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Валгрин Ко. Message Board

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  • knows_about_stocks knows_about_stocks Feb 11, 2009 12:49 AM Flag

    All my OT cut

    Assistant managers (MGTs) have been working 44 hours (4 OT) for at least the 15+ years I've been with the company. This 4 hours OT was a bit of compensation for the amount of hard hours, nights, weekends, holidays, etc. It is part of the salary package you were informed of upon taking the job. For most MGTs, this is a gross (no pun intended) pay cut of approx. 15-18%

    My store manager said he would rather cut hours from SS clerks and give MORE hours to our MGT crew because we are all hard working, reliable, knowledgeable and experienced. This is NOT a good long term decision. Service will suffer from a demoralized management crew, and people qualified and interested in the job might think twice about a position that paid $42k last week, $35k this week. The economy won't be this bad forever.

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    • Something doesn't smell right.

      Let's take a closer look. I hire a guy, let's call him Michael Gregory Thermador (MGT). I tell him he has to work at LEAST 44 hours a week. If he works more than that to gt the job done, well, that's on his dime (fixed cost).

      I have other employees that work for 10 bucks an hour, overtime unlimited (variable cost).

      When times are tough, do I cut the guy who, after 44 hours gets zero, or do I cut the guy that gets unlimited overtime?

      In the worst case scenario, all the salaried employees are the last ones standing, managing no one but themselves because they carry a fixed expense. I wouldn't cut the fixed expense just to carry the variable expense.

      I know I'm using fancy terms like "fixed" and "variable" so I apologize in advance if you got lost.

      But if you're wondering how the "bean counters" figure this stuff out, that's how they approach it.

      • 2 Replies to irunthe262
      • irunthe262,

        Actually, it is more cost effective to do what they are doing.

        They are cutting the OT from the MGT. Now they get paid for 40 hours. Any extra is still on their dime.

        They cut OT with the clerks as well.

        In reality, it makes more sense to cut the OT from the MGT and allow the OT to the clerks instead. This would be more cost effective as well.

        Remember, salaried (exempt employees) are paid to do a job, regardless of how many hours it takes.

        Hourly (non-exempt) are paid by the hour and are entitled to compensation for every minute they work.

    • "The economy won't be this bad forever."

      If you see it that way I am sure you do not mind being EMPLOYED and making a little less for a short period of time.

      Look at it this way, you have 4 more hours a week to yourself. Maybe you can go out and get a paper route to supplement your income.

      Remember, as you said, the economy won't be bad forever.