotion adeptly to per-
suade the public that its cause is the correct one in disputes with labor.
7. Two-tier wage systems. Two-tier wage systems maintain present workers at existing pay levels
and even give them a raise, while new workers are brought in at substantially lower wages. Un-
ions in the aerospace industry are beginning to rebel against two-tier systems at Boeing, Lock-
heed, and other companies.
8. Plant closings. The ultimate weapon an employer has is to close the business if workers do not
accept the terms offered. Employers may then move to other locations—simply cease operations
entirely—or sell to new owners who demand wage cuts that the workers, who have suffered eco-
nomic losses from the strike, accept in order to get back to work.
lecture enhancer 12-4
UNIONS TURN TO THE SERVICE INDUSTRY FOR GROWTH
Unions now represent only 13.2% of the labor force. If the figure goes much lower, unions may
become irrelevant as a force in business. The answer, many union organizers believe, is to organize ser-
vice workers. Most of the nation’s job growth between now and the end of the century will be in service
businesses. The question is whether or not unions will be able to win over service workers. There is some
evidence that they will.
Ralph Whitehead from the University of Massachusetts calls service workers “new-collar work-
ers.” Their ranks include clerical workers, insurance agents, keypunchers, nurses, teachers, mental health
aides, computer technicians, loan officers, auditors, and salespeople. There are some 20 million such
workers, more than the AFL-CIO’s current 13 million members.
To reach these workers, labor has to broaden its traditional bread and butter (money) appeals to
include quality-of-work concerns such as career development, professional autonomy, and technological
change. Thus, unions may push issues such as pay equity, career ladders, child care, job training, and
stress management. Workers will also have to be won over by successful union marketing. Most service
workers are unfamiliar with unions, and there is some resistance to union organizing. Nonetheless, unions
have made some progress.
A Harris Survey found a growing discontent among nonunion workers over pay and job-
advancement opportunities. More than 75% feel that unions generally improve pay and working condi-
tions. The survey indicated that 53% of nonunion service workers would react favorably to union repre-
sentation. Some unions have had success recruiting service workers, including the Service Employees
Union, the Hotel Employees and Restaurant Employees Union, and the National Union of Hospital and
Health Care Employees.
One union that is doing a particularly good job of listening to employee needs and adjusting to
them is the American Federation of State, County, and Municipal Employees (AFSCME). The union’s
campaign emphasizes issues such as workplace dignity and safety, pay equity, and career development.
One worker who joined voiced a complaint that many new computer workers have. She keys information
from tax forms into computers, and her work is monitored to see if she meets daily goals. If not, she re-
ceives warnings. This is a return to the management styles of Frederick Taylor and Scientific Manage-
ment, and is greatly resented by some workers.
Chapter 12 - Dealing with Employee–Management Issues and Relationships
70
lecture enhancer 12-5
PUTTING PEOPLE FIRST AT PUBLIX
Walmart became the world’s largest retailer by keeping margins low on everything, including em-
ployee compensation. For the Florida-based grocer Publix, however, keeping staff motivated through strong
financial incentives is a recipe for success rather than instability. Publix’s net margins of 5.6 percent trounce
Walmart’s 3.8 percent, making it the most profitable grocery chain in the nation. With $27.5 billion in sales,
it’s also the largest employee-owned company in America. Staffers control 80 percent of the company thanks
to a policy that grants any employee who has put in 1,000 work hours an additional 8.5 percent of their salary
in stock.
Awarding employees such a big stake in the company ensures that Publix has the most motivated staff possi-
ble. Service is the company’s number one priority since it can’t compete with the extreme cost-cutting
measures of Walmart. Publix locations are staffed with hundreds of courteous workers who fetch items for
customers when asked and carry their groceries to the parking lot from the checkout counter. If being waited
on so dotingly isn’t enough, customers are sure to be happy with the grocer’s short lines. Predictive staffing
software ensures that queues at the register don’t get much longer than two customers deep. “You can’t have
the lowest price and do what we do,” says CEO Ed Crenshaw. “Some items will be lower in price, but in addi-
tion to that you’re going to get trained, knowledgeable people that care about you as a customer.”
In exchange for their positive attitudes, Publix employees enjoy good salaries and other benefits in
addition to their stock options. Each quarter, approximately 20 percent of all profits are placed into a larger
pool. 20 percent of that pool is then paid out to employees in cash. With perks like this, it’s no wonder 34,000
Publix employees have been with the company for more than 10 years. Opportunities for advancement abound
given that all promoting is done from within. The benefits of staying at Publix are definitely enticing: a store
manager making between $100,000 and $130,000 a year will have earned more than $300,000 in stock and
received $30,000 in additional dividends over a 20 year period. But as Walmart pushes harder into the compa-
ny’s home market of Florida, it will be interesting to see if Publix can hold on to its employee-oriented ideals.ii
lecture enhancer 12-6
REVAMPING EXECUTIVE PAY
In an unsettling era, few things have managed to stir up as much ire as the disproportionate bo-
nuses given to many of the nation’s most inept executives. For example, Countrywide Financial’s Angelo
Mozilo, who received $103 million in bonuses and unloaded $169 million worth of stock as his business
crumbled, achieved infamy on CNBC’s “Worst American CEOs of All Time” list. The executive bonuses
handed out to TARP-aided AIG caused such an uproar that the company had to position extra security
guards at the doors of several offices in response to numerous death threats and angry letters. As the hor-
ror stories of enormous executive greed become commonplace, experts ask: How can high-level execu-
tives be compensated in a manner proportionate to their job performance?
Miami’s World Fuel Services provides a good example for calculating executive salaries the right
way. Under the company’s executive pay plan, CEO Paul Stebbins’s equity grants are tied up in restricted
stock that won’t vest for years. Additionally, two-thirds of Stebbins’s net-worth, $23 million, is wrapped
up in World Fuel stock, thus intimately connecting his own compensation with the performance of the
company. According to Stanford corporate governance professor David Larcker, companies can judge job
performance by accounting measures like profit gains as well as by nonfinancial indicators like customer
satisfaction and employee turnover.
Chapter 12 - Dealing with Employee–Management Issues and Relationships
71
For decades, companies judged their own executive salaries on that of their peers. Rather than
awarding good work, 86% of S&P corporations said they based their executive pay on what other groups
of similar companies compensated their bosses. Over the years, an ever-increasing game of corporate one-
upmanship occurred, bloating executive salaries from 40 times average worker pay in 1980 to 433 times
in 2007. While this method is obviously flawed in itself, Nordstrom president Blake Nordstrom uses a
variation to effectively regulate his own compensation. A portion of his pay is granted in performance
shares that vest every three years, but only when the company’s total shareholder return is positive and
above the average among its retail peers. Along with his $59 million in company shares, Nordstrom’s fi-
nancial well-being is tied with his company both by itself and in relation to its peers, which could prove
to be a welcomed solution for eliminating corruption at the highest level of business management.iii
lecture enhancer 12-7
FRENCH LAW FORCES BOSSES TO RESPECT FREE TIME
For many working Americans, leaving the office in the early evening doesn’t necessarily mean
your workday is done. Answering emails and phone calls can stretch one’s workday far past the standard
five o’clock threshold. That is, unless you happen to be a consultant working in France. Under a new
agreement between labor unions and corporate representatives, more than 250,000 French employees at
consulting, computing and polling firms are required to “disconnect” from work once they clock out.
Under the agreement, companies must grant workers 11 hours of uninterrupted “rest” time every
day. This ensures that France’s 35-hour workweek law remains enforced in busy tech sectors. While some
may see such legislation as a mark of laziness, it mainly ensures that French citizens receive overtime for
work done past the 35-hour mark. The recent update is meant to cover tech employees who signed con-
tracts with employers that only stipulated how many days they must work rather than daily hours.
Although this story caused a bit of a stir with some envious rat racers, such an agreement is not
without precedent. In 2011 Volkswagen began shutting off its BlackBerry servers at the end of the work-
day, effectively freezing out employees from continuing to work. Last year, supervisors in the German
Labor Ministry were ordered not to contact employees outside of office hours. Labor laws in France and
Germany remain highly protective of workers rights, but critics feel that such requirements can harm eco-
nomic growth. However, as one French consultant observed, “If you don’t have employees who are in
good health, your competitiveness is going to fall.”iv
lecture enhancer 12-8
THE MALE EMPLOYMENT DROUGHT
Labor statistics have been notoriously dire since the economic collapse of 2008. In April 2011,
however, Labor Secretary Hilda L. Solis actually had some good news to report. She said the four-month
drop in the jobless rate, from 9.8 to 8.8%, represented its largest decline since 1984. But, as with most
labor statistics, the numbers alone don’t tell the whole story. Many people gave up hunting for a job after
years of fruitless search. Perhaps the most disturbing facet of today’s labor crisis, however, is the vast
amount of men who have been sidelined due to a lack of employment opportunities.
In the 1950s, nearly 85% of men aged 16 to 64 were employed. Over the years that number has
steadily dropped, finally bottoming out at an all-time low of less than 65%. Traditionally during reces-
sions the employment-to-population ratio for men drops and does not return to its previous high during
recoveries. Given the severity of the latest recession, the recent slump has been even worse than usual.
Oftentimes unemployed men are workers who would have bounced back in a normal job market. But with
