Sunday, June 30, 2013

Layoffs, Cutbacks and Downsizing

Recently my nephew asked me a question about employers and workers.  In particular, he wondered about efficiency projects including mechanization and outsourcing that often lead to layoffs, cutbacks and downsizing.  How does a Christian balance good business sense with care and compassion?

Fortunately, the Bible is always an appropriate source for wisdom and understanding when it comes to decisions we need to make.  This is especially true when we are dealing with other people whether they are our family, friends, co-workers or even our enemies.

There are about 100 references in the Bible to a worker, most off these are referring to laborers including those that work in agriculture, hired hands, domestic help and tradespeople.  Some are particularly relevant.  For example, Malachi 3:5 says that there is judgment coming on those that oppress the hired worker.  In the New Testament Timothy says the laborer deserves his wages.

In these and many other verses the Bible encourages us to treat the workers fairly.  Having Christian compassion goes even further and would certainly apply to how we care for employees including severance packages and treating them well and not harshly.  However, the employer has rights that the worker does not and in Matthew 20 for example, Jesus tells the story of workers in a vineyard who thought they were being under paid. However, in this story the lesson is the employer has the right to pay as he desires and not according to what the workers believe is fair.

There is no duty found in the Bible of an employer to provide a job. We find today that it may be beneficial to some organizations to maintain employees even during down periods.  However other organizations, typically with lower skilled workers or when work is seasonal, find it expedient to lay off or downsize during slow periods.  Some firms hire workers for specific jobs or as ‘contractors’ and provide no job security, pension plan or retirement benefits.

In reality, unless you operate a sole-proprietorship or a partnership, few of us are actually employers.  Employers are primarily companies, churches, nonprofits and government agencies where we as leaders, managers and even directors assume the role not as owners but stewards.   Stewards are responsible to run the business well, provide a fair return (or good value) to the shareholders or the actual owners and make responsible decisions that likely have an impact on many matters including who, how many and where labor is employed.

As a manager, I’ve had to layoff people, close plants and fire people over the years (even in the church).  I do so with lots of prayer and hopefully the appropriate amount of compassion. I try to use words that build up and edify and have even found times it was necessary to approve additional financial compensation even from my own pocket when appropriate.  In the end I still had to accomplish the changes that were necessary and have always been able to do so without knowingly violating my moral compass.  That compass is my Bible and it has served me well for many years.


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