MONEY AND WORK

News from the Progressive Review, providing alternative news and comment for over four decades.

December 22, 2008

EMPLOYERS SEEKING ALTERNATIVES TO SLASHING WORKFORCE

Matt Richtel, NY Times - Even as layoffs are reaching historic levels, some employers have found an alternative to slashing their work force. They're nipping and tucking it instead. A growing number of employers, hoping to avoid or limit layoffs, are introducing four-day workweeks, unpaid vacations and voluntary or enforced furloughs, along with wage freezes, pension cuts and flexible work schedules. These employers are still cutting labor costs, but hanging onto the labor.

Companies taking nips and tucks to their work force say this economy plunged so quickly in October that they do not want to prune too much should it just as suddenly roar back. They also say they have been so careful about hiring and spending in recent years - particularly in the last 12 months when nearly everyone sensed the country was in a recession - that highly productive workers, not slackers, remain on the payroll.

At some companies, employees are supporting the indirect wage cuts - at least for now. The downturn hit so hard, with its toll felt so widely through hits on pensions and 401(k) retirement plans and with the future so murky, that employers and even some employees say it is better to accept minor cuts than risk more draconian steps.

0 Comments:

Post a Comment

<< Home