WARNING - Lunatic Ranting and Raving below!!
I have to side with Microsoft on this one. I have been an independent software consultant since 1985. I formed my corporation in 1987 and have been an "employee", drawing a salary every month (just like if I worked for a big corporation), paying payroll taxes, witholding income taxes, etc. ever since. My corporation bills my clients for my services at a rate that is substantially more than what they (mostly corporations with their own large IS organizations) pay their own employees. My corporation provides me with medical, pension and other benefits. All in all, I think that I still come out far ahead.
Microsoft is, in effect, outsourcing a significant percentage of its workforce. The temp staffing firms are responsible for providing benefits (if any) to their employees and for paying the appropriate salaries, taxes, etc. What is missing from the press release is two very important points. First, the "payrolled" employees are paid at a higher rate than "real" Microsoft employees in recognition of the fact that they do not get Microsoft benefits. Second, the "payrolled" employees sued because they wanted to get into Microsoft's ESOP and be able to purchase Microsoft stock at a discount. They had no problem with trading "traditional" benefits (medical, pension) for higher salaries, they just felt that they were also entitled to participate in the windfall from the incredible appreciation in Microsoft's share price. I'm sorry, but you can't have it both ways.
The enforced 31-day leaves are a result of changes made to the tax code (the dreaded section 1706) in 1986, that removed the safe harbor for classifying computer consultants as independent contractors. If you have a problem with that, blame Anderson Consulting, EDS and the other large consulting organizations that pushed for this legislation to squeeze the independents.
These employees made a choice, they traded benefits for up front cash. There is no Constitutional right for an IS worker to work for Microsoft. If you do not like the terms of employment that are offered, don't take the job. If your employer tries to change the terms in midstream, say no thanks, take your severance and go elsewhere. It's just too bad that these poor workers (who probably earn more than 90% of the American workforce) are not "Microsoft Millionaires". Stop whining and take responsibility for your own life. IT workers have some of the most valuable and portable skill sets around today. Don't let Microsoft "payroll" you, find another job.
-Michael |
