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FAT AND MEAN: The Corporate Squeeze of Working Americans and the Myth of Managerial "Downsizing"
Describes the link between a bloated corporate management structure and American workers' declining real wages, arguing that this overstaffed bureaucracy is causing America to lose its competitive edge and calling for a complete overhaul of our labor-management practices. 10,000 first printing.
Hardcover
First published May 15, 1996
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March 26, 2024
Although Fat and Mean was published in 1996, the only thing dated about Gordon's argument concerns the 'buzzwords' of the era; in fact, Gordon's thesis is, if anything, even more relevant today. Remember the phrase that US corporations were becoming 'lean and mean' in the face of global competition in the 1990s? Gordon argues just the opposite-- the 1990s accelerated the tread toward top-heavy management along with a squeezing of the work force.
To make sense of his argument, it helps to have a bit of background (which Gordon develops nicely in the text). Labor/management relations in the US have a long history of being rather adversarial, although that was tempered post WWII with the unofficial 'labor-capital accord', where unions bargained for wages that kept pace with their increased productivity. The post war 'golden age' of US capitalism saw the birth of the middle class as a result of rising wages and increased job security and single bread winners became the norm. So what happened? Many arguments have been put forth (globalization, etc.), and Gordon considers them in detail, but finds them lacking.
Basically, what shifted in the 1970s involved US corporations increasingly taking the 'low road' toward workers. What is this? Well, a corporation really has two strategies to deal with its workforce. The 'high road' emphasizes more cooperative worker/management relations (think Japan or most of Europe), where workers are given 'carrots' for performance. Juxtapose this to the 'low road', where workers are given sticks. Unhappy workers tend to need more supervision/monitoring, which implies a need for more management. Carefully using data comparing several wealthy nations, Gordon clearly demonstrates that compared to our 'peer' nations, the US has a much higher percentage of its workforce in management vis-à-vis workers than any other nation (although Canada comes close). Instead of giving US workers raises as incentives, US corporations give them threats. You want to understand why real wages for most Americans have been stagnant for 40+ years? Think the low road.
That stated, Gordon concludes the volume with five clear public policy proposals that even today seem fresh and needed, but don't expect any US administration to have the guts to even propose them.
1. Raise the wage floor (minimum wage).
2. More effective worker voice (automatic union certification with 55% signature cards, extend NLRA protection to most nonproduction and supervisory employees, etc.).
3. Flexible, not disposable work. (Amend Fair Labor Standards Act to prohibit mandatory overtime, etc...).
4. Carrots for cooperative firms (investment subsidies, etc.).
5. Training, assistance for cooperation.
He also argues the US needs to end our system of healthcare tied to employers, and other things, but all of what he argues seems reasonable. Maybe if our politicians were not so beholden to their donors, someone would actually argue for some of these. 4.5 prescient stars!!
To make sense of his argument, it helps to have a bit of background (which Gordon develops nicely in the text). Labor/management relations in the US have a long history of being rather adversarial, although that was tempered post WWII with the unofficial 'labor-capital accord', where unions bargained for wages that kept pace with their increased productivity. The post war 'golden age' of US capitalism saw the birth of the middle class as a result of rising wages and increased job security and single bread winners became the norm. So what happened? Many arguments have been put forth (globalization, etc.), and Gordon considers them in detail, but finds them lacking.
Basically, what shifted in the 1970s involved US corporations increasingly taking the 'low road' toward workers. What is this? Well, a corporation really has two strategies to deal with its workforce. The 'high road' emphasizes more cooperative worker/management relations (think Japan or most of Europe), where workers are given 'carrots' for performance. Juxtapose this to the 'low road', where workers are given sticks. Unhappy workers tend to need more supervision/monitoring, which implies a need for more management. Carefully using data comparing several wealthy nations, Gordon clearly demonstrates that compared to our 'peer' nations, the US has a much higher percentage of its workforce in management vis-à-vis workers than any other nation (although Canada comes close). Instead of giving US workers raises as incentives, US corporations give them threats. You want to understand why real wages for most Americans have been stagnant for 40+ years? Think the low road.
That stated, Gordon concludes the volume with five clear public policy proposals that even today seem fresh and needed, but don't expect any US administration to have the guts to even propose them.
1. Raise the wage floor (minimum wage).
2. More effective worker voice (automatic union certification with 55% signature cards, extend NLRA protection to most nonproduction and supervisory employees, etc.).
3. Flexible, not disposable work. (Amend Fair Labor Standards Act to prohibit mandatory overtime, etc...).
4. Carrots for cooperative firms (investment subsidies, etc.).
5. Training, assistance for cooperation.
He also argues the US needs to end our system of healthcare tied to employers, and other things, but all of what he argues seems reasonable. Maybe if our politicians were not so beholden to their donors, someone would actually argue for some of these. 4.5 prescient stars!!
Displaying 1 of 1 review