Wednesday, August 11, 2010
Forget raises--you could get a cut
Steven Greenhouse, NYT, Aug 3, 2010, says companies and govt agencies are asking people to work more for the same money or even cutting pay.
Pay cuts are occurring most in state and local govts. Furloughs mean docking pay for time off. Now, they are forgetting the time off and just docking.
Univ of Hawaii professors took a 6.7% cut. Albuquerque has cut pay by 1.8% on average.
This happened in the 1980s, but was mostly union workers—whom many people said were earning more anyway.
Factory owners sometimes threaten to go to cheaper locales if workers won’t take the cuts. Sub-Zero, the ritzy fridge makers, said take a 20% cut or we will lay off 500 people in Wisconsin.
Seattle Symphony players took a 5% cut.
Law firms are cutting associate salaries.
Most employees eat these cuts in order to have a job—probably a wise call.
Still sometimes union workers strike over this. At Mott’s apple juice, 300 union workers have been on strike since May 23 over a cut in wages and 401(k) contributions.
The workers say Mott’s is rolling in money and this isn’t fair. Think of that the next time you grab a Snapple.