Temporary Layoffs
Categories: Company Management
While no bossman can predict the economic future of their business precisely, business owners often opt for temporary layoffs when they need a financial break.
Regular (permanent) layoffs may occur when jobs are phased out by technology, or when a business must radically change to adapt to changes in the market supply and demand.
Temporary layoffs, on the other hand, can last a week, a month, or a year, and happen when a business is in financial trouble, business is slow, or something needs fixing (old machinery, damage from forces of nature). Temporary layoffs can help businesses recoup and get back on their feet when facing some (hopefully) temporary instability.
The challenge: when companies unionize and negotiate, such that employees can't, in fact, be suddenly, temporarily laid off, companies risk bankruptcy...where everyone is then out of work.
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Finance: What is Reduction in Force (RIF...1 Views
and finance Allah shmoop What is reduction in force or
riff firings People like from a reality TV show Well
it was the best of times It was the worst
of times Your company has performed horribly and it needs
to cut jobs well just pay the interest on the
debt it knows so it must reduce its workforce And
it fires well pretty much everyone not in a core
position What is core Well at Ford Motors The people
who make the engines are core the secretary to the
person who lobbies the Gove to say nice things about
Ford cars Safety track record Well she's not core although
we love her But sorry As the man says you're
fired Reductions in force happened when things go awry and
companies must scramble simply to pay the rent Yeah tough
times but you know welcome to the NFL Reductions enforce
happened for other reasons as well Think some natty combination
of robots replacing highly paid union workers more efficiently and
or the spread in cost between manufacturing your whoopee cushions
in Chicago versus making them in Beijing have a big
spread in those costs Well when the robots can't do
the job better cheaper faster than the humans Why wouldn't
accompany replace the union workers It's way cheaper to hire
robots a mental complaint or strike At some point some
shark manager will ask Why are we fighting this difficult
fight Let's move production overseas And when that goes smoothly
while the company yeah usually induces a gigantic reduction in
force ending the domestic jobs of some multiple thousands of
whoopee cushion makers or W CMEs as they call them
in the trade Or you know in the biz that's
what happens Work forces are obviously a heated topic among
politicians as well Phyllis fired workers generally don't vote for
more of the same because we live in such a
litigious society today Well firing any individual worker could lead
to an ugly lawsuit for a variety of reasons as
well One of them might exist in one form or
another of what is called a protected class and those
classes is comprised subsets of gender sexual preference ethnicity race
age religion and myriad other classes including yes mermaids So
when a giant reduction in force happens and essentially everyone
in the group is fired while the risk of these
kinds of lawsuits is dramatically mitigated but it's sad in
any way shape or form Riffs aren't fun for anyone
and well additionally everyone really loved Martha the PR secretary
who had been at the company for 27 years and
never forgot a birthday Unfortunately the world got rough for
Martha and she had to go to at the end
of the day shareholders on the company And it's their
call is toh how they want it run There is
no crying in baseball but lots of crying when there's
a riff Sorry we're