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November 20, 2005
History may show that the 20th century really ended in the fall of 2005.
Although it’s tidiest to say the 21st century began on 1-1-00 and most precise to say 1-1-01, historians, fond as they are of dramatic social shifts, may record the true dawn of the new era as 10-17-05, the day the United Auto Workers made major concessions to General Motors. With this act, a profound social shift in employer/employee relations is complete.
Employment in the 20th century was built on three great pillars — a secure retirement, health care and a guaranteed job. Today, those pillars are dust.
Remember your Dad’s pension? It’s just that — a memory. Today, only 20 percent of workers are covered by a defined benefit pension plan, while more than 40 percent of workers have defined contribution plans (think 401(k)s) — a complete reversal of the trend 20 years ago, according to the Employment Policy Foundation, a nonprofit public policy research foundation based in Washington, D.C. The days when a loyal worker would get a gold watch and worry-free retirement are over.
Then there’s the next pillar — health care. Everyone knows the drill; workers are paying for more of it. Blue Cross of NEPA’s numbers tell the story. In 1996, it counted 340,398 people in traditional (worker pays nothing) plans. Today, it counts 229,414. As testament to our region’s resistance to change, BC NEPA is fifth in the nation in terms of its number of traditional plans. However, as recent teacher strikes have demonstrated, traditional plans are regarded as archaic, even here.
As for that last pillar — lifelong employment — the Wharton School published a study on executives in January that found that, “ . . . though 45 percent of executives in 2001 were still classified as ‘lifers’ — the percentage is down from 54 percent in 1980. Also, the number of ‘lifers’ in young companies (those existing for 30 years and less) is only 17 percent.”
Although academics argue over who broke up the love affair first — fickle employees or unfaithful employers — the fact remains that the U.S. Department of Labor (DOL) says the average American worker changes jobs nine times before age 34.
Although the great paternalistic pillars have been weakening for some time, the autoworkers’ concessions seem to forever shut the door on the 20th century. Now even the UAW admits employers can’t be Dad.
But employers want to be someone. In searching for a new relationship, many companies have found that if they can’t be Dad then maybe they can be our trusted friends.
A DOL study entitled, “Futurework: Trends and Challenges for Work in the 21st Century” provides a peek at the metamorphosis taking place. The study finds that, “Workers are searching for the time and flexibility to be there when the babysitter doesn’t show; to make arrangements with the caregivers for their aging parents; to attend the parent-teacher conference or the doctor’s appointment . . . This new mindset will dramatically affect the way we work and the way we view work in the 21st century.”
To phrase it another way, Dad could demand a rigid 9-to-5 schedule because he was paying all of the bills (as long as you live under my roof, young lady!). Your friend can’t pay your bills, but can offer sympathy and understanding.
A study just released by Incentive magazine further reveals the new relationship and a new pillar made of flexible material. “Facing daunting new costs, employers are getting creative about finding low-cost ways to make the work environment, and life in general, more pleasant for employees,” the study reads. “Flexible work schedules are the second most important benefit to workers after health care . . . (and) with the increased focus on work/life balance, an aging workforce and increased exposure to European colleagues and their month-long vacations, look for these exploratory breaks from the corporate grind to gain in popularity.”
So there you have it. Dad is gone. Welcome to the 21st century.
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