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The Future of Working and the Employment Relationship: Only Time Will Tell Griffith University, WOW, August 31, 2009 Prof. Lonnie Golden Penn State University.

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Presentation on theme: "The Future of Working and the Employment Relationship: Only Time Will Tell Griffith University, WOW, August 31, 2009 Prof. Lonnie Golden Penn State University."— Presentation transcript:

1 The Future of Working and the Employment Relationship: Only Time Will Tell Griffith University, WOW, August 31, 2009 Prof. Lonnie Golden Penn State University Abington College Affiliate, Labor Studies and Employment Relations

2 Outline Will the Future Employment Relationship of the Future be one of Decent Working Time? (ILO Goals) : Can we get back to the promised future of more freedom? To answer, We must Blend Disciplines Approach: Econ, IR (HRER), I-O Psych, OSH, etc. and Role of Academics Working Hours, Non-work Time, Control/Freedom and Well Being: A Future of Better Work-Life Balance (WLB)? Or Worse? Happiness for All? Evidence, Samples re: WLB: Guidelines for Unions and/or Government PolicyLegislation and Regulation and the Future of Work and Spillovers Dangers vs. Opportunitiesthe case of the Fair Work Acts NES and proposals in the US (Rights to Refuse, Request)individual vs. collective approaches (customization vs. uniform standards)

3 "Everybody talks about the weather, but nobody does anything about it…Mark Twain Like the weather, patterns of working and time use are taken for granted, but they are and will be: a reflection of Economic, Organizational, Individual, Cultural and Institutional forces, that push or pull work arrangements in the direction that predominates.

4 Clear Commonality across most developed countries: Growing commitment among women and new younger entrants to paid labor force and maintained commitment among men…making the employment relationship of the future increasingly intertwined with households alternative pursuits, uses of non-work time…e.g., egalitarian parenting, life-long education, elder care, civic/social capital…but thus also an interest in work-life balance (WLB) …

5 3 of the 5 elements of Decent Working Time… ILO adopted…frames it right: Choice and influence re: working time; Family-friendly working time; Healthy working time. – Emphasis on national, minimum standards for leaves, part-time work, work-sharing practices, etc.

6 IR-ER approach Multiple Goals, sometimes conflicting, sometimes reinforcing: – Efficiency – Equity – Voice – Growth? – Unitarist commonality of interests (HRM win-wins) vs. Pluralist inherent conflict. – Role of unions (bargaining collectively) vs. role of Government (state) substitution or reinforcement? – Must standards be uniform? – Rights to request and/or rights to refuse? – Recent spread of de-standardized, fragmented time, extra hours uncompensated and flexibility on the terms of employer (Rubery et al, 2005). – High performance (HP) Workplace practices result in: longer hours (White, et al, 2002) intensified working time, pace and workload (Green, 2002; Askenazy, 2004; Brenner, Fairris and Ruser, 2004).

7 Econ Labor Supply – individual preferences for both predictable and adjustable hours of work…need for flexibility will only grow… Daily Over life course (cycle) – Worker utility will increasingly depend on not only income level and hours of discretionary time, but on ability to seamlessly transition between them, to time activities optimally. – Behavioral econ revolution (e.g., Kelloway et al): : individuals work for compensation and consumption, yes, but also for: forward-looking incentives, potentially higher earnings or steeper trajectory. intrinsic value of the work itself and its content (including process benefits). Nonwage rewards (backward-looking reciprocity). net social outcomes (intended) by work. Labor demand hours-at-will – labor cost considerations, technological constraints; – Short run perspective: Pure numerical flexibility, unencumbered by regs., vs. Longer run view: returns to providing employee centered flexibility as either productivity tool or employee benefit/workplace amenity (e.g., retention). – Compensating wage differentials reward workers for doing hours-at-will, or reduce wage costs for employers who adopt and implement flexibility arrangements Institutionsto settle the inevitable clash – Unionsas resistance vs. voice…weakening and less pervasive, even with recent organization successes… – Policiesemployee rights to request, rights to refuse to establish voice in absence of union power and presence. Penalties vs. rewards to employers. – Can preferences be aligned better, with policies??

8 I-O, Occupational Health Psychology (OHP) Spillover, mediators, moderators, reinforcers, interactions, etc. Role theory and scarcity theory of role accumulation: Amount of human energy is fixed and diminishes with each role added…leads to role strain, overload, conflict and further negative well being consequences Time based; strain-based; behavior based conflicts. The general degree of Flexibility in the Workplace or Job for workers to meet daily personal needs, which affects health, healthy behaviors (Grzywacz et al, 2007; Barnett and Gareis, 2005). Caruso et al (2006): risks of long hours are influenced by … demands of the job, such as the potential mediating effect of Control (over job): Butler, et al (2007), van der Hulst (2003), Exacerbated by variability/unpredictability of work hours (Costa, Sartori and Akerstedt, 2006; Henly and Lambert).. Work-Family Conflict…Work-Life Balance…Integration/Fit/Enhancement…in Future?

9 Sociology of Work Ideal worker vs. Ideal Motherhood Formal adoption vs. informal supports and implementatione.g., feelings of jeopardy if used.

10 Econ Theory Modified for a given level of leisure and income, utility is positive in the degree of flexibility (F), where a change in work schedule would not create the binding constraints that result in hours mismatches or impede worker efforts toward coordination of work, household and leisure activities: U = f(Y; L; F). The degree of responsiveness toward a workers preferred schedule may be represented by F Worker welfare increases in the degree that schedules can be self-adjusted to existing or new preferences. It decreases to the extent that the timing of work can be adjusted against their wishes, such as might be the case with mandatory overtime (particularly with no advance notice).

11 Number of Schools Where is Work-Family Being Taught? Sweet, Stephen, Marcie Pitt-Catsouphes, Joshua Mumm, and Judi Casey. 2008. Teaching Work and Family to Undergraduate Students: Catalyzing Pedagogical, Curricular, and Programmatic Innovations. Teaching Sociology 36: 58-65

12 Quality of Work Life (QWL) module 2006, 2002 2002 Sample = 1,796 employed adults 2006 Sample = 2,988 employed adults Intl Social Survey Programme (ISSP) module on Work Orientations III, 2006 n = 959 employed adults 12 WHO CONTROLS TIME IN THE EMPLOYMENT RELATIONSHIP? Focus: on forms of flexibility and several potential outcomes in the US General Social Survey (GSS), 2 modules:

13 Employer decides44.79 % I decide within limits40.18 % Free to decide 15.03 % Who set working hours Almost half perceive no voice in scheduling work

14 Mean days per month work extra hours SalariedPaid by the hourOther MaleFemaleMaleFemaleMaleFemale Mandatory to work extra hours SalariedPaid by the hourOther MaleFemaleMaleFemaleMaleFemale 29.86%24.52%29.50%22.69%32.00%16.67% One in 4 or so Workers are required to work OT

15 Between 2002 to 2006: Signs of gains for salaried workers, but not for MOT and WLB is suffering Salaried workers advantage seems to be widening, with hourly workers losing some ground…although both groups report increased WF interference Recent Trends: Hours of Work: In GSS data, 2006

16 GSS ISSP 2006: Key Time Trends Somewhat of a gain in individual discretion to set own hours, and perhaps as a result, preferences for same hours have risen. However, a surprising drop in the rated importance of having flexible hours.

17 Unionized workers have far less ability to alter their own starting and ending times of work; and find it somewhat hard to take off time in the day for family…and are not able to protect workers from mandatory overtime work

18 But Union workers are not significantly less likely to regard flexible working hours as important, vs. nonunion workers

19 19 …but flexible schedules and short term flexibility reduces adverse consequences CHNGTME Often & Sometimes CHNGTME Rarely & Never FAMWKOFF Not hard & not too hard FAMWKOFF Somewhat and very hard n=895n=774n=1228n=441 WKVSFAM: How often do demands of job interfere with family life? (%) Often10.9%10.3%6.6%**22.0% Sometimes34.5**28.228.8**39.2 Rarely31.029.433.0**23.4 Never23.4**32.131.6**15.4

20 Economics: Aggregate Total Cost (TC) of providing more Flexibility for Workers TC of flex time TC for firms to offer flex time TC to firms when NOT providing flex time F* TC F (Total amount of flex time made available) = Minimum TC point = optimal amount of flex time provided … at perhaps less than all the 80 percent of the work force that now wishes it Is there an Optimal amount of flexibility?

21 Economics/Realities of Mandated Benefits for Labor: if it pushes labor S outward less than it pushes labor D inward (by raising costs): net drop in Q of Labor D might occur LSLS LSLS w o $ 20 15 10 5 10 20 30 40 50 60 70 80 LDLD Q of Labor LDLD LDLD Policy advocates must recognize these obstacles to expanding flexibility measures…

22 Flexibility and national policy: Must reflect underlying economics Thus, as with any public goods, or arrangements with positive externalities, (to families, other families, communities, etc., the benefits of them extend beyond those who directly pay for them. Many employers…may have to be to be INDUCED to offer them, since they vary in terms of COST among employers. Subsidies and tax credits? Beyond the current tax credits for child care…vs. Govt grants (vs. just info support) who undertake innovative projects that promote better WF balance.

23 Availability of flexibility for workers seems to be growing somewhat, especially flexible daily schedules, but not much recently nor equivalently across the board by occupation or industry. Salaried workers generally have relatively more scheduling flexibility than hourly workers, especially in daily work scheduling, and the gap appears to be widening. Salaried status does not protect workers very much from being required to work OT. But it does mitigate somewhat the fatigue consequences of mandatory overtime work. For worker well being, the involuntary nature of overtime (OT) hours seems to matter more than whether working OT or the number of hours of OT, for work- family related consequences. Thus Well Being improvements should focus more on CONTROL over time, not just duration of work hours. In US, that means Govt Policies, since unions are not prevalent or strong. 23 Key findings

24 Implications of empirical findings for Fields of Research IR, Occupational/Organizational Psychology and Labor Economics all offer unique perspectives on the Nature of OT and its consequences on worker well being. – Mandatory Overtime work: may promote firms efficiency but because they it is not distributed evenly throughout workforce, it undermines equity, but might not necessarily disappear even with greater worker voice. – Self reported adverse consequences that may cause spillover social costs or negative externalitiesinterference of work with family time and inability to take time off from work for family or personal need and sometimes greater fatigue, which may threaten public health or safetycall for more protection legislation…will not substitute for collective bargaining enterprise level agreements (Berg, 2009).

25 Note Similarities to NES? Working Families Bill of Rights, Proposed 1) The right to annual paid family, medical and personal leave for full- and part-time employees. Minimum standards for leave are: a) two weeks of employer-funded paid personal leave for all employees to be taken at the time of their choosing. b) seven days of employer-funded sick time for personal or family illness c) 12 weeks of paid leave for parents of newborn, adoptive and foster children, and for serious illness of the employee, a child, a parent or other relative, spouse o rpartner. d) 16 hours of employer-funded leave to be taken in small increments for doctor's appointments, parent-teacher meetings, and other small necessities. The right to negotiated flexibility over work hours and place: 2) The right to negotiated flexibility over work hours and place: a) the ability to shift between full-time and reduced hours as family and personal circumstances change. b) equal pay rates and at least pro-rated benefits for reduced hours employees c) no mandatory overtime. d) flexible schedules and place of work, mutually agreed upon by employees and employers. 3) The right to quality, affordable child and elder care. 4) The right to a minimum wage set at a living wage level and indexed to inflation. 5) The right to adequate health insurance for all. These rights shall apply to all regardless of gender, race, ethnicity, age, place of birth, religion, sexual orientation, or marital, family or disability status.

26 Current Legislation Passed: Limiting length, incidence and frequency of mandatory OT work, by: – State (Mainly Nurses and Health Care Workers) – Federal Legislation (amending Fair Labor Standards Act Overtime Law and Regulations) SIMILARITIES AND DIFFERENCES WITH NES, RIGHT TO REQUEST: – PART TIME – EXTENDED UNPAID LEAVE – FLEXIBLE SCHEDULING

27 Policy Implications: – Further degree of Policy interventions? Legal, Individual Right of Refusal; – Extending the ILO convention principle of prohibiting forced or compulsory labor, by granting a right to refuse OT work without suffering potential job loss (arguably the severest penalty in market economies)? – Inclusion with OSHAs right to refuse UNSAFE work? Minimum advance notice time of required OT, enforced by pay premium?; Explicit notice of MOT expectation in employment contract; Now, Work Sharing, this is really interesting case…

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