Today’s News & Commentary — May 23, 2017

Companies in Utah are struggling to find workers to fill job openings thereby slowing economic growth. While companies are eager to hire more workers to meet increased demand, Utah’s unemployment rate of 3.1% means there are relatively few workers looking for jobs. Companies have begun raising wages to attract more workers; however, automation may also increase as a means to substitute for labor.

Connecticut Governor Daniel Malloy is trying to balance the budget with budget cuts and public-sector layoffs; however, the Service Employees International Union Local 1199 is airing an ad opposing this. The Union’s ad argues that rather than cutting services to the disabled or laying-off middle class workers, the Governor should consider higher taxes on the wealthy.

The Economic Policy Institute released a report finding that annually 2.4 million U.S. workers lose $8 billion because of minimum wage violations. Women, people of color, and youth are the most likely to report being paid less than the minimum wage. Although the U.S. Department of Labor’s Wage and Hour Division investigates such violations, the report’s authors note that it has limited staff and is thus unable to fully examine all minimum wage violations.

Michelle Russell with BCG and Lori Lepler with BRANDspeak have a piece in the Harvard Business Review explaining the importance of high-quality apprenticeship programs. They find that such programs led to a 22-percentage-point rise in promotions of female workers, a 5-percentage-point decline in attrition of female workers, and a 20-percentage point-rise in job satisfaction for female employees.

 

 

Gender Equality at Work Requires More Than Corporate Tokenism

Last month, a Fusion article warned women to beware of “the guy who talks a big game about gender equality… then turns around and harasses you, assaults you, or belittles you,” coining the term, the “woke misogynist.” The same warning can be made about corporate gestures toward gender equality. In an age where feminism is cool, it now takes more scrutiny to discern the genuine from the superficial. Many businesses are relying on their image as hip, progressive organizations to appeal to socially-conscious consumers by making statements about equal pay, donating to the ACLU, or appointing a handful of women to their boards. Yet, so many of these companies continue to foster systemic cultures of sexual disrespect, harassment, and assault.

Sex Discrimination in the Workplace

Multiple accounts of sexual harassment have recently come to light in the tech industry. Susan Fowler’s February blog post revealed the rampant sex discrimination and harassment she faced while an engineer at Uber. She recounted her experience with the HR department, which retaliated against her for making complaints and refused to take action against her “high performing” harasser. She says the number of women in the organization dwindled from 25% to 6% while she was there. Another survivor came forward with her account a few weeks later under the alias Amy Vertino, detailing similar backlash for reporting the sexist behavior of her colleagues. She reports Uber CEO Travis Kalanik “is well known to protect high performing team leaders no matter how abusive they are to their employees.”

Sex discrimination in employment is not unique to Uber. The tech industry averages 21-22% female employees. 60% of women in tech report being sexually harassed in the workplace. The hostile environment both creates barriers for women entering the tech industry and also causes them to leave the field at alarming rates, 45% higher than men. After reading Fowler’s blog, The Observer reached out to women in tech and, within a few hours, had twelve more personal accounts of workplace sexual harassment. Allison Esposito, the founder of Tech Ladies, said they hear similar stories at least once a week. A female engineer recently filed a lawsuit against Tesla for failure to take action against the pervasive harassment. TechCrunch conducted a number of anonymous interviews that further evince the rampant mishandling of sexual harassment complaints in the industry.

Even beyond tech, the core issue is that sexism pervades male-dominated industries. The culture reflects the leadership, and as Rachel Bitte, chief people officer at Jobvite, explains, “tech is the newest industry to see male dominance in leadership roles, but we saw the same sort of problems that resulted in lawsuits decades ago in industries such as manufacturing or mining.”

The financial industry is also struggling to increase diversity and address discrimination. 25% of companies on the Russell 3000 index have no women on their boards. According to an SEC report of Fortune 500 companies, women and minorities held 30.8% of corporate board seats in 2016, which the Alliance for Board Diversity criticized as not moving fast enough. Increasing board diversity requires planning, they counseled, given that the board is often a reflection of the lack of diversity in the rest of the company.

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