Showing posts with label labor market regulation. Show all posts
Showing posts with label labor market regulation. Show all posts

Tuesday, March 11, 2008

Re: Family Medical Leave Act

I received this note from a friend who is a pediatrician:
What prompts me to write to you now is your feature on the Family Leave Act. I think it's a well intentioned and compassionate bill. It's unfortunate that there are those who work the system to their advantage and ruin it for the rest of us. In small businesses such as mine it presents a major logistical problem. It comes up several times a year when an employee, or more, goes on maternity leave. It's compounded when, once their leave is over and it’s time to return to work they want to go "part time." It’s understandable, I am sure, to the majority of your readers. When a new mother is faced with that irresistible bundle of happiness and the concomitant physiologic changes, most mothers will want to spend as much time as possible changing diapers cleaning, spit-up, nursing every three hours throughout the day...
Because of this and because of other business decisions which were driven by the needs for services in our service area by our patients, we now have 18 Pediatricians working a combination of full and part time. This has consequences for our business plan. Our financial structure includes certain benefits which are fixed: hospital and professional society dues, liability insurance, health insurance, etc. All these benefits add up in cost and these benefits go unused and are a financial liability to the corporation when there is no production (i.e. leave time). On the other hand we want to be family friendly so as to foster the culture of marriage and of life and because an employee that has less to worry about in these circumstances is a happier more productive employee, generally speaking.

This doctor's conclusion is that the restrictions of the FMLA make it harder, not easier, to make the accommodations that really matter to employees and that are cost-effective at the same time.

Monday, March 10, 2008

A Family-Friendly Small Business Nightmare

My friends at the Acton Institute published my article on the need to reform the Clinton-era Family Medical Leave Act. I have posted my full article on my site as well. The Act has been subject to abuses that cry out to be corrected:
The Act provides leave not only for maternity or the care of a new born, but also for care for a dependent with a serious illness. Unfortunately, the Department of Labor has issued conflicting opinions on what constitutes a serious illness. While the legislative history clearly indicates that the leave was not supposed to be used for minor sniffles, employees have obtained certification for minor conditions such as allergies, migraines, or back problems.
Compounding the problem, the FMLA allows for intermittent leave: that is, people can take leave in "separate blocks of time due to a single qualifying reason." According to the Small Business Administration, intermittent leave is the most challenging part of the FMLA for small businesses. The regulations require that leave increments have to be awarded in the "shortest period of time the employer's payroll system uses to account for absences or use for leave, provided it is one hour or less."
Some small manufacturing businesses track time in increments as short as six minutes. The Employment Policy Foundation found that 50 percent of leave-takers provide notice either the day the leave begins or the day after. The administrative and scheduling challenges this presents are a nightmare. And the program hurts overall employee morale, when other employees have to do the work of the absent employees.

The Acton Institute is interested in this because of my free market conclusions:
Small businesses want to retain skilled and dedicated employees without giving slackers an opening to abuse the company's good will. When problems arise, the firm and its employees can work out issues together. By contrast, when problems arise with federal legislation, there cannot be a carefully tailored, personalized response. The abuses and unforeseen consequences of the FMLA have to be dealt with by the federal government: litigation to determine the exact requirements of the law; further regulation to change the law; and a complex process of fact-finding in between.
Small competitive firms need not limit their scope to providing generic "family leave." Firms try to create a menu of ways to tailor policies to the specific needs employee needs. Firms would try various combinations of leave policies, job sharing, flex-time and telecommuting. Companies might try one approach for new mothers, something different for people with elderly parents, and something still different for people with minor chronic illnesses—assuming the law would allow you to "discriminate" in this way. But as things now stand, the government has preempted a lot of experimentation with programs that might possibly be better for the workers and cheaper for the companies.

Saturday, March 08, 2008

Gender "Equity" Activists are going after science

Christina Hoff Sommers reports on the omnious movement to use Title IX of the Civil Rights Act to enforce quotas in unviersity math, science and engineering departments.
Virginia Valian, a psychologist at Hunter College, is one of the most cited author­ities in the crusade to achieve equity for women in the sciences. Her book Why So Slow? (MIT Press, 1998) is indispensable to the movement because it offers a solution to a vexing problem: women’s seemingly free but actually self-defeating choices. Not only do fewer women than men choose to enter the physical sciences, but even those who do often give child care and family a higher priority than their male colleagues. How, in the face of wom­en’s clear tendencies to choose other careers and more balanced lifestyles, can one reasonably attribute the scarcity of women in science and engineering to unconscious bias and sexist dis­crimination? Valian showed the way.

Her central claim is that our male-dominated society constructs and enforces “gender sche­mas.” gender schema is an accepted system of beliefs about the ways men and women differ—a system that determines what suits each gender. Writes Valian: “In white, Western middle-class society, the gender schema for men includes being capable of independent, autonomous action…[and being] assertive, instrumental, and task-oriented. Men act. The gender schema for women is different; it includes being nur­turant, expressive, communal, and concerned about others.”...
To achieve a gender-fair society, Valian advocates a concerted attack on conventional gender schemas. This includes altering the way we raise our children. Consider the custom of encouraging girls to play with dolls. Such early socialization, she says, creates an association between being female and being nurturing. concludes, “Egalitarian parents can bring up their children so that both boys and girls play with dolls and trucks.... From the standpoint of equality, nothing is more important.”

But what if our daughters are not especially interested in trucks, as almost any parent can attest (including me: when my son recently gave his daughter a toy train to play with, she placed it in a baby carriage and covered it with a blanket so it could get some sleep)? a problem, says Valian.

“We don’t accept biol­ogy as destiny…. We vaccinate, we inoculate, we medicate.... propose we adopt the same attitude toward biological sex differences.” In other words, the ubiquitous female propensity to nurture should be treated as a kind of disor­der or disease....

Naturally, the solution to these problems is a greater expansion of government intervention in university life:
Alice Hogan, former director of ADVANCE, explained in a 2005 interview that the MIT study had been a wake-up call for the NSF. In the past, she said, the NSF had funded programs to support the careers of individual women sci­entists, but the MIT report persuaded its staff that “systemic” change was imperative.

Since 2001, the NSF has given approximately $107 million to 28 institutions of higher learn­ing to develop transformation projects. Hunter College, the site of Valian’s $3.9 million program, is one of them. The University of Michigan has received $3.9 million; the University of Puerto Rico at Humacao, $3.1 million; the of Rhode Island, $3.5 million; and Cornell, $3.3 million. What are these schools doing with the money?

Some of the funds are being used for relatively innocuous, possibly even beneficial, projects such as mentoring programs and conferences. But there are worrisome programs as well.

Michigan is experimenting with “interactive” theater as a means of raising faculty conscious­ness about gender bias. At special workshops, physicists and engineers watch skits where overbearing men ride roughshod over hapless but obviously intellectually superior female col­leagues. The director/writer, Jeffrey Steiger of the University of Michigan theater program, explains that the project is inspired by Brazilian director Augusto Boal’s book Theatre of the Oppressed (1974). Boal writes, “I believe that all the truly revolutionary theatrical groups should transfer to the people the means of production in the theater.” To this end, the Michigan fac­ulty members don’t just watch the plays, but are encouraged to interact with the cast and even join them on stage. Some audience members will find the experience “threatening and over­whelming,” and Steiger aims to provide them a “safe” context for expressing themselves....

More than just silliness however, are the expansion of quotas:
More mainstream schools are using their ADVANCE funds more conventionally—to ini­tiate quota programs. At Cornell, as of 2006, 27 of 51 science and engineering departments had fewer than 20 percent women, and some had no women at all. It is using its NSF grant for a program called ACCEL (Advancing Cornell’s Commitment to Excellence and Leadership), dedicated to filling science faculty with “more than” 30 percent women in time for the university’s sesquicentennial in 2015.

Science guys, gentleman-nerds that they are, have no clue how to deal with the feminsit onslaught. The results could be ominous.
The power and glory of science and engineer­ing is that they are, adamantly, evidence-based. But the evidence of gender bias in math and science is flimsy at best, and the evidence that women are relatively disinclined to pursue these fields at the highest levels is serious. When the bastions of science pay obsequious attention to the flimsy and turn a blind eye to the serious, it is hard to maintain the view that the science enterprise is somehow immune to the enthu­siasms that have corrupted other, supposedly “softer” academic fields.

Few academic scientists know anything about the equity crusade. Most have no idea of its power, its scope, and the threats that they may soon be facing. The business commu­nity and citizens at large are completely in the dark. This is a quiet revolution. Its weapons are government reports that are rarely seen; amendments to federal bills that almost no one reads; small, unnoticed, but dramatically con­sequential changes in the regulations regarding government grants; and congressional hearings attended mostly by true believers.

American scientific excellence is a precious national resource. It is the foundation of our economy and of the nation’s health and safety. Norman Augustine, retired CEO of Lockheed Martin, and Burton Richter, Nobel laureate in physics, once pointed out that MIT alone—its faculty, alumni, and staff—started more than 5,000 companies in the past 50 years. Will an academic science that is quota-driven, gender-balanced, cooperative rather than competitive, and less time-consuming produce anything like these results? So far, no one in Congress has even thought to ask.

Tuesday, February 05, 2008

Fixing Family Leave

The WSJ takes on a policy that is supposedly "family friendly" and beyond criticism, Family Leave.
The law allows employees up to 12 weeks of unpaid leave a year to take care of themselves or relatives with a "serious medical condition." They can also take off for maternity, adoption or newborn care. That seems simple enough, but the courts continue to strike down regulations that the Clinton Administration issued to implement the act, and the result has been legal and economic confusion.

A 2005 study by the Employment Policy Foundation found the law's cost to businesses in 2004 was a not-so-cheap $21 billion. This included $5 billion in lost productivity, $6 billion to continue health benefits for employees on leave, and $10 billion in replacement labor costs -- including wages to employees who had to work additional shifts or overtime to fill in for the missing.
With these costs in mind, Secretary Elaine Chao's Labor Department last month issued rules to clear up ambiguities in the law that were being exploited. Take something called "unscheduled intermittent leave." Under current rules, an employee with a medical condition can simply fail to show up for two days before claiming leave. And since leave can be taken a few minutes at a time, employees can show up late, leave early, or disappear for an hour without notice. This is an invitation for misuse, especially at time-sensitive businesses (say, emergency first response or assembly lines) and many employers have lost control of their workforce. Under the proposed changes, employees would generally have to call in to request leave before taking it, which seems fair.

Labor's proposals would also clear up loose requirements for certifying what qualifies as a "serious" medical condition. Under current rules, workers can get an open-ended doctor's certificate for a condition -- asthma, migraines, whatever -- that allows them leave at any point. Under the new rules, companies can require employees to renew that certificate every year....
Many Democrats on Capitol Hill want to expand the law even further, imposing it on businesses with fewer than 50 employees, and making companies provide paid days off. But that would only expand the costs, and make employers even more reluctant to hire in the first place -- as in Europe. Meantime, the new rules will help ensure that family leave is taken by employees who really need it, not by slackers gaming the system.

These are just the cost associated with the federal requirements. If I'm not mistaken, CA has an even more generous policy.
In addition to these costs, you have to wonder how many employers are silently reluctant to hire women of child-bearing age, for fear of triggering these requirements.
Family leave is an example of a policy inspired by the desire to equalize the playing field between men and women, the ultimate goal of Leftist-inspired feminism. Once the concept is on the table, the regulation expands to include all kinds of Nice Things that Workers Will Love, but which will be expensive for business.
I maintain that it would be better for all to allow companies and workers to negotiate their own forms of flexible benefits, including flexible leave policies, rather than having the federal government impose a One Size Fits All policy.