Corporate America Doesn’t Care

Eight months ago, my husband lost his job with a major oil company, a casualty of corporate downsizing.

When he was called into his boss’ office, a representative from human resources was waiting. A prepared speech was read aloud, expressing the company’s gratitude for his 25 years of service. His separation package, which included one year’s salary, several retraining options and a few months of family medical coverage, is considered fair in an industry that sets its own standards.

Like most families facing mortgages, bills and the rising costs of just about everything, ours wouldn’t survive long without a paycheck. Had Richard not signed a form legally releasing his employer from all further responsibility to him, all separation benefits would have ended after 45 days. Goodbye and good luck!

In 15 months he would have been eligible for continued medical coverage for ourselves and our two children, paid life insurance and the lump-sum dispersal of nearly $100,000 in accumulated retirement savings. But timing is everything. And, from a bottom-line corporate view, the departure of an employee nearing full benefit investiture couldn’t be more advantageously planned. In effect, our economic loss (and that experienced by so many families) is a substantial company gain.

At 49, the prospect of finding another job was daunting for my husband. Richard’s quest was further complicated by the fact that his former employer warned its managers against providing references for separated personnel. While this action probably reflects nothing more than concern for the company’s legal position, it has had a demoralizing effect.

Though his job search finally paid off, Richard now earns a little over half what he was making at his previous job. We have returned to friends and family in our home state, California, but our house in Colorado remains unsold.

Happy youngsters frolic across the late-night TV screen in an ad that hypes my husband’s former company’s various contributions to the American Dream. Its copy carries the promise of a better world and a commitment to a brighter future. I think of my own kids, their lives forever changed by the fact that, in reality, corporate practices reflect not the highest good but the highest profit margin.

Corporate practices generally reflect the legal bottom line--the degree to which law balances employee interests against those of employers. It is a line that begs reexamination.