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"Industry Standard" Paycuts in IT?
noGarnishMe! asks: "I was just reading about a Chicago-based company that has told all its employees earning over $60K/year that they will have to accept a 50% percent paycut for the month of May. This cut might be necessary in these times but keep in mind that the bozos in senior management just finished buying up several failing companies and paying some large bonuses to themselves. The memo announcing the cut is here. This cut, coming in such large chunk and in May, seems like a draconian shot to boost the 2d quarter financials. True, the annual paycut of 3.8% is modest but it ignores that fact that many folks won't be able to pay their May bills with only half their salary. I know that many of us have been through rough times these past 18 months and so I ask, what has been the approach at your company?" There are graceful and non-graceful ways for a company to handle a lack of cash flow. In the scramble for survival, especially in an economic downturn, many companies are caught off-guard and have to show their shareholders that they are doing something to get the company back on the road to profitability (which seems to be the issue, here). In many of these cases, the group most affected by such changes are the employees. It would be interesting to note how many of you have gone through this before and what you had to do to survive the shortfall.
many folks won't be able to pay their May bills with only half their salary
I don't know whether this is typical for the U.S. lifestyle, but in the Europe you don't usually have such low reserve cash (not necessarily on the correct account, but accessible). The paycut was at least announced in advance...
I think it is still better than to be fired - at least you can search for another company while still having some income.
Employment contracts are generally not legally binding, dumbass. Every heard of "right-to-work"? That means that companies can fire you for any reason, and you can quit for any reason.
If I decided to only show up at work 50% of the time one month I would be out on my ass in no time, and rightly so!
The same should apply to my employer if they try to weasel out of our contract.No, that would be perfectly legal, and i would personally prefer this to a blatant breach of contract. I have already been downsized (and found, a new better paid job) once, and I could damn well do it again!
This may be a bit off topic, but, yes I do think socialism (no capital s) have it's uses. Total capitalism (no capital c) is rubbish, the only sane solution is a mix of the two.
The proportions can be argued about though...
Note however that the us is a mix of capitalism and socialism too.Not only europe.
You know this to be true!
"First lesson," Jon said. "Stick them with the pointy end."
If you lose your job in IT. 1. Put down your perl books or your MSCE library. 2. Start programming.