LABRST 4H03 Lecture Notes - Lecture 7: Outsourcing, Fair Labor Standards Act, Franchising
31 Oct 2018
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Reading 1: the fissured workplace and its consequences - david weil. Jobs have shifted away to separate employers (outsourced?) who pay low wages, provide limited/no health care, pension or job security. Workers receive pay or face workplace conditions that violate workplace laws (3) These working conditions are not a result of the nature of certain jobs or forces like globalization, they result from a restructuring of employment. Businesses are able to substantially reduce costs by shedding direct employment and going to providers of activities and services (4) Information and communication technologies have enabled this hidden transformation of work, since they allow lead companies to promote product and quality standards while repeating price premiums from customers. By shedding employment to other parties, lead companies change a wage-setting problem into a contracting decision and the result is stagnation of real wages for many of the jobs formerly done inside.
