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Would a pay cut save some Company,s

Discussion in 'Politics, Elections & Legislation' started by copper, Jul 4, 2009.

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  1. copper

    copper Member

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    GM If the ceo and the workers took a pay cut would it have helped at all. I have herd that workers made $75.00 and hour, would they have worked for $35.00 and hour would the CEO have done the same half pay still good money . If that would have saved the Company. And our Taxes out of control with people in trouble, should all civil service pay freeze. I would love for everyone to be rich, but making good money better than no money. A large portion of the country working for a quarter of what they made if they can find a job at all. I don,t like it but I have worked for less than half.
     
  2. grnberetcj

    grnberetcj Active Member

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    Not really!

    Too many other factors involved besides the payroll.

    Curt
     
  3. shadow

    shadow Active Member

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    A few well placed paycuts and a ticket out the door for the UAW would have done the trick !
     
  4. Recoil Sissy

    Recoil Sissy Well-Known Member

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    The best economic stimulus (think job creation and business expansion) is virtually always a cut in tax rates. For starters, the person or entity receiving the cut actually earned the money. Unlike governmental taxing bodies that merely confiscate and p!ss earned income away, those who earn money appreciate it and generally spend or invest it productively.

    Interestingly, this week I learned I'm personally responsible for funding day care for an unlimited number of children produced by chronically unemployed and perpetually low income parents. Another single mother explained on the news that her special needs child was again 'entitled' to state funded summer camp and if 'we' don't pony up, she might have to consider moving to a 'better' state. I can't help but wonder why my neighbors with children are 'entitled' to pay for her kid's camping experience when they can't afford to send their own kids to camp.

    One of those neighbors works for the state. He explained that obtaining a plethora of state benefits - including medical - doesn't require the recipient demonstrate he or she is a resident of my state nor even a citizen or legal U.S. resident. Basically any slug that shows up at the trough is eligible.

    Of course, none of these things were an issue until my state, like various others, started running out of other people's money. Anybody suprised that my d!psh!t governor wants to DOUBLE state income tax rates?

    sissy

    PS to Copper: a significant employer in my community announced a 5% across the board wage/salary cut last week. Time will tell if it keeps the company afloat.

    PS to all: Anybody know how big a cut the employees of various TARP recipients (including AIG, the big banks, GM, Chrysler and the UAW) took?
     
  5. brigade

    brigade TS Member

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    Get rid of obama and democrats and let Capitalism work.
    Capitalism: an economic system characterized by private or corp. ownership of capital goods, by investments that are determined by private decision,and by prices, production, and the distribution of goods that are determined by competition in a FREE market.
     
  6. Carol Lister

    Carol Lister TS Member

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    <blockquote>"I have herd that workers made $75.00 and hour, would they have worked for $35.00 and hour would the CEO have done the same half pay still good money."</blockquote>
    Wages in the auto industry average about $25/hour (which is still way up there), not $70 by any means. The $70 figure results when financial analysts divide a company's total personnel costs by the number of active employees it has without considering that personnel costs also include pensions and benefits for retired and disabled workers as well as the wages/salaries for active employees.

    A pay cut produces far lower savings when calculated on a $30/hr pay check than it would on a $70/hr one considering that wages account for only about 11% of the cost of producing one vehicle, the rest being in R & D, logistics, supply, transportation, tooling and dozens of other areas.

    Lister
     
  7. School Teacher

    School Teacher Well-Known Member

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    IMO, the best thing for any company is to have products that people want to buy and then for the workers to build them with quality.

    Reducing any costs usually reduces a company's break even point which means that the company can make a profit at a lower sales volume.

    Management and labor can make any number of mistakes but the ultimate test is when a product is put into a market and must face competition from other products and from a customer's desire not to buy anything and save the money for another day.

    IMO, the public still believes that certain foreign nameplates (Fiat is not one of them) build a better product than the domestic American nameplates. This is/will be a high hurdle in the recovery of the American automobile industry with respect to small automobiles. The American automobile manufactures still have a loyal owner base with respect to large trucks.


    Ed Ward
     
  8. GW22

    GW22 Active Member

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    This is a pretty deep and complex question and might be difficult to discuss properly here. I'd like to make a couple comments, though, and then ask a question:

    In some large corporations, the top person makes more in one day than the average line worker makes in a year. I'm all for free markets and incentive-driven compensation, but many of these cases are just inside deals created by having friends serve on each other's employers boards of directors. It's like "Hey, I'll vote you a raise and you vote me one -- we're all in the same club and nobody loses." This tactic, and the resultant gross disparity of "earnings" between average workers and top brass is not right. If you don't agree then I respectfully suggest that you haven't done enough research.

    Secondly, beware of CEOs and other top brass who take paycuts "along with everyone else." When you actually research some of these cases, you discover that they simply cut back-end deals with stock options, future bonuses, or other perks which either offset the phony "paycut" or actually resulted in a raise. Most of these top corporate operators are very shrewd and very well connected.

    So how can we deal with these issues without resorting to the simple-minded solution of "Yeah -- that's why we need the government to regulate everything"? Obviously this is not where we should go.

    -Gary
     
  9. copper

    copper Member

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    I was just wondering if the had sat down managment and CEO and workers and even considered if everyone took a cut could company be saved a lot of jobs at risk. I agree CEO some make so much money you can,t scare them they just retire are rich already. The workers well they can,t pay there bills if jobs lost. If a CEO can make a company make money he sould be rewarded but not for not being able to. Hand full of CEO,S thousands of regular workers, shame all those jobs lost. Dave I fully realize not simple but to not seem to try with so much at risk
     
  10. Joe Potosky

    Joe Potosky Well-Known Member

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    Pay cuts is not going to do it!

    Let the federal budget grow only at the rate of annual inflation for three years and drop the so called stimulus package.

    Take the shackles off the countries energy producers.

    Let failing companies go through the established bankruptcy procedures, not let congress and the administration control the process.

    No more home loans or car loans to those who can't make a 10% down payment, and they must actually have a job to support the payments.

    Let the states go bankrupt if they can't control cost and cut services and welfare programs for illegals.

    Let the chips lie where they fall....
     
  11. waterhouselake

    waterhouselake TS Member

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    A pay cut to public employees would do wonders in getting some states in better financial shape. However, your elected officials feel they should hold monopoly status in their jobs and be insolated from the ups and downs of a cyclical economy even though they take no financial risk in the success or failure of their employer. Plus, the government always has the power to tax to provide the raises where in the private sector additional productivity would be required to cover it............
     
  12. GW22

    GW22 Active Member

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    Waterhouselake makes sense. Another benefit to cutting pay for public employees is that it would encourage those not genuinely interested in public service to go out and get real jobs.

    -Gary
     
  13. copper

    copper Member

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    I hate for anyone to take a pay cut but bottom line is people who have taken big cuts, or lost there job are having to foot the bill , Food prices through the roof , gas and so on, so we have a major portion of the population with less money and more costs. I cring to think if we don,t start addressing some of this soon. Americans are in big trouble and we have a leader who is talking about everyone one else but us, We have to take care of Americans first priority, every drain on this out. Dave
     
  14. nsrailroad

    nsrailroad Member

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    The way I see it, ceo's should take cuts, I sure don't see any politicians offering to cut their salaries, but we must suffer. Vote someone new next time, no matter how hard it would be to do.
     
  15. halfmile

    halfmile Well-Known Member

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    Sissy, I feel your pain.

    We are in this pickle largely because free market forces were not allowed to function.

    Bailouts only exacerbate the problem, and the recent rash of bailout failures is proof of the pudding.

    NOw that the banks have been rescued, money is very hard to get. A couple of acquaintances might be out of work because their employer can't finance the material for 2 jobs he won the bid on.

    So much for bailouts.

    Pay cuts, on the other hand are a different matter. Fat cat CEO's and directors milking huge money out of a company certainly do not make pay cuts work, rather they just supply more cheese for the rats.

    If I were being sold a pay cut, I would certainly want to see the numbers and the survival plan. I'm a reasonable man, but not a sucker.

    HM
     
  16. Barry C. Roach

    Barry C. Roach Well-Known Member

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    I worked for many years as a salesman. I had a small guaranteed salary, enough to pay the rent. My real paycheck was for commissioned sales. After I had achieved enough in commission to cover the $16,000. base salary I could start making the 'real' money. The harder I worked, the more I sold, the more I made. This type of incentive is the best kind of "stimulus."

    I have friends that have taken large cuts in pay, more than once. They don't like it but know that they wouldn't have jobs if they didn't share in their company's hard times.

    In my case the cuts in pay happened 'naturally' with less sales due to a sagging economy. So, I don't have as much sympathy with employees that don't want to help their company's economic woes. Taking a cut, at all levels in the company, is the American way just as is sharing in the wealth in good times.

    If you want to fix the economy the government needs to take a massive cut in pay too until things level off. Until the public officials take a hit too they can't understand what it takes to fix the economy.
     
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