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Think Tank 1010am the end of “employees”

Feb 7, 2017|

Are we about to experience the end of “employees” as we know it?  This hours guest: Lauren Weber - WSJ wrtiter Oren Cass - Senior Fellow and former domestic policy director for Mitt Romney's 2011-12 presidential campaign

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Automatically Generated Transcript (may not be 100% accurate)

Are welcome Banco welcomed they do a doozy dated today. Republicans. Finally had some replacements. Or obamacare. It's an own goal counts and he has some of them and again it's not old rule which partial. So we're going to be talking to do liberals are and then the conservative slab like we usually do. Two would turn trying to get both sides of that thing. The basic questions we have basket as they Rhode say if if you're going to replace obamacare. And you thought you believe you the truth and where the president and it would journalists into all of them did did. And why in the six year period due for a bomb would care. Did you not formula. Or plan. That in the movie more portions at twelve noon. And shortly deregulated. Wall Street untoward prison for a born to do. And wall shirts it's if you don't put. You do for you billions of dollars that we were returned to in duster. It is. If you look at what happened and 2008. They're talking about returning billions. But they lost. I think it was six or seven trillion dollars. On our money. And they'd insult for because it was too big a deal so we'll get a million questions. We'll have and you liberal book and owned on on. And all so Libya conservative from. Heritage and over here we're gonna talk about something. Quite frankly I'm not Barbara. We would do a lot of shows on technology year. America and signed Tuesday called wired you name it. We have sciences with the engineers. Businesses owned. We've talked about robots. That so many companies are now using. We've talked about automation. That you know you see it everywhere and it was off. Coming out of the new groceries snore. Woods basically. He is all the lesion and robots. We've tuned to aid employees. Wanted to guard against everything from shop lifting to maturity between revenue and and then you got Amazon. A developing blimps. To its war. Things are gonna deliver that don't beat humans. And even drones. The delivered those products tour doors. So. We'll go over I think I'm comfortable where technical quotes are enough. But in reading below Wall Street Journal view that it. And Sunnis in the article called the end of the employees. And the server Evelyn says an admirable for. A big and to warriors tried so horror. And over chunks of their business to contractors. It's something that never thought of we're very lucky we have the Euro author of that article. Lauren wearable where this Lauren thank you so much with the time. So and so gimme gimme you bird's eye view. On board Jews during good middle you know. Specific questions. One how. Boortz infected this. Probably handled. Sure well I didn't at that stage a little bit when we think of what a company it is certainly a company has been historically. We think as an enterprise that. In Italy and abroad cross section of workers rate everyone from the janitors who clean that. The bathrooms to use that secretary is cute failed people kidnapped steelworkers who actually make the product that the company sells to the vice president can. CEOs and the rest of land management team. What we've found elected stories about it the fact that companies are. Taking a lot of those workers and basically. Cutting off the function that they work and and outsourcing that to another company when an outward I don't mean sending it overseas in Medicaid and that the domestic phenomenon that okay. They are taking I mean that happened a long time though probably and then seventies and eighties with things like janitors and security guards in Tibet. Marketed under the attract big companies next now elect Clinton today. General Electric and that a General Electric hiring and employing it. Cafeteria workers and janitors and security guards. Those people are now employed protect your workers maybe maybe by detective or come to it and I'm making that I don't know exactly what she even arrangement marks the security guard them. I'm from companies like counter top and allied security more and more and coming into it more professional level. Kind of job like I did he accounting HR. Often need functions are entirely or partially outdoors by company. And did it do you talking innumerable times that and says say a bank. A moon. That is employing full employment. And it ended talks in and go as CEO talks in the in the animals call and they still won't. Large profits weren't sure margins higher. Compared to other banks or other companies in the prime remembered graphically. You're Arab assessment of it was well. Balloons or out so is she and more. Darrell for reducing glare of their 401K these health insurance. They're overhead. And keeping their cool or people. To a minimal and it endure remember that a critical. That is correct and I think either you get at one of the reasons and the motivations for companies to do this kind of out shortening or contacting out of jobs did that. There are under pressure from shareholders and you know we're in a moment in history that many people call shareholder capitalism where at the primary stakeholders that matters to you. Public company executives and shareholders that got to their shareholders happy one way they do that it reducing labor content or at least. Appearing to reduce labor costs by reducing headcount no one of the things we tried to do that I tried to address from the story that. Often had to account numbers that public companies are required to disclose. Every year him how many employees we have. In an increasingly meaningless because they don't include their contract employees now. Or their contingent workers Pam contractors. Vendors people like that. So you in a minute situation where one company error about stories global capital global workforce are not actually Google employees. That'll Leonard clothing and investors that they have 70000 employees. Let's not actually accounting for much of the labor that would go into you produced at Google produces. Investors might be happy technique. What they would consider to be high productivity because you you're making a lot of revenue for each of them believe that these companies didn't actually play. It's not actually an accurate accounting for all of labor that goes into you know a lot of the work can come but company curtailing. And Jim Craig him in my memory isn't wrong. I don't have my notes. But I think he'd talked about Google employee or somebody you want applied for work. And new books. A specific. The category of food is no specific. Schedule. And he says hey. Ten I've been shall become an employee year end in the training sessions. It's a way things possible. And he got some kind of bug computer. General rated message that said sorry you can't become polled time. Is is that indicative of what people are facing. Yeah operative for a lot of the people who are in the contract work situations or temporary worker situation that was actually an example about Amazon. That an accurate Amazon that's okay. And blue. You know that it orientation that you would go to Q4 new contractors. Always somebody would that get in their camp that the job will go permanent and I can be hired as a permanent totally. And often companies do you dangle that possibility because that's. You know keep people kind of bringing their network and and doing good work while they're there and contract maintenance. What I found over and over from interviewing people that it is very very hard to make that transition from contact employee to. Full time permanent. And you know like that companies not hold that out as an incentive for people to do good work. But it's it's rare for people to make the transition and enact it accurate and this that contractor MP. Applied for a full time job he he had to apply treaty act internal job applications and because often contractors. Don't get any particular priority or. He the other continent that they don't get favorable treatment in a plot and applying for a whole a full time permanent job. And he basically just got days. That form letter rejection rejection that any other. Applicant would would get and it it confusing because you would think companies would. Would want to hire people who understand their culture who haven't experienced and better in that company who are already giving the job. And yet I heard over and over again from contractors that it means they've found it almost impossible to do is they think of these temporary jobs in the foot in the door. And yet it's really hard to get that other side and the door. All right stay when you're gonna take a break keep you know there ten and if you run. One of those that it discounted robots discounted. Automation. And discounted. Room delivery and and a pen economists. That it's a it's not going to be a big thing. I'll order Drew Gordon Walter drew and read this article. The end of the employees. I don't think you can read this without real concerns. What are your thoughts to -- 01878. Double BO. Also bribes like like I've said we've had at least. Over the last couple months cup than that fuel economy has since Cortland. You're concerned or robots are from Asia and crohn's all that at Barings. At the league's may be fractionally. Affect the work force. But there is an article in Wall Street Journal Colby end of the employees. And as soon as never before a big implored frogs are hard hander was chunks of their business to. Contractors. Not ample time hiring contractors. And brown have you read the article too because it's or. Hourly. Poll that we always used WW Oprah major world we have. Always about politics here in the end of the employees as we know it in the 5% of abuse say yes it's a little bit whose prize from the lucky enough to have the altar of Wiltshire journal article lower and wearable this. Or live funeral my unemployment to bill back of your report in and read deliberately. You say good trade group stamping. Industry analysts'. Estimates business spends nearly. In real million dollars a year worldwide. And on day he's signaling. They called workforce solutions. Outside services sounds like outsourcing. A trillion dollars really. Yes really. There what you think about how many people are working in week hobbies are playing good work arrangement where. They're doing works for a company but they're actually employed by that come but he. It very hard to count this group because. The way that our government count. Labor Day picnic there's just no easy category to put a lot of these workers into it but. Come in and looked headed in different ways and kissed and he let alone. Anywhere from. From five million prelude to when he million people might be in these kind of arrangement. That huge fraction of the work force that it maybe 14% of the workforce. And so. It is very common phenomenon come and ask company. Ease their pain in the casting agencies to cute to me takeover in large part of of the work. Or you know open an outside company. Kind of a third party company like I mentioned before security guards or. She editors there are large companies devoted only to providing that kind of labor Q. Their customers. And all or or the contract Andrews making less overall. Our big Joe's not getting the benefit. That isn't really important question and he had one expert I've spoken to is that well it's just to shell game by as a matter kitchen to different sense. Who didn't name of your employer why as a matter. There's a lot of evidence that featured stories in the theory goes deeper and then that when he wanted to get a contract it out the week goes down. There lottery for the one that. Interestingly campaign. At their own and it's an internal labor market and an internal affair and at a company equipment and software company name mostly employ. Professional level and seniors who make it a fair amount of money attend 150000 dollars on average. What research that even lower skilled lower paid people in the company will earn more and definitely go somewhere else five or perhaps an attack company or. I'm game. Maintenance worker at tech company and inner earn more because a company where. In general the wages and to be high because most of the employees are hired skilled. We knew when he when he battling user anger out low skilled workers attending to a company that. Almost exclusively employed Broward County are people. Their way to tend to go down. And you know it's not just the region he mentioned on the back at that time it works for you know very well and company like. Google are they put a cork in any of the big companies that are you know the war effort. And they desperately want hired the best and the brightest I mean they offer great benefit to the people who are there employees. But if I'm working for passing agency. I am working at Google I'm my employers actually acting agent your contract company. They're not going to be higher and offerings that level of benefit from this part. I think you mentioned you drew reports if there were our crew we get her back on. Because this. Personally when millions of Kenya during extraordinary broad port. Thank you for this time have been a great day camp covered up BO. Go to W of. Yelled coal a road don't go cold good token do you what school nor. While Garland we do have a confirmed tornado that was reported about. It was about eight miles southeast of Springfield. Louisiana moving towards the east at about thirty so that's about twelve miles south of Hammond as well so. Definitely it was very impressive on radar the hook. I'm moving across parts of northern light Blakemore pos other intent Livingston pairs. About to cross over now I 55 so that is a possible it was confirmed at least a little while ago at ten to 32 that it was a tornado on the ground moving toward the east at thirty miles row we have numerous warnings going on. Four torn knee to warning. Across the nor short so we are looking at a dangerous situation going on southern no Livingston and into a tangible hope pairs. It's other intangible you wanna take shelter right now for the possibility of a tornado moving in your direction right now we are seeing. Definitely the stood stormed lift them look at the radar right now. It is a moving just near the Sharkey area. Along I 55 so if you are traveling north on I 55 you may wanna pull over and wait you not go toward southern tangible hope payers. So north of straighter you may wanna just pull over and wait this out because that could be a tornado crossing over I 55. Here shortly. And that is going to move towards the Lee landing so if you're in southern chant about pairs and south western singer Tammy pierced watch out for this self it is a dangerous situation it was confirmed and it still looks very impressive on radar. For a tornado possibly on the ground about to cross over I 55. Near and south of Sharkey so you'll want to stay off the interstate if you're traveling north or southbound. Near lake more Paul. And near the shark here between straighter and Sharkey. You'll wanna pull over before you reach those locations and let the storm pushed eastward at thirty miles per hour. All right gold. Thank you so much we're gonna join you again and you've got in the thing okay. All right and we begin this segment. Is as I said earlier in the report. Bad nationally columns on in the last problem loans and sent aid robots automation and mean. And Amazon has blue and it's worth billions. Or stop and ordered to. Deliberate thing toward pro indoor withdrawal loans and we go on orbit visual intelligence learning. Pro Mitt itself computers talking to computers. Or their jobs. At threat and both the economy was said now you're talking about. Something that's very borrow wage and for action. All of a broad word ports. But a very interesting article and bolstered and not exactly. A liberal publication. It's called the end who employees. Something and never thought both pork memorable for a big game or you're tried so hard. Hand over charmed some of their business to contractors. The something and thought up. And thankfully radio station were often able to have two to talk to lose the experts of experts. Where boring Castro of the senior Breaux former don't miss a domestic policy director from Mitt Romney. 201112. Presidential campaign. Now with the Manhattan. Institute or underground or Google visage so thank you for the time. Oh my pleasure thank you for having. So when and I'll look good as I'd say okay do you experts have told me not to worry about Pia and that's about what I read this article. It didn't show dubbed his concern is that I think I should be concerned. Well you know I think when people talk about contractors they can really be talking about two things. One thing that's been happening for per decade in the US. In that companies are specializing more and more so the company tries to do what what they do that with their own employees. And then they go hires somebody else to do who. Everything else whether it shipping their packages to work cleaning their bill being. Or you know you can even think of your radio station you don't keep your own fault I'm economist you call outside experts when you wanna talk about economics. Men and sit back and be a good thing for everybody. I think the other thing that happening more and more that people are worried about is that employers are saying. We still want you to pay people like you're our employee but were not gonna treat you like an employee. So we're not gonna pay you as much we're not gonna give you benefits you're not going to be part of the union. You're not gonna have all the legal rights that you haven't an employee. But you still stick here and and hit like an employee and and Mac can be a pretty bad deal for the work. Or endure would mean one more Tom we've got some really really bad weather. In this sir is sure we're gonna grow quickly Dave Cohen news for the latest. Thank you Carol we cannot stress enough that folks in the Hammond and punted two lane area and anywhere along I 55 need to stay. Off the road now and seek low ground or interior rooms of buildings as there is what the National Weather Service calls they confirmed. Large and extremely dangerous tornado that is now crossing over I 55 in the Hammond and pocket to that area. The tornado warning is in effect for candor about Saint John saint Tammany Livingston parish. Until 11 a am. And this is a confirmed tornado according to the National Weather Service and this is just one of several very large cells that are now moving across and into the metro area both on the North Shore. And South Shore. The tornado watch continues until 2 o'clock this afternoon. Anyone in the New Orleans metropolitan area in southeast Louisiana is advised that this time to stay indoors and seek cover as we have seen numerous storms capable. A producing tornadoes and won at least confirmed the large and extremely dangerous tornado Garland. David important information thanks so much or in cash and barrel with the have to record break come and go right back to you moved again and again the discussion. Or the hiring of contractors. Five companies reducing. Jobs would benefits. Double bill what do you think Jews eggs are 170. Or were think about a Wall Street Journal journal article that it's in titled the end of the employees. I think should give us all hall which. So bad loans or is never blood pouring big importers. Tried so hard. To hand over chunks of their business to contractors. Contractors would god knows all the benefits. Health care for wind can unit in the like Goodell drab boring camp with the senior fellow former domestic policy director improvement from the presidential campaign now. With the Manhattan. Institute. Or or in England. I gold in in into the article 11 of the statement says it's. Eventually large companies could be pruned of all but the most is central employees consulting firm acts and should repeal it's appealed C. Predicted last year the ones and the 2000 largest companies in the world will allow you know. Full time workers within ten years in Matagorda itself the world's airlines. I think board toward Jews airline in the world. And they basically say. We're gonna do it that it's so the Wear and bad time columns. We don't have the lay off our core implore we each. Talked to me it would what do you think about those. Well I don't think you're ever gonna be accompanied get rid of all the employees. You know at the end of the date of the game would make the company valuable is. The fact that he can do something better than everybody else. And it has to have people doing. If if you say well all we're gonna do it to hire other people to do it for us then that you or I could go out and hired those people to do to. Site you know I think one good example from that story was target who tried to outsource lots and lots to stop and realize. Although woman wait a minute what are what are we good dad and started choosing what they thought was most important and taking it back. Because you know it is really important to. To be completely successful company to have some control over. Who the people you have working for you and and what that things are they do. So I suspect what will these companies just focusing more on that question asking themselves what is it that that makes us special that we wanna be good that. And how we get about people we tend to do that. And then go find other companies were good and other things to fill in to fill in the gaps for us. Oren I apologize. In all the delays because of the weather problem here. I know your building thank you so much for Muhammad rigged. It. And and one more remind thoughts here in the in the all of does it is is. That. It is in May be important who you hire would you can hire good contractors to about the benefits. How to we bring the jobs back if we do that. Dublin ago.