Section One
Numerous other costs are involved in layoffs. One of the
major costs is incurred in bumping practices. Because layoffs
are typically conducted by inverse seniority, invariably where
there is a union contract, employees with less seniority are
“bumped” out of their jobs by more senior employees whose
jobs have been targeted for elimination because of a lack of
work. A chain reaction then occurs as more senior employees
bump those with less seniority until, as in a game of musical
chairs, the least senior is left without a job.^70 The width of the
seniority unit that will govern bumping rights determines the
impact of bumping. Narrower seniority units or definitions
prevent a senior employee from displacing a junior employee in
a job in which he or she is not qualified. With broader seniority
units or definitions, senior employees can bump into new jobs
for which they lack skills. As a result, training is needed for
them to reach the proficiency levels of the junior employees
who were bumped. Unions generally argue for broader seniority
units on the basis of fairness while employers seek narrower
definitions in order to minimize the dysfunctional aspects of
bumping.^71 In addition to bumping costs, there are also
severance, administrative, and intangible costs. Intangible costs
sometimes involve declines in morale of the remaining
workforce and disruption of work group synergy.^72 These costs
are presented in Table 1-2.
barry
(Barry)
#1