Are Companies Using The Economic Situation As An Excuse Now To.......

[global1]

downsize and get rid of employees? Seems to me that they are using the current situation to give them cover. I'm assuming that they will rid themselves of all the more expensive employees and then down the road say that the economic stimulus plan is working and start rehiring - but at lower wages and less benefits.

The idea now should be to keep people working and not laying them off. Companies now by cutting employees are just contributing to an already bad situation.

Isn't there some way to incent companies to keep people employed and out of the ranks of the unemployed?

[Romulox]

1. Why do they need "cover"? My state (and most others) is an "at will" state

You can be fired at any time, for almost any reason.

[Deja Q]

2. Didn't Carly Fiorina say "no American has a god-given right to a job anymore"?

[Romulox]

6. Especially ones that drove the only company she was ever in charge of into the ground, eh? nt

[global1]

3. But If They Do That They're In For Much Criticism - On The Other Hand......

if they use this economic crisis as an excuse - they've give themselves what seems to be a reasonable out.

[PVnRT]

7. Criticism often doesn't affect the bottom line

Anything that does not hinder profit is of no concern to most companies.

[ogneopasno]

9. I think you might be confusing "at will" with "right to work." The two are very different. "At will"

employment is not related to state law. Any company can employ people "at will." "Right to work" means union membership is not a requirement for employment at a company with a collective bargaining agreement with a union.

[Romulox]

10. Er, no. "At will" is most definately related to state employment law.

"At will" and "right to work" are two entirely different subjects. "Right to work" has nothing (directly) to do with whether someone may be fired without cause.

Edit: It looks like all states are technically "at will" states, but they vary dramatically in statutory and common law exceptions. For example, 11 states recognize a breach of "covenant of good faith and fair dealing" as an exception to the basic rule.

Montana is unique in allowing "at will" employment only during a probationary period, after which employees must be fired only for cause.

http://employeeissues.com/at_will_states.htm

[ogneopasno]

12. Thanks for the primer -- I misunderstood your statement, and went off to find the same information

you just posted.

[raccoon]

11. Or for no reason at all. nt

[Romulox]

14. Precisely. nt

[RB TexLa]

4. Have you not seen the earnings for companies recently? So they should employee as many people as

they can, lose money month after month and then shut down?

[Still Sensible]

5. I really don't think so

and I expect some companies are actually trying to get creative in ways to not lay off more... others not so much.

[Andy823]

8. I think the big problem

Was that companies got to big! During the housing boom there was a lot of construction going on and Home Depot, just an example, built more and more stores around the country to get in on the building boom. Now I just heard that in Spokane Washington they are laying off people in the building department that inspected new buildings because there is hardly any building going on! Same with other companies that that spread out in order to get some of the big money being spent around the country. Starbucks is another example. I can not believe all the Starbucks that sprang up on every street corner! Not that the bubbles are bursting, it's obvious that there is going to be a lot of stores closing because of the competition.

Of course I am sure that some are doing what you sated and getting rid of employees to they can rehire later at lower wages, or bring in workers from other countries to fill the jobs on visa's who will work for lower wages,

[global1]

13. Starbucks Was An Accident Waiting To Happen.........

they shot themselves in the foot by getting too big and - as you say - putting stores on every street corner. Come on - even "The Simpsons" made fun of Starbucks growth. Also - charging so much $'s for a cup of coffee. Come on - no matter what you do to it - it's still just coffee.

So enter competition. McDonalds, Dunkin Donuts, local gas stations and convenience stores.

Starbucks led with their chin and they are getting what they rightfully deserve. And hopefully, many people that used to frequent Starbucks are now coming down to reality and realizing that they don't need a $4.00 cup of coffee.

It wasn't a matter "If" Starbucks would face problems - the question was "When" would they face problems.

I'm thinking that people are also beginning to get the same message for bottled water.

[B Calm]

15. My employer is using it to freeze our wages.

[annabanana]

16. They will not hire one single person that they don't need to do the work

that they have to do.

They never have.
They never will.

Tax breaks to "encourage growth" is horseshit.

[Stinky The Clown]

17. They always do

When times are booming, toward the end of the boom, they have to hire anyone that can breathe and say two words more or less coherently.

When times are not so booming, they get rid of them first.

Not everyone who has a job is qualified for it.

[Glenda]

18. I think you are right - especially big companies

Some companies run lean. But a lot of big companies... I don't know if they get too big, and the non-performers find places to hang out...

[ColbertWatcher]

19. This banking crisis is another example of "disaster capitalism." n/t