Wednesday, March 30, 2022

Loyalty is a Two Way Street

The start of the pandemic was almost exactly 40 years after there was a major shift in US economics and in the treatment of workers.

The new wave changed the level of bargaining power, away from workers and toward employers. The dramatic reduction in private sector union activity was one reflection of this trend.

Good for employers!

Other changes, including the globalization of many activities and the rise of the service economy, further diminished worker bargaining power.

And then, the pandemic blew up ther labor market, and employees started to rebuild bargaining power (aided by the retirement of 3 million baby boomers).

Employers must recognize and respond to this change.

Grumbling about the "good old days" does not make the problem go away.

So the presumption of one way loyalty is gone and over.


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