WORK IN THE FLEXIBLE ECONOMY

Three parts

Labor Market Segmentation
Work in the Accord Years: The Stable Workplace

II. Work in the Post-Accord Years: The Flexible Workplace

I. LABOR MARKET SEGMENTATION

1.1. Two large labor markets correspond to the economy’s core and periphery—Core market of labor and peripheral market of labor

1.2. Market of Labor: Arena in which workers are matched to jobs

Best person at the lowest price

1.3. In segmented labor markets, jobs cluster into segments

Specialized competition for jobs

1.4. Three Labor Segments:

A. Subordinate Primary Labor Market

B. Independent Primary Labor market

C. Secondary Labor Market

1.5. The single most important difference among these segments is the behavioral stability the jobs require and reward.

Reliable and predictable work habits, lack of absenteeism, and stable employment history

WORK IN THE ACCORD YEARS: THE STABLE WORKPLACE

Jobs were characterized by stability and security for both the employer and the worker

2.1 The Primary Labor Market

A. Stabilizing Structures

A.1. The Accord: institutionalization of unions, productivity-based bargaining, and cost of living adjustments.

A.2. The labor process: The Assembly Line. Taylor

Key concept: Scientific Management. The fragmentation of tasks. Time and motion studies.
Major consequence: Decreased workers’ discretion over their work
Advantages: (a) Decreased instances of collective disruption; and, (b)-eliminated possibility of workers deviating from the specified way of working, e.g., speed.

B. Deskilling and Alienation

B.1. Deskilling transforming skilled work into unskilled work. Removing the skill involved in the job. Increase managers’ control over the production process

B.2. Alienation: Feelings of powerlessness, meaninglessness, isolation and separation

C. Trade-offs for Blue-Collar Workers

C.1. Job stability, high wages, and generous benefits. Also, it increased leisure time.

C.2. Not all workers became deskilled or alienated. Although the majority did.

C.3. Increased job mobility within the company

2.2. White Jobs in the Primary Labor Market

These jobs were characterized by finely graded hierarchies that created job ladders with many steps. Each movement up the ladder is associated with some increase in rewards and benefits. These differences are marked by higher salary, bigger office, and different job title.
Women occupy jobs with SHORTER career ladders or long career ladders are off limits to women
Reliability and seniority determines who receives better jobs
The White-collar primary labor market rewards workers for their education

2.3. Bad Jobs: The Secondary Labor Market

Low wage and non-unionized; lack benefits and opportunities for mobility; and offer little stability.

High-turnover jobs

Longer working hours or working a second job; do not reward workers for increased education; part-time or temporary; and do not count as career making jobs

Women are overrepresented: Stigma

III. WORKING IN THE POST-ACCORD YEARS: THE FLEXIBLE WORK PLACE

3.1. Flexibility is create by:

a. Technology: Computers to create product flexibility

b. Flexible organizations: Outsourcing

Key concept: Outsourcing refers to subcontracting work that used to be done within a firm to another firm or group of workers.

c. Computers: to rapidly shift funds

3.2. New forms of segmentation grow out of managers’ need for flexibility

Good Jobs: Dynamically Flexible Workers
Bad Jobs: Statically Flexible Workers

3.3. Dynamically Flexible Workers

The strategy of constantly changing and innovating production processes and skill levels as new opportunities become apparent

Continue upgrading of skills. Gaining new information, and using old information in new ways. Permanent pressure

Greater discretion and participation in the production process
Management encourages and rewards innovation
There is an implicit contract of long-term, stable employment
Geographically nimble

3.4. Statically Flexible Workers: The organization of employment around labor demand

Part-Time or Temporal

Unionized/permanent workers coexist in the workplace with non-unionized/part-time/temporal workers
Includes professionals, technical or skilled blue-collar workers
Computer Connected but geographically dispersed production. Disincentive to engage in collective action

b. Consequences: Displacement and Structural Unemployment

c. Displacement: Loss of jobs for reasons that are completely independent of how well workers have worked. Increased from 20% to 40% since the early 1970s

d. The structurally unemployed: When displaced workers are not able to find a job at all

e. Survival Roads

Open own business

Homeworkers

Deviance
Informal Economy

Homeworkers

f. The Contingent Labor Force: Work contingent on labor demand.

Part-time or Temporary Force
Workers as "Independent Contractors."
Mostly Women and Minorities

g. Advantages of a Contingent Labor Force

Decreases labor costs
Decreases conflict