Job Insecurity Comes Home
The downturn in the economy has reached into our home and touched Hiromi's employment.
The signs have been stacking up over the past few weeks. Early in January everyone at Hiromi's workplace was told there would be work force reductions or a cutback in hours in the near future.
The parts on which Hiromi usually performs the final pre-shipment polishing and rust-inhibiting treatments were being manufactured in very limited quantities because there had been no orders coming in. Caterpillar, one of the main customers for the hydraulic pistons the company makes, is reducing its workforce by 20,000 people because of a major slump in equipment sales.
Hiromi has had trouble finding enough to do at work. He caught up first on all the peripheral tasks that get done only sporadically--like cleaning out the water treatment pit where liquid wastes from the manufacturing process go before discharge into the city sewage system. Then he began a major cleaning mission. Because a lot of oil is used in the metal- milling process, everything in the building eventually acquires an oily coat.
First, armed with rubber gloves and a powerful degreaser, Hiromi scrubbed the lift used in his work area for moving heavy "buckets" of pistons. Then he scrubbed the wall in the work area. Next he tackled the overhead doors in the building, going up and down a ladder all day long with brushes and buckets and rags. After that, he cleaned the windows in the quality control and purchasing areas. Earlier this week he created order in the storage room. It's a good thing he has varied skills, and does not consider cleaning jobs beneath his dignity. It's also a good thing he's in the top wage-earning category (of three possible rankings) and gets paid accordingly even when he does jobs like this.
Several weeks ago all the "temp" workers were dismissed. These employees had been hired through an agency that supplies temporary workers. Although in the past many such workers have transitioned into full-time employment, in an economic climate like this, the built-in job insecurity of the "temps" made them an easy first target in the employee reduction process.
Last week 11 regular employees got their "pink slips."
On Wednesday of this week, an all-employee meeting was announced for the end of the workday on Thursday. Everyone knew this meeting would not be for handing out bonuses as such meetings usually are. The mood was somber.
Today everyone knows what is planned for the immediate future, and it could be much, much worse. The bad news is that everyone is limited to a four-day work week.
On the positive side, health insurance benefits are staying intact, with coverage continuing as before. Also, apparently due to changes in how the funds are administered, unemployment benefits are available on a pro-rated basis to people whose work hours have been reduced. It used to be that they were available only to people who had no job. Now, a four-day work week means that the employee is eligible for 1/5 of the weekly amount of benefits for unemployed people. We're not talking about stellar wages here, but it helps.
Hiromi is two years and three months from being eligible for full social security benefits. Obviously, having to look for a new job between now and then would be a very unwelcome prospect, since social security benefits are based on the income for the last years of employment.
Hiromi is not a job hopper, but he has looked for a new job often enough to know that anyone past 50 is not in an enviable position when he goes job shopping. I'm aware of the following reasons for this:
1) From an employer's standpoint, an older person is more likely than younger people to consume funds granted through a health insurance policy. High consumption of services results in high fees assessed to the company by the insurance supplier.
2) If training the employee takes time and money, why shouldn't the company be investing it in someone who can work for the company's benefit for 30 more years instead of half that length of time?
3) If the employee comes in with high wage expectations due to his previous earning levels, experience, and skills, the hiring company sees several threats in this scenario:
a) If they can meet the pay expectations of the employee (i.e. pay him what he's worth), they're taking on a major financial obligation for an "unproven" worker.
b) If they ask a highly qualified employee to perform menial tasks for meager pay (i.e. pay him less than he's worth), everyone understands that the employee will jump ship at the first better opportunity.
c) Paying money into a retirement fund for someone who won't work long before drawing out of that fund looks unattractive to the employer.
From an employee's standpoint, taking "any old job" has risks too. I know this goes counter to the instinct many of us have about any kind of work being honorable--far more so than waiting idly for the perfect job. However, I've come to understand a few dynamics I didn't understand earlier. Among them are:
1) A low-pay or unskilled job on your record puts you in a poor bargaining position if you wish to apply for a higher-pay job.
2) Leaving unsavory jobs out of your resume is not an option. That would be dishonest. So every piddling job needs to be listed. If you have a lot of these, you begin to look like an unstable employee.
3) If you are committed to one (low-paying?) job, you are limited in how much time you can devote to looking for a better job. For example, how will you be able to take time off for a job interview during regular business hours if you are a new employee with no vacation time and little accumulated "favor" capital?
I have always felt apologetic when our family has received unemployment benefits. Hiromi doesn't relish the situation, but he has no qualms about applying for benefits. I've been paying unemployment taxes for years. That's what those funds are for--for cases like this when my job gets taken away. I find resolution in focusing on gratitude for God's provision rather than obsessing about the acceptableness of every channel through which it comes.
Here in the middle of the country, we often come late to the drama playing out first on the left and right coasts and in heavily urbanized areas. When the drama involves an economic downturn, coming late is a good thing. It's also a good thing to have a fairly diversified local economy, especially one not heavily dependant on the manufacture of luxury items. Here, we never fly quite so high financially as many elsewhere in the country do, but we often don't fall quite so low either. What we're experiencing now is quite enough drama, however, to notch up my sympathy level for all those whose financial future looks precarious because of job insecurity.
Who knew that so many besides me would be taking a "sabbatical" this year? Lucky me for having been able to plan for it in advance. My way doesn't provide any "unemployment compensation" in monetary terms. But the "peace of mind" income is significant. Many besides me will have to rely on this kind of compensation. Fortunately all can "take it to the bank" in the form of trust in the One Who is Jehovah-Jireh (God sees; God provides).
The signs have been stacking up over the past few weeks. Early in January everyone at Hiromi's workplace was told there would be work force reductions or a cutback in hours in the near future.
The parts on which Hiromi usually performs the final pre-shipment polishing and rust-inhibiting treatments were being manufactured in very limited quantities because there had been no orders coming in. Caterpillar, one of the main customers for the hydraulic pistons the company makes, is reducing its workforce by 20,000 people because of a major slump in equipment sales.
Hiromi has had trouble finding enough to do at work. He caught up first on all the peripheral tasks that get done only sporadically--like cleaning out the water treatment pit where liquid wastes from the manufacturing process go before discharge into the city sewage system. Then he began a major cleaning mission. Because a lot of oil is used in the metal- milling process, everything in the building eventually acquires an oily coat.
First, armed with rubber gloves and a powerful degreaser, Hiromi scrubbed the lift used in his work area for moving heavy "buckets" of pistons. Then he scrubbed the wall in the work area. Next he tackled the overhead doors in the building, going up and down a ladder all day long with brushes and buckets and rags. After that, he cleaned the windows in the quality control and purchasing areas. Earlier this week he created order in the storage room. It's a good thing he has varied skills, and does not consider cleaning jobs beneath his dignity. It's also a good thing he's in the top wage-earning category (of three possible rankings) and gets paid accordingly even when he does jobs like this.
Several weeks ago all the "temp" workers were dismissed. These employees had been hired through an agency that supplies temporary workers. Although in the past many such workers have transitioned into full-time employment, in an economic climate like this, the built-in job insecurity of the "temps" made them an easy first target in the employee reduction process.
Last week 11 regular employees got their "pink slips."
On Wednesday of this week, an all-employee meeting was announced for the end of the workday on Thursday. Everyone knew this meeting would not be for handing out bonuses as such meetings usually are. The mood was somber.
Today everyone knows what is planned for the immediate future, and it could be much, much worse. The bad news is that everyone is limited to a four-day work week.
On the positive side, health insurance benefits are staying intact, with coverage continuing as before. Also, apparently due to changes in how the funds are administered, unemployment benefits are available on a pro-rated basis to people whose work hours have been reduced. It used to be that they were available only to people who had no job. Now, a four-day work week means that the employee is eligible for 1/5 of the weekly amount of benefits for unemployed people. We're not talking about stellar wages here, but it helps.
Hiromi is two years and three months from being eligible for full social security benefits. Obviously, having to look for a new job between now and then would be a very unwelcome prospect, since social security benefits are based on the income for the last years of employment.
Hiromi is not a job hopper, but he has looked for a new job often enough to know that anyone past 50 is not in an enviable position when he goes job shopping. I'm aware of the following reasons for this:
1) From an employer's standpoint, an older person is more likely than younger people to consume funds granted through a health insurance policy. High consumption of services results in high fees assessed to the company by the insurance supplier.
2) If training the employee takes time and money, why shouldn't the company be investing it in someone who can work for the company's benefit for 30 more years instead of half that length of time?
3) If the employee comes in with high wage expectations due to his previous earning levels, experience, and skills, the hiring company sees several threats in this scenario:
a) If they can meet the pay expectations of the employee (i.e. pay him what he's worth), they're taking on a major financial obligation for an "unproven" worker.
b) If they ask a highly qualified employee to perform menial tasks for meager pay (i.e. pay him less than he's worth), everyone understands that the employee will jump ship at the first better opportunity.
c) Paying money into a retirement fund for someone who won't work long before drawing out of that fund looks unattractive to the employer.
From an employee's standpoint, taking "any old job" has risks too. I know this goes counter to the instinct many of us have about any kind of work being honorable--far more so than waiting idly for the perfect job. However, I've come to understand a few dynamics I didn't understand earlier. Among them are:
1) A low-pay or unskilled job on your record puts you in a poor bargaining position if you wish to apply for a higher-pay job.
2) Leaving unsavory jobs out of your resume is not an option. That would be dishonest. So every piddling job needs to be listed. If you have a lot of these, you begin to look like an unstable employee.
3) If you are committed to one (low-paying?) job, you are limited in how much time you can devote to looking for a better job. For example, how will you be able to take time off for a job interview during regular business hours if you are a new employee with no vacation time and little accumulated "favor" capital?
I have always felt apologetic when our family has received unemployment benefits. Hiromi doesn't relish the situation, but he has no qualms about applying for benefits. I've been paying unemployment taxes for years. That's what those funds are for--for cases like this when my job gets taken away. I find resolution in focusing on gratitude for God's provision rather than obsessing about the acceptableness of every channel through which it comes.
Here in the middle of the country, we often come late to the drama playing out first on the left and right coasts and in heavily urbanized areas. When the drama involves an economic downturn, coming late is a good thing. It's also a good thing to have a fairly diversified local economy, especially one not heavily dependant on the manufacture of luxury items. Here, we never fly quite so high financially as many elsewhere in the country do, but we often don't fall quite so low either. What we're experiencing now is quite enough drama, however, to notch up my sympathy level for all those whose financial future looks precarious because of job insecurity.
Who knew that so many besides me would be taking a "sabbatical" this year? Lucky me for having been able to plan for it in advance. My way doesn't provide any "unemployment compensation" in monetary terms. But the "peace of mind" income is significant. Many besides me will have to rely on this kind of compensation. Fortunately all can "take it to the bank" in the form of trust in the One Who is Jehovah-Jireh (God sees; God provides).
posted by Mrs. I at
7:09 AM
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