By Merrie Spaeth
Dallas, TX – EDS is the latest large local company to have what?s described as "layoffs." What?s a layoff? What should companies do, and avoid, when they have to reduce their staffs? And what should the individual workers do beforehand?
In the late '80s, we worked on a number of downsizings - the real name for what?s going on. A "layoff" actually shuts down an assembly line for a limited period of time. The workers expected to be called back. That phenomenon was why labor unions called for higher wages and seniority. If workers were going to be "laid off" the job, but needed to be available to come back, their hourly wages needed to be higher; there needed to be rules of procedure; and so on.
We're now in the post-industrial age. Mostly gone is the old manufacturing business model. Today, companies must respond quickly to market conditions, and sometimes that means fewer workers. And people expect to change companies, change jobs, even change careers.
In the midst of this turmoil, USA Today interviewed a number of ex-dot-com employees, and found they were philosophical about it - a combination of "life goes on," and "..it happens," - if you get my meaning.
We believe workers accept volatility - but they expect to be treated fairly. That means help finding other work, other compensation, medical benefits. They expect to be treated with respect. Good news: the vast majority of companies are doing just this. I won?t spend time praising them.
But, while employees lose their jobs, top management is recording another year of record compensation and bonuses. My first job here in Dallas was for Republic Bank, in 1985. Wages were frozen. Departments took a 15% staff cut. And top management gave themselves "performance" bonuses. It sent the wrong message.
So, if you?re going to cut your workforce - which may be important to preserve the ability to compete, even survive - you, top management, should follow the longstanding advice of military leaders. You suffer first.
What?s the final message? Chopping and cutting and shrinking, while not pleasant, are understood to be part of business. But if it's the right business thing to do, it's also the right thing to support workers being let go.
I have a final piece of advice - for workers. This is life. And it's up to each of us to plan accordingly. Saving dropped to zero over the last few years. People got very demanding and snippy - instead of using the good times to add skills, extra languages, a cushion in our savings accounts, and so on.
Losing a job is traumatic, but it can be an opportunity. One worker told a reporter, "I'll get a better job." Henry Ford said, "If your attitude is 'I can,' or 'I can't,' you're probably right." That worker has the right attitude.
Attitude - it's everything.