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The "redundancy", or "displaced worker" or "reductions in force"
problem has become a subject of considerable
academic and political interest. "The mass layoffs create instant
pockets of unemployment, often made up of people
with years of dedicated service and acquired skills" (
Horvath, 1987,
p.3). The way in which political bodies,
corporations, unions and other institutions cope with this problem
and its consequences reveals much about the finer
differences in industrial relations and social climates within and
among industrial countries (
Greenhalgh et al., 1988;
Horvath, 1987; Howland, 1988;
Massey and Meegan, 1982; Raines et al.,
1982; Rainy et al., 1973; Root, 1987;
Townsend and Peck, 1985).
The closure of entire plant facilities constitutes a
corporate action which goes beyond laying off individual or groups
of employees in that it usually signals the permanent withdrawal of
the corporation from the community and the cutting of numerous ties
to the local economy in addition to severing
employment relations. Such often sudden departures thus do not merely
affect the personal job, career and family plans of individual
employees but also those of employees and owners in other affected
businesses, of local infrastructure providing governmental agencies
and, in numerous ways, the public at large. It should not be
surprising that, with increased individual career consciousness and
ambitions, increased integration of plants into the local economic
fabric and increased levels of public investments in support of
corporate activities, the calls for local corporate responsibility
and stability will also increase. Given the needs for structural
adjustments and ultimately unavoidable plant closures, one would have
to expect increased demands for predictability and prior notification
of such major changes in corporate activities.
In most western industrialized countries, legislated mandates
concerning employment security and worker notification and
consultation practices have become exceedingly comprehensive
(
Emerson, 1988;
Yemin, 1982). In the United States, in contrast,
improvements in such rights have occurred only slowly and tended to
be fragmented and narrowly focussed (
Addison, 1986). Admittedly, the
notification rights of those non-employees only indirectly affected by
plant closures are yet to be defined, unambiguously, anywhere in the
Western world. Yet, it could be suggested that in the U.S. context,
the difficulties of overcoming the specifically American legal
"employment-at-will" doctrine (
Hill, 1987) have the same roots as those slowing the
process of rethinking the analogous, but less explicit, "closure-at-will"
principle and of extending information responsibilities to the
notification of other "stakeholders".
The Worker Adjustment and Retraining Notification (WARN) Act which the
U.S. Congress was finally
able to pass in 1988, is a case in point. The controversial nature of the
underlying issues resulted in a compromise
which proponents hope and opponents fear may lead to further job
protection measures and an intensification of
disclosure provisions (
McKenzie, 1984). The debate and a series of bills
preceding this legislation had, over a period
of at least fifteen years, narrowed from a relatively comprehensive
layoff assistance program to the mere provision
of advance notification (
Bluestone and Harrison, 1982; BNA, 1988;
Howland, 1988;
Rothstein, 1986).
This ultimately narrow perspective made it easy to discuss the
provisions intermittently in the context of the 1988 trade bill.
It was now argued that plant closures are mainly the result of
international
economic restructuring and the "flight of jobs". Thus, the
notification bill was supported by some quite openly as a
protectionist measure, which would prevent or slow down closures
rather than merely provide an early warning and
facilitate adjustments (
Business Week, 1988a, 1988b). For others,
advance notification simply remained "the decent
thing to do" when one cannot, or does not want to, prevent closures
altogether. Opponents saw the measure not only
as an undesirable anti-trade measure, but also as contributing to
locational regimentation and as yet another step in
the wrong direction on a path which, allegedly, had led to most of
Europe's economic problems (
McKenzie, 1984;
Blinder, 1988).
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