The banking industry has been particularly hard hit, with its multiple waves of mergers and consolidation. Many layoffs, Fraser believes, are due to investors' and corporate heads' narrow focus on short-term fluctuations in stock prices, and thus on quarterly profits. The quickest way to improve the balance sheet, at least in the short term, is to fire workers. Chainsaw Al earn huge salaries and lucrative stock options, decimate work forces, and bully remaining workers to work harder than ever. She also relates stories of employees being involuntarily converted from permanent to part-time status, losing all benefits and most of their incomes.
Corporations reduce personnel costs in other ways, too, with more negative impacts on workers.
One expert quoted by Fraser charges that U.S. software companies keep labor costs for programmers low by discriminating against older engineers and by hiring foreign nationals on work visas at lower salaries than their U.S. colleagues, all in violation of U.S. labor law. They work next to permanent employees, perhaps for years, but gain no job security and few benefits. Technology also contributes to work overload. Many employees are expected to be available to their employers 24 hours a day, seven days a week via cell phones, beepers, laptop computers, and more. Workers who refuse can always be replaced.