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Marlen Gonzalez

South Texas College

ORGL-3332-KV2-Behavior/Ethic/Leadership II-CBE

Scott Sparrow

April 6th, 2023

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Work and Income Inequality

Recent developments in technology and globalization have led to changes in work and created new

opportunities for worker exploitation. Some examples are, the rise of the gig economy, which is characterized

by short-term, freelance work, has created new opportunities for workers to earn income, but also leaves them

vulnerable to exploitation. Gig workers are typically classified as independent contractors, which means they

are not entitled to traditional employment benefits such as minimum wage, overtime pay, or unemployment

benefits. Increased use of automation, automation, and artificial intelligence (AI) are increasingly being used to

replace human labor in many industries. While this can increase efficiency and productivity, it can also lead to

job loss and increased competition for remaining jobs, which can make workers more vulnerable to

exploitation. Outsourcing and offshoring, many companies have outsourced or offshored jobs to lower-wage

countries, which can result in exploitation of workers in those countries who may not have the same labor

protections as workers in the company’s home country. Weak labor protections, labor protections in some

countries may be weaker than in others, making workers more vulnerable to exploitation. This can be

exacerbated by global supply chains, which can make it difficult to monitor labor conditions in all parts of the

supply chain. Lack of collective bargaining power, workers who do not have the ability to collectively bargain

may be more vulnerable to exploitation, as they lack the power to negotiate better wages and working

conditions. These developments have highlighted the need for stronger labor protections, such as minimum

wage laws, worker safety regulations, and collective bargaining rights, to ensure that workers are not exploited

in the rapidly changing nature of work.

The Primary benefactors of worker exploitation are typically companies or individuals who are

seeking to maximize profits by minimizing labor costs. This usually includes employers or companies that

benefit from worker exploitation by paying lower wages, providing fewer benefits, and ignoring safety and

labor regulations, all of which can increase profits. Investors may also benefit from worker exploitation

through higher returns on investments in companies that engage in these practices. It’s important to note that

while some individuals and groups may benefit from worker exploitation in the short term, the long-term

effects can be damaging to both workers and society. Exploited workers may experience poor working

conditions, low wages, and lack of job security, which can lead to financial instability, health problems, and
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other negative consequences. Additionally, the exploitation of workers can perpetuate social and economic

inequalities, as certain groups of workers may be disproportionately affected by these practices.

Exploitation of workers can place significant burdens and stress on them in several ways such as,

financial instability this means that workers who are exploited may be paid low wages, have unstable or

unreliable employment, and lack access to benefits such as healthcare, paid time off, or retirement savings

plans. This financial instability can lead to stress, anxiety, and difficulties in meeting basic needs. Unsafe

working conditions, workers who are exploited may be forced to work in unsafe or unhealthy environments

without proper protective equipment, which can lead to physical and mental health problems. Lack of job

security exploited workers often lack job security and may be subject to arbitrary termination, which can cause

stress and uncertainty about their future. Long working hours exploited workers may be required to work long

hours without proper breaks or overtime pay, which can lead to physical and mental exhaustion. Limited

opportunities for advancement exploited workers may be denied opportunities for career advancement or

training, which can lead to frustration and dissatisfaction with their work. These stresses and burdens can have

significant negative impacts on workers’ physical and mental health, their personal relationships, and their

overall quality of life. It’s important for companies and policymakers to prioritize worker protections and

ensure that workers are treated fairly and with dignity in the workplace.

It is possible that these developments have widened the income gap between the industry’s

shareholders and stakeholders. Shareholders, who own stock in the company, are typically seeking to

maximize profits and returns on their investments. This can sometimes come at the expense of stakeholders,

who include workers, customers, and the wider community impacted by the company’s operations. For

example, the outsourcing of jobs to lower-wage countries may benefit shareholders by reducing labor costs and

increasing profits, but it may harm workers who lose their jobs and the local community impacted by the job

loss. Similarly, the use of automation to replace human labor may benefit shareholders by increasing

efficiency, but it may harm workers who lose their jobs and the wider community impacted by the job loss. In

general, the income gap between shareholders and stakeholders may widen when companies prioritize short-

term profits over long-term sustainability and fairness. However, it’s important to note that some companies

prioritize the well-being of all stakeholders, including workers, customers, and the environment, in their
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decision-making processes. These companies recognize that sustainable business practices that benefit all

stakeholders can lead to long-term success and profitability. It is possible that some workers in the industry

may not be fully aware that they are being exploited in certain ways, particularly if they are not given access to

information about labor laws and regulations, or if they are in precarious work situations with little bargaining

power. However, many workers in the industry are likely aware that they are being exploited in various ways,

particularly if they are experiencing low wages, poor working conditions, lack of benefits or job security, and

limited opportunities for career advancement. Furthermore, many workers in the industry are organizing and

advocating for better working conditions and greater protections. They may be engaging in collective

bargaining with their employers, joining labor unions, participating in protests or strikes, and advocating for

policy changes at the local or national level. Thes actions suggest that workers are aware of the exploitation

they are facing and are taking steps to address it. (Hurst, 2018).

It’s not uncommon for some employers to use tactics such as offering small incentives or benefits to

workers, emphasizing the potential for career advancement, or even using fear tactics to discourage workers

from speaking out or organizing. These tactics may be used to distract workers from the reality of their

situation or to discourage them from seeking better working conditions or greater protection. However, it’s

important to note that these tactics are not universal and do not apply to all employers or industries. Marx’s

argument in an ABC for an unequal world he stated that under capitalism surplus value accrues to the capitalist

and is thereby foundational to what exploitation is and how it works. Crucially, inequality deepens whenever

the difference between wages and the amount of value that workers produce increases. As such, deepening

inequality is hardwired into the dynamics of capitalist accumulation. (Nilson, 2020).

If given the chance to advocate for workers’ rights and closing the income inequality gap, I would do

some of the following: Increase the minimum wage, one way to help protect workers’ rights and close the

income gap is to advocate for an increase in the minimum wage. This will ensure that workers receive fair

compensation for their labor and help reduce income inequality. Improving working conditions and advocating

for better conditions such as safer work environments, more reasonable working hours, and opportunities for

professional development can help promote fair compensation for workers and reduce income inequality.

Support collective bargaining, collective bargaining is a powerful tool that can help workers secure better
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wages and benefits and negotiate for better working conditions. Advocating for the right to organize and

collectively bargain can help protect workers’ rights and promote fair compensation. Encourage pay

transparency, advocating for greater pay can help workers understand how their compensation compares to

their peers and help reduce income inequality. Promote diversity and inclusion, encouraging greater diversity

and inclusion in the workplace can help reduce income inequality by providing equal opportunities for all

workers, regardless of their background or identity.

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References

Hurst, A. (2018, December 31). Classical Sociological Theory and Foundations of American Sociology. Ch 4.

Nilson, Alf Gunvald. (2020, November 23) Marx on exploitation: An ABC for an unequal world.