Private Enterprise and Social Media

In one of The Wall Street Journal‘s frequent debate articles, this time about whether businesses should allow employees to use social media at work, a couple of comments made by the pro-use debater jumped out at me.

When I first began helping companies use Twitter and Facebook more than a decade ago, every organization started with this question: how can we use social media without compromising our security and privacy obligations?

The answer to this question seems straightforward, yet the debater equivocated.  While a business needs access to social media for its advertising and other communications with current and future customers, the plain fact, made all the more plain with recently revealed misbehaviors of Facebook and Twitter, is that businesses cannot use social media without severe risk of compromising their security and privacy obligations.  The business models of social media like Twitter and Facebook depend on exploiting exactly those privacy data, and those enterprises—and not only Twitter and Facebook—have shown themselves incapable of maintaining security regarding those data.

And this one:

The same kind of risk/benefit assessment applies to the use of personal social-media accounts by employees.

While it is true that companies can reduce risk if they ban personal social-media use during business hours, discourage employees from making any online references to their work and maybe even ban personal smartphones from the workplace, that is a terrible idea for the same reason companies now embrace social-media marketing: you can’t be a successful company in the social-media era unless you accept some level of social media-related risk.

This is just flat wrong.  In the first place, there’s no reason at all an employee should be conducting personal business on company time and company equipment.  Normal breaks and lunch hours answer the first part, but it’s still company equipment.

More importantly, the claim of no success without employees on social media is wrong.  I worked for one of the most successful defense contractors in the world in our niche of the industry.  Along with hundreds of fellow employees I worked behind a cipher lock.  No radios (and so no cell phone), no personal tablets or laptops or the like, we were air-gapped from the Internet.  We survived the isolation.  In fact, we thrived in that environment, and so did our company.  Companies that don’t do classified work still do proprietary work.  There’s no more need for those employees to access the Internet than there was for us.  They’ll thrive, too.  Saying a business just must surrender and accept social media-related risk is nothing but a quitter’s attitude.

And: any company is better off operating short-handed than operating with an employee who will put the company at risk with his own security errors, especially if those errors flow from doing personal business on company time or equipment.

Most of What They Wanted

Recall that, in a breathtaking attack on Italy’s democracy, the nation’s President Sergio Mattarella vetoed formation of the coalition government that hard-Left 5Star Movement and hard-Right League, as the two winners of Italy’s elections, had formed because Mattarella didn’t like the coalition’s choice for Economics Minister, Paolo Savona.  Mattarella held Savona personally unacceptable over the latter’s disdain for the euro and for the European Union.

5Star and League have formed a new coalition, and it seems that Mattarella has approved the new coalition.  The coalition’s Econ Minister will be Giovanni Tria, an economist from the Tor Vergata University.  Tria has “criticized the eurozone, saying it had failed to achieve the convergence of the different economies;” he doesn’t seem that far from Savona’s position or from the coalition’s, just perhaps a bit more politic in expressing it.

Also, far from being banished to the sticks, Savona also will get a position in the new government: Minister for European Affairs.  The position has no formal portfolio, but he’ll still be in a position of influence and in the venue for which he was found ill-suited by Matterella.

Maybe Mattarella is figuring out that he’s President of Italy, not a mucky-muck of the EU.

An Argument

…for leaving the European Union altogether.

By openly invoking the role of investors, financial markets and the defense of the eurozone in his speech on Sunday, the president [Italian President Sergio Mattarella] lends credence to the populist argument that Italy has become the battleground in a war between the international establishment and national democracies. Even if populists win the elections, their supporters believe, they will never be allowed to hold power for fear that they would oppose the dogma that dominates the eurozone.

That speech was his rationalization for his decision to block the coalition of the two parties who one the last national elections from forming a government.  With that speech, he demonstrated the fact of the Italian peoples’ belief.

And this from European Commissioner for Budget and Human Resources Günther Oettinger:

…markets will teach Italians how to vote….

And German Chancellor Angela Merkel’s

comparison between Italy and Greece is an unveiled threat: Italians had better toe the line, or they will not be spared what the Greeks have been going through.

The Wall Street Journal‘s editors have this one right.

[W]hat is happening in Rome is not only about the future of the euro. It has also to do with the state of democracy, in Italy and in Europe. Discussing and questioning the governance of the eurozone, as the Italian right-left populist coalition wished to do, should not be a taboo in mature democracies.

But national sovereignty be damned, and to hell with democracy and what petty voters want.  That’s the elitist EU attitude.  The worthies of EU governance Know Better.

This is what the Italian people need to think very seriously about in the coming national elections.

Europe’s Italian Crisis

Europe is a-roil over Italy’s inability to form a government at any time since the nation’s elections some months ago.  And so is the old guard in Italy.

Italy’s woes rippled across the eurozone, driven by investor worries that an exit by the bloc’s third-largest economy could force others out.

Bank of Italy Governor Ignazio Visco said this with a straight face:

We must never forget that we are only ever a few short steps away from the very serious risk of losing the irreplaceable asset of trust[.]

They’re risking losing that trust, anyway, on the political front—from which flows all economic trust.  The Italian Old Guard is in the way here.

Italian President Sergio Mattarella blocked the formation of a euroskeptic coalition government formed of the antiestablishment 5 Star Movement and the League parties, raising the prospect of new elections.

He perpetrated the decidedly anti-democratic move of refusing to allow a coalition of the two parties who won the election to form a government because he personally didn’t like their finance minister nominee.  I would have thought Italy would have had done with fascism.  And so, sub rosa, would many in Europe, it seems.

And there’s this, based in no small part on those erstwhile coalition parties’ shared lack of enthusiasm for eurozone membership:

Italy hurtled toward a political crisis that is reigniting debate over Europe’s future, including whether the eurozone’s third-largest economy should remain in the currency union.

They’re worried that an Italian exit—if it actually were to happen—would spell the end of the currency union altogether.

Which brings me back to that matter of trust.  Having blocked the formation of a government, Matarella has virtually guaranteed new elections soon—there are no other possible combinations of Italian parties capable of forming a governing coalition.  And those new elections, given who won the last round, will surely be less an election of a new government and more a national referendum on whether Italy should remain in the eurozone.

Of course, Italy should not; they’re a terrible match for that currency union.  Italy, along with Portugal, Greece, and Spain—the original PIGS—should form their own currency union.  Those four nations’ philosophies concerning the purpose of money and of government’s role in society are much closer to each other’s than they are to the rest of Europe’s.

Out of Touch?

President Donald Trump signed three Executive Orders impacting public service unions.  One of interest to me is this one.

The third restricts how much on-the-job time federal employees can spend on labor-union duties.

Naturally, the unions management teams are in an uproar over the requirement to have their members spend their work time…working.

Time an employee spends on union activities is time not spent on the work for which the employee was hired.  Union activity work is an additional duty requested by the union; it needs to be done entirely on the employee’s own time.  This restriction is a good start, but the union task time needs to be eliminated altogether from the employee’s work time.  The Federal government—all employers, come to that—hire individual workers, they don’t hire unions.  Unions aren’t temp agencies that provide workers.

Aside from that, this is just a variation on featherbedding.  Time committed to union activities during an eight-hour work day often runs to three hours.  If the work needed can be done in five hours, rather than eight, by the current subset of employees who are committed to union tasks as well as employer work, this suggests that the work required, if done exclusively, can be done with as much as 37% fewer such (union) employees.

Is public service union management out of touch?  No, just privileged.