From: stefano@ecf.toronto.edu (Bruno Di Stefano)
Subject: Low paid Americans (Re: Why do Americans get so little vacation time?)
Organization: University of Toronto, Engineering Computing Facility
Date: Wed, 12 Aug 1992 17:52:35 GMT

In article <1992Aug12.023342.7625@panix.com> gcf@panix.com (Gordon Fitch) writes:
>In article <1992Aug11.225503.13330@ncar.ucar.edu> ilana@kiowa.scd.ucar.edu (Ilana Stern) writes:
>| I agree, let's get rid of the politics and back to the culture.  I am
>| certainly not going to share my favorite unspoiled vacation spots, as
>| I want to keep them to myself :-) but that proposed topic brings up
>| another which is near to my heart:  why is vacation so undervalued
>| in the US?
>| 
>| In most western European companies, 5-6 weeks of vacation is *standard*
>| for employees.  In the US, two weeks is standard;  some companies don't
>| even give first-year employees any vacation, and many give only one
>| week. ....
>
>I agree that it would be good to take the politics elsewhere.
>Unfortunately, I think this item leads back to politics through
>economics.  The real median wage has been falling steadily in
>the United States for the last 20 years or so.  This has many
>effects, one of them being that Americans are increasingly
>working harder and longer than they used to in an attempt to
>keep up their standard of living.  And there is little pressure
>on employers to offer longer vacations when so many people
>are unemployed.  Europe, while it is not devoid of problems,
>seems to be faring better that the United States in this
>area.
>-- 
>Gordon Fitch | gcf@panix.com | uunet!cmcl2!panix!gcf 
>*       1238 Blg. Grn. Sta., N.Y., N.Y. 10274      *
>

Every week of vacation is equal to 2% of the time available
for work in the year and 2% of the yearly salary. If two guys are
paid the same gross salary, but one of them gets 5 weeks vacation
while the other gets just 2 weeks, it really means that the first 
guy has an higher hourly salary (6% in my example).

Similarly, when a manager asks his/her employees to work extra
hours without overtime (reminding them their "professionality",
"commitment to the company", etc), he/she is asking them to lower
their hourly salary. Quite often salaried employees end with an 
hourly rate that is lower than the hourly rates of their 
hourly-paid co-workers.

The reality is that US employees are now paid less than people in
most other industrialized countries, from an hourly basis point of
view and from a total point of view. This is the outcome of political,
social, and economic philosophies that have been prevailing since the
end of the 70s. The interesting thing is that, if something like this
had been enforced by the occupation forces of an hypotetical enemy,
it would have been considered oppressive and a form of slavery.
However, as it is self inflicted, nobody seems to complain.

This overwork is definetely having a detrimental effect on the
heath and life of US citizens. Twenty years ago the US enjoyed 
one of the longest life expectancies in the world. However, 
today most other industrialized countries have a life expectancy 
that is either equal or longer than in the USA. 

One cannot even justify this overwork with a high production level.
While the US has the largest GDP, if one considers GDP/population
(GDP per head), the only measure that allows to compare apples with apples,
one finds that many "5-weeks-vacation" countries are doing better than
the USA. The US GDP per head in 1991 was $23,720. The following countries
were doing better: Switzerland ($35,810); Sweden ($29,770); Finland
($29,700); Norway ($28,200); Denmark ($26,150); Germany ($25,500).

Most employees in the above contries work 20% less than their US
colleagues and produce more.

Then there is a number of countries where the GDP per head is close to
the USA or slightly lower, but where, again, people work 20-25% less:
France ($22,900); Austria ($22,270); Belgium ($21,800); Italy ($20,300).

Even in Canada, geographically and culturally close to the USA, the GDP
per head is higher ($23,870) and worked time is lower (around %2 less).

The only country with a GDP per head higher ($30,007) than the USA where 
people work longer hours is Japan.

Looking at the above figures I would tend to claim that, within reasonable
limits and one exception (Japan), less "work means more productive workers".

The source of my data is the latest yearly joint "report on business"
of Economist and Globe & Mail.

It would be interesting to read the opinion of employers and managers
on this issue.

Bruno Di Stefano
stefano@ecf.toronto.edu		(course related matters)
bruno@bullet.ecf.toronto.edu	(professional matters)

-- 
Bruno Di Stefano
stefano@ecf.toronto.edu		(course related matters)
bruno@bullet.ecf.toronto.edu	(professional matters)