Liz Alderman

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Following up on the recent post about contracted and temporary work proliferating in America, putting citizens on an insecure and downward path, there are a couple of just-published pieces about the same dynamic in Europe.

Part of this new normal is the result of the aftershock of the 2008 collapse, which may have been even worse in Europe due to that region opting for austerity, but other factors like poor Labor policy, wealth inequality and technological change are also playing a role. Perhaps as much as anything the corporate mindset that workers are disposable has had a corrosive effect. As we’ve seen, this instability has done much to provoke increasingly risky political choices.

It’s not only those in the manufacturing sector facing a steep climb but also oncologists and nanotechnologists, the type of high achievers who were supposed to be largely impervious to such vicissitudes. The generation may not be completely lost but it’s certainly being underutilized.

Liz Alderman of the New York Times has an excellent article that profiles some Europeans lost in the shuffle, and Klaus Brinkbäumer, Markus Feldenkirchen and Horand Knaup of Spiegel address the topic in an interview Martin Schulz, SDP candidate for the German Chancellery. Two excerpts follow.


From the NYT:

After graduating with degrees in accounting and finance from a university in Finland, Ville Markus Kieloniemi thought he would at least find an entry-level job in his field. He studied potential employers, tailoring his applications accordingly.

He wound up churning through eight temporary jobs over the next three years. He worked variously as a hotel receptionist and as a salesman in men’s clothing stores, peddling tailored suits and sportswear.

“It’s hard to manage your finances or even get housing, let alone start a career,” said Mr. Kieloniemi, 23, who added depth to his résumé by accepting unpaid office jobs and internships in New York and Spain, mostly at his own expense. “You feel pressure all the time.”

Meet the new generation of permatemps in Europe.

While the region’s economy is finally recovering, more than half of all new jobs created in the European Union since 2010 have been through temporary contracts. This is the legacy of a painful financial crisis that has left employers wary of hiring permanent workers in a tenuous economy where growth is still weak. Under European labor laws, permanent workers are usually more difficult to lay off and require more costly benefit packages, making temporary contracts appealing for all manner of industries, from low-wage warehouse workers to professional white-collar jobs.  

For those stuck in this employment netherworld, life is a cycle of constant job searches. Confidence can give way to doubt as career prospects seem to fade. Young people talk of delaying marriage and families indefinitely. And though many were grateful for any workplace experience, they were also cynical about companies that treated them like disposable labor.•


From Spiegel:

Spiegel:

In the early 2000s, SPD Chancellor Gerhard Schröder introduced tough and controversial cuts to Germany’s welfare and unemployment aid programs, a reform package known as Agenda 2010. Was that a mistake in hindsight?

Martin Schulz:

In the Old Testament, Solomon preaches that “to everything there is a season and a time to every purpose under the heaven.” In 2003, 14 years ago, the Agenda was the correct response to a phase of stagnation. On that issue, I always supported Gerhard Schröder. The fact that today we have record employment is also thanks to Gerhard Schröder. But we have also made mistakes. We should have introduced the minimum wage at the same time and taxed the super-rich at a higher rate. Because we didn’t do that, many got the impression that the reforms were unfair. The Agenda was advantageous for the country, but the SPD suffered significant collateral damage as a result. It is now time to focus on fairness.

Spiegel:

In times of globalization and digitalization, where politics can no longer exert influence in many areas, how can you promise greater fairness?

Martin Schulz:

I cannot guarantee people absolute fairness. I can only promise that I will do everything in my power to secure fairness or create a greater degree of fairness. The old fundamental principles must continue to apply, even in our changing society: Democracy knows neither master nor slave. Equal education opportunities for all, no matter where they come from and no matter who their parents are. Equal access as well when it comes to digitalization.

Spiegel:

That sounds nice enough, but it’s also rather ambiguous. Let’s be a bit more concrete. How do you intend to limit the number of temporary jobs and limited contracts?

Martin Schulz:

Labor Minister Andrea Nahles (SPD) has already achieved a lot in that regard. We could limit the admissibility of temporary and limited work to a much greater degree if we had the necessary parliamentary majorities to do so.

Spiegel:

How do you intend to limit the number?

Martin Schulz:

We need to roll back precarious employment models. Temporary and limited contracts were initially seen as a way of introducing more flexibility so as to bridge periods of need in certain phases of production. Some employers have taken advantage of the model to push down wages. In general, we must strive for equal pay for equal work.•

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Sweden is all but done with cash money, which is fascinating and frightening. Paper currency and coins aren’t, strictly speaking, necessary in a smartphone society, but the digital equivalent is trackable. As cookies can follow our online travels, these digital crumbs mark our every step.

“Now people can’t get away,” a Swedish street vendor tells Liz Alderman in her excellent New York Times piece on the topic. The opening:

STOCKHOLM — Parishioners text tithes to their churches. Homeless street vendors carry mobile credit-card readers. Even the Abba Museum, despite being a shrine to the 1970s pop group that wrote “Money, Money, Money,” considers cash so last-century that it does not accept bills and coins.

Few places are tilting toward a cashless future as quickly as Sweden, which has become hooked on the convenience of paying by app and plastic.

This tech-forward country, home to the music streaming service Spotify and the maker of the Candy Crush mobile games, has been lured by the innovations that make digital payments easier. It is also a practical matter, as many of the country’s banks no longer accept or dispense cash.

At the Abba Museum, “we don’t want to be behind the times by taking cash while cash is dying out,” said Bjorn Ulvaeus, a former Abba member who has leveraged the band’s legacy into a sprawling business empire, including the museum.

Not everyone is cheering. Sweden’s embrace of electronic payments has alarmed consumer organizations and critics who warn of a rising threat to privacy and increased vulnerability to sophisticated Internet crimes. Last year, the number of electronic fraud cases surged to 140,000, more than double the amount a decade ago, according to Sweden’s Ministry of Justice.•

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In a fascinating New York Times article, Liz Alderman reports on the ghost companies of Europe, phantom businesses with pretend inventory and customers, which exist merely to supply (unpaid) make-believe jobs to the long-term unemployed, novice workers who need experience or those retraining for new industries. 

Considered broadly, such an arrangement already exists all over the globe, although not with the express mission of helping citizens back into the workforce. A massive number of people already have fake, non-paying jobs in the Freeconomy. Each day, hundreds of millions create content for Facebook, which would make the company the largest sweatshop in world history, if it paid even a nominal amount. Should technological unemployment become widespread, become the new normal, we’ll continue to produce content and products, even if there’s no compensation. Maybe we’ll receive “free” minutes or bonus points or nothing at all. But for that to happen in a large-scale and permanent way, we’ll have to start taxing capital rather than labor, and there will need to be a guaranteed basic income.

The opening of Alderman’s piece:

At 9:30 a.m. on a sunny weekday, the phones at Candelia, a purveyor of sleek office furniture in Lille, France, rang steadily with orders from customers across the country and from Switzerland and Germany. A photocopier clacked rhythmically while more than a dozen workers processed sales, dealt with suppliers and arranged for desks and chairs to be shipped.

Sabine de Buyzer, working in the accounting department, leaned into her computer and scanned a row of numbers. Candelia was doing well. Its revenue that week was outpacing expenses, even counting taxes and salaries. “We have to be profitable,” Ms. de Buyzer said. “Everyone’s working all out to make sure we succeed.”

This was a sentiment any boss would like to hear, but in this case the entire business is fake. So are Candelia’s customers and suppliers, from the companies ordering the furniture to the trucking operators that make deliveries. Even the bank where Candelia gets its loans is not real. 

More than 100 Potemkin companies like Candelia are operating today in France, and there are thousands more across Europe. In Seine-St.-Denis, outside Paris, a pet business called Animal Kingdom sells products like dog food and frogs. ArtLim, a company in Limoges, peddles fine porcelain. Prestige Cosmetique in Orleans deals in perfumes. All these companies’ wares are imaginary.

These companies are all part of an elaborate training network that effectively operates as a parallel economic universe.•

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