sts a company bears, they are often examined for reduction. Companies will often try to reduce payroll costs without cutting employees, at least initially. Tactics which can be used include putting hiring freezes into place, halting wage increases and reducing or eliminating overtime. Prior to taking on these steps, companies may slow down paying their bills and stop purchasing at the same levels as before the economic downturn was encountered (Schwartz, November 5, 1990, p. 46).
Historically, job security in the United States has not been a significant factor in employment contracts. Unions came about to improve working conditions and pay rates in factories; little was done to overcome the problem of job security in these early days other than to protect workers when they were on strike. As the labor movement gained additional benefits for their members, there was still remarkably little attention paid to the issue of job security. What unions were able to accomplish were rules governing the issue of layoffs and reinstatement for their members. While factory workers, for example, could be laid off during slack times, they were called back when the company's sales resumed and there was new demand for the company's products, and thus renewed demand for employees. Preference was given to the laid off workers in filling these demands (Kertesz, September 21, 1987, p. 54). This policy not only benefited the employees, but also the employer, which was able to fill its need for workers with experienced personnel.
For most of the twentieth century, layoffs were considered a "blue-collar" problem; that is, most laid off workers were skilled and unskilled laborers working in the manufacturing sector who lost their jobs as the fortunes of their employer waxed and waned. The auto industry was particularly subject to layoffs as it encountered additional competition from Japanese automakers during the late 1970s and early 1980s. Thes...