Tuesday, July 8, 2008

Cut hours rather than cut staff?

The economic woes that have hit the United States hard, especially the A/E industry, have also struck Great Britain, it seems. But the response of one firm, according to this article, is interesting. Rather than cut 20% of its 750-person workforce, as the article claims some insiders had predicted, Drakelow, England-based engineering firm Roger Bullivant has limited its employees to 39 hours a week and built its contracts with that in mind. Will we see something similar in the United States? Given that most firm leaders are about to be faced with the unpleasant thought of cutting staff, if they haven't done so already, limiting hours and reshaping contracts, or perhaps cutting salaries without cutting staff, may seem desirable alternatives.


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