I have a number of friends in the tech industry who have been contracters for years. They work in major corperations like Microsoft, IBM, and HP. These are highly skilled and technical jobs. Now as a vendor-contractor they get minimal benifits. they can and have been laid off within a days notice and some havent recieved a raise of any kind for years even though they continually get great reviews by the host company.
The reason why they do not enjoy the benfiits of employment from these major corperations is because publically traded companies do not have to report the mass layoffs of contractors as they are not technically company employees. This enables these companies to artificially inflate thier stock prices as the SEC does not require the reporting of such mass layoffs of contracted employees.
It seems that were it not for the market, these contractors would be “hired” and employed by these companies gaining the benifits and opportunities actual employee of these companies enjoy: Opportunity for advancement, COLA raises, company benifits etc. So you have legions of vital employes at the mercy of the market. because the company they help make successful will only hire certain specialized employees which are harder to let go as it adversly effects the companies market value. the contracter is always one day away from the unemployment line.
So is this market loophole a help or a henderence to employment in these highly technical fields? Were it not for these reporting loopholes would these employees have a higher level of job security and opportunity as actual employees rather then temp workers?
It is a fact that these companies pay more to the contract agencies then they would a actual employee to protect their market stock value. So because of the market such workes are a day away from the breadline.