Financial Focus: Will unionization come to home-based self-employed workers?

In the 1980s, the world was introduced to the word ” entrepreneurship.” In simple terms, it is self-employment.

By the 1990s, many entered the world of entrepreneurship, believing that self employment would be better than working for corporate America.

Before the COVID pandemic, it was estimated that 13 percent of businesses were comprised of the self employed.

Now that COVID will be a part of our life for a long, long time, there is a debate happening in corporate America that could shake our new world and your job dramatically

Will white-collar workers have union benefits and regular pay increases — or will they be reclassified as “independent contractors”?

Many businesses, now realizing that many parts of theiroperations can be run from home are considering transferring parts of their office structure into a ” work-from-home ” environment.

So , if Corporate America gives you a call to talk to you about a new title, it will not be a promotion. It will not come with a pay increase or maybe even the same pay at all. It may not even come with union benefits or an employee benefit program, like health insurance or a 401k program.

This change may not be be voluntary. The ranks of the self-employed are expected to go up — from 13 percent currently to as high as 25 percent, in the future.

Many workers don’t realize that employee benefit packages cost businesses as much as 30 percent of salary costs. With this gone, businesses can very easily decrease or increase your pay.

But do you think they are going to give you the difference? Not in the current state of the economy we are in today. Not with over 1 million Amercans each week newly applying for unemployment insurance.

The year 2020 will be remembered for several things. For those people in Corporate America, it is the legitimate threat of job restructuring: job titles, salaries and unionization. At-home workers don’t need a union. Do they?

So what can a white-collar worker do to prevent this? Nothing really. After all, it won’t be your choice. Unless you get ahead of the curve and negotiate now!

Professor Anthony Rivieccio, MBA PFA, is the founder and CEO of The Financial Advisors Group, celebrating its 24th year as a fee-only financial planning firm specializing in solving one’s financial problems. Mr.  Rivieccio is an Adjunct Professor of Business, Finance & Accounting at the City University of New York and Monroe College. You can reach Anthony at 347.575.5045.

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