Pay Cut? No Problem!

As unemployment in our country rises above 8%, my own employer continues to make tough decisions. We had another round of lay-offs this week and each cut seems to get harder and harder on everybody. Three months ago, my division of the company had about 100 employees. Today we are less than 70.

This time we all knew what was going on and we knew the risks of being called to the bosses office. My meeting was as at 8:00 and I was told that my salary was getting cut by 5%. I said, “Thank-you, very much.”

All morning people gathered in huddles quietly discussing events. No one could show too much relief because no one had any idea who survived and who didn’t. When making eye contact with someone in the copy room, one person would just lift a wondering eyebrow and the other would respond with a nod. Then you knew you were safe to talk about it and show relief that you weren't going home.

It wasn't completely surprising to anybody. We're in an industry that represents good times and economic health. People are going to cut their ski vacation from the budget before they stop buying socks, milk, or cable TV. It’s actually remarkable and a testament to good management that we haven’t had deeper cuts. During the good times of the past few years we were actually paying down debt instead of acquiring more. I heard one ski resort closed last month…right at peak season. Rumor has it that other companies are obtaining last minute financing to keep from going under.

We could be in much worse shape, but that doesn’t make it any easier to see your friends lose their jobs. Friends with families and mortgages just like me. People with talent and skills and loyalty. After the cuts were final we had a “survivors meeting” and the VP that had to deliver the news to the victims could barely get through it with out choking up. He made the points that the economy was terrible and we had to reduce cost while trying to preserve as many jobs as we could and there were no guarantees that the layoffs were over. In order to preserve as many jobs as possible, everyone had their wages cut and the CEO would take no salary at all this year. I hope its enough to get through until the economy turns around.

Actually I hope it's enough to get through another 3 years until my youngest leaves home. Then I don't need a job or a mortgage. I just haven't decided yet if I'm moving into Todd's basement or Troy's boat. (they think I'm kidding)