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From: John Posada [mailto:JPosada -at- book -dot- com]
My opinion is based on being involved in three separate instances at
different companies where to the media, it was announced that cost
measures will being instituted, and at the same time, seeing from inside
that the F/T people were asked to reduce their rate or salary...along
product lines being dropped/sold and plants being closed/sold....and one
instance of my boss being let go but they kept me.
Rate reduction is immediate, visible, and it does save money. Changes to
internal processes have implementation costs and may or may not be
effective, and the specific cost reduction result usually cannot be
>Obviously, some work will be left undone.
Reduce rate and you haven't changed the head count or reduced
capability...the only one suffering is the person who's rate is reduced.
>If there is a 10% pay cut needed, at least shouldn't there be a 10%
That's pretty funny
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