Tag Archives: precarious employment

It’s not how much you spend on university. It’s how wisely

between friends


Rise of the ‘precariat
,’
the global scourge of precarious jobs

Barely one in four of the global workforce has a stable job, UN reports
– CBC News, World, June 1, 2015

Contract work is here to stay, says Bank of England governor
UK job market has changed permanently due to financial crisis, Mark Carney tells Treasury select committee
– The Guardian, November 25, 2014


In his Nov. 1, 2015, editorial ‘The 21st-Century Club’, Fortune editor Alan Murray said of the 13th Fortune Global Forum:

“We are now in the early stages of the third Industrial Revolution. New corporate behemoths like Google, Facebook and Uber are reaching Fortune 500 size at unprecedented speed. The century will belong to those who master this new model. Economic dynamism will matter more than sheer scale. The invitation-only CEO gathering (Nov. 2-4) will include leaders of many of the largest companies in the world and focus on the challenge of ‘Winning in the Disruptive Century'”. (You can view the agenda of the recently concluded event by clicking here.)

One of the advantages of living in the early 21st century is that all it takes to see how some of the most powerful corporations in the world are going to change the way we live and work is a few keystrokes. What the Forum attendees heard and discussed wasn’t ‘if’: it was when—and when is now.

Those companies will need the help of well-educated young minds and they’re not alone. They’ve declared their intentions publicly which means that the word is out on what kinds of schooling they’ll be looking for. Parents and children who plan to attend university have to read that word, understand it and act on it. We know the names of the people who are shaping the future and the names of the companies they head. The information they’re making available about what they’re thinking is free.

It’s not how much parents are spending on higher education that matters; it’s how wisely they’re spending it. It’s a lot cheaper to avoid making a mistake than it is to correct it. The two articles at the top of this page speak to the consequences. So does this story about the precariat by Joe Fiorito in today’s Toronto Star. How is someone who is just starting out supposed to repay student loans on irregular or inconsistent income? At what point will the rising cost of tuition put post-secondary education out of reach? What will the impact be on the universities themselves?

There’s a glut of degrees on the street. Jobs that used to call for a high school diploma now call for a degree but pay high school wages. Graduates are accepting them even though they aren’t full-time and employers don’t look gift horses in the mouth. Had graduates taken the time to scrutinize the labour market before they put their money down, they might not have run out of options.

We can’t blame all of this on graduates any more than we can blame all of it on universities or governments. But we can blame it on a changing employer-employee social contract that has already cost many parents their job. Why weren’t they and others paying attention?

The environment in which today’s jobs exist is as important as the jobs themselves. Free trade agreements are part of that environment. Compromises were built into every one of them. To get, we gave. And what we gave was often measured in jobs lost. Canada has entered into 44 of those agreements so far and concerns are being expressed about the Trans-Pacific Partnership, which has yet to be ratified. Politicians and businesspeople love to boast about how many new jobs the agreements they ink will create. What kind of jobs are they? Will they be permanent or precarious? What qualifications will they call for? How much will they pay?

In its Oct. 24th – 30th issue, The Economist published ‘Reinventing the company’. In its Nov. 1st issue, FORTUNE published ‘The 21st Century Corporation: Every aspect of your business is about to change’. This is what Geoff Colvin said in his lead-in:

“Imagine an economy without friction—a new world in which labor, information, and money move easily, cheaply, and almost instantly. Psst—it’s here. Is your company ready?”

Please be sure to read FORTUNE editor Alan Murray’s editorial ‘The 21st-Century Club’. It’s what the C-Suite is reading and it’s already here.

By no means does this apply to all lines of work or to all degrees or all post-secondary diplomas and certificates. But where it does, and if precarious employment is the outcome, how do we calculate the value of higher education? Or the cost? Is it the education, the way it’s chosen, or both?

Even if parents are prepared to borrow money to put their kids through college, someone is going to have to pay it back. In the States, 7 million have defaulted on their loans. The US$1.2 trillion owing isn’t the figment of someone’s imagination: it’s real. In Canada, the number is between C$25 billion and C$50 billion, and one family in 8 is shouldering the burden.

To see the numbers for yourself, go to Google Alerts and set it to deliver links to articles with the words “student debt” in them to your e-mail inbox once a day. You’ll average 10 per day, 7 days a week, 52 weeks a year. I have been since October 2012, and the problem isn’t confined to North America. To see what universities are doing to cope, research the Millennium Project at the University of Michigan.

The world isn’t going through a phase: it’s evolving. We’re experiencing an economic tectonic shift, a “third Industrial Revolution” as FORTUNE puts it. If you want to see what the World Economic Forum’s Global Competitiveness Report 2014 – 2015 says about how Canada is faring, click here.

The United Negro College Fund has been reminding us for years that: “A mind is a terrible thing to waste”. So is a university. If we continue to waste either or both, we’ll have no one to blame for the consequences but ourselves.

A 5-minute survey on hopes, dreams, tuition, precarious employment and post-secondary education

Higher education is the single largest investment most people will make in their lifetime, after a home

— Neil Morris, Founder & CEO, the Personal Due Diligence Project (PDD)

Saturday, April 18, 2015

 

Conventional wisdom and statistics have traditionally maintained that an advanced education is one of the better ways to protect children from an uncertain economic future. In some cases it still is, but in a growing number of what used to be safe cases, it isn’t.

“Don’t trust anyone over 30” defined the ’60s. “Ich bin ein Berliner” defined the Cold War. Some day, a future historian may paraphrase Stephen Leacock and say that we were living in a world “[riding] madly off in all directions” with an iPhone in one hand, an iPad in the other and (as of April 24th) an Apple WATCH on its wrist.

That all 3 three devices originated with a single company is a fascinating story in its own right, and it’s still being written as you read this. The WATCH is the first all-new product to be conceived, developed and released since the passing of Steve Jobs.

Also evolving is the 140-year-old company that was once considered the antithesis of Apple. That evolution has given rise to WATSON, and, among other things, to a 7-year contract with Apple to develop apps for the iPhone. That company is IBM. You owe it to yourself and your children to watch and THINK about this interview with IBM CEO Ginni Rometty from start to finish (15 minutes). Then there are C|NET stories 1and 2 you can find here. The big story is the evolution of technology. The really big story is how it’s contributed to the evolution of the 7.2 billion people who live on this planet.

All of the companies mentioned in these stories accepted that to survive, they had to leave large parts of their past behind. Now comes the question, “How will our thinking have to evolve so that we and our children can survive precarious employment? It’s because of that question that I hope you’ll take 5 minutes to complete PDD’s on-line survey ‘Hopes, dreams and tuition’ by clicking here. And to ask that you pass this link along to anyone you know who plans advanced education for his or her children. All responses are strictly anonymous. The survey tool does not identify respondents.

Thank you for your interest and your participation.

Sincerely,

F. Neil Morris
Founder & President
The Personal Due Diligence Project

+ 1 905 273 9880

 

Back to the Future: some land, a horse and a plow

The twenty IBM sales recruits sporting three-piece, dark blue suits with sincere tie, long-sleeved-button-down-collar white shirt and wingtip shoes (brogues) had just learned that we had left the letters on the nameplates in front of us undisturbed for three days, two days longer than normal. Bob Oliver from L.A. became Bobo Liver. Boys will be boys.

IBM 403

The “big blue machine in the corner”

The morning’s delivery of doughnuts and various and sundry hot and cold beverages from the nearby bakery in Princeton, New Jersey was sitting on the “big blue machine in the corner”, an IBM 80-column-card-based 403. We were about to learn how the company’s compensation plan worked.

After what was left of the day’s doughnuts had been cleared away, our instructor asked each of us what kind of car we were driving. Anything less than a Mercedes-Benz would have to be upgraded. Keeping up our car payments would be the incentive to exceed quota. But he assured us that with time, we’d be earning more than enough to make the Benz affordable.

None of us bought the Benz, but the message stuck. They wanted us to stay, they wanted us to perform and they wanted us to succeed. That was in 1968: what a difference almost 50 years has made.

The 2015 that Robert Zemeckis envisioned in the 1989 sci-fi movie Back to the Future Part II makes no mention of precarious employment nor of the corporate victory over labour. Neither did IBM in the late 1960s because, back then, no one saw it coming. But it’s here now and it’s impacting on developed and developing countries as this is being written. You can read about the consequences to date in the PEPSO report entitled It’s More than Poverty.

As in most crises or gathering crises of this kind, there’s much discussion about research into the problem, but very little about action. People are at risk and are suffering now. We’re especially concerned about whether parents are factoring this new reality into their plans to invest in post-secondary education for their children, or ignoring it.

As parents in our own right, the position of the Personal Due Diligence Project is that parents must be strategic and pre-emptive in how they approach preparing their children to support themselves. We’ve already begun a survey of parental attitudes about higher education and the extent of their understanding of the implications of just-in-time work.

Not every employer subscribes to this madness. There will be no winners as a result of precarious employment. Driving down the buying power of working people will drive down the demand for the goods and services their employers provide. A farmer looking for ways of conserving money in hard times hit on the idea of cutting back on the quantity of oats he fed to the horse that pulled his wagon. On the day he reduced the quantity to zero, the horse died of starvation.

No one involved with the Personal Due Diligence Project is a Luddite. Far from it. But what we do understand is that machines crave nothing, demand nothing and buy nothing.

As for our governments and business leaders, it wouldn’t surprise us if some bright young bureaucrat came up with the idea of granting unemployed and underemployed Canadians title to 10 acres of land, a horse, some oats and a plow.

Neil Morris
Founder & President
The Personal Due Diligence Project