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Normalising Layoffs/Firing

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Re: Normalising Layoffs/Firing

#151

> where there is no social security This is the root cause problem. The fact that a set of cumulative hiring and firing decisions by employers and potential employers can render someone and their family destitute, is the biggest flaw in the system most of us live in. Not just in the countries mentioned either - we have a global failure of resource allocation.

I agree, as long as there is no guarantees for your human rights, we'll continue to live in scary world, where being fired might literally mean death or suicide or becoming criminal. I know that in my country many men took their life, after they lost job, because unless you can quickly find something else, your life can quickly fall apart and most people don't earn enough to have savings and state won't offer you much help.

I know that now we talk more often about how this global system is broken, but can we actually do anything about it, if wealthy just amass their wealth and don't want to share? I don't want revolution, but it seems like we need some revolution, so humanity can survive as something more than masses of wage slaves.

It's just sad, when I again hear in my company about equality, sustainability, but CEO is making 150-300x my salary and is in top 0.1% by income and I hear that I don't even deserve raise that would match inflation in my country.

Re: Normalising Layoffs/Firing

#152

Some comments are out of touch with reality. I genuinely don't understand how you are not explicitly addressing the massive corporates and multinational companies that actually *do* have protection and an entrenched position. Some of these layoffs are happening in companies that are posting record earnings and profits. Let's not be naive about it. Certain comments seem to argue for labor liberalism while at the same…

Yes, true (in the european sense) liberalism at all levels is better than only labor liberalism + legal protections of current companies. But it is still better than "protected" employment + legal protections of current companies

Re: Normalising Layoffs/Firing

#153
post #17

Earlier quoted context omitted.

I have been in Europe for a few years now and my experiance is significantly opposite of what the parent comment claims.

That doesn't really make logical sense to me. Can you elaborate? If hiring is an irreversible decision for a company, why wouldn't consideration be required prior to any hire?

Interviewing practices have very little connection to logic in the first place, and to the extent they do there's probably more connection to the general employer/employee power balance than any such specific consideration. American companies make candidates jump through hoops because they can; European ones don't because they can't.

Re: Normalising Layoffs/Firing

#154
post #110
post #84

Earlier quoted context omitted.

Opening a company is not just the paperwork. We should praise companies falling down as they can create the path for new ones to get up People do not need to be treated, they're not little babies

No, not babies, they are fellow human beings. While Companies are not, they are just social tools.

Exactly. They don't need help, they should help themselves like true responsible adults

  While Companies are not, they are just social tools
Agreed

Re: Normalising Layoffs/Firing

#155
post #11

Firing easily and hiring easily are two sides of the same coin. If you can be fired easily, you will find a job easily. If companies can go down quickly, new companies can be formed in an instant. In Europe where firing is almost impossible, hiring is a very tedious process. Companies are big and look financially stable because the little ones cannot survive or dont enjoy the same monopoly / legal protections. If a c…

> Firing easily and hiring easily are two sides of the same coin. If you can be fired easily, you will find a job easily. If companies can go down quickly, new companies can be formed in an instant.

> In Europe where firing is almost impossible, hiring is a very tedious process.

This is, at best, an anecdote. I'm charitably saying anecdote to avoid calling it utter bullshit. The average hiring process at companies I'm familiar with -- in the UK, France, Germany, Finland, the Czech Republic, Portugal and Greece, so I guess it's a reasonably large sample -- is no more complicated than the hiring process at Google or Facebook. And, much like in the US, if you stay away from the big players -- like Google or Facebook -- the average hiring "process" is a technical interview + a short interview with the hiring manager and HR. Popular enough companies may do a phone screening but that's about it.

Firing someone for bad performance is not "almost impossible". I have, unfortunately, had to sign off on that a couple of times. What is almost impossible is firing someone for bullshit reasons and writing it off as "a bad fit".

Of course there are legal protection in place: if you are laid off and can't find work -- for example, because you relocated to stay with your current employer when they moved offices, and were promptly laid off afterwards, in a new town with somewhat uncertain prospects -- the solution you're offered, in most countries, is not stop being poor, lol, but various forms of social protection so you don't starve before your next interview. Consequently, yes, it's important to make it difficult to fire people because they don't bend to toxic management or poor working conditions, otherwise that'd just be sponsoring incompetent management.

> Companies are big and look financially stable because the little ones cannot survive or dont enjoy the same monopoly / legal protections.

That is not even an anecdote. Except for Eastern Europe, where the Iron Curtain interrupted the history of most businesses, there are plenty of small companies, in every country, that have been operating more or less without interruption since the 1800s (and usually the interruptions were on account of one of the World Wars). There are four of these within a ten-minute walking distance from where I'm staying.

Re: Normalising Layoffs/Firing

#156
> Some how firing/laying-off has been trivialised.

Hardly. Even in developed western countries, being laid off can hurt families and communities.

When there are a lot of tech companies and the industry is doing well economically, and you can easily relocate or work remotely, then it's less of a worry. You can find another job with less difficulty.

But if you work in another sector like manufacturing, it can be devastating. Especially when a significant portion of the community work in that company or industry. There are large swaths of the US and UK where industrial jobs have disappeared and once prosperous areas have become impoverished in the past 40-50 years.

> We have normalised firing of people.

That's what happens in societies when the majority of people work for a corporation. The corporations are motivated by profit and will lay off hundreds or thousands of people or abandon a community if it saves money.

> I don't know about the "developed" countries where people have social security....

Many of these "developed" countries have embraced the austerity gospel. There isn't much of a safety net as the was or could be.

I don't know about the "developed" countries where people have social security,

Re: Normalising Layoffs/Firing

#157

Earlier quoted context omitted.

Why would an employee in the tech sector prefer an employer-managed pension? A 401(k) usually allows me to choose what I invest my money in (including bonds), and can be rolled over to a new employer easily. And it’s my money once it’s in my account, not my employer’s money. They can’t require me to work for a certain period of time to get it out, and don’t pay me less to compensate for offering the retirement benefi…

Could not agree more. My grandfather retired 5 years early because if he didn’t, he would lose his pension due to a GE merger. Just lose the whole pension — versus a 401k where his accrued benefits would now be under his own control. Arguably, his pension terms were probably better, but pensions seem like pretty thin ice with no control or flexibility to my perspective. I’m not super well informed on what his options…

Keep in mind that a 401k is almost all funded with your own money. The amount going into the 401k is deducted from your paycheck... you can see it in one of the boxes. A pension, on the other hand, was funded by the company. And that is the exact reason there are so few defined-benefit pensions today in the private sector. These things were so incredibly generous that they are potentially bankrupting the original company... GE is certainly in that boat. Of course companies would prefer employees to fund their own retirement, perhaps sprinkle in a limited employer match subject to 5-year vesting, than to fund the whole thing themselves!

Re: Normalising Layoffs/Firing

#158

Earlier quoted context omitted.

Why would an employee in the tech sector prefer an employer-managed pension? A 401(k) usually allows me to choose what I invest my money in (including bonds), and can be rolled over to a new employer easily. And it’s my money once it’s in my account, not my employer’s money. They can’t require me to work for a certain period of time to get it out, and don’t pay me less to compensate for offering the retirement benefi…

That is a pension. In the UK they're called Self Invested Personal Pension and basically all companies do them now. But I agree they pretty much only have upsides - no risk of the pension fund going bankrupt (would be good right about now in the UK!) and no way for previous generations to steal from the current one, which is basically what all defined benefit pensions are doing now.

A SIPP is something you setup completely separate to your employment. In fact you don't even need to be employed to open one.

An American 401k is a more like what we'd call a "workplace pension" here in the UK, which nowadays is always a defined contribution scheme from a third party provider selected by your employer. These vary in fees, fund selection etc, but you usually get additional contributions from your employer, as well as better tax relief, for using it vs a SIPP.

Most employers won't pay monthly contributions from salary in to a SIPP due to the increased payroll and and admin costs, although some will do so for annual bonuses.

Confusingly there's also something that people call a "full SIPP", which is a much more expensive but less-retaily SIPP that can be used to invest in things like leveraged commercial property.

Re: Normalising Layoffs/Firing

#159
post #11

Firing easily and hiring easily are two sides of the same coin. If you can be fired easily, you will find a job easily. If companies can go down quickly, new companies can be formed in an instant. In Europe where firing is almost impossible, hiring is a very tedious process. Companies are big and look financially stable because the little ones cannot survive or dont enjoy the same monopoly / legal protections. If a c…

My experience is quite different in regard to working in Europe. How exactly is hiring a very tedious process? Seemed quite fast and easy to me. And btw, it's not that hard to fire a wrong hire. You have few months to do so basically for any reason at all, and afterwards, you can still do it, if you have a good reason to do so.

europe is the worst of both worlds. there isnt really protection. and as the years go by it gets worse as our governments vote new law to reduce our protections. let me give you the example of france. when we join a company we can be fired during the first six months with very little real reason. when we want to leave the company we need to give a 3month notice (think about how happy is the new company knowing youll misss a quarter when some of those companies don't even plan their future well - just look GCP hiring freeze suddenly in the middle of a quarter while in a hiring spree one week before). when you get fired most of the time you will get unemployement. 55% of your salary (it is very good but when you plan your life around 100% salary it gets very very challenging to live on 55%). but only for the first 6 months (a new law that concerns mostly white collars...) then it will be degressive so that after a few months you out of luck. note that in europe you pay tax while you work so that you can be paid while unemployed... so the 6month degressive new law is pure stealing from the people and totally evil and because it hits only white collars workers most of the people don't talk about it because it concerns people that are 'well off' in the society while in reality policies like this are a total destruction of the middle class.

finding a new job you will compete with people that have this 3 month notice so most of the companies plan hiring around it. also if you are unemployed in europe it will look really bad during your interviews.

now compare that to USA. you give 2 week notice, job market is very fluid so you can likely find a new job 2 week after stay there a few months helping the company and then use that time to apply to a new job in a better company.

Obviously the french model might be better for low earners/blue collars that do not have a job security. but for everyone else it is really hard to move to another company, managers know that too so they dont need to carrot you into a raise or a promotion as much as they do in US.

Re: Normalising Layoffs/Firing

#160
post #69
post #53

Earlier quoted context omitted.

>>Europe is 27 countries No, Europe is 44 countries the subset of Europe that is EU have 27 members

I think it's pretty clear they were referring to the EU. No need for semantics wars.

Calling the EU Europe is made on purpose to conflate the two and make it obvious that all countries should unite into this political union. I think it is very useful to point that to people who conflate the two terms
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