
          The Climate for Workers in the U.S.:  Summary of a Study by the
Southern Labor Institute. A Special Project of the Southern Regional
Council
          By Marshall, RayRay Marshall
          Vol. 8, No. 4, 1986, pp. 1-2
          
          The challenge facing the South is to create jobs with the income
and benefits needed to bring the region's workers above the poverty
level - not just new jobs, but jobs that will significantly improve
the standard of living for people who work full-time, year-round.
          "THE 'BUSINESS climate' and 'ideal places to live' are regularly
assessed, but there have rarely been indexes of good places to
work. Indeed, the criteria used by most business climate reports
assume that low wages, limited unemployment compensation and worker
protection, and weak unions, are good 

for business. This is a strange
assumption for people who also profess to believe that people are our
most important asset.  The Climate for Workers report
demonstrates the error in this traditional assumption.
          "To attract business by maintaining and encouraging low wages and
weak worker protection was always shortsighted, but in an
internationalized information world it is ludicrous.  American
companies cannot compete in the international arena on the basis of
low wages.  Workers in many developing countries earn less than
one-fifth as much as their American counterparts.  Competitiveness
therefore requires greater attention to productivity, technological
innovation, and world class management systems, and these factors are
not likely to be highly correlated with low wages and weak worker
protections.  However, international competitiveness and high and
rising standards of living are likely to be highly correlated with a
high quality workforce and strong worker development programs.
The Climate for Workers is therefore a good indicator
of those places that are likely to have long-run development
potential.  Fortunately, far-sighted leader in these states realize
the connection between economic and human resource development and
have made strong efforts to improve their education systems.  These
leaders recognize the futility of the all-too-frequent strategy of
attempting to compete by depressing wages.  Attention must be focused
on other aspects of human resource development, that also are
important in improving workers' welfare and therefore the quality of
life in any state.
          "This report puts job growth in the Southeast into proper
perspective and evaluates the overall benefits of work.  The climate
for workers in the sunny South is rather chilly.  Those who believe
that 'the Southern economy no longer exists' or that 'the South has
thrown off its history,' should consider the findings of The
Climate for Workers.
          "As with any new indexing undertaking, The Climate for
Workers has technical weaknesses.  However, its thrust is
sound and it should initiate discussion to improve technical quality
in future reports."
          
            Dr. Ray Marshall, former U. S. Secretary of Labor, holds
the Audre and Bernard Rapoport Chair in Economics and Public Affairs
at the LBJ School of Public Affairs, University of Texas at Austin; is
Board Chairman of the Southern Labor Institute; and Vice President of
the Southern_Regional_Council.
          
        
