Posts tagged with: labor

Anyone who’s been to Detroit in recent years knows it’s a mess. Acres and acres of abandoned houses, a population decline of 25% in the past 10 years, an astronomical crime rate, and the city is literally leaking money to the tune of some $200 million in two months. Back in March, Gov. Rick Snyder appointed bankruptcy attorney Kevyn Orr as the city’s emergency financial manager, and Orr has just released his report on the city’s financial state.

farrier toolsBefore we begin weeping about the death of the Motor City, there are bright spots. Fast Company did a piece in April highlighting entrepreneurs who are taking advantage of low-rent and housing prices and the need for creative work to boost Detroit’s economy. Dan Gilbert is a real estate broker working on filling office space downtown. Andy Didorosi has created a bus service that takes patrons from night-spot to night-spot in safe, fun and comfortable buses. Alicia George has opened a coffee house, and is optimistic that several new businesses have opened near-by.

Now for the bad news. The city of Detroit is paying a farrier (that’s a person who shoes horses) $56,000 in pay and benefits. Right now, in 2013. Let’s just say that he’s not really earning his pay in today’s downtown Detroit. The Detroit Water & Sewer Department is telling the cash-strapped city they need more employees – union employees. And the city’s unionized teachers? They want to cash in unused sick days for over $14 million. (more…)

“Retirement as a cultural concept needs to go away.” So says Pascal-Emmanuel Gobry in a thought-provoking piece today over at Forbes.

I agree with the sentiment, in large part because good work never ends.

But as Gobry also illustrates, we need to rethink our conceptions of work as well as retirement, which for many is just another way of talking about the end of work.

A recent CNBC article by Mark Koba notes the bleak outlook for 2013 college grads looking for work:

A survey released last week from the National Association of Colleges and Employers (NACE) reported that businesses plan to hire only 2.1 percent more college graduates from the class of 2013 than they did from the class of 2012.

That’s way down from an earlier NACE projection of a 13 percent hiring rate for 2013 grads.

There is good reason for this bad news, however. As Koba notes, “One reason there may not be so many grads hired is that many employers don’t believe college graduates are trained properly.” He goes on: (more…)

If your next date night costs you more, you can thank Obamacare. Regal Entertainment Group, the country’s largest movie theater chain, has announced that it is cutting employee hours due to Obamacare related costs.movie tickets

One Regal theater manager told FoxNews.com the move has sparked a wave of resignations from full-time managers who have seen their hours cut by 25 percent or more.

“In the last couple weeks, managers have been quitting on a daily basis from various locations to try and find full-time work,” said the manager, who asked not to be named. “Regal up until now has never restricted anyone to anything below 40 hours.”

(more…)

Philip at the Solovki monastery

In the most recent issue of Religion & Liberty, the “In the Liberal Tradition” section profiles Metropolitan St. Philip II of Moscow for his defense of faith and freedom in the face of the tyranny of Tsar Ivan IV, known to history as “Ivan the Terrible.” In contrast to Ivan, who used his power to oppress his own people, Philip taught, “He alone can in truth call himself sovereign who is master of himself, who is not subject to his passions and conquers by charity.” Among the many spiritual disciplines of the Orthodox Christian spiritual tradition geared towards freeing a person from being “subject to his passions,” we can see Philip’s love of labor in his many projects at the Solovki monastery in the years before he was made Metropolitan of Moscow. (more…)

There is much talk about raising minimum wage, even to the absurd rate of $22 per hour. President Obama has promised an increase to $9 per hour. Some small business owners, feeling the pinch of these raising wages, are turning to technology to solve their economic issues.

Carla Hesseltine, who runs a small bakery, is considering eliminating employees and replacing them with tablets that will take orders:

In order for her Just Cupcakes LLC to remain profitable in the face of higher expected labor costs, Ms. Hesseltine believes the customer-ordering process “would have to be more automated” at the Virginia Beach, Va., chain, which has two strip-mall locations as well as a food van. Thus, she could eliminate the 10 workers who currently ask customers what they would like to eat.

Small business owners can only raise prices so much without damaging sales, in order to cope with increased labor costs. Of course, there are costs involved with the set-up, upkeep and repair of technology, and the intangible cost of the loss of human contact.

Many studies about the effects of higher wages on overall employment tend to be politicized, clashing over whether the benefits of higher paid workers outweigh the costs of having fewer low-wage jobs. To support President Obama’s case for an increase in the minimum wage, the White House cites a 2009 academic study that says any adverse employment effect from such would be of a small and possibly irrelevant magnitude.

The raise in minimum wage to $9 does in fact seem to be minor. However, it is clear from Ms. Hesseltine’s story alone that tinkering with the minimum wage system will have ramifications. One could argue that the loss of minimum wage jobs will be balanced out by sales of technology and the jobs created there. It remains to be seen.

There are 14 million Americans who are out of work yet don’t show up in the monthly unemployment statistics. The federal government spends more money each year on cash payments for this group than it spends on food stamps and welfare combined. They are part of the hidden social safety net. They are the disabled former workers.

disability-approvedNPR’s Planet Money has produced a fascinating report on the growth of federal disability programs and what disability means for American workers. Here are some of the highlights.

Whether you’re disabled often depends on your education level and what types of work you can do:

“We talk about the pain and what it’s like,” he says. “I always ask them, ‘What grade did you finish?'”

What grade did you finish, of course, is not really a medical question. But Dr. Timberlake believes he needs this information in disability cases because people who have only a high school education aren’t going to be able to get a sit-down job.

Dr. Timberlake is making a judgment call that if you have a particular back problem and a college degree, you’re not disabled. Without the degree, you are.

(more…)

Blog author: jballor
Wednesday, March 20, 2013
By

Joseph Sunde’s fine post today on vocation examines the dynamic between work and toil, the former corresponding to God’s creational ordinance and the latter referring to the corruption of that ordinance in light of the Fall into sin.

Read the whole thing.

CodexAureusEpternacensisf76fDetail
Joseph employs a distinction between “needs-based” work and something else, something privileged, a first-world kind of “fulfilling” work. The point DeKoster makes is right on target; we need to, in Bonhoeffer’s words, break through from the “it” of the work to the “you” (ultimately the divine “You”) that we meet in the work itself.

The discussions of these kinds of distinctions between “hard” work and “head” work have a long pedigree. There was a philosophical dispute running throughout the ancient and medieval eras about the value of the active versus the contemplative life. But I’d like to highlight a more proximate antecedent for some of this thinking, the British controversialist and critic John Ruskin (1819-1900).

(more…)

“Want a job at the Pig?” asked my best friend Steve.

By my reaction, you would have thought he’d asked if I wanted a date with Kathy Ireland rather than inquiring about a job as a grocery sacker at the Piggly Wiggly. But I was living at Steve’s parent’s house rent-free, and needed to earn some money. And in Clarksville, Texas in 1985, the prospects of an inexperienced teen finding a good job were only slightly better than chances of dating a supermodel.

piggly-wigglyThe elation was short-lived, though, and lasted only until I saw my first paycheck. As a full-time student working for a job that qualified for tips (I never, ever got tips) my employer was allowed to pay me the subminimum wage of $2.85 a hour (the equivalent of $5.87 in 2012). After FICA and Social Security took their cut, there wasn’t much left for me.

So if Ronald Reagan had announced in his State of the Union address that he was raising the minimum wage to $4.37 an hour (the equivalent in 1986 of Obama’s $9 minimum wage) I would have been ecstatic. Like all my fellow proletarian coworkers I was disdainful of Reagan’s economic policies, particularly his refusal to raise the minimum wage. Reagan’s was the only administration not to have raised the minimum wage since it was introduced nationally in 1938—a fact we often repeated in the breakroom as we looked at our paystubs and cussed the president.

Twenty-seven years later, though, I see the situation differently. I realize that I have not only my friend Steve but also President Reagan to thank for my getting hired at the Piggly Wiggly. Had the minimum wage been raised, the store owner could have never afforded to hire me. Since my labor was barely worth $2.85 an hour, having a government imposed price increase on wages of 52% would have priced me out of the market.

As William Graham Sumner explained in 1883, by attempting to do me a favor—by artificially raising the minimum wage I must be paid—the politicians were hurting both me and my potential employer:
(more…)

Too many regulations: that’s the judgement of Fred Deluca, founder of the Subway restaurant chain. In an interview with CNBC, Deluca said he couldn’t start his business in today’s economic climate.

The Subway founder pointed to a number of government regulations that are degrading the business environment for entrepreneurs. Examples include the Affordable Care Act, an increase in the minimum wages and the end of the payroll tax holiday.

The Affordable Care Act, often referred to as “Obamacare,” is “the biggest concern of our franchisees,” Deluca said. “They don’t know what to expect. It’s causing a lot of concern, but that too will be passed on to the consumer.”

Deluca also said payroll taxes are a burden passed on to customers, and sales then decline. He said that if he were to try and start his business in today’s tangle of regulations and burdensome costs, “…Subway would not exist.”

Read “Subway ‘Wouldn’t Exist’ If Started Today Due to Regulations: Founder Deluca” at CNBC.com.