Companies find spreading pain preferable to cutting jobs

Giving workers the boot isn’t the only way businesses are trying to reduce costs these days. Broad-based pay cuts, long frowned upon, are being imposed by a growing number of companies big and small.

It is a risky strategy that experts say can sow discord in the workplace. But some employers say they prefer cost-cutting that preserves as many jobs as possible, even if it means more workers will be affected.

Read it all.

Posted in * Economics, Politics, Economy, Labor/Labor Unions/Labor Market, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--

5 comments on “Companies find spreading pain preferable to cutting jobs

  1. Cennydd says:

    Those “broad-based pay cuts” should start at the top, with executive salaries and perks being cut in half. Then maybe their lowest-paid employees would feel better about the gross pay inequities between themselves and their bosses.

  2. Charles says:

    #1 – sounds like socialism to me (this coming from a self-described Christian socialist).

  3. Jeffersonian says:

    Socialism is compulsion, this is voluntary. As alike as straw and strawberries.

  4. Cennydd says:

    I call it “unfair pay advantage,” although some would say it’s pay commensurate with their worth to their employers. What are the wage earners worth to them?

  5. Sick & Tired of Nuance says:

    If the companies are doing so very poorly, then I would suggest that the executives pay is [b][i]not[/b][/i] commensurate with their worth to the company or to the share holders. Isn’t that the very issue that makes so many of us hot under the collar? The executives of companies that are going bankrupt are still being rewarded handsomely with multi-million dollar bonuses while the companies are filing Chapter 11. We share holders and the workers are left holding the bag. The boards of directors are failing in their fiduciary responsibilities to the shareholders when they reward executives for failure.