Alexandra LeBoeuf

EMPR 200 – A Top L Brands Executive Complained of Harassment. Then She Was Locked Out.

L Brands is a billion-dollar retail company that owns Victoria’s Secret, Bath & Body Works, and Pink, all of which service a primarily female customer demographic and employs a 90 percent female workforce (Stewart, J. B., 2020). L Brands has made strides to reform their values, practices, and marketing tactics in response to negative backlash regarding their stance on diversity and inclusion. In 2018, CMO, Ed Razek, commented that plus size and transgender models should not be in the Victoria’s Secret Fashion Show (Low, E., 2019). The following article will address the findings that, although L Brands made regulatory adjustments to protect employees from harassment and retaliation, a cultural shift must be made to realize change.

Monica Mitro was the executive vice president of public relations for Victoria’s Secret, and her boss Ed Razek verbally abused her for years. Many complaints were filed against him, some of which include “trying to kiss models, [getting] them to sit on his lap, and making unwanted advances” (Stewart, J. B., 2020). Razek denied these allegations but left his position at the company last year. Ms. Mitro did not trust the human resources department, and instead chose to confide in a board member, David A. Kollat, who is also close friends with L Brands’ CEO, Leslie Wexner. The day after filing her complaint, Ms. Mitro was placed on paid administrative leave without reason, and never seen at work again by colleagues.

Although the details of what Mr. Kollat did with Ms. Mitro’s complaint is unknown, it is evident that he did not follow the appropriate procedure of informing the board committee, who would then complete an investigation. It is likely that the information was relayed to Mr. Wexner, who then took immediate action to dismiss Ms. Mitro. She proceeded to hire a team of lawyers and struck a deal with L Brands; however, she is unable to speak to the agreement or the situation in general.

The main causes of this issue are the lack of regulatory compliance and poor company culture. Although the “Me-Too” movement opened the conversation and spread awareness regarding sexual harassment in the workplace, corporate power can support power imbalances between top executives and employees. L Brands’ strategy of silencing Ms. Mitro demonstrates that they would rather use money to conceal the issue and preserve their reputation than address the fundamental problem head-on.

L Brands has already implemented tactics such as “anti-harassment policies, hotline reporting, and training” to address harassment, discrimination, and diversity issues (Stewart, J. B., 2020). However, fundamental issues will not be solved just by changing practices and policies. Sarah Beaulieu, the author of “Breaking the Silence Habit: A Practical Guide to Uncomfortable Conversations in the #MeToo Workplace”, explains that without skills to follow the rules put in place, the rules are pointless. She discusses the idea of “a culture of silence”, in which perpetrators of harassment feel that they can get away with their actions because no one will do anything about it (Gross, E. L., 2020). These insights are particularly relevant to the current situation for L Brands, and I believe a major culture shift, along with skill-development among upper management, is what will fix the underlying issue. Until these changes are implemented, Richard B. Cohen, an employment discrimination lawyer, suggests that employees should collect evidence of retaliation via email or text messages to protect themselves from wrongful termination (Gross, E. L., 2020).

Overall, evidence of social change, such as the “Me-Too” movement, signifies a positive shift towards transparency and support for employees in the workplace. However, it is important to recognize that fundamental cultural shifts and skill development will allow the company to realize change in the long-term.

Sources

Gross, E. L. (2020, February 5). What the Victoria’s Secret harassment allegations teach us about retaliation. Forbes.https://www.forbes.com/sites/elanagross/2020/02/05/what-the-victorias-secret-harassment-allegations-teach-us-about-retaliation/#38748eef2afb

Low, E. (2019, November 22). Why the Victoria’s Secret fashion show was canceled. Variety. https://variety.com/2019/tv/news/victorias-secret-fashion-show-canceled-why-1203413186/

Stewart, J. B. (2020, February 3). A top L Brands executive complained of harassment. Then she was locked out. The New York Times. https://www.nytimes.com/2020/02/03/business/victorias-secret-l-brands-leslie-wexner.html?searchResultPosition=4

EMPR200- American Workers Struggle Financially Despite Corporate Success

As corporate profits rise in the post-recession era of the economy, employees are suffering financially while companies experience economic success. The recent increase in strikes is linked to the decreasing share in national income for workers, which is a prevalent issue in the labour market. This post will examine the reasons behind this issue, the impact it has on the American workforce, and solutions that have been implemented to aid employees.

The reasons behind increasing strikes and the decreasing share of national income for workers are increased global competition, technological advancements and automation, the decreased power of unions, and changes in employee contracts. To begin, globalization has increased global competition due to the availability of cheaper labour and material costs in developing countries. As competitors outsource labour, companies that employ domestic workers are forced to lower wages in order to remain competitive (Manyika, J., et al., 2019). With regards to automation, as automated systems play a greater role in production processes, labourers will see a decline in their share of income. Companies are looking to invest capital in efficient technological processes, rather than increasing employee wages (Manyika, J., et al., 2019). Due to the declining role of unions in the US workforce, many workers do not have the support to fight for higher wages and increased benefits (Sheiber, N., 2019). Lastly, the increased use of noncompete clauses in employee contracts allows corporations to keep wages down, resulting in decreased share of national income for workers (Sheiber, N., 2019).

According to McKinsey & Company, the impacts of declining labour share in the USA are, slowing income growth, developing inequality, and decreasing consumer purchasing power (Manyika, J., et al., 2019). A specific example of these effects was the Arizona teachers strike. It was the largest strike in 2018 with 486,000 missed days of work (Campbell, A.F., 2019). The teachers in Arizona walked out because of the cuts to public school funding, coupled with the fact that they are among the lowest-paid teachers in the USA (Campbell, A.F., 2019). General Motors (GM) is an example of issues facing workers in the automotive industry. The company’s wage system caused immense dissatisfaction among workers. “Employees hired after 2007 make up to 45% less than the $31 an hour that veteran workers currently earn” (Sheiber, N., 2019). This issue is a result of pressure from global competitors to reduce labour costs, considering that GM’s sales in the US and China are slowing (Sheiber, N., 2019).

Although solutions are being implemented, many companies are not satisfying all of their employees’ demands. The Arizona teacher’s strike resulted in a “20 percent salary raises over three years, and some extra funding for public education” (Campbell, A.F., 2019). However, the teachers’ request to have the public education cuts paid for by wealthy Arizonans’ taxes was not met (Campbell, A.F., 2019). With regards to GM, although a deal was made with the United Automobile Workers union, many of GM’s employees are concerned that the company’s promises will not be upheld. Ultimately, they fear that temporary workers who are planned to transition to permanent workers will be fired before their temporary term is completed (Sheiber, N., 2019).

The bottom line is that the American workers feel that they are treated unequally and are not receiving an appropriate share of corporate profits. Although solutions are being implemented, more work must be done to support the American labour force as they strive for fair wages and benefits.

I look forward to hearing my peers’ opinions and feedback on this topic!

Sources:

Sheiber, N. (2019, October 19). In a strong economy, why are so many workers on strike? The New York Times. https://www.nytimes.com/2019/10/19/business/economy/workers-strike-economy.html?action=click&module=RelatedLinks&pgtype=Article

Manyika, J., Mischke, J., Bughin, J., Woetzel, J., Krishnan, M., & Cudre, S. (2019, May). A new look at the declining labor share of income in the United States. McKinsey & Company.https://www.mckinsey.com/featured-insights/employment-and-growth/a-new-look-at-the -declining-labor-share-of-income-in-the-united-states

Campbell, A. F. (2019, February 13). A record number of US workers went on strike in 2018. Vox. https://www.vox.com/policy-and-politics/2019/2/13/18223211/worker-teacher-strikes-2018-record

EMPR200-Introduction

My first job was as an administrative assistant for Baker Real Estate. In this position I noticed that the company had a very strong human resources department, which made my first employment experience much more enjoyable and eased my transition into work life. There was a significant age gap between the human resources team and administrators like myself, so the relationship between the departments was focused on mentorship and guidance. The next job I had was as a boutique associate and cashier for a clothing store called Aritzia. The company employed a very young workforce, and I experienced a much different relationship with the human resource department and my co-workers. All departments worked collaboratively together on a day-to-day basis rather than remotely from different offices. From these two experiences, I am interested in understanding the effects that differing nature of relationships between departments and co-workers impacts employee satisfaction, company culture, and the overall success of the organization.

The particular aspects of employment relations that I am interested in are human resource management and understanding human behaviour in organizations. With regards to human resource management I am particularly interested in learning more about talent acquisition. Specifically, how to identify the best hire for a position, tools to integrate new hires into the company culture, and understanding the fundamentals of interviewing from both the managerial and applicant perspectives. In terms of human behaviour in organizations, I am passionate about the implications of mental health awareness in the workplace, and how to use mental health as a tool to maximize workplace efficiency. Lastly, I am interested in learning more about maximizing relationships with subordinates and superiors to develop relationships that benefit not only an employee’s career, but also their mental health and job satisfaction.