American industry, in meeting the challenge of foreign competition, has experienced a paradoxical change in labor relations. On the one hand, firms have stressed worker involvement and commitment; on the other, firms have cut back on employment by laying off workers to save costs and improve profit. This book analyzes these developments and develops a theory of change that is consistent with these phenomena, stressing the government's need to develop public policies that will deal with displaced workers.

Employment Futures: Reorganization, Dislocation, and Public Policy

Business & Money

Osterman, Paul

Economics

Oxford University Press

A far-reaching transformation is taking place in the US in the relationship between employers and employees. The lessons learned from Japan and from "best practice" companies like IBM about how job security, training, and internal development can improve employee commitment and performance have given way to a new set of lessons about how companies can redue fixed costs, increase flexibility, and improve performance by eliminating the elaborate employment systems that prepared employees for long careers in the company. Where the old arrangement protected employees from outside market forces, the new ones drag the market right back in through downsizing, contingent workforces, hiring on the outside for new skills, and compensation contingent on overall organizational performance. New work systems that reengineer processes and empower employees "flatten" the organizational chart, cutting management jobs in particular and reducing opportunities for career development. The new arrangements shift many of the risks of business from the firm to the employees and make employees, rather than employers, responsible for developing their own skills and careers. They also increase the demands placed on workers while reducing what they receive back for their efforts. While morale is down and stress is up, employee performance seems to be rising largely because of fear driven by the shortage of good jobs. Change at Work explores the theme that employees have paid the price for the widespread restructuring of American firms as illustrated by reduced security, greater effort and hours, and reduced morale. In this important study--commissioned by the National Planning Asociation's Committee on New American Realities--the authors consider how individuals and employers need to adapt to the new arrangements as well as the implicatioons for important policy issues such as how skills will be developed where the attachment to the firms is sharply reduced. The future is uncertain, but the authors argue that the traditional relationship between employer and employee will continue to erode, making this work essential reading for managers concerned with the profound impact corporate restructuring has had on the lives of workers.

Change at Work

Cappelli, Peter

Knoke, David

Useem, Michael

Bassi, Laurie

Katz,Harry

A detailed analysis of youth employment probes the structure and evolution of the youth labor market, the problems of youth unemployment, and the ways youths search for, select, and are chosen for jobs

Getting Started: The Youth Labor Market

Mit Pr

A study of the changing face of the American labor market.
The American labor market faces many deep-rooted problems, including persistence of a large low-wage sector, worsening inequality in earnings, employees' lack of voice in the workplace, and the need of employers to maximize flexibility if they are to survive in an increasingly competitive market. The impetus for this book is the absence of a serious national debate about these issues.
The book represents nearly three years of deliberation by more than 250 people drawn from business, labor, community groups, academia, and government. It traces today's labor-market policy and laws back to the New Deal and to a second wave of social regulation that began in the 1960s. Underlying the current system are assumptions about who is working, what workers do, and how much job security workers enjoy. Economic and social changes have rendered those assumptions invalid and have resulted in mismatches between labor institutions and efficient and equitable deployment of the workforce, as well as between commitments to the labor market and family responsibilities. This book should launch a national dialogue on how to update our policies and institutions to catch up with the changes in the nature of work, in the workforce, and in the economy.

Working in America: A Blueprint for the New Labor Market

Kochan, Thomas A.

Piore, Michael J.

Locke, Richard M.

MIT Press]

We live in an age of economic paradox. The dynamism of America's economy is astounding--the country's industries are the most productive in the world and spin off new products and ideas at a bewildering pace. Yet Americans feel deeply uneasy about their economic future. The reason, Paul Osterman explains, is that our recent prosperity is built on the ruins of the once reassuring postwar labor market. Workers can no longer expect stable, full-time jobs and steadily rising incomes. Instead, they face stagnant wages, layoffs, rising inequality, and the increased likelihood of merely temporary work. In Securing Prosperity, Osterman explains in clear, accessible terms why these changes have occurred and lays out an innovative plan for new economic institutions that promises a more secure future.
 Osterman begins by sketching the rise and fall of the postwar labor market, showing that firms have been the driving force behind recent change. He draws on original surveys of nearly 1,000 corporations to demonstrate that firms have reorganized and downsized not just for the obvious reasons--technological advances and shifts in capital markets--but also to take advantage of new, team-oriented ways of working. We can't turn the clock back, Osterman writes, since that would strip firms of the ability to compete. But he also argues that we should not simply give ourselves up to the mercies of the market.
 Osterman argues that new policies must engage on two fronts: addressing both higher rates of mobility in the labor market and a major shift in the balance of power against employees. To deal with greater mobility, Osterman argues for portable benefits, a stronger Unemployment Insurance system, and new labor market intermediaries to help workers navigate the labor market. To redress the imbalance of power, Osterman assesses the possibilities of reforming corporate governance but concludes the best approach is to promote "countervailing power" through innovative unions and creative strategies for organizing employee voice in communities. Osterman gives life to these arguments with numerous examples of promising institutional experiments.

Securing Prosperity

Princeton University Press

We live in an age of economic paradox. The dynamism of America's economy is astounding-the country's industries are the most productive in the world and spin off new products and ideas at a bewildering pace. Yet Americans feel deeply uneasy about their economic future. The reason, Paul Osterman explains, is that our recent prosperity is built on the ruins of the once reassuring postwar labor market. Workers can no longer expect stable, full-time jobs and steadily rising incomes. Instead, they face stagnant wages, layoffs, rising inequality, and the increased likelihood of merely temporary work. In Securing Prosperity, Osterman explains in clear, accessible terms why these changes have occurred and lays out an innovative plan for new economic institutions that promises a more secure future. Osterman begins by sketching the rise and fall of the postwar labor market, showing that firms have been the driving force behind recent change. He draws on original surveys of nearly 1,000 corporations to demonstrate that firms have reorganized and downsized not just for the obvious reasons-technological advances and shifts in capital markets-but also to take advantage of new, team-oriented ways of working. We can't turn the clock back, Osterman writes, since that would strip firms of the ability to compete. But he also argues that we should not simply give ourselves up to the mercies of the market. Osterman argues that new policies must engage on two fronts: addressing both higher rates of mobility in the labor market and a major shift in the balance of power against employees. To deal with greater mobility, Osterman argues for

Securing Prosperity: The American Labor Market: How It Has Changed and What to Do about It (Century Foundation Book)

How an interfaith community organization is revitalizing our democracy Democrats are looking for the right national message that will attract the most voters, leaving progressive politics to operate from the margins. Paul Osterman argues that political change lies not in crafting a better message to beam from Washington but rather in effective local action. Gathering Power explores the most successful and promising organization to enable local activism and strengthen our democracy: the Industrial Areas Foundation (IAF). Osterman focuses on the successes of Valley Interfaith, a progressive multiracial coalition founded by the charismatic Ernesto Cortes. It is based in the Rio Grande Valley, which straddles the border between Texas and Mexico and, since the passage of NAFTA, has been one of the fastest growing regions in America, as well as one of the poorest. With the help of the IAF, and working primarily through local churches, Valley Interfaith has brought together Latino residents to improve their communities. They have fought for, and won, reform in their schools and improved wages—but most important, the members of Valley Interfaith have been transformed into activists, ready to take on future battles as a community. Gathering Power shows how the IAF teaches people to become activists, and argues that religious values have an important place in progressive politics. Paul Osterman is professor at the Massachusetts Institute of Technology, with joint appointments in the Sloan School of Management and the Department of Urban Studies and Planning. He travels extensively throughout the country and abroad to speak to business groups, community organizations, and government and public policy organizations. He lives in the Boston area.

Gathering Power: The Future of Progressive Politics in America

Politics & Social Sciences

Politics & Government

Beacon Pr

The number of elderly and disabled adults who require assistance with day-to-day activities is expected to double over the next twenty-five years. As a result, direct care workers such as home care aides and certified nursing assistants (CNAs) will become essential to many more families. Yet these workers tend to be low-paid, poorly trained, and receive little respect. Is such a workforce capable of addressing the needs of our aging population? In Who Will Care for Us? economist Paul Osterman assesses the challenges facing the long-term care industry. He presents an innovative policy agenda that reconceives direct care workers’ work roles and would improve both the quality of their jobs and the quality of elder care. Using national surveys, administrative data, and nearly 120 original interviews with workers, employers, advocates, and policymakers, Osterman finds that direct care workers are marginalized and often invisible in the health care system. While doctors and families alike agree that good home care aides and CNAs are crucial to the well-being of their patients, the workers report poverty-level wages, erratic schedules, exclusion from care teams, and frequent incidences of physical injury on the job. Direct care workers are also highly constrained by policies that specify what they are allowed to do on the job, and in some states are even prevented from simple tasks such as administering eye drops. Osterman concludes that broadening the scope of care workers’ duties will simultaneously boost the quality of care for patients and lead to better jobs and higher wages. He proposes integrating home care aides and CNAs into larger medical teams and training them as “health coaches” who educate patients on concerns such as managing chronic conditions and transitioning out of hospitals. Osterman shows that restructuring direct care workers’ jobs, and providing the appropriate training, could lower health spending in the long term by reducing unnecessary emergency room and hospital visits, limiting the use of nursing homes, and lowering the rate of turnover among care workers. As the Baby Boom generation ages, Who Will Care for Us? demonstrates the importance of restructuring the long-term care industry and establishing a new relationship between direct care workers, patients, and the medical system.

Who Will Care For Us?: Long-Term Care and the Long-Term Workforce

Social Sciences

Russell Sage Foundation

America confronts a jobs crisis that has two faces. The first is obvious when we read the newspapers or talk with our friends and neighbors: there are simply not enough jobs to go around. The second jobs crisis is more subtle but no less serious: far too many jobs fall below the standard that most Americans would consider decent work. A quarter of working adults are trapped in jobs that do not provide living wages, health insurance, or much hope of upward mobility. The problem spans all races and ethnic groups and includes both native-born Americans and immigrants. But Good Jobs America provides examples from industries ranging from food services and retail to manufacturing and hospitals to demonstrate that bad jobs can be made into good ones. Paul Osterman and Beth Shulman make a rigorous argument that by enacting policies to help employers improve job quality we can create better jobs, and futures, for all workers. Good Jobs America dispels several myths about low-wage work and job quality. The book demonstrates that mobility out of the low-wage market is a chimera—far too many adults remain trapped in poor-quality jobs. Osterman and Shulman show that while education and training are important, policies aimed at improving earnings equality are essential to lifting workers out of poverty. The book also demolishes the myth that such policies would slow economic growth. The experiences of countries such as France, Germany, and the Netherlands, show that it is possible to mandate higher job standards while remaining competitive in international markets. Good Jobs America shows that both government and the firms that hire low-wage workers have important roles to play in improving the quality of low-wage jobs. Enforcement agencies might bolster the effectiveness of existing regulations by exerting pressure on parent companies, enabling effects to trickle down to the subsidiaries and sub-contractors where low-wage jobs are located. States like New York have already demonstrated that involving community and advocacy groups—such as immigrant rights organizations, social services agencies, and unions—in the enforcement process helps decrease workplace violations. And since better jobs reduce turnover and improve performance, career ladder programs within firms help create positions employees can aspire to. But in order for ladder programs to work, firms must also provide higher rungs—the career advancement opportunities workers need to get ahead. Low-wage employment occupies a significant share of the American labor market, but most of these jobs offer little and lead nowhere. Good Jobs America reappraises what we know about job quality and low-wage employment and makes a powerful argument for our obligation to help the most vulnerable workers. A core principle of U.S. society is that good jobs be made accessible to all. This book proposes that such a goal is possible if we are committed to realizing it.

Good Jobs America

Shulman, Beth

The Mutual Gains Enterprise is an urgent and compelling call for workplace reform, showing how American business can indeed attain world-class, sustainable competitive advantage - in addition to securing more rewarding employment for workers. Authors Thomas A. Kochan and Paul Osterman, both leading experts in human resource management, advocate a deeply rooted - and controversial - transformation of current human resource practices. They explain that the existing economic and legal landscape poses barriers to change that are impeding sustainable business success. To improve productivity and competitiveness, managers, workers, and policy makers alike must effect immediate and radical change.Kochan and Osterman begin with a review of companies that have heeded the call for workplace reform and successfully implemented new work systems. Case studies of GM's Saturn plant and Motorola, among others, as well as lessons from state, local, and foreign governments confirm the existence of alternative models. In addition, the authors present the best available national data on the diffusion of work practices in America. As Kochan and Osterman reveal, the application of new management ideas has not been widespread, and they explain why: corporate and public policies that diminish the importance of human resource considerations, a governance system that discourages long-term investment in human resources, a decline in the role of unions, and an inadequate employee skill base and training system.Having identified and discussed the obstacles, the authors present a "mutual gains policy framework" that focuses on how management, labor, and government need to engage in change together to achieve long-term viability. They go on to bring rhetoric into reality, identifying in specific ways how their plan - culled from the best practices of specific firms, state governments, and foreign business - can be implemented.

The Mutual Gains Enterprise: Forging a Winning Partnership Among Labor, Management, and Government

Harvard Business Review Press

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