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posted by Fnord666 on Monday March 02 2020, @11:15PM   Printer-friendly
from the welcome-to-the-new-world-order dept.

Arthur T Knackerbracket has found the following story:

Until the 1980s, big companies in America tended to take a paternalistic attitude toward their workforce. Many corporate CEOs took pride in taking care of everyone who worked at their corporate campuses. Business leaders loved to tell stories about someone working their way up from the mailroom to a C-suite office.

But this began to change in the 1980s. Wall Street investors demanded that companies focus more on maximizing returns for shareholders. An emerging corporate orthodoxy held that a company should focus on its "core competence"—the one or two functions that truly sets it apart from other companies—while contracting out other functions to third parties.

Often, companies found they could save money this way. Big companies often pay above the market rate for routine services like cleaning offices, answering phones, staffing a cafeteria, or working on an assembly line. Putting these services out for competitive bid helped the companies get these functions completed at rock-bottom rates, while avoiding the hassle of managing employees. It also saved them from having to pay the same generous benefits they offered to higher-skilled employees.

Of course, the very things that made the new arrangement attractive for big companies made it lousy for the affected workers. Not only were companies trying to spend less money on these services, but now there were companies in the middle taking a cut. Once a job got contracted out, it was much less likely to become a first step up the corporate ladder. It's hard to work your way up from the mailroom if the mailroom is run by a separate contracting firm.

[...] The existence of such a two-tier workplace is especially ironic in Silicon Valley, a region that takes pride in its egalitarian ethos. Former Google CEO Eric Schmidt gave a remarkably candid assessment of the situation in 2012, in a statement quoted by author Chrystia Freeland.

"Many tech companies solved this problem by having the lowest-paid workers not actually be employees. They’re contracted out," Schmidt said. "We can treat them differently, because we don’t really hire them. The person who’s cleaning the bathroom is not exactly the same sort of person. Which I find sort of offensive, but it is the way it’s done."


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  • (Score: 2) by Phoenix666 on Tuesday March 03 2020, @01:38PM (2 children)

    by Phoenix666 (552) on Tuesday March 03 2020, @01:38PM (#965956) Journal

    and getting 8 weeks paid vacation

    Japanese never take vacation, though they technically get lots. The only time people take off is for a couple of days in the middle of Golden Week, when the entire rest of the country takes off also so everyone spends those days waiting in endless lines for absolutely everything.

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  • (Score: 0) by Anonymous Coward on Tuesday March 03 2020, @02:12PM

    by Anonymous Coward on Tuesday March 03 2020, @02:12PM (#965974)

    Doesn't matter anyway, those Japanese factory workers were soon mostly outcompeted by automation or cheaper Chinese workers, who are probably being replaced by bots and Vietnamese workers.

    For all that hard work Japan isn't doing well in terms of GDP/capita compared to Australia, NZ or one of the less crap European countries. Japan isn't even doing better than France and I strongly doubt the French work as many hours as the Japanese. But makes for a nice place to visit as a tourist I guess (except for the recent virus thing).

  • (Score: 2) by sjames on Tuesday March 03 2020, @07:17PM

    by sjames (2882) on Tuesday March 03 2020, @07:17PM (#966088) Journal

    These days things are somewhat different in Japan than when American management wanted their workers to fetishize the hard work part and be ignorant of the high compensation, vacation, and job security part.

    And of course, the American management remained impervious to the point that they too might have to work hard and take responsibility.