Life at Up Up and Away Investment Management International: Chapter 24 Largecorp’s contract game

Chapter 24

Largecorp’s contract game

Accompanying the downsizing and outsourcing largecorp is embracing the concept of contract employment. In many cases I have friends who have been on continually renewed contracts for over a decade.

There are several advantages to largecorp in availing itself of this strategy. It’s very easy to terminate a contract employee as in almost cases they have signed an employment offer and relinquished any rights they have to common law notice. This makes them cheaper than terminating non-contract employees. Additionally, there are no medical or pension benefits to pay a contract worker.

Not having the benefit of any meaty severance rights makes the contract employee very expendable and insecure. Ultimately cheap employees help the bottom line of largecorp. Yet to be determined legally is whether a decade long contract employee is and should be treated like a full-time employee.

Of course, on the downside largecorp realizes its contract employees have no loyalty and will hire themselves out to the highest bidder. Many continue to search for full time employment so one wonders what attention span they have while working at largecorp.

This expansion of a contract-based workforce is part of a strategy to strip out a full-time workforce to pave the way for artificial intelligence to replace almost all employees. In many cases this holding a contract employee in suspense until and if the contract renewal occurs is cruel. On the positive side they are free from the largecorp programmes and bullshit foistered on full time employees. And many can incorporate and deduct expenses from their income. These contract workers also not slaves to largecorp’s unpaid overtime abuse.

However you slice and dice it a new class of largecorp employee has been created. A second-class free agent employee devoid of control of the ideological tentacles of largecorp. No allegiances. Distrust of largecorp. Again, we must ask if this is only part of the beginning of the end for largecorp. My view it is a shameful ploy to emasculate its workplace, save money and treat contract employees in a more cattlelike manner than regular employees are.

Let’s not forget the lavish employment contracts members of the Senior Management Team receive when they are terminated which in their sphere is often referred to as “retiring”. Often a “consulting contract” is offered for up to a couple years to help “transition” the SMT member function to a replacement SMT member. They are offered as hush money in the form of a generous severance package which under the guise of these consulting contracts help them “save face” and avoid high level litigation that may cause reputational damage to largecorp. Treat a regular joe like an expendable commodity that is fine but mistreating a high level management employee is more likely to hit the media.

Published by Robert K Sephen (CSW)

Robert K Stephen writes about food and drink, travel, and lifestyle issues. He is one of the few non-national writers to be certified as a wine specialist by the Society of Wine Educators, in Washington, DC. Robert was the first associate member of the Wine Writers’ Circle of Canada. He also holds a Mindfulness Certification from the University of Leiden and the University of Toronto. Be it Spanish cured meat, dried fruit, BBQ, or recycled bamboo place mats, Robert endeavours to escape the mundane, which is why he has established this publication. His motto is, "Have Story, Will Write."

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