Now that income inequality has gotten to be noticed to the point where MITT ROMNEY thinks he can run a campaign around it (and that is a whole other hilarious diary), I think my own kids have become acquainted first hand with the way little known companies are devastating our middle class in their own, diabolical ways.
Both my son and daughter work for companies that were begun by men that cared about their employees and treated them well. When the owners die or retire and leave the company to family members or others, there is a major change in the attitude regarding employees. All of a sudden, they are disposable and are treated as if they are standing in the way of profits.
How do they do this?
My daughter's case is particularly bad. She works for Lifetouch, the portrait people who reside in JCPenney stores and probably take your child's school photos. These are the "sign a contract and don't talk about your income to each other" people and the company who recently changed their part time employees (most of the employees are part time, of course) to where they no longer earn any type of leave. This is also the company that recently lost a class action suit because they were not allowing employees breaks and lunch time.
They just "restructured". After asking around and seeing the people who were either demoted or fired, she has come to one conclusion. They only messed with the people who had been there longer and made more wages. Understand, that this company believes wholeheartedly in 10 cent per hour wage increases. And no one there is making a fortune, they rely mostly on the bonuses they can earn for meeting their goals. So now the people who are left will be expected to meet those same goals but with twice as much work. I would guess that the average wage for these manager types is $15 to $20 per hour. Not a bad wage, not great, but remember that you have to live on it in LA the same as if you are in Topeka. And they don't know who makes what because they have signed a contract not to divulge this information.
So, who was on the receiving end of this bad news? There are women on maternity leave, people with lawsuits against the company, people who have been there 20 years, people who won awards this past year for being top in their region or district. Who is left? The people who did not receive accolades, but have been there less time and make less money. So work hard for your employer and move up the ladder and you will be rewarded? Not a chance.
Does this inspire loyalty and a work-your-ass-off attitude in the future? Is the CEO cutting his pay? Remember, studio managers know exactly how much their labor and overhead costs, and how much money they are helping this company make each week because they track their sales. This company is making money.
Sadly, the company is geared for the middle to lower income customer but they are doing their part to destroy the middle class workers they used to have.
My son's company is going through similar gyrations, including changing assistant managers from salary to hourly wage. And then not allowing overtime. And I see the same thing happening in the regional grocery chain whose workers had to go on strike a few years ago and other companies. My other son just had his employer try to switch part of their wages to hourly and the other part to contracting wages. Seriously?
Yes, I know that businesses are in business to make money. But we also see the devastating effect this has on our country and economy. Add this type of business decision to those decisions to outsource manufacturing and services and you don't have to be a genius to figure out where our middle class has gone. And I point out that these companies did just fine while treating their employees with respect.
I would love for us to stand up and no longer support companies like this with our hard earned money. But they are all doing it and I am having trouble as it is keeping my list of businesses I am boycotting updated. There is almost no where left to shop!
Speaking of that, an acquaintance asked me recently if I had looked for an item I needed at Hobby Lobby. Pigs haven't started flying so, yeah, no.
One funny anecdote. Before I wrote this I went to look at the reviews of the CEO and the company from supposed past employees. Strangely they have had a rash of great reviews the last month or so. Sure.