Below are the first 10 and last 10 pages of uncorrected machine-read text (when available) of this chapter, followed by the top 30 algorithmically extracted key phrases from the chapter as a whole.
Intended to provide our own search engines and external engines with highly rich, chapter-representative searchable text on the opening pages of each chapter.
Because it is UNCORRECTED material, please consider the following text as a useful but insufficient proxy for the authoritative book pages.
Do not use for reproduction, copying, pasting, or reading; exclusively for search engines.
OCR for page 131
APPENDIX C
A Review of Policy Recommendations of
Selected Study Committees,
Panels, and Commissions, 1979-1985
INTRODUCTION
The past decade has seen growing concern about signs of
a weakening of the position of U.S. manufacturing in the world
economy. Numerous committees, commissions, and panels have
been appointed to study the sources of retardation and to rec-
ommend policies to strengthen U.S. industry's competitiveness.
While some of these study groups have dealt with broad issues
of productivity, innovation, and technological change, the main
focus has been on the manufacturing sector.
This appendix summarizes policy recommendations made by
17 study committees during 1979-1985. The sponsors included the
Committee for Economic Development, the American Productiv-
ity Center, the National Research Council, the Office of Technol-
ogy Assessment, and the U.S. Department of Commerce. The
recommendations reflect a consensus among business executives,
university experts, and government officials. In some cases, union
officials and public representatives also participated. Each study
group is briefly described, and its major policy recommendations
or options are outlined.
131
OCR for page 132
132
OVERVIEW OF MAJOR POLICY RECOMMENDATIONS
To provide an overview of the scores of policy recommenda-
tions included in these various studies, they have been classified
and briefly analyzed under 10 headings.
Research and Development
in Science and Technology
Continuation or increase of the federal government's support
of basic research was favored by several study groups. Support for
generic research, particularly in manufacturing technology and au-
tomation, also was favored, as was coupling industry and univer-
sity research. The President's Commission on Industrial Compet-
itiveness recommended the establishment of a federal Department
of Science and Technology to encompass all existing programs.
Human Resource Management
Various studies included wide endorsement of the idea that
employees should be more involved in the decisions affecting their
work, that the adverse human impacts of automation need to be
moderated, that reward systems linked to productivity perfor-
mance can be helpful, and that labor-management cooperation
should be encouraged.
Education and Training
Several panels stressed the need to improve and expand en-
gineering education in a time of explosive growth in technology.
Particularly vital is the need for graduate education to fill faculty
vacancies at the university level. The spread of computers also is
expanding the training requirements of managers and employees.
According to one panel, effective computer education will require
further research on educational software.
OCR for page 133
133
Regulatory Reform
The use of performance standards, cost-benefit analysis, and
economic incentives was recommended by many panels as a way
of balancing regulatory and business goals. Several panels favored
a faster review process in their industries.
Tax Policy Changes
More favorable treatment of research and development (R&D)
in the tax code was recommended by many groups, along with
continuation of incentives for capital investment. Several panels
favored simplification of the tax structure.
Capital Investment
The capital investment issue was considered by several groups
as connected with efforts to stabilize monetary and fiscal policy.
According to the President's Commission on Industrial Competi-
tiveness, the supply of capital should be increased by reducing the
federal deficit.
Trade Policy
Many committees favored closer monitoring and stricter en-
forcement of import policies. A few favored a review of the effect
of national security export controls on competitiveness. Two pan-
els endorsed the establishment of a single agency or Department
of Trade.
Antitrust Policy
Modification of antitrust policy on mergers and competition
was endorsed by many committees on the grounds that foreign
firms have become major competitors in many industries. En-
couragement of joint R&D ventures was also favored.
OCR for page 134
134
Government Procurement
The government has an important role to play in improving
the competitiveness of industries in which government or govern-
ment contractors are major customers, such as aircraft and ma-
chine tools. Several panels favored unprovement in procurement
policies through more coordinated planning and support for mod-
ernization among suppliers.
Patent Reform
Several panels favored changes in the patent system to im-
prove the competitiveness of U.S. industry. The recommended
changes include a first-to-file system, restoration of time lost due
to regulatory requirements, and an effective computer-based patent
search and retrieval system. Some panels favored stronger protec-
tion against unfair patent use by other countries.
SUMMARY OF SPECIFIC REPORTS
1. Committee for Economic Development Research and
Policy Committee. 1980. Stimulating Technological Progress. New
York: Committee for Economic Development.
Background
This was a committee of 28 business and university execu-
tives headed by Thomas A. Vanderslice, GTE Corporation. It an-
alyzed how technological progress is affected by certain economic
problems, including slow productivity growth, inadequate capital
investment, uncertain government regulation, and a complicated
patent system.
Major Policy Recommendations
· Tax policy should be changed to increase investment in
new plant and equipment, including a more rapid capital recovery
allowance and flexible depreciation of fixed R&D assets.
OCR for page 135
135
· Regulatory reform should use performance standards, a
system of economic incentives and penalties, and appraisal of po-
tential adverse effects on future innovation.
· The patent system could be made more effective through
voluntary arbitration, a single court of appeals, and a first-to-file
patent system.
· Federal R&D support for basic research in universities
should be increased.
2. Committee for Economic Development Research and
Policy Commit tee. 1983. Productivity Policy: Key to the Nation 's
Economic Future. New York: Committee for Economic DeveJop-
ment.
Background
Under the chairmanship of William F. May, Dean of the New
York University Graduate School of Business Administration and
Management, 31 executives and consultants undertook a study of
the nation's lagging productivity growth in relation to its past
record and to the rates of other industrialized economies. The
committee emphasized that long-term and, in some cases, fun-
damental changes are needed in management and labor practices
and in public policy areas.
Major Policy Recommendations
· Review the tax code to achieve substantial simplification
in the tax structure, reduction in tax preferences, and reduction
in marginal tax rates through a broadening of the tax base.
· Adopt a mechanism to adjust the valuation of capital
gains for inflation thereby eliminating a major impediment to sav-
ing and investment.
· Increase outlays for repairs, modernization, and expan-
sion of the portion of the public infrastructure that contributes to
productivity.
· Ensure that investment incentives are neutral among dif-
ferent types of capital assets.
OCR for page 136
136
· Increase federal funding of basic research, especially in
universities, including payment of the full cost of R&D performed
under contract by universities, financing of individual scholars of
outstanding ability, and sharing of high cost instruments among
· · -
universities.
Introduce a flexible system of depreciation of R&D capital
assets by amending laws to permit expensing of R&D structures
and equipment.
· Review current antitrust policies and modify any antitrust
laws that inhibit productivity growth.
· Regulatory goals should be pursued primarily through
market incentives and the use of the bubble and offsets programs;
use of regulatory requirements and direct controls should be
avoided.
Every American business should adopt explicit produc-
tivity goals and select appropriate techniques to achieve them,
including encouraging entrepreneurship within the firm.
· Involve employees and unions in designing and implement-
ing policies to enhance productivity, including compensation sys-
tems providing financial incentives for improved productivity.
3. Committee on Technology and International Economic
and bade Issues. 1985. The Competitive Status of the U.S. Civil
Aviation Manufacturing Inclus try. Washington, D.C.: National
Academy Press.
Background
The Civil Aviation Industry Pane! of the Committee on Tech-
nology and International Econorn~c and Trade Issues, headed by
Frederick Seitz, included 27 business, labor, and academic ex-
perts. They examined key challenges created by a combination
of circumstances, including deregulation of airlines, emergence of
foreign competitors, internationalization of aircraft manufacture,
and growing involvement of foreign governments in the industry.
OCR for page 137
137
Major Policy Recommendations
· Monitor trade and encourage compliance with trade agree-
ments.
Extend measures that would enable aircraft manufactur-
ers to spread the risk in leasing aircraft to domestic and foreign
customers.
· Reexamine the lending role of the Export-Import Bank
in light of heightened competition.
Continue the new Export-Import Bank facility to provide
medium-term loans for sales of small aircraft.
Develop mechanisms to ensure an effective industry voice
in deliberations on coproduction.
Reexamine mechanisms for working with civil aircraft
manufacturers to ensure that maximum advantage is taken of
dual-use capabilities in technology development for design, man-
ufacture, and certification.
The Department of Defense (DOD) and industry should
strengthen the process of coordinated planning for aircraft pro-
curement to reduce, as far as practicable, disruption due to the
great cyclicality in production.
· Reexamine the research and technology development ac-
tivity in support of civil aviation within the National Aeronautics
and Space Administration (NASA) in light of new technologies
and a changing competitive environment, including expansion of
NASA programs on technology validation.
4. Committee on Technology and International Economic
and bade Issues. 1982. The Competitive Status of the U.S. Auto
Industry. Washington, D.C.: National Acaclemy Press.
Background
Professor William J. Abernathy of the Harvard University
Graduate School of Business Administration headed an 11-person
pane} of experts from industry, labor, universities, finance, and
an official of a major automobile manufacturing company. The
pane} dealt primarily with trends in cost and technology, recent
OCR for page 138
138
innovations, and their impact on the industry's relative compet-
itive position. An ~n-depth analysis of policy options was not
carried out. Instead, three main lines of future development were
presented, with the broad public policy implications of each line
indicated.
Major Policy Recommendations
On the assumption that the current situation reflects a tem-
porary economic misfortune, the pane] projects that
Relaxation of regulation and tax incentives will spur cap-
ital investment and allow a viable domestic industry.
· Temporary import quotas will reduce imports, slacken the
drive for changes In management, and accelerate construction of
Japanese plants in the United States.
On the assumption that the auto industry is maturing and
losing competitiveness to low-cost foreign producers, the pane!
projects that
· Relaxation of regulations and tax incentives will result in
capital investment in specialty and high technology models.
· Temporary import quotas will encourage production inef-
ficiencies and high prices, weakening primary demand.
On the assumption that fundamental structural change is tak-
ing place with substantial technological change, new products, de-
cTine of vertical integration, and advance of specialized producers,
the pane} projects that
· Tax incentives and deregulation will aid investment in new
product development.
· Temporary import quotas will preserve market share in
standard models, but reduce the urgency of structural changes.
5. Committee on Tech noJogy and International Economic and
Trade Issues. 1982. The Competitive Status of the U.S. Electronics
Industry. Washington, D.C.: Nation a] Academy Press.
OCR for page 139
139
Background
The chairman of the 12-person pane! of university and in-
dustry experts was Professor John G. Linvill of Stanford Univer-
sity. Four sectors of the industry semiconductors, computers,
telecommunications equipment, and consumer electronics-were
studied separately, but policy options were outlined for the indus-
try as a whole.
Major Policy Recommendations
Research policy
· Encourage joint research ventures.
· Support basic research.
· Expand incremental R&D funding as well as research
grants to universities for projects related to a firm's business.
Capital formation policy
Create a category in the depreciation system for equip-
ment with high rates of technological obsolescence combined with
a reduction in the penalty for taking the investment tax credit
over a short time period.
· Increase the first-year depreciation allowance.
Human resource policy
If the industry is provided with appropriate incentives by gov-
ernment, it can take important steps to respond to the shortage
of faculty and equipment needed to train additional electrical en-
g~neers.
International tracle policy
Clarify and consolidate responsibility for foreign trade
policy within one federal agency.
· Review restrictive U.S. laws and regulations and elimi-
nate instances in which they place U.S. firms at a competitive
disadvantage.
OCR for page 140
140
Electronics industry policy
"The U.S. government, working with industry and universi-
ties, must develop a statement of national goals for the electronics
industry."
6. Committee on Technology and International Economic en c'
Trade ~sues. 1983. The Competitive Status of the U.S. Pharma-
ceutica] Industry. Washington, D.C.: National Academy Press.
Background
A panel of 12 industry, financial, and university experts,
headed by Charles C. Edwards, President, Scripps Clinic and Re-
search Foundation, examined the relative decline of the U.S. phar-
maceutical industry despite its continued expansion of output.
Major Policy Recommendations
The Food and Drug Administration (FDA) prohibition
of exports of unapproved new drugs should be revised to permit
domestic production for shipment abroad.
· Restore the patent time lost as a result of FDA regulatory
requirements.
· Examine antitrust policy to determine whether it discour-
ages mergers that could make U.S. companies more competitive
in world markets.
· Expand research tax credits to include research-related
expenditures not now eligible for the investment tax credit.
Allocate R&D expenditures incurred in the United States
solely to the U.S. income of the taxpayer.
· Study the impact of product liability in the pharmaceuti-
cal industry in an attempt to reduce this disincentive to research.
· Implement the recommendations of the Commission on
the Federal Drug Approval Process to expedite the review process
without reducing public health protection.
OCR for page 141
141
7. Committee on Technology and International Economic
and Trade Issues. 1983. The Competitive status ofthe U.S. Fibers,
Textiles, and Apparel Complex. Washington, D. C. : National
Academy Press.
Background
An 11-person pane! of experts from industry, labor, univer-
sities, and the trade press, headed by Dean W. Denney Freeston,
Jr., of the Georgia Institute of Technology College of Engineering,
assessed the future of international competitiveness of the U.S.
textile complex, including fibers, fabrics, and end users apparel,
home furnishings, and industrial. One of every eight factory work-
ers is employed in this textile sector. This pane! concentrated on
incremental changes in existing policies rather than on sweeping
changes.
Major Policy Recommendations
Trade
· Enforce existing trade mechanisms more rigorously.
· Tighten controls and speed response to changes in market
conditions and import surges.
· Seek reductions in tariff and nontariff barriers in other
countries.
· Change to a system of granting licenses to U.S. importers
instead of foreign exporters.
Technology
· Examine government-sponsored collaborative R&D proj-
ects in apparel manufacturing, involving fiber, fabric, and equip-
ment industries.
· Place greater emphasis on policies affecting equipment
utilization, such as more favorable tax incentives for the use of
experimental equipment.
OCR for page 146
146
· Study the effects of consolidation, acquisitions, and joint
ventures on the strength of the U.S. industry in competition with
foreign producers.
Other government agency actions
· Promote a machine too! export program through the De-
partment of Commerce.
· Reduce barriers to the export of machine tools to Eastern
bloc markets.
· Make an inventory of federal programs that are aimed at
the problems of manufacturing productivity to gain better coor-
dination and simplification.
Ma chin e too! in d ustry a c tio as
· Aggressively apply advanced equipment and processes in
machine too] production.
· Actively search for new technology.
· Increase investments in long-term competitive strategies
rather than responding only to short-term economic considera-
tions.
Participate in joint R&D efforts.
· Expand information programs to inform machine too!
builders of DOD programs.
11. Committee on the CAD/CAM Interface. 1984. Computer
Integration of Engineering Design and Production: A National
Opportunity. Washington, D.C.: National Academy Press.
Background
In response to a request from NASA, the Committee on the
CAD/CAM Interface, composed of 12 experts from industry and
academia, was organized by the Manufacturing Studies Board to
recommend ways to improve the interaction between the engi-
neering design of a product and its production. Professor Arthur
R. Thomson chaired the committee. The committee visited five
OCR for page 147
147
companies with experience in
jar federal programs.
.
Integration and reviewed three ma
Major Policy Recommendations
· A strategy of computer-integrated manufacturing (CIM)
should be adopted by NASA for its manned space station program.
· Consortia should be formed by groups of companies to
pursue research and other projects in CIM not readily undertaken
by individual companies.
· Existing knowledge of CIM technology should be compiled
by the Computer and Automated Systems Association and made
available to industry, universities, and government agencies.
Research should continue to be undertaken by the fed-
eral government to resolve fundamental technical issues related to
CIM.
· Federal agencies that purchase manufactured goods should
accept digital data sets compatible with the Initial Graphic Ex-
change Standard rather than requiring conventional drawings as
a deliverable item under contracts.
Manufacturing companies considering investment in prod-
uct design or manufacturing process technology should consider
CIM.
12. Computer Conferences on Productivity. 1983. A Final
Report for the White House Conference on Productivity. Houston:
American Productivity Center.
Background
The American Productivity Center brought together 175
senior-level leaders from business, labor, acadern~a, and govern-
ment through a computer conferencing system over a four-month
period in 1983. These leaders exchanged information and debated
recommendations in areas involving productivity and work qual-
ity for submission to the White House Conference on Productivity.
OCR for page 148
148
The consensus reached In several areas pertains to the manufac-
turing sector.
Major Policy Recommendations
A less authoritarian and more interactive style of man-
agement should be followed at all levels.
Organized labor should accept greater responsibility for
the competitiveness of its employing firms.
Government is responsible for moderating the human im-
pact of the competitive process.
Quality awareness should be raised through campaigns
that would include private cooperation with schools to spread the
concept of quality and national awards for contributions to im-
proved quality.
· Reward systems for productivity improvement should be
initiated, including sharing business information with employees,
participative work practices, pay for performance, and better mea-
surement of productivity.
Strong programs of education and training are needed to
enhance management skills in the development and use of new
technology.
· Government procurement practices should be changed to
include provisions for sharing increases in risk and reductions in
cost due to implementation of new technology.
13. White House Conference on Productivity. 1984. Produc-
tivity Growth: A Better Life for America. Washington, D.C.: U.S.
Government Printing Office.
Background
On October 25, 1982, the President signed legislation calling
for a White House Conference on Productivity to develop rec-
ommendations for stimulating productivity growth in the United
States. During the following 11 months, preparatory conferences
were held at four universities across the country, each dealing
OCR for page 149
149
with a single topic. The White House Conference was held in
Washington, D.C., on September 21-23, 1983, and was chaired
by L. William Seidman and William Simon. About 1,000 per-
sons attended to discuss the findings and recommendations of the
preparatory conferences and new suggestions for action by the
public and private sectors.
Major Policy Recommendations
Government actions
Increase public recognition and acceptance of improving
productivity growth as a national goal and as the means of raising
our standard of living, including
tivity.
· Maintain a stable noninflationary economic environment
and reduce the government's consumption of national resources.
· Develop a specific plan for fundamental tax reform, with
improving productivity as a standard for evaluating tax reform
proposals.
· Change or repeal laws that unpose impediments to pro-
ductivity growth, including
performance standards in environmental regulation;
cost-benefit analysis and market-based incentives in
health and safety regulation;
- protection of patents against unfair use by other coun
tries, especially in areas of computer software and chip tech
nologY;
making joint ventures, including joint R&D ventures,
a more effective means of meeting world competition; and
consistently evaluating regulations and laws in terms
of effects on productivity;
creating a National Medal for Productivity and Qual-
ity Achievement; and
emphasizing better techniques of measuring produc
OCR for page 150
150
- removal of restraints on competition in the energy,
communications, transportation, and financial service indus
tries.
Private sector actions
· Focus more attention on improving technology, quality,
and information resources.
· Employ creative, innovative work practices to use more
fully the knowledge and talent of employees.
· Establish productivity measures and improvement goals,
especially for information and service workers.
· Promote labor-management cooperation to consider work-
place problems such as plant closings, training, restrictive prac-
tices, and employment security.
14. U.S. Congress, Once of Technology Assessment. 1984.
Computerized Manufacturing Automation: Employment, Educa-
tion, and the Workplace. Washington, D.C.: U.S. Government
Printing Office.
Background
The Office of Technology Assessment (OTA), with a 24-person
advisory pane} and three workshops, conducted an in-depth study
of programmable automation, covering computer-aided design,
computer-aided manufacturing, and computer-aided techniques
for management. The findings covered the state of the art, the
impact on employment and occupations, health and safety effects,
education, training and retraining issues, the automation indus-
tries, R&D, and programs abroad. Instead of specific recommen-
dations, the OTA proposed a series of policy options for congres-
sional consideration under four broad headings.
OCR for page 151
151
Major Policy Options
Technology development and diffusion
· Increase funds for R&D on automation, especially for
longer-term generic research in nonmilitary applications.
· Facilitate standard-setting as a means of increasing the
ease of use and encouraging the application of automation tech-
nologies.
Redress the historical U.S. inattention to manufacturing
processes, organization, and management through support of en-
gineering education and some form of manufacturing institute and
clearinghouse.
Employment programs
Establish job creation programs for production of public
mation.
goods and services, from highway building to child care.
· Expand programs for disseminating labor market infor
Expand programs for assisting displaced workers, includ-
ing advance notice and financial incentives to relocate personnel,
either in or outside the firm.
Work environment
Increase oversight of and research on the workplace effects of
automation through OSHA and the National Institute for Occu-
pational Safety and Health.
Education, training, and retraining
· Increase support for facilities, equipment, and qualified
instructors at colleges, universities, and vocational schools.
· Encourage curriculum development geared to the de-
velopment of automation-related skills.
· Encourage renewed emphasis on basic skills in reading,
math, and science as well as problem-solving skills.
OCR for page 152
152
· Encourage individual participation in instruction re-
lated to automation and development of industry in-house pro
gralms.
15. Advisory Committee on Industrial Innovation. 1979. Fi-
na] Report. Washington, D.C.: Department of Commerce.
Background
In 1978, President Carter called for an extensive review of
government policies on industrial innovation. Under the guidance
of the Department of Commerce, more than 150 senior representa-
tives from industry, labor, academia, science, and public interest
groups participated in meetings held by the Advisory Committee
on Industrial Innovation. These deliberations covered the broad
issues of economic and trade policy, environmental, health, and
safety regulations, regulation of industry structure and competi-
tion, federal patent and information policy, federal procurement
policy, and direct federal support of R&D. Industrial members of
the advisory committee issued 10 separate reports covering the ef-
fects of federal policies in these areas on industrial innovation and
specific recommendations for change. Separate reports covering
all issues were produced from the perspectives of small business,
labor, and public interest groups.
Major Policy Recommendations
Since the specific recommendations are too numerous to list,
only the major general ones are highlighted, under five broad head-
~ngs.
Economic and trade policy
Revise tax laws to elirn~nate disincentives to overall in-
vestment and R&D.
· Reduce disincentives to savings to help alleviate shortages
of venture capital.
OCR for page 153
153
tion.
Maintain strong foreign competition as a spur to innova
Environmental, health, and safety regulation
· Improve the regulatory process through analysis of risks,
costs, and benefits, reducing uncertainty of content and timing,
etc.
· Maintain a high level of competence in the regulatory
agencies.
· Avoid use of mandatory controls, including methods spec-
ification.
Regulation of industry structure and competition
.
Encourage joint or cooperative research, even among large
competitors in some cases.
titrust policy.
Consider general economic health in enforcement of an
Patent and information policy
· Complete development of art effective computer-based
patent search and retrieval system.
· Establish a policy of convenient access to all information
created and collected by the government, except for confidential
and classified materials.
Direct federal support of research and development
· Support a substantial increase in the coupling of univer-
sity research and industrial needs.
· Support R&D and the dissemination of new technology
generic to process or product innovation in a wide array of indus-
tries.
16. The President's Commission on Industrial Competitive-
ness. 1985. Global Competition: The New Readity. 2 vois. Wash-
ington, D.C.: U.S. Government Printing Office.
OCR for page 154
154
Background
The President formed the 30-person Commission on Inclus-
trial Competitiveness in 1983 to study ways of improving the
competitiveness of American industry. The commission, under
the chairmanship of John A. Young, President, Hewlett-Packard
Corporation, included high officials of private industry, unions,
universities, and banks. The commission's recommendations are
reported under four headings.
Major Policy Recommendations
Research and development and manufacturing
Create a federal Department of Science and Technology.
Increase tax incentives for R&D.
Remove antitrust barriers to joint R&D.
Commercialize new technologies through improved man-
ufacturing processes.
.
Strengthen protection of intellectual property rights.
Capital resources
Reduce the federal deficit.
Restructure the tax system.
Pursue a stable monetary policy.
Remove barriers to the efficient flow of capital.
Human resources
.
Increase effective dialogue among government, industry,
and labor through existing advisory committees and in other ways.
Encourage labor-management cooperation through presi-
dential recognition of good cases.
· Strengthen employee incentives through use of plans link-
ng pay and performance.
· Encourage programs to assist in the reemployment of dis-
placed workers.
· Improve engineering education and business schools.
i:
OCR for page 155
155
· Establish partnerships in education to counter high drop-
out rates and continue support of research programs in educational
software for computer technology.
International trade
hnprove trade and investment policy through the estate
lishment of a Department of Trade.
Review U.S. trade law to facilitate industrial adjustment
to increased global competition.
· Reform U.S. antitrust policy to recognize the potential ef-
ficiency gains from business combinations and the reality of global
competition.
Review export policies, including renewal of the Export
Administration Act, negotiate agreements to minimize the impact
of national security export controls on competitiveness, and im-
prove the functioning of export expansion, trade information, and
export financing programs.
17. Work in America Institute. 1984. Employee Security in a
Free Economy. New York: Pergamon Press.
Background
The Work in America Institute, a nonprofit, nonpartisan or-
ganization, conducted an investigation of workable alternatives
for achieving greater employment stability as a means of spurring
company prosperity. A national advisory committee of 38 experts
from business, labor, academia, and consultancy provided guid-
ance to the study. The study was directed by Jerome M. Rosow,
President of the Work in America Institute, and Robert Eager,
Vice President for policy and technical studies. The specific rec-
ommendations fall under seven major headings.
Major Policy Recommendations
· Employers should consider a commitment to employment
security to the full extent in circumstances that are under their
OCR for page 156
156
control and to the extent that they can in circumstances beyond
their control.
· Employers should institute a system of advance planning
of human resource needs and shifts, in consultation with union
officials.
· Employers should adhere to lean staffing standards to
avoid layoffs due to imbalances and should adopt production, mar-
keting, and financial policies that minimize sudden changes in the
size of the protected work force.
In response to economic declines, employers should de-
fer layoffs as long as possible while taking advantage of attrition,
release temporary employees, increase training, and, as a final re-
sort, use work sharing.
· Employers, in the event of dismissal of permanent em-
ployees, should actively help them find suitable work elsewhere,
including outplacement services, retraining, and pension portabil-
ity.
Regional groups of employers and unions should form al-
liances and organize computer-based job clearinghouses and re-
training, education, and job creation programs.
· Government should play a supportive role, providing in-
centives to employers who are committed to employment security,
requiring protection to provide an approximate measure of em-
ployment security, and enacting short-time compensation regula-
tion.
Representative terms from entire chapter:
major policy
