The Fissured Workplace
02/2014 · Harvard University Press
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In the twentieth century, large companies employing many workers formed the bedrock of the U.S. economy. Today, on the list of big business's priorities, sustaining the employer-worker relationship ranks far below building a devoted customer base and delivering value to investors. As David Weil's groundbreaking analysis shows, large corporations have shed their role as direct employers of the people responsible for their products, in favor of outsourcing work to small companies that compete fiercely with one another. The result has been declining wages, eroding benefits, inadequate health and safety protections, and ever-widening income inequality. From the perspectives of CEOs and investors, fissuring--splitting off functions that were once managed internally--has been phenomenally successful. Despite giving up direct control to subcontractors and franchises, these large companies have figured out how to maintain the quality of brand-name products and services, without the cost of maintaining an expensive workforce. But from the perspective of workers, this strategy has meant stagnation in wages and benefits and a lower standard of living. Weil proposes ways to modernize regulatory policies so that employers can meet their obligations to workers while allowing companies to keep the beneficial aspects of this business strategy.
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Weil David : In May 2014, David Weil became the U.S. Wage and Hour Administrator in the U.S. Department of Labor. Prior to that appointment, he was Peter and Deborah Wexler Professor of Management; Professor in the Department of Markets, Public Policy, and Law; and Everett W. Lord Distinguished Faculty Scholar at Boston University School of Management. He has also served as co-Director of the Transparency Policy Project at Harvard's Kennedy School of Government.
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