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MoneyMonday, September 24, 2007 11:11 AM CDT
Survivors of downsizing left with more work, stress
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DETROIT — Northwest Airlines pilot Wade Blaufuss’ career, as he knew it, ended after 9/11. The carrier filed for bankruptcy in 2005. As part of the airline’s restructuring, workers accepted annual concessions of $1.4 billion in wages, benefits and work rules.

Unlike hundreds of other Northwest pilots, Blaufuss didn’t lose his job in the turmoil that ensued. But, “it was the beginning of the end for all of us,” said the 43-year-old married father of three, based in Detroit.

Blaufuss’ story is familiar to millions of workers. His job was spared, but his company got leaner and more was asked of him. Hundreds of thousands of workers have been laid off across all sectors. Millions of others have remained at their cubicles.

The survivors are facing some stressful scenarios:

-- Some remain as one of two workers in departments that once had 30 people.

-- They have taken pay cuts and accepted longer work hours.

-- They are working alongside — and training — younger, cheaper cube-mates.

-- They are relieved to have a job but know there is always the chance they will be the next to go.

“When you’re a survivor, you’re happy that you have a job, but the job that’s in front of you is now two to three times the work that it once was,” said Lee Meadows, a professor of management at Walsh College. “Companies downsize bodies but they don’t downsize tasks. And most workers will tell you that they’re not in a position where they can complain because they weren’t downsized.”

What happens to those remaining workers is not altogether surprising. Some begin to neglect their eating habits and their health. They stop spending time with family and friends, Meadows said.

“In effect, they become married to their job,” he added. “And what’s driving you is that constant reminder — the empty cubicle next to you.”

A manager at a financial services company in Southfield, Mich., who asked that his name and firm not be used for fear of losing his job, said his company has downsized from 120 people to 30 in the last five years.

The manager, whose company has been sold twice since 2003, described a workplace filled with uncertainty and people spread thin. The 45-year-old said he realized his office’s situation probably is common, but he finds it difficult to keep morale up.

Many furloughed workers — and survivors — end up in Meadows’ classrooms.

In addition to their stressful tasks, they have to find time to acquire new skills to manage new, more difficult jobs. They want to learn new skills so they are perceived as an asset, not a liability. And people are continuously looking for work.

“Monster.com is probably getting millions of hits from Michigan alone,” Meadows said.

But finding the time to acquire new skills is harder than ever, given added responsibilities. Finding time to relax is also difficult but has never been more important.

“They’re trying hard to find it on their commute, listening to a meditation tape, books on tape,” he said.

While some people flourish in a more competitive environment, it causes burnout for other workers.

“Many see it as an opportunity to show their business acumen and mental power, and that works when the person seeks out more responsibility as a way to advance up the ladder,” Meadows said.

But when extra work is forced on someone and expected as a way for the company to stay afloat, the effect is not the same.

When companies downsize, Leadership Oakland Executive Director Chris Scharrer’s phone gets busy.

“They are in fear of layoffs, and they are burned out,” said Scharrer, whose organization offers leadership seminars and networking opportunities. “They don’t want to announce publicly that they’re looking, but they want to be connected to a network.”

Bob Tomasko, an author and management consultant who has advised companies like Coca-Cola, Exxon, Marriott and Mitsubishi during restructurings, said layoffs can be crippling for companies if not done right.

“It’s a very short-term solution,” Tomasko said. “It provides false comfort. You are suddenly more profitable because you have fewer people and fewer wages.”

The rub, however, is that smarter, more employable workers leave. They anticipate a wave of buyouts.

“Most companies cut too deeply and then add too much,” Tomasko said. “It’s inefficient over time.”

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Reader comments on this story - 1 total

Note: All views and opinions expressed in reader comments are solely those of the individual submitting the comment, and not those of the Pantagraph or its staff.

Todd wrote on Sep 24, 2007 7:20 AM:

" This is all true and it’s a disgrace. My only suggestion is if you are going to find yourself unemployed open your own small business. If you’re going to work more hours for less pay and benefits, you might as well work for yourself. "

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