Tuesday May 25 12:45 AM ET

Study: Many California Workers Miss Out

SAN FRANCISCO (Reuters) - California's high-tech success has helped drive
the long U.S. economic boom, but workers
inside the state have often fared worse than those in other parts of the
country, a new study shows.

Californians experience ``a higher level of job insecurity'' than their
counterparts elsewhere, said the report by Working
Partnerships USA and the Economic Policy Institute to be presented Tuesday
in Sacramento as part of a labor-backed effort
to put worker issues on the state's legislative agenda.

The much-touted ``new economy'' has led to a general expansion in the
state's business and exports, the report said, but it has
also led to ``insecurity, dislocation and displacement'' for many in the
state.

The largest category of new jobs ``has not been software engineers but
employees of temporary help agencies.''

The state with the largest economy, and the largest population, California
is also a leader in job changes, time spent on
unemployment, and a lack of opportunities for older workers, it added.
Workers in the state ``are less likely to have secure or
comprehensive health care, pensions or other benefits'' than those in other
parts of the country.

The ``virtual corporation''-style of management favored by high-tech
companies tends to mean that workers are hired on a
''contingent, contractual basis'' instead of getting long-term employment
commitments, the study said.

That relationship ``denies them a share in the success of the larger, core
business.'' The continual upheaval in the job market
``affects not only less educated workers but even those with advanced
degrees.''

The study said the state should favor legislation that boosts workers'
salaries and benefits, expands educational opportunities
and provides a stronger safety net for workers who lose their jobs.

The labor unions are optimistic that more of their policy initiatives will
be backed by Democratic Governor Gray Davis, whose
administration followed Republican Pete Wilson. The unions have had a hard
time having any impact on the state's high-tech
industry, where only 2 percent of workers are in a collective bargaining
unit. Unions have also lost out in the state because of
major cutbacks in the more heavily unionized aerospace and defense sectors.

The state accounts for more than 25 percent of the country's computer
industry jobs.

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