Why Is It Advantageous for a Modern Employer to Fire Employees Essay

Why Is It Advantageous for a Modern Employer to Fire Employees - Essay Example The article entitled "Risky business, but not for the boss", by Ross Gittins, describes the elements of risk, both from a business perspective and that of the average employee and local citizen. Three specific activities are mentioned in the article, with the emphasis on the contemporary tendency of modern business to shift risk-related expenses away from the company and onto the employee. These risks include the offering of superannuation to employees, inventory, and production, and full-time versus part-time workers. The article discusses "longevity risk" (Gittins, 2007), which entails a company's willingness to provide a contribution to retirement and pension accounts. Historically, companies contributed more, however, today employees are expected to make financial arrangements (outside of high company contributions) which will sustain them long-term. This reflects a changing attitude on behalf of today's large companies, which are focused on eliminating expenses associated with business operations and long-term employee compensation. The Marxist economic theory focuses on the growth of big business and its 'relentless drive for capital accumulation' (Kang, 2006). Under Marxist economics, free market capitalism is affected by the laborers who bring these companies increased growth and revenues. Shifting risk to the employees satisfies corporate profitability objectives, which could lead to more social and community improvements, however, long-term the impact on the political-economic landscape is immense. When these individuals reach retirement age, they will have fewer finances available, due to corporate risk-shifting practices, leading to decreases in consumption. In this instance, governmental intervention is required to ensure that these employees maintain a significant retirement income so as not to upset the balance of supply and demand which keeps the Australian economic system afloat.