Over 200 CEOs have said they will raise wages or give bonuses as a result of the large corporate income tax cut passed late last year by Congress.
Some view their plans as simply a public relations move, others as a response to tighter labor markets or worker pressures. Pretty much everyone hopes that it might signal a new era in which corporate leaders share earnings with workers in ways they have not done in the past.
I’m among those who hold such a hope. Only if such profit sharing becomes the norm will the long-term trends in widening income inequality and wage stagnation be reversed.
But why should this decision be left to CEOs? Don’t workers have a legitimate claim and stake in what is done with the profits they help produce? New research I’ve been leading at MIT finally gives workers a voice on these issues and many others. Read More »
Microsoft CEO Satya Nadella recently stirred up a firestorm of criticism for suggesting that silence is the key to success in the workplace—women shouldn’t ask for a pay raise or promotion but just let managers notice their good work and all will take care of itself. Though Nadella later backtracked from his remarks, it’s not just women who should take issue with that advice. It is exactly the wrong advice for everybody. It is time we all start speaking up for and at work for fairness, efficiency and mutual respect.
Just look at where “silence” has gotten us over the years.
We can start with the gap that has grown in wage and productivity growth over the past 30 years. As shown in the chart below, before that, from 1948 to about 1979, wages and productivity grew in tandem; thereby, expanding and strengthening the middle class and making it possible for baby boomers to live the American Dream of improving on the standard of living they experienced growing up. Since then, productivity rose 64.9%, and hourly compensation rose only 8.2%. The decline in the traditional vehicle for worker voice—trade unions and collective bargaining — accounts for a significant portion of this wage-productivity gap. It is clear that all workers should be speaking up at work for their collective and individual fair share of the economic progress they help produce.