Chapter 8 EmployerEmployee Issues - PowerPoint PPT Presentation

1 / 32
About This Presentation

Chapter 8 EmployerEmployee Issues


It is estimated that about 578,000 IT jobs will go unfilled in 2002 (US) ... BrickRed: An Outsourcing Company in India. Call Center in India Blog ... – PowerPoint PPT presentation

Number of Views:95
Avg rating:3.0/5.0
Slides: 33
Provided by: johnpbuerc


Transcript and Presenter's Notes

Title: Chapter 8 EmployerEmployee Issues

Chapter 8Employer/Employee Issues
Chapter 8 - Objectives
  • Define the term contingent workers and discuss
    why they are frequently employed in the IT
  • Outline key ethical issues associated with the
    use of contingent workers.
  • Define whistle-blowing and the ethical issues
    associated with this action.
  • Outline an effective whistle-blowing process.

Non-Traditional Workers
  • Huge numbers of baby boomers are retiring with
    fewer new workers to fill the pipeline.
  • It is estimated that about 578,000 IT jobs will
    go unfilled in 2002 (US)
  • 20,000 IT job shortfall in Canada (02)
  • There is an increased demand for qualified
    workers to support information technology.

Non-Traditional Workers
  • A contingent workforce includes independent
    contractors individuals brought in through
    employment agencies on-call or day laborers, and
    workers on-site whose services are provided by a
    contract firm.
  • A firm most often uses contingent workers when
    there are pronounced fluctuations in its staffing
    needs requiring technical experts on important
    projects, consultants in organizational
    restructuring, and workers in the design and
    installation of new information systems.

Non-Traditional Workers
  • There are two common ways for an organization to
    obtain contingent workers
  • Temporary Help
  • Employee leasing

Non-Traditional Workers
  • Employee leasing is the placement by an employer
    of its existing work force on the payroll of an
    employee leasing firm in an explicit
    co-employment relationship.
  • A co-employment relationship is one where two
    employers have actual or potential legal rights
    and duties with respect to the same employees.

Advantages of Using Contingent Workers
  • Firms employing contingent workers usually do not
    pay for benefits (retirement, medical, vacation,
  • Firms employing contingent workers may vary the
    number of employees at any time.
  • May reduce training cost because many contingent
    workers are trained.

Issues Raised By the Use of Contingent Workers
  • Contingent workers may lack a strong relationship
    with the firm, which can result in low commitment
    and high turnover.
  • The experience of the contingent worker is lost
    when the worker goes away at the projects

When To Use Contingent Workers
  • Contingent workers may be the most flexible and
    cheapest way to get the job done, but it may
    raise ethical and legal issues.
  • Employers should not use contingent workers in
    situations where they are likely to learn
    corporate processes and strategies that are key
    in a companys success.

Contingent/Permanent Employee
  • Factors that determine whether or not someone is
    an employee include
  • Does the individual have the right to control the
    manner and means of accomplishing the desired
  • Over how long of a period of time has the
    individual been employed?
  • What is the amount of time the individual worked?

Contingent/Permanent Employee
  • Does the individual provide his/her own tools and
  • Is the individual engaged in a distinct
  • Is the method of payment by the hour or by the
  • What is the degree of skill required to complete
    the job?
  • Does the individual hire employees to help?

H-1B and Canadian Work Permits
  • The H-1B visa is a temporary working visa for
    people working in a specialty occupation that
    requires a bachelors degree or higher.
  • The H-1B worker can work in the U.S. for up to
    six years.
  • H-1B workers make up less than .1 of the U.S.
  • Applications to work in Canada - Work Permits
  • Canadian Government Site for Applications

H-1B and Canadian Rules
  • To apply for a H-1B visa, the individual must
    have a job offer from an employer who is willing
    to sponsor him/her.
  • Two phase application process
  • Labor Condition Attestation (Department of Labor)
  • H-1B visa application
  • Basically same process in Canada

Using H-1B Workers Instead of United States
  • Using H-1B workers lessens the incentive for US
    companies to educate and develop their own work
  • This logic is OK in the short run, but not good
    in the long run because it does nothing to
    develop the core of permanent IT workers that the
    US needs to maintain a strong expanding economy.
  • Same in Canada

H-1B Workers
  • There are potential problems with hiring H-1B
  • Salary abuse Reports say that Indian programmers
    typically earn 30 less than their American
  • Not so in Canada no wage restriction
  • Loss experience At the end of six years the
    worker may not receive their green card and the
    company may lose the workers experience.

H-1B Workers
  • Language barrier Managers may not fully
    understand how critical it is that the worker
    understand English.
  • Cultural differences American workers must be
    aware and sensitive to differences in culture.
  • Culture differences slightly easier to handle in

  • Outsourcing is another approach to meet staffing
  • With outsourcing, services are provided by an
    organization that has expertise in operating a
    specific client function.
  • Offshore outsourcing is where the work is done by
    an organization using employees in a foreign
    country. Also new term NearShoring
  • Some Pitfalls
  • BrickRed An Outsourcing Company in India
  • Call Center in India Blog

  • With the shortage of application development
    staff, offshore outsourcing is popular.
  • Lower salaries paid to offshore outsourced
    employees reduce overall project costs.

  • Sending software development projects to another
    continent can increase project risks.
  • Successful offshore outsourcing projects include
  • Expertise in project technologies.
  • Proficiency in the companys native spoken
  • A large staff.
  • A good telecommunications setup.
  • Good on-site managers.

Permanent IT Positions from Outside Canada
  • Application process
  • Job Offer
  • Approval HRSDC
  • CIC approval
  • Facilitated Processing for Information Technology
  • Must fit one of following job descriptions

  • Whistle-blowing is a call to attract attention of
    others outside the employees company to a
    negligent, illegal, unethical, abusive, or
    dangerous act by the company that threatens the
    public interest.
  • Actions taken by whistle-blowers may put them at
    great personal risk.

Protection for Whistle-Blowers
  • Whistle-blower protection laws allow employees to
    alert the proper authorities to employer actions
    that are unethical, illegal, unsafe, or violate
    specific public policies without concern for
    employer retribution.
  • Unfortunately, there is no comprehensive federal
    law that protects all whistle-blowers.
  • Canadian Whistle-Blower Laws

Legal Overview USA - False Claims Act
  • The False Claims Act (Lincoln Law) was enacted
    during the Civil War.
  • The goal was to entice whistle-blowers to come
    forward by offering them a share of the money
  • The Qui Tam provision allows a private citizen to
    file a suit in the name of the U.S. government
    charging fraud by government contractors who
    receive or use government funds.

Other Whistle-Blower Statues USA
  • There are laws that protect whistle-blowers in
    specific industries.
  • Environmental workers
  • Clean Air Act
  • Toxic Substances Control Act
  • Clean Water Act
  • Safe Drinking Water Act
  • Comprehensive Environmental Response,
    Compensation, and Liability Act
  • Nuclear workers
  • Energy Reorganization Act

Canadian Whistle-Blowing Laws
  • New Brunswick only province with direct whistle
    blowing legislation
  • under their Employment Standards Act
  • Ontario Environmental laws
  • Other Legislation
  • Canadian Environmental Protection Act
  • Ontario's Occupational Health and Safety Act
  • Canadian Labour Code
  • Canadian Human Rights Act
  • Canadian Competition Bureau immunity policy

Private Sector Workers
  • Under traditional state common law, in the
    absence of an employment contract, an employee
    can be terminated for any reason or no reason.
  • Many states have laws that protect workers from
    being fired because of an employees
    participation in protected activities.
  • Provinces also look at previous slide - Ontario
  • Canadian Firms Policy (CAT)

Dealing with a Whistle-Blowing Situation
  • Assess the seriousness of the situation.
  • Attempt to address the situation internally.
  • Begin documentation.
  • Consider escalation within the company.

Dealing with a Whistle-Blowing Situation
  • Assess implications of becoming a whistle-blower.
  • Use experienced resources to develop an action
  • Execute the action plan.
  • Live with the consequences.

  • A contingent workforce includes independent
    contractors individuals brought in through
    employment agencies on-call or day laborers, and
    workers on-site whose services are provided by a
    contract firm.
  • The use of contingent workers enables the firm to
    meet its staffing needs more efficiently, lower
    its labor costs, and respond more quickly to
    changing market conditions.

  • Whistle-blowing is a call to attract attention of
    others to a negligent, illegal, unethical,
    abusive, or dangerous act that threatens the
    public interest.
  • There are a number of laws to protect
  • There are eight stages in an effective
    whistle-blowing process.

Case 1 - Software to Assist in Managing
Contingent Workers
  • Recruitment and Application Tracking Systems
    (RATS) software packages help manage and control
    the dollars spent on contingent workers.
  • This software provides information that improves
    hiring decisions by enabling managers to better
    gauge consulting and service cost/quality.

Case 2 - Sherron Watkins, Enron Whistle-Blower
  • Sherron Watkins was the vice-president of
    corporate development at Enron. While analyzing
    sales of Enron assets, she was alarmed to find
    questionable accounting mechanisms being use to
    hide company debt. She thought it was also
    inappropriate for the company to use its stock to
    affects its income statement.
Write a Comment
User Comments (0)