What the Market Basket deal says about American workers — Thomas A. Kochan

MIT Sloan Professor Thomas Kochan

MIT Sloan Professor Thomas Kochan

From Fortune

Imagine high-level executives, store managers, clerks, and warehouse workers standing outside their stores side by side for a month demanding their CEO be reinstated and the business model that made the company thrive be maintained. And imagine their customer base cheering them while they had to shop elsewhere at considerable inconvenience and expense.

That is exactly what happened this summer at Market Basket, a highly successful New England family-owned grocery chain with 71 stores and 25,000 employees. On Wednesday night, Arthur T. Demoulas struck a triumphant deal to buy his warring cousins’ share of the family grocery empire, ending a six-week standoff between thousands of employees and management.

Though not everyone may have heard of this story, it is indeed the biggest labor story of the year. And if it emboldens others to speak out for similar workplace causes, it may turn out to be the most important workplace event to come along so far in this century.

Read the full post at Fortune.

Thomas Kochan is the George Maverick Bunker Professor of Management, a Professor of Work and Employment Research and Engineering Systems, and the Co-Director of the MIT Sloan Institute for Work and Employment Research at the MIT Sloan School of Management.

Labor, business can unite as economic heroes

Thomas Kochan, MIT Sloan professor, co-founder of the Employment Policy Research Network

Source: The Boston Globe

BUSINESS GROUPS and labor have at least one thing in common right now: a frustration that our politics are producing more hot rhetoric than good jobs, even as crucial national needs go unaddressed. But if private industry and labor unions pool their money and their political influence, they can lead the way toward modernizing an aging national infrastructure that dulls America’s competitive edge. In doing so, they would also start building the kind of longer-term economic compact necessary to sustain the high-quality jobs that the nation desperately needs.

The United States needs some kind of national infrastructure bank – an entity that would provide the financing for long-overdue repairs and improvements to our roads, bridges, and other public works. There is a $2.2 trillion backlog of such projects. Amid rising concerns about federal spending, infrastructure investments are more efficient economic drivers than tax cuts or other stimulus spending in achieving these goals.

Moody’s Economy.com estimates every $1 spent on infrastructure generates a $1.59 increase in GDP. University of Massachusetts Professor Robert Pollin has shown these projects generate between 20 to 30 percent more jobs than equivalent tax cuts. Read More »