All Things
Citing hard economic times, three Hyatt hotels in the Boston area fired about 100 housekeepers. These women who make the beds, clean the bathrooms and make sure that new guests will find their hotel rooms immaculate, had been working for Hyatt for 20 or more years. They earned $ 15.00 an hour, had health insurance and a 401k plan. (Their annual pay came to about $30,000.00 a year--not a lot of money if you live in a high rent, large city). Hyatt outsourced these housekeeping jobs to a firm that pays its employees $ 8.00 an hour and gives no benefits. By firing long term employees who, by all accounts, had done very good work, Hyatt halved its wage bill for housekeeping.
There has been a great outcry over the treatment of these long term employees. Even the governor of Massachusetts got involved when he threatened to withhold state trade from the hotel chain. But no one has asked what Hyatt did wrong. The task of a manager in our economic system is to make AS MUCH MONEY AS POSSIBLE over the long run. (Huge windfall profits that end in bankruptcy are not acceptable.) The Hyatt managers did just that: the recession has affected the hospitality business; profits are down. The managers cut costs any way they could even if that seriously damaged loyal long term employees. They may personally regret their callous treatment of their housekeepers but their job is to make money, any legal way they can.
The Hyatt affair does not tell us anything about the managers of Hyatt hotels. It tells us something about ourselves and our economic system. Making as much money as possible is more important than personal loyalty, than treating employees decently, than being kind and helpful to our fellow men and women. Making as much money as possible justifies being callous to others, justified treating others harshly.
Most Americans agree that making money takes precedence over treating others decently. The uproar over the Hyatt firings is hypocritical. Most of us support this economic system. (The governor of Massachusetts used to be a top executive at Coca Cola.) When, occasionally, the brutality of that system is exhibited clearly we all profess outrage. But the guilty party here is not the Hyatt management but all the people who think that it is right to pursue profit even if fellow human beings are made to suffer as a consequence. The guilty parties are all those who support our economic system.
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I am pleased to reprint an op-ed piece by Prof. Hans Despain who teaches economics at Nichols College in Dudley, MA. The Battle of Wisconsin and for the Nation Governor Scott Walker of Wisconsin put forth a bill to repair his state’s budget. This...
- Blame Capitalism, Not The Capitalists
Blame Capitalism, not the Capitalists.Our economy is in the doldrums. Unemployment is very high--if you count the underemployed, 20% of the work force are working less than they would like. The unemployed have no money to spend. Those who...
- One Perswon's Private Property Is Another Person's Unemployment
Many people believe that it is free enterprise – the single-minded pursuit of private profit-- that makes our country great, that gives us a high standard of living. But along comes the Simmons Mattress company forced into bankruptcy by several private...
- Buying Local
Money is very important. You should not waste it by paying too much for the goods you buy. So people drive out to the edge of town to go to the big box stores where prices tend to be very low. They want to get as much as possible for the money they have....
- Greed?
A while ago when it became obvious that we are in serious economic trouble, the President and other leaders said “the economy has some problems but its fundamentals are sound.” Today they tell us that we facing recession, perhaps depression. The fundamentals...
All Things
Making Money or being a decent person?
Citing hard economic times, three Hyatt hotels in the Boston area fired about 100 housekeepers. These women who make the beds, clean the bathrooms and make sure that new guests will find their hotel rooms immaculate, had been working for Hyatt for 20 or more years. They earned $ 15.00 an hour, had health insurance and a 401k plan. (Their annual pay came to about $30,000.00 a year--not a lot of money if you live in a high rent, large city). Hyatt outsourced these housekeeping jobs to a firm that pays its employees $ 8.00 an hour and gives no benefits. By firing long term employees who, by all accounts, had done very good work, Hyatt halved its wage bill for housekeeping.
There has been a great outcry over the treatment of these long term employees. Even the governor of Massachusetts got involved when he threatened to withhold state trade from the hotel chain. But no one has asked what Hyatt did wrong. The task of a manager in our economic system is to make AS MUCH MONEY AS POSSIBLE over the long run. (Huge windfall profits that end in bankruptcy are not acceptable.) The Hyatt managers did just that: the recession has affected the hospitality business; profits are down. The managers cut costs any way they could even if that seriously damaged loyal long term employees. They may personally regret their callous treatment of their housekeepers but their job is to make money, any legal way they can.
The Hyatt affair does not tell us anything about the managers of Hyatt hotels. It tells us something about ourselves and our economic system. Making as much money as possible is more important than personal loyalty, than treating employees decently, than being kind and helpful to our fellow men and women. Making as much money as possible justifies being callous to others, justified treating others harshly.
Most Americans agree that making money takes precedence over treating others decently. The uproar over the Hyatt firings is hypocritical. Most of us support this economic system. (The governor of Massachusetts used to be a top executive at Coca Cola.) When, occasionally, the brutality of that system is exhibited clearly we all profess outrage. But the guilty party here is not the Hyatt management but all the people who think that it is right to pursue profit even if fellow human beings are made to suffer as a consequence. The guilty parties are all those who support our economic system.
-
I am pleased to reprint an op-ed piece by Prof. Hans Despain who teaches economics at Nichols College in Dudley, MA. The Battle of Wisconsin and for the Nation Governor Scott Walker of Wisconsin put forth a bill to repair his state’s budget. This...
- Blame Capitalism, Not The Capitalists
Blame Capitalism, not the Capitalists.Our economy is in the doldrums. Unemployment is very high--if you count the underemployed, 20% of the work force are working less than they would like. The unemployed have no money to spend. Those who...
- One Perswon's Private Property Is Another Person's Unemployment
Many people believe that it is free enterprise – the single-minded pursuit of private profit-- that makes our country great, that gives us a high standard of living. But along comes the Simmons Mattress company forced into bankruptcy by several private...
- Buying Local
Money is very important. You should not waste it by paying too much for the goods you buy. So people drive out to the edge of town to go to the big box stores where prices tend to be very low. They want to get as much as possible for the money they have....
- Greed?
A while ago when it became obvious that we are in serious economic trouble, the President and other leaders said “the economy has some problems but its fundamentals are sound.” Today they tell us that we facing recession, perhaps depression. The fundamentals...