General Motors and the Plight Term Paper

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"Workers like the flexibility, but not if they have to trade off guaranteed hours, health insurance or a secure retirement.

" the reality of the independent contractor relationship for the new hiree excludes paid vacations or sick days, health insurance or tuition assistance. Additionally, because of increased competition for jobs, most new contractors are working for about twenty percent lower wages than just a few years ago.

A large concern for new hires is that companies often misclassify contract workers as independent contractors in an effort to avoid paying benefits. The more control a company has over the hiree, the more likely the hiree is an employee of the company and not an independent contractor. Therefore employees who were fired and are being brought back to perform the same job in the same conditions for less pay on a contract basis is still an employee regardless of classification. However, according to Ackerman, there have been wide spread incidences of wage theft, labor law violations and health violations with part-time, contingent and independent contracting work

. The more control a company has over the hiree, the more likely the hiree is an employee of the company and not.

The trend towards contract workers also raises intellectual property concerns regarding highly educated positions, such as engineers, hired as independent contractors.

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As an employee, everything that the worker creates belongs to the company because the company controls the method of work of the employee and provides the equipment with which the employee creates. However, independent contractors own their intellectual property, unless he/she agrees to assign such property to the corporation, because they are often required to provide their own equipment and they control their method of project completion. Undoubtedly, GM and other such corporations will require such an assignment, thereby requiring more from the workers while continuing to limit wages, stability and property ownership.

Kleis M. (2010). General Motors is expecting the need for new hires. Retrieved from http://www.leftlanenews.com/general-motors-is-expecting-the-need-for-new-hires.html.

Press Associates (2009).Teamsters: GM, Chrysler Endangering Carhaul Drivers' Jobs. Retrieved from http://www.teamster.org/content/teamsters-gm-chrysler-endangering-carhaul-drivers'-jobs

Tahmincioglu E.(2009). Need a job? Contract work could be new normal. Retrieved from http://today.msnbc.msn.com/id/36826679/ns/business-careers/page/2/.

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