Graduation Date
1986
Document Type
Thesis
Program
Master of Arts degree with a major in Applied Anthropology
Committee Chair Name
John Gai
Committee Chair Affiliation
Cal Poly Humboldt Faculty or Staff
Second Committee Member Name
Dr. Jerrald D. Krause
Third Committee Member Name
Ben F.
Keywords
Sociology
Subject Categories
Sociology
Abstract
These are the people who had believed in the promise of America — who had believed that if they deferred today’s pleasures, they would reap tomorrow's rewards. They had played it by the rules of the game — rules that promised anyone can make it if they tried hard enough. So they tried hard, worked hard, obeyed the law, and taught their children to do the same. In return, the "lucky" ones got a collection of goods — a car, a house filled with expensive appliances, perhaps a camper, a truck, or a boat. But the good life eluded them; the game was rigged...(Worlds of Pain). In 1986 it is generally accepted that national economic conditions have improved over recessionary conditions which occurred in the late 1970's and early 1980's. Decline in the manufacturing or "smokestack" sector of the economy is not the major headline or concern that it was a few short years ago. Substantial numbers of workers have been recalled in construction, automotive, aircraft and other industries in the heavy manufacturing sector, demonstrating again the cyclical nature of these industries. Hard times are not over however in the economy — a substantial number of industries, geographic regions, communities and workers are still being impacted by plant closures and constriction of industries due to foreign competition, abandoning obsolete plants, corporate conversion toward more "liquid" assets, etc. Many manufacturing workers, especially older male workers, have been permanently displaced as a result of selective rehiring, and millions of Americans have been forced to find jobs in unrelated occupations. Subsequently, the "marginal workforce", including unskilled, economically disadvantaged, minorities, young and old, continue to be impacted by worker displacement.
From the early 1970's through the 1980's, massive cutbacks were felt throughout the manufacturing sector, which subsequently impacted on related and unrelated business sectors. The following facts summarize downward trends of this period: . By the end of 1980, one-fourth of those working in the automobile industry had become unemployed. . Between 1975 and 1981, 13,000 plants employing a total of 2.2 million workers had applied for Trade Adjustment Assistance. This assistance is provided to plants that are reducing employment as a result of import competition. . Current and future trends indicate that the number and problems of displaced workers will be significant. . Job opportunities in manufacturing related occupations will continue to decline. Semiskilled craftsworkers and operators will continue to be replaced by machines. New openings will be in the service sector and in maintenance and repair occupations. . While the number of displaced workers is increasing, community resources available to provide assistance will continue to decline during the 1980's, (Barth & Reisner, 1981). Two interpretations explaining the decrease of the industrial sector are prevalent — including an "optimistic” and "pessimistic” view. Briefly, the optimistic view, which has been expressed by such popular writers as John Naisbitt (1983) in Megatrends, views the decline in heavy industry in the United states as signifying a natural shift away from semi-skilled, labor intensive employment. The decline corresponds to increases in technical, skilled, communication based employment. Naisbitt emphasizes that as third world countries naturally are able to provide less expensive labor for industrial production, the role of the West will increasingly be that of world economic coordinating center, R & D, and manufacturer of state of the art technology — which involves primarily employment in the skilled service and communication sectors. The economy is in a transition which includes economic growth shifts to different regional areas and new, emergent industries, Naisbitt views the divestment of corporations in heavy manufacturing as a necessary and positive step, as "corporations need to remember that that they are in the business of a making profit” (Naisbitt, 1982), Other, less optimistic observers however, (Harrington, 1976; Reich, 1983) view with alarm the recent decline in blue collar, industrial employment which has so greatly impacted industrial dependant areas such as the northeastern United States, and rural economies dependant on extractive industries such as wood products, mining, etc. These critics attribute the reduction of manufacturing jobs to a variety of detrimental factors, primarily involving short-sighted management decisions to pursue "paper profits” (Reich, 1983) rather than generate real profits via productive plants, workers and industries. Critics such as Reich feel that the loss of industrial jobs, due to under investment in necessary upkeep and modernization, signifies the loss of national self-sufficiency, competitive strength in the world market, as well as the loss of an important and stabilizing middle class. Reich concludes that the majority of new jobs will be available in the "service industries”, including food services, retail sales, and other services, which result in low wages, terminal positions, creating a marked dichotomy between upper and lower class, and adding little real economic value to the economy (Reich, 1983).
Toffler (1981) seems to agree with Naisbitt that the country’s economy is in the midst of a massive shift from heavy industry to skilled service and communications occupations. Toffler believes however that the newly developing industries will not be able to absorb all those who have been displaced from the manufacturing sector, especially as the new jobs will demand a higher level of academic and technical training, and represent a smaller number of total available jobs due to increased automation. Older workers and marginal workers, including unskilled, economically disadvantaged and minorities, will be most severely impacted by the economic shift. Toffler believes that government or private sector subsidy of this group will increasingly be necessary. Despite the variations in explanations of worker displacement and economic transition in the economy, the fact remains that a significant proportion of the population is in need of assistance in adjusting to job loss, a period of unemployment, retraining, job search and subsequent reemployment. Critical to the understanding of worker displacement is the fact that markedly different groups of unemployed exist, presenting different needs, and that identification of individuals and groups is necessary for remediation. Three main types of unemployed have generally been identified by labor/employment specialists, including (1) Frictional , (2) Cyclical and (3) Structural types (Wegman, 1979). A brief description of each category is provided below: (1) Frictional Unemployment refers to that group of unemployed which possess currently marketable skills and qualifications who are temporarily unemployed due to job change or other factors. The U.S. Department of Labor estimates that 42% of unemployment is frictional. Such workers may experience only a one to two week gap in employment. The solution for this type of unemployment involves motivation and systematic instruction and use of job search skills. (2) Cyclical Unemployment refers to periodic slowdowns resulting in layoffs, where workers are eventually recalled to their previous positions. Such temporary layoffs may result from a variety of factors including decline in the GNP, high interest rates, customary seasonal slowdowns, etc. A solution to this form of unemployment is temporary job creation by the government, as during the 1930's depression. (3) Structural Unemployment includes that group of unemployed who do not possess required qualifications for available jobs. Structurally unemployed are divided into two distinct groups: (a) those who have maintained steady employment, but whose skills have become no longer in demand, and (b) those who are unskilled, including young, disadvantaged, minorities, etc. The solution for this type of unemployment is providing these individuals with marketable skills via on-the-job (OJT) or formal training programs. The Labor Department study estimated that 58% of unemployment is cyclical and/or structural. Rapid identification and accurate understanding of the causes of unemployment thus provides the means for effective remediation of VI unemployment. Through vocational evaluation and service provision from "catchment areas", individuals may be directed to the most effective resources and returned to gainful employment as expeditiously as possible. It is the purpose of this paper to explore the effects of plant closure and structural unemployment on affected workers, and to provide a research-based framework for assessing needs and proposing remediation. Chapter One specifically describes the effects of layoff and unemployment on the individual and family system through a thorough review of existing literature, and describes an "Unemployment Cycle", (Ferman, 1982), through which displaced workers typically pass. Chapter Two presents the problems described in Chapter One in a sociological perspective, utilizing an ecological framework, and provides general guidelines for analyzing the need for and appropriateness of proposed interventions. Chapter Three attempts to summarize interventions compatible with the ecological or systems approach. Chapter Four focuses on interventions specific to the problems of plant closure, layoff and structural unemployment.
Recommended Citation
Swatez, Mitchell, "Plant Shutdown/ Layoff and Social Support Interventions" (1986). Cal Poly Humboldt theses and projects. 2493.
https://digitalcommons.humboldt.edu/etd/2493