Competition works

Some of the labor experts observing the recent strikes of Bell Atlantic and U S West workers fail to fully consider the current nature of the telecom industry. Issues at the heart of these strikes have included the imposition by telcos of pay-for-performance, forced overtime and outsourcing of labor.

Labor experts view these new measures as the cultivation of "non-standard work arrangements" to cut operational costs. Some discount such moves, saying they ultimately will hurt productivity and service quality, as well as ongoing management/worker relations. They say carriers should instead focus on customer loyalty strategies in these tough competitive times.

These observations fail to recognize at least two things: First, there is a direct connection between overall organizational efficiency and the ability of carrier organizations to retain customers. You simply don't concentrate on one and ignore the other.

Second, in the rapidly developing competitive landscape, attaining organizational efficiency is a top priority for carriers, and it means changing everything about carrier organizations that have basically been static places to work for the last few decades.

Having a highly skilled work force is necessary, but not enough. In a competitive industry, the work force must be both highly skilled and highly motivated. One can be learned; the other must be instilled.

Competitive carriers must do what they have to do. Rewarding themselves and their personnel on performance is a good way to make sure as much energy as possible is being contributed to the competitive cause.

Carriers should also expect longer hours from their work forces in a competitive environment. This shouldn't inflict too much damage to employees' personal lives, and hard work should be amply rewarded, but in any case, occasional overtime should be expected.

In a competitive environment, outsourcing labor may also become necessary. Carriers will have to do whatever it takes to maintain network reliability and meet goals for service delivery.

The issues behind the recent strikes certainly threaten worker welfare and the economic fortunes of families. However, the competitive realities behind these issues threaten the very existence of the employing organizations. These realities represent an undeniable transition from old non-competitive ways to new methods that carriers cannot ignore.

And what we've seen is only the beginning of how competition will affect the way this industry works.