The Top Labor Issues Are Changing!
The top labor issues of the 21st century are sometimes the same and sometimes different than the 20th century. Learn how the latest global influences are shaping the new face of labor!
Every country has a labor history. That history has consequences for the workers in that labor market, the firms that set up their business in that market and the customers who purchase products made in that market. In 2013 there have been multiple labor safety disasters in Pakistan that have cost many lives and damaged the reputation of Pakistan. A century ago, both the US and the UK had similar disasters, which led to labor reforms and industrial safety laws.
In the 1990s, the US and Europe learned that some inexpensive clothing that was manufactured offshore was made by children. Child labor, was another trend a century ago, that led to labor reforms when reform groups rebelled against the practice. This time, Kathie Lee Gifford, led a consumer rebellion against child labor.
Now, remembering previous history and fearing a new consumer rebellion, department stores and fashion firms that buy Pakistani goods are willing to pay, at least a little, to improve working conditions.More »
1. Outsourced Workers Take CEO Hostage
The rules of labor negotiation are different in every country. In China, CEOs are finding that their outsourced workers have different ideas about the rules of negotiation. Apparently, kidnapping and imprisoning managers can be part of the process. And if it happens, the police are going to be very reluctant to interfere in a "labor problem." Here's the story of one CEO that learned the hard way that there are hidden cultural costs that go along with low-cost labor markets.More »2. Corporations Pressured to Improve Labor Conditions In Pakistan
Every country has a labor history. That history has consequences for the workers in that labor market, the firms that set up their business in that market and the customers who purchase products made in that market. In 2013 there have been multiple labor safety disasters in Pakistan that have cost many lives and damaged the reputation of Pakistan. A century ago, both the US and the UK had similar disasters, which led to labor reforms and industrial safety laws.
In the 1990s, the US and Europe learned that some inexpensive clothing that was manufactured offshore was made by children. Child labor, was another trend a century ago, that led to labor reforms when reform groups rebelled against the practice. This time, Kathie Lee Gifford, led a consumer rebellion against child labor.
Now, remembering previous history and fearing a new consumer rebellion, department stores and fashion firms that buy Pakistani goods are willing to pay, at least a little, to improve working conditions.More »
3. Contracts Fail When Labor Markets Are Not Understood
We've entered a time when truly massive outsourcing contracts are being considered. However, before you negotiate a new mega-contract, you need to understand why previous contracts failed. Take the massive security contract for the London Olympics. It was the largest security outsourcing contract of all time for the UK. Unfortunately, there simply were not enough qualified individuals in the country to meet the timing and the conditions of the contract. Should a qualified outsourcer know when they are unable to perform a contract? Absolutely! However, when a mega-contract is offered... perhaps the biggest contract your firm has ever been considered for... the pressure to do the impossible, may become irresistible.More »4. Labor History Suggests Future Events
Here's a short summary of the contentious history of labor around the world, and some future lessons that we need to learn. In every country, there were transitions from agriculture to manufacturing, and manufacturing to knowledge work. In every transition, workers have rebelled against change, often in dramatic and violent ways. Some of the violence comes from labor riots, but even more comes from unsafe work conditions and industrial accidents. Still later, workers also band together as consumers to lobby for reduced pollution and other social conditions. The US, Europe and other countries have already gone through these stages of labor history, but popular offshoring locations have only begun to experience these stages, including riots in China. The labor markets in China, Pakistan, India and other popular offshore locations are only beginning to organize. How will the rise of labor change outsourcing?More »5. How City Unions Shape Outsourcing Discussions
Years ago, a government job was a Union job. Union jobs used to be fairy low paid, but provided security for their workers. Today, Union jobs are almost the only jobs left that still have traditional pensions and benefits. That used to be a good thing, but today Union pay is often higher than non-union, plus the cost of benefits makes these positions difficult to justify financially. Add the seniority systems that are common in most Unions, and you have inexplicable pay situations. Like janitors with higher salaries than the teachers or the principal in a school. These situations make sense to seniority based unions, but not to taxpayers who want performance for their tax dollars.More »6. How America's Oldest Family Owned Business Deals with Labor
Few businesses can claim their founder was the Emperor's Wizard, but the family-owned music business... Zildjain... was built on labor magic! The nearly 400-year-old company makes cymbals for professional musicians, and owns 50% of the world market for this musical instrument. Zildjain has been in the US since 1929, and has NEVER fired a worker. Instead, the magic to their labor history has been to constantly introduce new technology, and retain workers for higher skilled work, as their old job becomes automated.More »7. The Ultimate Labor Issues: Robots!
Since the 1970's, outsourcing... first of manufacturing and later of knowledge work... has been a theme that has driven changes in labor. Now, a huge wave of work is headed back onshore. But the work that is headed back to the US and Europe is coming back because of automation. New US factory workers will be working side by side because of automation. New industrial robots are easier to work with, and the latest automated assistants are transforming knowledge work. Your next coworkers may be called Siri, Watson or Baxer!More »
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