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| Would you work for nothing? | |
| (about 1 hour later) | |
| British Airways has asked 30,000 of its staff if they would be prepared to work for nothing for up to a month to help the airline survive the global economic meltdown. How do you answer a question like that? | |
| British Airways is feeling the pinch. Fewer Brits are jetting off to exotic locales, business class bookings are down 13%, and last year the airline made a loss of £401m. | British Airways is feeling the pinch. Fewer Brits are jetting off to exotic locales, business class bookings are down 13%, and last year the airline made a loss of £401m. |
| Now it is asking for volunteers to work for nothing for between one and four weeks in order to prevent the company slipping even further into the financial mire. Its chief executive, Willie Walsh, has offered the scheme in the hope it might stop the need for compulsory redundancies. | |
| It is, perhaps, appealing to its employees' sense of greater good - that a few weeks doing the gardening, catching up on their reading, or whiling away the day in a cafe is their way of staving off trouble ahead. | It is, perhaps, appealing to its employees' sense of greater good - that a few weeks doing the gardening, catching up on their reading, or whiling away the day in a cafe is their way of staving off trouble ahead. |
| Loyalty or exploitation? | Loyalty or exploitation? |
| So what would make people work for nothing? If you're a lowly worker, paying off a mortgage and juggling household budgets, what's in it for you? | |
| Some people might think volunteering their time and effort would put them in their employer's good books - they make a sacrifice now, hoping that in better economic times they are rewarded for stepping up to the plate. | Some people might think volunteering their time and effort would put them in their employer's good books - they make a sacrifice now, hoping that in better economic times they are rewarded for stepping up to the plate. |
| But professor of macroeconomics at Durham University, Parantap Basu, says workers need to think carefully about agreeing to such a deal with their employers. | But professor of macroeconomics at Durham University, Parantap Basu, says workers need to think carefully about agreeing to such a deal with their employers. |
| WHAT TO CONSIDER Can you afford to work for nothing?Is your sacrifice likely to be rewarded?Does it make sense in the long-term?Does it improve your standing in the company?Could you find alternative work of a similar nature?Does the offer mean your job is not secure? | |
| "It's completely driven by incentive," Prof Basu says. "If you are a worker with a good outside option you will not do it, you will not want to lose money. | "It's completely driven by incentive," Prof Basu says. "If you are a worker with a good outside option you will not do it, you will not want to lose money. |
| "But if you quit the present job for an outside option, you have to ask yourself 'will the new job give me the same long-term security as the job at British Airways'?" | "But if you quit the present job for an outside option, you have to ask yourself 'will the new job give me the same long-term security as the job at British Airways'?" |
| Prof Basu says the onus is on both the employer and the worker to make such an agreement work. | Prof Basu says the onus is on both the employer and the worker to make such an agreement work. |
| "We need to look at it from the perspectives of both the worker and the employer. From the worker's perspective, working for nothing signals two conflicting signals to the company. | "We need to look at it from the perspectives of both the worker and the employer. From the worker's perspective, working for nothing signals two conflicting signals to the company. |
| "A short-sighted company may perceive this worker having no other outside option and thus in future this 'free' worker may be the first candidate to axe when a tougher time comes. | "A short-sighted company may perceive this worker having no other outside option and thus in future this 'free' worker may be the first candidate to axe when a tougher time comes. |
| "The far-sighted company may perceive that this 'free' worker has a long-term commitment to the company and thus will treat this worker with greater care and respect." | "The far-sighted company may perceive that this 'free' worker has a long-term commitment to the company and thus will treat this worker with greater care and respect." |
| Whether it is a good idea to work without pay, Prof Basu says, depends on the level of long-term commitment from both parties. "Commitment is a two-way street." | Whether it is a good idea to work without pay, Prof Basu says, depends on the level of long-term commitment from both parties. "Commitment is a two-way street." |
| Who benefits? | Who benefits? |
| Workers put in such a situation in a publicly-listed company, for instance, could ask why shareholders were not being asked to make a similar sacrifice - perhaps giving up a share of their return. | Workers put in such a situation in a publicly-listed company, for instance, could ask why shareholders were not being asked to make a similar sacrifice - perhaps giving up a share of their return. |
| They could also argue that if the company had previously been profitable - which BA was in the previous financial year to the tune of nearly £900m - that perhaps the company should be looking for other ways to tide themselves over in such difficult times. | They could also argue that if the company had previously been profitable - which BA was in the previous financial year to the tune of nearly £900m - that perhaps the company should be looking for other ways to tide themselves over in such difficult times. |
| Why work for free when the shareholders get the benefits? | Why work for free when the shareholders get the benefits? |
| In an industry with more casual employment - fast food for instance - working for nothing may not be in the best interests of the employee. Such companies have a high turnover of staff, and a worker is likely to find similar work easily without having to work for free. | |
| British Airways says the first scheme, which was unveiled to staff three or four weeks ago, asked for them to volunteer for working unpaid, working part-time or taking unpaid leave, for a minimum of a month. A spokeswoman said more than 1,000 people had already expressed an interest in taking part in the scheme (they have until 24 June to sign up). Another request has asked BA workers if they would make a similar sacrifice for a two-week period. | British Airways says the first scheme, which was unveiled to staff three or four weeks ago, asked for them to volunteer for working unpaid, working part-time or taking unpaid leave, for a minimum of a month. A spokeswoman said more than 1,000 people had already expressed an interest in taking part in the scheme (they have until 24 June to sign up). Another request has asked BA workers if they would make a similar sacrifice for a two-week period. |
| Having your employer come to you with an offer to work for free, some argue, should be a spur for you to dust off your CV and look for another job; a company confident in its ability to ride out a recession or period of economic turmoil should not be forced to ask its staff to work for free. The words "panic management" have been used by some to describe BA's actions. | Having your employer come to you with an offer to work for free, some argue, should be a spur for you to dust off your CV and look for another job; a company confident in its ability to ride out a recession or period of economic turmoil should not be forced to ask its staff to work for free. The words "panic management" have been used by some to describe BA's actions. |
| People might want to work because they care or because they want to do something important Sarah Smith, Bristol University | People might want to work because they care or because they want to do something important Sarah Smith, Bristol University |
| The Federation of Small Businesses spokesman says it is only large companies like BA that are in a position to propose such schemes. | The Federation of Small Businesses spokesman says it is only large companies like BA that are in a position to propose such schemes. |
| "It is all very well for someone on a high wage to advocate this as they can clearly afford it. A small businesses' key asset is its staff and employers are doing all they can to hold on to them." | "It is all very well for someone on a high wage to advocate this as they can clearly afford it. A small businesses' key asset is its staff and employers are doing all they can to hold on to them." |
| Sarah Smith, a senior research fellow at Bristol University, says: "Psychologists and sociologists have long held the idea of altruism and intrinsic motivation. | Sarah Smith, a senior research fellow at Bristol University, says: "Psychologists and sociologists have long held the idea of altruism and intrinsic motivation. |
| "There is now a growing economics literature on the importance of intrinsic motivation - in other words that people might want to work because they care or because they want to do something important not just because they are being paid to do something." | "There is now a growing economics literature on the importance of intrinsic motivation - in other words that people might want to work because they care or because they want to do something important not just because they are being paid to do something." |
| Ms Smith says in some cases we actually want to sacrifice our time and effort in order to fulfil a need to give something of ourselves- she cites social scientist Richard Titmuss' 1970 study into donating blood called Blood and Altruism. | Ms Smith says in some cases we actually want to sacrifice our time and effort in order to fulfil a need to give something of ourselves- she cites social scientist Richard Titmuss' 1970 study into donating blood called Blood and Altruism. |
| "Paying them [donors], he argued, would reduce supply because people want to give blood for free - they may want to signal their altruism - and not be paid for it, or it could lead to the wrong people supplying it." | "Paying them [donors], he argued, would reduce supply because people want to give blood for free - they may want to signal their altruism - and not be paid for it, or it could lead to the wrong people supplying it." |
| Ms Smith says: "I don't think that this is what the BA case is about. Isn't this a bit of belt-tightening in the short term in order to save the firm for the long run? In which case the managers are appealing to extrinsic motivations (keep the company afloat and secure employment in the longer-term). Whether the costs should fall on the workers is another matter " | Ms Smith says: "I don't think that this is what the BA case is about. Isn't this a bit of belt-tightening in the short term in order to save the firm for the long run? In which case the managers are appealing to extrinsic motivations (keep the company afloat and secure employment in the longer-term). Whether the costs should fall on the workers is another matter " |
| Have you worked for nothing or would you? Send us your comments using the form below. | |
| I often think it's very interesting that many big and generally secure companies like BA almost literally put the responsibility for the welfare of their shareholders and profits directly onto the shoulders of their 'shopfloor' workers. I don't see anywhere in the article or elsewhere in the news that those in charge of the company are putting their money where their mouths are and offering to give up a month's pay themselves... and they are the ones who are most likely to be able to cope without a months pay! The sad fact is that the company isn't interested in the welfare or the security of it's lowest paid workers. It's just concerned with maintaining growing profits so that the company as a whole keeps it's image and reputation.Heather, Willenhall | |
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