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How much of a pay cut would you take to avoid layoffs?
Posted by: TLB
Date: January 02, 2009 07:39AM
Poll
44 votes were received.
All visitors can vote.
Are you willing to take a pay cut to save jobs?




Or would you? Management is floating an idea of an across the board paycut in order to avoid layoffs. Initial indications are that folks are willing to just take their chances rather than discussing a reduction. I work with our accounts so I know the problems are real, but I'm stuck on the fence--I don't want to see anyone let go in this employment environment, but my "cushion" (thank God I have one) is rapidly shrinking.
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Re: How much of a pay cut would you take to avoid layoffs?
Posted by: Grateful11
Date: January 02, 2009 08:24AM
Most places that start about layoffs end up doing it regardless
Of what concessions you make. Good luck and hopefully
Things will turn around.



Grateful11
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Re: How much of a pay cut would you take to avoid layoffs?
Posted by: Doc
Date: January 02, 2009 08:30AM
Yeah.

By the time you're asked to take a pay-cut, layoffs are inevitable... You're just saving your employer a few extra bucks and losing that much savings before you're let go.

...So no. No pay cuts.
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Re: How much of a pay cut would you take to avoid layoffs?
Posted by: bik
Date: January 02, 2009 08:31AM
Quote
Grateful11
Most places that start about layoffs end up doing it regardless
Of what concessions you make. Good luck and hopefully
Things will turn around.

I agree. Low morale, low productivity... It becomes a self-fulfilling prophecy. If they are asking everyone across the board to take a pay cut, there is big trouble ahead. Even if the pay cut happens, that will create other problems while reducing costs slightly.
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Re: How much of a pay cut would you take to avoid layoffs?
Posted by: kurtzie
Date: January 02, 2009 09:15AM
Depending on the industry, I think it would be better (for the worker) to reduce your hours, say from 40 to 32. This assumes that your hourly and not salary. Especially if you can take friday or monday off and find sometype of part time weekend gig. Then when things get better it is easier to get the 8 hours back (because these is more work) then to get your paycut back.

Steve
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Re: How much of a pay cut would you take to avoid layoffs?
Posted by: mrbigstuff
Date: January 02, 2009 09:18AM
is a reduction in total hours possible? switch to a four day workweek for everyone involved?
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Re: How much of a pay cut would you take to avoid layoffs?
Posted by: blooz
Date: January 02, 2009 09:48AM
Reduction in hours over pay cut, definitely.

Also, I believe, tho i may be wrong, unemployment benefits are based on your salary for a period of time, like the last year before your unemployment. So if you worked with a pay cut for a significant length of time you'd hurt your unemployment benefits as well.



And we should consider every day lost on which we have not danced at least once.
—Friedrich Nietzsche
Western Massachusetts
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Re: How much of a pay cut would you take to avoid layoffs?
Posted by: decay
Date: January 02, 2009 10:06AM
i took a reduction in hours/pay cut recently. sucks, but beats not having a job. went from 40 to 35 hours / week, with corresponding drop in wages.
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Re: How much of a pay cut would you take to avoid layoffs?
Posted by: dmann
Date: January 02, 2009 10:36AM
blooz- you are right in that unemployment benefits are tied to your pay, but there is a cap (at least in IL.) So if you are making a nice living and still make a healthy amount after the cut, your benefits might not change.

DM
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Re: How much of a pay cut would you take to avoid layoffs?
Posted by: kj4btkljv
Date: January 02, 2009 10:41AM
None. I'm already underpaid as it is.

How about if upper management and owners take the cut. That's usually where the fat is anyway.

Gotta get back to work now. Wee.........

Jeff
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Re: How much of a pay cut would you take to avoid layoffs?
Posted by: Paul F.
Date: January 02, 2009 11:17AM
The current boss at my work is a stand up guy....
If I get his word that a return to my previous pay AND a raise WILL happen when things improve, I'd allow 10%.

Other bosses... not a chance.



Paul F.
-----
A sword never kills anybody; it is a tool in the killer's hand. - Lucius Annaeus Seneca c. 5 BC - 65 AD
----
Good is the enemy of Excellent. Talent is not necessary for Excellence.
Persistence is necessary for Excellence. And Persistence is a Decision.

--

--

--
Eureka, CA
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Re: How much of a pay cut would you take to avoid layoffs?
Posted by: modelamac
Date: January 02, 2009 11:41AM
Pay cuts are better for businesses than hour cuts. Both reduce labor costs, but pay cuts are also production cuts, usually. Sales will suffer more with production cuts due to lower level of customer service and lower ability to get product on the shelves.

Neither method is good for the worker, but reducing the availability of goods and services via hour cuts is more harmful to all.



Ed (modelamac)

I think I will just put an OUT OF ORDER
sticker on my head and call it a day.
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Re: How much of a pay cut would you take to avoid layoffs?
Posted by: Yoyodyne ArtWorks
Date: January 02, 2009 12:19PM
This reminds me of an issue I encountered in 2001, when I was creative director at an ad agency. There were two rounds of layoffs after the dot.com implosion, and those of us in management took a mandatory 10% pay cut to help keep the company afloat.

Several months later the company decided to offer raises to a number of people in the art department. That didn't seem particularly reasonable to me, as I thought it made more sense to restore people like me to our original (pre-paycut) salaries before offering raises to other employees. My question met with disdain, apparently I was seen as a heartless money grubber. I didn't pursue the issue, but I'm curious how other people would react to this type of situation.
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Re: How much of a pay cut would you take to avoid layoffs?
Posted by: h linamen
Date: January 02, 2009 08:03PM
I can see why the domestic auto industry is collapsing with production workers making $70+ (combined hourly wage and benefits) compared to Toyota, Nissan and Mazda around $40 at their american plants. Some folks do need some paycuts.
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Re: How much of a pay cut would you take to avoid layoffs?
Posted by: Grateful11
Date: January 02, 2009 10:56PM
So we go with bottom end on the Toyota when everything I've read puts
them closer to $50/hr and the American auto workers topping
out at around $75/hr. Also these workers are on an assembly line
where you can't just "what the heck I'm going to just let this go by
while I chew the fat with Joe". I'll admit there's some things in their
Contracts that seem a bit out of line like 95% pay while laid-off and
healthcare forever. I don't think they should have to take a pay cut
They've made tons of concessions over the years and management
salary increased more times than I can count. What did management
do with all that profit during the golden years? The American worker
is still the most efficient in the world. I remember a few years back when
we were hopelessly stalled on our Contract negotations and it went to a
PEB(presidential Emergency Board) guess what company Lobbyist said
about us, "They're nothing but a bunch of sharetree mechanics making
$75/hr." I'm still trying to find that $75/hr, we don't make that even with our
benefits. So don't believe everything you hear.

Posted with iPod Touch



Grateful11




Edited 1 time(s). Last edit at 01/02/2009 11:00PM by Grateful11.
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Re: How much of a pay cut would you take to avoid layoffs?
Posted by: JoeH
Date: January 02, 2009 11:31PM
Quote
h linamen
I can see why the domestic auto industry is collapsing with production workers making $70+ (combined hourly wage and benefits) compared to Toyota, Nissan and Mazda around $40 at their american plants. Some folks do need some paycuts.

They aren't making $70 an hour. That is the total cost of current labor working on the lines and benefits for retirees averaged out over the number of hours worked by current workers. Even includes the highly paid CEOs. You should listen to less talk radio bashing the workers. Actual average wage for current production workers is down around the same as for Toyota, Nissan and Mazda, in some cases actually lower.

Edit:
Quote
Grateful11

Contracts that seem a bit out of line like 95% pay while laid-off

The provisions for near full pay, basically expanded payouts to the unemployment benefits insurance paid for by the employer already, ended several years ago.







Edited 1 time(s). Last edit at 01/02/2009 11:35PM by JoeH.
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