[Marxism] From $70k per year to $12 per hour

[Louis Proyect]

NY Times, March 1, 2009
Forced From Executive Pay to Hourly Wage
By MICHAEL LUO

TEMPE, Ariz. — Mark Cooper started his work day on a recent morning 
cleaning the door handles of an office building with a rag, vigorously 
shaking out a rug at a back entrance and pushing a dust mop down a long 
hallway.

Nine months ago he lost his job as the security manager for the western 
United States for a Fortune 500 company, overseeing a budget of $1.2 
million and earning about $70,000 a year. Now he is grateful for the $12 
an hour he makes in what is known in unemployment circles as a “survival 
job” at a friend’s janitorial services company. But that does not make 
the work any easier.

“You’re fighting despair, discouragement, depression every day,” Mr. 
Cooper said.

Working five days a week, 9 a.m. to 6 p.m., Mr. Cooper is not counted by 
traditional measures as among the recession’s casualties at this point. 
But his tumble down the economic ladder is among the more disquieting 
and often hidden aspects of the downturn.

It is not clear how many professionals like Mr. Cooper have taken on 
these types of lower-paying jobs, which are themselves in short supply. 
Many are doing their best to hold out as long as possible on 
unemployment benefits and savings while still looking for work in their 
fields.

About 1.7 million people, however, were working part-time in January 
because they could not find full-time work, a 40 percent jump from 
December 2007, when the recession began, according to the Bureau of 
Labor Statistics.

And experts agree that as the economic downturn continues and as more 
people begin to exhaust their jobless benefits and other options, the 
situation Mr. Cooper is in will inevitably become more common.

Interviews with more than two dozen laid-off professionals across the 
country, including architects, former sales managers and executives who 
have taken on lower-paying, stop-gap jobs to help make ends meet, found 
that they were working for places like U.P.S., a Verizon Wireless call 
center and a liquor store. For many of the workers, the psychological 
adjustment was just as difficult as the financial one, with their sense 
of identity and self-worth upended.

“It has been like peeling back the layers of a bad onion,” said Ame 
Arlt, 53, who recently accepted a position as a customer-service 
representative at an online insurance-leads referral service in 
Franklin, Tenn., after 20 years of working in executive jobs. “With 
every layer you peel back, you discover something else about yourself. 
You have to make an adjustment.”

Some people had exhausted their jobless benefits, or were ineligible; 
others said it was impossible for them to live on their unemployment 
checks alone, or said it was a matter of pride, or sanity, that drove 
them to find a job, any job.

In just one illustration of the demand for low-wage work, a spokesman 
for U.P.S. said the company saw the number of applicants this last 
holiday season for jobs sorting and delivering packages almost triple to 
1.4 million from the 500,000 it normally receives.

When Ms. Arlt applied for the job, she sent in a stripped-down résumé 
that hid her 20-year career at national media companies, during which 
she ascended to vice president of brand development at the On Command 
Video Corporation and was making $165,000 a year. She decided in 2001 to 
start her own business, opening an equestrian store and then founding a 
magazine devoted to the sport. But with the economy slowing, she was 
forced to shutter both businesses by June of last year.

After applying for more than 100 jobs, mostly director-level and above 
in marketing and branding, and getting just two interviews, Ms. Arlt 
said she realized last fall that she had to do something to “close the 
monthly financial hemorrhage.”

Her new job at HometownQuotes pays $10 to $15 an hour and has mostly 
entailed data entry. But even though she has parted ways with some 
friends because she is no longer in their social stratum, Ms. Arlt said 
she was glad she was no longer sitting at home, “thinking, ‘Who have I 
not heard from today?’ ”

Her new paycheck covers her mortgage but not her other living expenses. 
Recently, she cashed out what was left of her retirement portfolio, 
about $17,000.

“It has been the hardest thing in my life,” she said. “It has been 
harder than my divorce from my husband. It has really been even worse 
than the death of my mother.”

Nearly all of those interviewed said they considered their situations 
temporary and planned to resume their careers where they left off once 
the economy improves. But there are people like John Eller, 51, of Lee’s 
Summit, Mo., who offer a glimpse of how difficult it can be to bounce back.

Mr. Eller had been a senior director at Sprint, earning as much as 
$150,000 a year and overseeing 7,000 employees at 13 call centers, 
before being laid off in 2002 amid the economic contraction after the 
Sept. 11 terrorist attacks.

A year later, he found another job, at roughly half the pay, managing a 
call center in New Jersey. After he lost that job two years later in a 
downsizing, Mr. Eller found himself out of work for another year before 
landing a contract position running two call centers in Kansas and 
Illinois, earning close to six figures.

But after that ended a year later, he was unable to find work for 
several months. In July 2007, he took what he thought would be a 
temporary job for $10 an hour as a baker in a grocery store. He was laid 
off again last October.

Mr. Eller quickly landed a new survival job, working as a supervisor on 
the overnight shift for a contractor processing immigration applications 
for the federal government at a salary of about $34,000 a year. But with 
eight children and a wife to support, Mr. Eller said he was still “below 
poverty level.” The family has not been able to make mortgage payments 
in five months and has been on the brink of foreclosure.

“I’m still scratching and clawing and trying to work my way back,” he said.

In Mr. Cooper’s case, relying on unemployment checks was never a serious 
consideration. The maximum benefit that jobless people can collect in 
Arizona is $240 a week, among the lowest in the country — and much less 
than is required to cover the mortgage on the comfortable four-bedroom 
home in Glendale that he and his wife, Maggie Macias-Cooper, share.

Mrs. Macias-Cooper, who works as a personal trainer in a gym built in 
what used to be the couple’s three-car garage, has seen her client base 
shrink to 10 from about 50 over the last year.

In addition to giving Mr. Cooper a job as a janitor, his friend agreed 
to pay for the couple’s benefits through Cobra. Maintaining health care 
coverage was paramount for the family because Mrs. Macias-Cooper 
recently had breast cancer.

Some unemployed professionals said they decided not to seek even 
part-time work because it might interfere with their job searches. But 
Mr. Cooper rises every day at 4 a.m. and, after a time of prayer, 
devotes two hours to his job hunt on the computer. He prints out a 
detailed call list of prospective employers to take with him, squeezing 
in phone conversations during breaks throughout the day from his pickup 
truck, which he calls his “office.”

“There were times I broke down,” Mr. Cooper said. “I broke down 
thinking, ‘This is what I’ve become.’ ”

But Mrs. Macias-Cooper, who admitted that she was initially embarrassed 
about her husband’s new job, says she is now grateful.

“There is no shame,” said Mrs. Macias-Cooper, who grew teary during an 
interview at their home. “I am very proud of my husband that he will go 
to any lengths, do whatever it takes, to keep his family afloat, if it 
means mopping floors, cleaning urinals.”