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View Diary: Democratic Senator To MORE IT Workers: No More Pay For Your Overtime Work (262 comments)

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  •  i disagree, it is part of a bad management cycle (1+ / 0-)
    Recommended by:
    kurt

    I have seen this in practice where some middle managers think this is a great idea and make all their IT workers contractors or outsource them to a company.  Then everything begins to suffer and grind to a halt usually coming to some major crisis and they, sometimes the very same middle managers, bring a bunch of them back into the company.  I have worked at good and bad companies and good companies don't do this.

    •  Why I think it's happening. (0+ / 0-)

      The company my wife has mostly worked for had a few long-term "independent contractors" in its IT department, including one who held that status for 15 or so years, while being generally regarded as very well-managed.

      Now that company has laid off 2/3 of its IT department (including my wife) and has hired a few people (including my wife) as short-term "independent contractors." The company has already sold off a few of its divisions, and I suspect they're getting ready to sell the remaining core. I think they want their permanent payroll to appear lean, to make their profit margin appear higher, thus inflate the company's sale value.

      In the broader market: Unfortunately executive compensation is often linked to short-term stock performance, which in turn is linked to short-term profit margin. Thus executives have an incentive to think short-term.

      "The true strength of our nation comes not from the might of our arms or the scale of our wealth, but from the enduring power of our ideals." - Barack Obama

      by HeyMikey on Mon Dec 12, 2011 at 09:55:07 AM PST

      [ Parent ]

      •  sounds like greedy management then (1+ / 0-)
        Recommended by:
        HeyMikey

        there are good companies out there, I found one.  Hopefully your wife can find a different one on her own terms if it is not working out where she is at.

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