Death and product recalls tied to job layoffs
by Dr. Samori Swygert
The O’Jays made a song entitled “For the Love of Money.” Now, the chickens are coming home to roost.
I started thinking about the unemployment rate and the associated correlations. There is nothing wrong with creating revenue, but corporate greed always produces human carnage. Have you paid much attention to the increase in recalls of automobiles, drugs, and food? Have you really examined the root cause analysis of the VA Hospital debacle? What about the recalls of cribs, car seats, and strollers?
It’s strictly my opinion that America has become obsessed with the philosophy of, “do more with less.” I think this corporate economic ideology is responsible for increased layoffs, downsizing, and the shipping of jobs overseas. Ultimately, this approach results in tragedies and greater expense.
However, if we continue conducting in-depth analysis, we’ll see there’s a correlation between many of these recalls and the cutting of jobs, and cutting of corners. Check out the examples below:
General Motor Recalls and Layoffs
I read a June 7, 2013 article in Bloomberg Business that explained how GM was going to lay off 430 factory workers (in Michigan) so the company can “retool.” The article said that 430 workers will be furloughed in phases, and they have no obligation to keep temporary workers. GM was reported to be building a new plant in which the workers would return to work. I don’t have an update on the employees that returned. However, we now see that GM has come under intense unprecedented corporate scrutiny and chastisement for faulty ignition switches which have been implicated in 13 deaths and 54 accidents. Globally, GM had to recall approximately 15 million vehicles.
Ford Motor Recalls and Layoffs
Ford Motor Company had to recall 1.3 million vehicles due to power steering defects at the end of May 2014. According to USA Today, “The biggest recall was of 915,216 Ford Escapes and its corporate sibling, the since-discontinued Mercury Mariner, from the 2008 to 2011 model years over the steering issue. All of the compact SUVs were made at Ford’s Kansas City Plant and 736,407 are believed to be in the U.S., with most of the rest in Canada and Mexico”. Ford also recalled 195,527 vehicles produced from its Chicago plant from 2011-2013.
I researched this a little bit and the Kansas City Business Journal reported that Ford laid off 150 workers from its Kansas City Plant. A 2008 article from The Chicago Tribune reported that Ford was going to cut over 2,000 salaried employees. The following are direct excerpts from the article, “There’s a full-court press on to get things done as quickly as possible,” said David Cole, chairman of the Center for Automotive Research in Ann Arbor, Michigan. “The pressure is on to get the turnaround under way before the money runs out. They’ve got to conserve cash as best they can. Ford has 23,700 salaried workers at the end of 2007. The automaker has cut the number of full-time salaried workers in North America by 10,800 since the end of 2005.”
Graco Car Seat Recall and Layoffs
You start to see a direct correlation when you compare the time frames of the layoffs to recalls. I think this also is prevalent with the baby car seats. Let’s take a look at Graco. Graco is a Minnesota-based company that manufactures baby car seats and other retail items. According to a December 2008 Star Tribune article, Graco cut up to 240 jobs, and the company projected that the cut would save them $9 million per year. Fast forward to 2014, Consumer Reports published an article detailing the recall of 3.7 million car seats due to buckle issues. The time frame for the recall included various models from 2009 to 2013. Hmmm… Coincidental???
We open Pandora’s box of trouble when we look at the American human labor force as dispensable. Yes, many companies took a hard hit from the 2008 economic crisis and had to make decisions. However, it’s imperative that companies conduct true risk-benefit analysis and not just cost-benefit analysis. The cycle of layoffs, furloughs, and downsizing can carry risky ramifications that may cost more than the money you project to save through layoffs. This over conservative practice eventually compromises quality assurance, product integrity, inspection, oversight, and safety.
Saving a few million dollars doesn’t compare to the loss of money from a tarnished brand, class action lawsuits (from death or injury), litigation, forced inspections, and upgrades from government and industrial agencies.
I think this illustrates how the greed of capitalism destroys families via unemployment and physical harm. This illustrates how greed returns to ruin you. Furthermore, this illuminates the necessity, and integral role that human labor plays in public safety.
Can I definitively conclude that layoffs cause death and product recalls? No, but based on the preponderance of evidence which I’ve supplied, there is a strong correlation. What are your thoughts? You decide….
“Money can drive some people out their mind”- The O’Jays
