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David WeilHeller School for Social Policy & Management
Brandeis University
EROSION: THE FISSURED WORKPLACE ANDTHE FUTURE OF WORK
WHAT IS THE FISSURED WORKPLACE?LEAN RETAILING
Conveyer system
Incoming Shipments
Information
Products (shipments)
Incoming dock Outgoing dockStore
A
StoreB
StoreC
RETAILER DISTRIBUTION CENTER
WHAT IS THE FISSURED WORKPLACE?FISSURED LEAN RETAILING
Incoming dock Outgoing dock
Conveyer system
Incoming Shipments
Temp Firm 1Third Party Logistics Co.
Temp Firm 2
StoreA
StoreB
StoreC
RETAILER STANDARDS AND REQUIREMENTS
StoreA
StoreB
StoreC
Incoming OutgoingConveyer system
Incoming Shipments
Temp Firm 1Third Party Logistics Co.
Temp Firm 2
RETAILER STANDARDS AND REQUIREMENTS
WHAT IS THE FISSURED WORKPLACE?THE NEXT STEP: DIRECT HOME DELIVERY
Direct Home Delivery
Cont. 3a
Contractor 1
Contractor 2
Cont. 3b
RETAILER STANDARDS & RQMTS
CONSEQUENCES: Risk shifting
• Eroding compliance with basic labor standards
• Providing pensions and health care benefits• Safety net: unemployment and workers
compensation • Worker representation and voice
Source: Neil Irwin, NY Times, 9.3.17Gail Evans, Former Kodak janitor,
Now Mercer ExecutiveMarta Ramos, Contract janitor at Apple
Headquarters
CONSEQUENCES: Growing Earnings Inequality
The most autocratic and unfettered employer spontaneously adopts Standard Rates for classes of workmen, just as the large shopkeeper fixes his prices, not according to the haggling capacity of particular customers, but by a definite percentage on cost.
Sidney and Beatrice Webb, Industrial Democracy, 1897.
Setting Wages According to the Webbs
Wage premiumNonunion Employee Groupa 1979 1983All private nonfarm wage-and-salary workers 9 13Workers in 3-digit census occupations with union membership <= 5%
8 10
Workers in 3-digit census industries with union membership <= 5%
9 9
Source: Brown, Hamilton, and Medoff 1990
a Holding constant union status, demographics, age, education, tenure, metro area, region, detailed industry and occupation.
Size-wage premiums in big (500+) nonunion firms, 1979 and 1983
High
Low
CONSEQUENCES:Earnings Inequality
Between Firms
1990’s 2016
Fissured workplace leads to an increase in earnings inequality arising from growing differences between rather than within companies.
Earn
ings
Within Firms
1990’s 2016
Product market power + Labor market power + Fissured workplace + Declining voice =
WHERE DOES THAT LEAVE US?
REBALANCE THE FISSURED RECIPE:PUTTING PUBLIC INTERESTS ON THE SCALES
REINVIGORATE WORKER EXIT AND VOICE
Exit:• Limiting non-compete agreements• Enhancing transparency and mobility
Voice:• New organizations for representation • New forums for workplace and labor
market engagement
REESTABLISH WORKPLACE NORMS:PRIVATE & PUBLIC ROLES
Private norms• Lessons from the “Fight for $15”• Worker and social advocates• Progressive employers
Public norms • Prevailing wage and benefits• Basic rights and responsibilities• Wage determination mechanisms
The Future is Now:• Tax bill and
incentives for independent contractor
• Uber model spreading
• Need for clarification that protects, not erodes
The Future is Now:• Contested
terrain: NLRA v. FLSA
• Need for clarification that protects, not erodes
• Industry concentration leads to greater monopsony power– Investigate the impact of market power on labor market collusion.– Commissions, antitrust, and other tools.
• Need to think about consequences of pricing mechanisms on the structuring of earnings in three fastest growing, low wage industries:– Home care and Medicaid reimbursements– Restaurants and tipped wage policies– Retail / distribution / logistics and worker classification
PUBLIC POLICY, PRODUCT MARKETS AND WAGE DETERMINATION
• Collective action and the enforcement of workplace laws Individual rights, collective action problems– Limiting mandatory arbitration of fundamental rights
• Diminishing role of labor unions—below a critical mass?• Broader exploration of voice mechanisms
– New forms of worker voice (NDWA; ROC; CIW)– New forums for voice (OHS councils)
ERODING WORKER BARGAINING POWER:ENHANCING VOICE