Deflation in action..... Pay Cuts

[RedEarth]

GM Plans Pay Cuts For Salaried Workers


Every week there are stories involving workers voluntarily, or involuntarily involved in pay cuts. Kicking this week off, General Motors Said to Plan Pay Cuts for Salaried Employees.


.....

Other Pay Cuts

Ohio Governor Asks For Across The Board Union Pay Cuts

FedEx (FDX), Timber giant Weyerhaeuser (WY), and Alcoa (AA) cut or froze wages. See 2009: Already Looking Bleak for details.

San Diego is asking for cuts in pay and wages. See Sharing The Pain In California for details.

On January 29, 2009 Arizona State Faculty Announced Face 12% Pay Cut by June 30.

On February 6, 2009 Contemporary Media employees take pay cut

Those salary cuts span many industries. We have not seen broad based wages cuts like this since the great depression. Expect to see a lot more in the weeks ahead. This is deflation in action.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

http://globaleconomicanalysis.blogspot.com/2009/02/gm-plans-pay-cuts-for-salaried-workers.html

[Tesha]

1. The company that laid Mr. Tesha off back in June has now announced 10% across-the-board pay cuts

along with laying off many, many more people, with the next round
of cuts to his old division coming next week. Frankly, I think they're
fixing to go out of business or at least sell themselves off to someone
who actually knows how to run their business.

Tesha

[Joanne98]

2. It's only deflation when it effects the big guys. When it effects us it's "productivity"

>sarcasm>

[sendero]

3. All things considered...

... I much prefer pay cuts to layoffs. Spreads the pain around instead of lumping it all in one place.

[The Brethren]

4. You said it!

In a time of crisis like this, a company is smart to use pay cuts if can to help with costs. It's either that or it means usually lay offs. Or they can up their prices on their products which usually results in even lower profits affecting everyone.

A smaller check every week is better than no check at all.