The film and television industry in the US has come to a standstill as screenwriters have gone on strike for more than 100 days. Actors have joined the fight, making it the first double strike since 1960, according to the Associated Press. The Hollywood Reporter says studio executives are beginning to acknowledge the financial impact — while Netflix’s stock Continues upwards. Meanwhile, in Michigan, the Big Three automakers backed out of bargaining with the United Auto Workers. The union’s contract expires on September 14, and the strike for 146,000 UAW workers will be massive. In Texas, walkouts are not allowed at American Airlines, but 99% of flight attendants are at large. He voted for the strike. Transportation, entertainment and manufacturing are just three of the many industries facing strikes as unionized workers demand more. Can’t corporations — and corporate leaders — feel the plight of overworked workers? Does more empathy make a difference? Or are these labor demands unrealistic — and unprecedented?
Higher pay, better benefits – is it really sustainable?
Empathy—the ability to see, understand, and recognize another person’s situation and feelings—is a valuable trait for leaders. However, empathy doesn’t drive business decisions — at least, not entirely. Consider recent results for American Airlines pilots, who received an average pay increase of 40% over the next four years. US CEO, Robert Isom (2022 Compensation: $4.9 million) will suddenly have more sympathy for the pilots’ plight? Note that at the bargaining table, other factors may be at play.
United pilots have already reached a similar compensation deal, forcing American to match salaries — the same way airlines must match fares between cities. No balance, no passengers. Economics professors call this a „kinked demand curve” — airlines must match rates or risk losing market share. In the same vein: without balance, there are no pilots. To prove the point, pilots at Southwest already plan to renegotiate, and United flight attendants recently went on strike in 20 cities.
Patricia Campos-Medina, executive director of the Labor Institute at the School of Industrial and Labor Relations at Cornell University, reports that the number of labor strikes will rise 22% in 2022. Associated Press„We started thinking, 'I’ll order it at home, but there it is A worker indeed Who’s going to go grocery shopping and who’s going to cook this so I’m comfortable.’” Do you ever stop to consider what you need to do to get your food, or watch Netflix, or buy new clothes? When it comes time to make a transaction, do you focus on the barista or your latte?
We are all so focused on getting what we want that we pay little attention to what people must endure to provide it. The same is true in the coffee shop, the boardroom, and the bargaining table. Empathy allows you to see another person’s point of view, and it seems less likely.
Empathy and profit
The truth is, consumers want what they want when they want it. Most people don’t care how you make the sausage. But what happens if we do? For business leaders, creating shareholder value is paramount. However, that value – that profit – cannot be created without the input of people within the organization. In an age of rising executive pay, are workers’ demands really so outrageous?
The Economic Policy Institute reports that CEO pay has increased 1,300% since 1978 – indicating that average CEO pay has increased. 351 times Like an ordinary worker. (In 1965, the ratio was 15:1 and in 1989 it was 45:1). Meanwhile, Morgan Stanley reports that the S&P Index 20% up From the October 2022 low. Workers cite these statistics, and others, as evidence that it’s time to bring some fairness and sharing to various industries. Could more empathy help solve wage inequality, end strikes, and create greater shareholder value? Unnecessary. Because capitalism is not about equality or empathy.
„It seems impossible. Until it’s done.”
Empathy isn’t going to create new contracts or solve labor disputes—but it can help. Without empathy, we find ourselves where we are now: underestimating employees, engaging in disputes, and looking for ways to meet new demands. Executives need to realize, at least for now, that people still make a difference. And making a difference to people — in terms of pay and living standards — may seem impossible at first. That’s why Nelson Mandela’s words remind us that we reach the impossible every day: “It seems impossible. Until it ends.”
With adaptation and new realizations, new norms can be reached. A compromise can be made. Opportunities – even opportunities for greater empathy – can create greater benefit. In the salary discussion, understanding negotiation, market factors and the fundamentals of the business will always have an impact. As it stands now, systematic changes can only happen if you understand the system. Amidst these strikes and labor challenges, negotiators do well to remember the YAHOO strategy: You always have other options. An insight into human nature, including the ability to empathize, can help guide the conversation. That’s because it’s important to see new possibilities in any labor dispute — especially if you can empathize with everyone involved in the conversation.
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