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Layoff Worries Were High Before Market Meltdown, Survey Says
Fulton County Daily Report
October 17, 2008
Photodisc Green
Even before the Wall Street meltdown, layoffs were expected at nearly half the companies surveyed in August by the Association of Corporate Counsel and the labor and employment law firm Jackson Lewis.
The In-House Counsel Workplace survey questioned nearly 400 corporate lawyers who are part of the ACC Employment and Labor Law Committee, which has 6,000 members. The ACC and Jackson Lewis reported the results this month on a number of topics related to workplace concerns. Nearly half, 47.2 percent, said their companies were planning to cut jobs.
"That's the kind of number that does raise your eyebrows," said Susan Hackett, ACC's senior vice president and general counsel, "especially when you consider that it was prior to the meltdown."
Clearly cutbacks will be most severe in the financial services sector, Hackett said. But she added that she expects companies in every sector to focus on costs and trim back their labor force. "Frankly, every company that I've talked to that's doing well is tightening their belts in anticipation," Hackett said. "The ripple will go through companies that aren't necessarily meltdown affected."
Of course, that may just create more work for in-house lawyers. Again, nearly half of the corporate counsel surveyed -- 49.5 percent -- said they had increased their legal staff in the last three years. And 41.1 percent said legal staffing had remained the same.
The majority -- 73.5 percent -- said their companies had been a defendant in employment-related litigation over the last three years. More than half said they had been sued for discrimination. They also said workplace discrimination is the most time-consuming employment issue.
Most of those surveyed expect the outcome of the presidential election to have a direct impact on their jobs, particularly on labor and employment laws (60.5 percent). Among the potential changes mentioned were increased costs for health benefits, mandatory paid sick days and more workplace regulation generally. Another major issue is the Employee Free Choice Act, which would eliminate secret ballots in union organizing votes and strengthen labor's hand in negotiations.
"The results of the survey illustrate that employment issues are among the chief concerns in corporate America," Patrick L. Vaccaro, firm-wide managing partner of Jackson Lewis, said in the report.
