Last week we read interesting news in the newspapers which we are unfamiliar to see in the United States. Many people working in Hyatt Hotels Corp. had been fired and Governor of Massachusetts stated if the company didn’t rehire those people he would direct Massachusetts employees to boycott them.
Both fired employees and executives of Hyatt Hotels are giving statements regarding reasons of that firing. It might not be right to say something about this problem without knowing the essence of issue but we can say something about the social state and the balance between being social state and having capitalist system.
If we look at economic history briefly, as you know very famous economical idea was said by Adam Smith, the father of classical economy, in 18th century. “laissez faire” and “invisible hand” are the keystones of his idea. It means all economical factors be at optimum level for every actor in economical system without government intervention. It sounds impossible to survive this kind of system and during the history people have witnessed to economic crises due to lack of strong regulations.
In economic fluctuation periods most of the economic actors and especially private companies are affected from unstable financial atmosphere. They have to take measures like reducing investment, labor force and costs to protect themselves from uncertain economic environment. However, some private companies which are not as much affected as the others are abuse their rights. In general meaning, I have not seen a boss or executive of a big company selling their luxury car or yacht. On the other hand whenever you ask them how their economic situation is, they always come to point of economic bankruptcy. They think firstly to reduce the cost of labor force instead of doing alternatives. We as an individual cannot blame those people for their attitude but government has to do something for the people suffering from economical crises most. Governments have to have such a role to support lowest wages people in society.
If we specifically come to politics of Hyatt Hotels Chain, the temporary solutions proposed by the general manager of that company are not seemed credible. Moreover, if the fired people did not say lie, the dismissal policy of Company was impolite. Any competent authority in that company may have decided to talk to issue with people whom are thought to be fired. Hyatt Hotels Chain may think economic crises as an opportunity to reduce the cost of working people by cutting wages.
Regarding call for boycott, it might be thought that Governor of Massachusetts is doing political maneuvering for next election. This is another matter of this undesirable event. We don’t know his intention in this event but reacting to any unfair attitude should be supported. Governor should find a conciliatory solution for fired housekeepers and Hyatt Hotels Corp.
Adam Smith’s theory is valid under applicable excellent market regulations. Without regulations and control mechanism only the jungle rules are valid…
Source:
http://www.boston.com/business/articles/2009/09/24/governor_threatens_a_hyatt_boycott/?page=full
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