It wouldn't surprise me if IBM does as others have done in the past and ask their employees to take a 10% salary cut.
This would be ONE HELL OF A SAVINGS!! In addition, although they would grumble, they would still have their jobs and in this economy that's saying a mouthful.
Sure, there would be the usual jerk offs that would threaten to quit, but %99.9 would stay and like it.
"%99.9 would stay and like it."
This reads like you have never had to make a payroll, or hire and fire.
Cutting everyones salary 10% means 100% of the employees lose motivation. I would rather have 90% of my employees fully motivated than 100% of them ticked off.
Unmotivated staff equals lost sales and overruns. What does lower revenue and no profit do to the stock price?
>> "%99.9 would stay and like it."
> This reads like you have never had to make a payroll, or hire and fire.
> Cutting everyones salary 10% means 100% of the employees lose motivation.
This reads like you've never worked anywhere with
real esprit d'corp.
Lots of groups I've been in would have the attitude that a 10% cut (hopefully with corresponding hours cut) is better than a layoff, even if you aren't the one let go. Consider that with progressive income tax a 10% pay reduction is not a 10% cut in take home pay.
I would take Johns position. I would rather still have a job even though I may make less money. Let's face it, there are NOT a lot of choices out there right now, not a lot of places to go. IBM has ALREADY cut ALL contractors salaries twice. Can the employees be far behind?
"I would take a salary cut to save jobs on my team, as long as everyone shared in the same cut. "
Why should an exceptional performer like you be treated the same as everyone else, that's union treatment son and you don't beleive in
unions! There's a team forming now, going over to Poland, gonna get rid of democracy, gonna forbid solidarity like the communists should have done in the first place. There gonna bring on the government version of a corporation called 'communism'. Get your ticket now, stamp out democracy and unions, bring back the business version of communism to the the world, corporate power, no voice to the people! As for me, I'll stick with Jeffersonian democracy, a voice in government and a voice at work!
Yes, it would cut buying power by 10%, but many would still be working. If they are forced into even MORE layoffs it cuts buying power by 100%. IBM will also have to up their share of enemployment insurance which, incidentally is experiencing real financial difficulities in many states.