1. Anti-discrimination laws still apply, even in at-will states in the USA, but all that means is that the employer has to state that they fired the employee for ANYTHING ELSE, even if it's actually for a discriminatory reason.
2. Being fired without cause means gives greater opportunity for employers to abuse their employees - and, considering the general principles of game theory, it WILL happen.
3. Notice vs. cause can be separate things, but many people nowadays don't have the ability to survive longer than a couple of weeks to a few months without a job, and being fired without any notice can literally ruin someone's life.
Again, this is only a personal view - I'm no economist, and I don't pretend to have all the answers. So, please take this with several grains of salt :)
A wrongful termination suit is not based solely on the employer's reason for termination. That would be silly. Business owners are advised to document infractions so when they fire someone, they have written evidence in case a suit is brought against them.
I do agree that it will shift more power to the employees and it might help them in certain situations. But if you make it more difficult to fire a person, a business takes on more risk and loses more money when they hire someone who isn't good. Businesses will become less willing to take on new employees.
... but many people nowadays don't have the ability to survive longer than a couple of weeks to a few months without a job, and being fired without any notice can literally ruin someone's life.
I don't find that a valid concern. If you don't have a cushion of at least 3 months (better, 6 months, ideally a year), then you're taking a big risk. You're living above or too close to your means.
Sure, there are exceptions. Not everyone is in complete control of their situation. But I've found that most people could be, if they really wanted to be. Instead they spend money on unnecessary stuff (often including families at or below the poverty line), or feel the need to "keep up with the Joneses". And sure, there's a whole psychology behind all this that makes it understandable, but the bottom line is that you're taking a huge risk with your financial health by behaving this way, and there will be strong consequences if you lose your job.
I'm absolutely not in favor of stronger protections. I want to be able to -- by default -- quit on the spot. I've never done it, and hope I never have to, but I want the option, as the default. If a company wants to fire me for reasons relating to my competency, then bad on me. If I'm not creating enough value for the company, because they want or need to go in a different business direction, then I don't want to be part of that organization, fulfilling a useless role. (And also bad on me for not getting myself into a position where I'm creating enough value.) If a company wants to fire me for a political or discriminatory reason, then I really don't want to work for them anyway. Life's too short for that crap. (Not saying that we shouldn't have protected classes and try to police discrimination, though.)
Admittedly, I'm at the "high end" as far as the workforce goes, as I'm sure many others here on HN are. My skills are in high demand, I'm good at what I do, and I'm able to live happily well below my means. So it's likely true that I don't "know how the other half lives". And frankly, I don't want first-hand experience. I want to keep my skills sharp and make myself valuable whenever and wherever I can. Maybe someday I'll find myself in a bad situation, but I have to believe that I'll have the skills and work ethic to keep myself on my feet.
Those are certainly valid concerns, though that does bring in a lot of grey area definitions for valid reasons to fire someone that are hard to define :(
Because the labor market isn't perfectly liquid. Let's say a manager randomly decides that he's firing all the blond haired people in his company. Those people will be harmed. Even if perfectly competent at their jobs, they very well may not find another job right away. It may even be the case that an equivalent job doesn't exist nearby and the employee is SOL if forced to quit without planning. Furthermore, once the company fires all the blonde haired people and this becomes known, there will be cases where competing jobs can now offer less pay because it knows a competitor is no longer willing to hire blond haired people.
Now, you might say "the company that fires all the blond haired people will eventually die at the hands of a company that gains an advantage by accepting blond haired people." True, but it's a slow bleed, and that certainly doesn't help the blond haired people who were arbitrarily fired.
In case you're skeptical, all this and more can be observed in the case of US black people up until the civil rights era.
