Thoughts

Using the economy as an excuse to shortchange employees

I’ve seen companies do some pretty disgusting things in my time, and the move some of them are pulling lately definitely ranks right up there with some of the biggest stinkers.

In effect, they’re using the current weak economy/recession as an excuse to lay off employees and burden the existing ones with the extra work, while keeping them mum under the fear of losing their jobs. If this isn’t corporate exploitation of its workforce, I don’t know what is.

I’m going to give you three examples, each juicier than the other, but I’m sure you can come up with more if you’re in the US and you’re employed in a full time job.

The niche business with an owner

I talked with an employee from a certain company lately, one which specializes in a niche market that has not been affected by the economic slowdown, nor does it look like it will be affected any time soon. I can’t disclose any identifying details, because the employee confided in me. What he told me was this: the president (and owner) of the company fired some employees while cutting year-end bonuses for the rest of the employees, using the recession as an excuse. The employees, the ones doing the hard work, have been handling a record amount of business for the past year, but the president cited a slump in incoming business. I was told the same president has been spending lavishly to expand his own mansion and buy extra cars and toys, during the same year when the supposed slump in business took place.

Adobe’s record profits

This example is more concrete than the previous one. In December, Adobe reported record revenues for the 4th quarter of 2008, and the sixth consecutive year of double-digit growth, yet they still laid off employees in November just the same. I’m not surprised though. I talked with a friend who is a long-time software developer, and he told me Adobe has another ugly habit: historically speaking, they have relied mostly on contractors, because it’s cheaper, and they’re easier to shed without bad press.

JPG Mag starts a bidding frenzy

Let’s look at JPG Mag. It’s the darling of many amateur photographers, because it gave them the chance to publish their work when other magazines might turn them down. I never really liked it, and I’ll tell you why: I thought they were cheap.

Here was an easy way to get print-worthy photographs without paying a dime. Turns out you could get amateur shutterbugs happy and willing to give away their work simply by dangling the illusory promise of publishing their pics in your magazine. The incentive was fame, which is as fleeting as a fart and just as troublesome, if you’ll excuse my expression. Where’s the moolah? Last I checked, bills were still payable in money, not fame.

When they announced they were going under, I thought it fitting. Good riddance to bad rubbish. First they don’t pay the photographers, then they fire the founders, now they’re going under — okay by me. Unfortunately, the buzz generated by their announcement stirred the vanities of those with bigger wallets, and a bidding war began.

But wait, there’s a nugget of bitter truth to be found among all this fake glimmer and shine. Turns out they fired all their employees, and now the CEO trumpets the company’s earning potential in messages to the bidders. PDN Pulse called them out on this, and rightfully so. Sure, now the company has earning potential since everyone’s gone. Hire a skeleton staff, make them do double or triple the work, pay no money to the photographers, and you’ve got a hand-dandy business model fit for the 21st century.

To sum things up

So you see, it’s okay to use the economy as an excuse when it befits your bottom line. Apparently, it’s okay to lay off people, it doesn’t matter that they’ve got bills to pay, that they’ve put a lot of hard work and time into your company. You shouldn’t do what you can to protect them in a weak economy when it’s harder to get jobs.

None of that matters, right? Ethics are so passé. You just use whatever excuse you can to make sure your precious bottom line gets bigger and bigger. It’s all about GREED. You can never have enough money, and people are only a means to it, right?

Well, I think that’s wrong. I don’t care if you’re afraid that the recession will affect your company. I don’t care if you really want that shiny new toy and a couple of employees and their mortgages stand in your way of getting it. I don’t care if your stockholders will bitch. If greed and money are your only motivators when you run a business, and you’d gladly step over people to balance the spreadsheets — don’t give me any of that I’m so sorry and I feel your pain crap — then you’re a spineless, slimy, pus-covered slug, and you deserve to be squashed under a steel-toe boot.

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