Companies taking advantage

[trularin]

After you have been a "rental" person for a few years, you develope realtionships that seem to stick.

In a recent round of conversations with a number of fellow contract people I know, we have discovered some interesting things are going on.

Companies are using the current economic situation to lower salaries...even if the company doesn't need to.

I am not saying all comanies are doing this, but a number of them are being advised by contract houses that they can alter the rate of pay without penalty.

In one incident, a fellow engineer negotiated a salary with his company at $60k. It has been eight months and he is now down to just over $30k. In all, I talked to six people, five have had their pay reduced.

The kicker was from another person who I used to work with as an engineer who went into recruiting. He said his boss has suggested to a number companies to drop the rate.

I was shocked to hear of this and thought I might share this with the rest of you who might be switching jobs.

[4RE KLR]

Tru,
The word I hear is that if this health care plan passes. My friends that are employers will terminate every single employee they have.

If they (employees) want to work, they can bid and "CONTRACT" for the job.
That way they will, (or they think) be contract labor. Also with ZERO benifits.

I have a feeling this will get a heck of a lot worse before it gets any better.

[bomelia]

Well, this is not the way to create a loyal workforce, and in the end, it will come back to bite them. But in the cold hard world of business, owners want to maximize profits. If they can, they will. If they lower your salary, and you accept it, then that is that. My guess is there is more going on here than what we just read. Like, jobs will be lost if salaries are not reduced. I have seen this happen at companies locally before. When the business climate improves, so do salaries (or people leave)

[Wes Tausend]

Originally Posted by trularin

After you have been a "rental" person for a few years, you develope realtionships that seem to stick.

In a recent round of conversations with a number of fellow contract people I know, we have discovered some interesting things are going on.

Companies are using the current economic situation to lower salaries...even if the company doesn't need to.

I am not saying all comanies are doing this, but a number of them are being advised by contract houses that they can alter the rate of pay without penalty.

In one incident, a fellow engineer negotiated a salary with his company at $60k. It has been eight months and he is now down to just over $30k. In all, I talked to six people, five have had their pay reduced.

The kicker was from another person who I used to work with as an engineer who went into recruiting. He said his boss has suggested to a number companies to drop the rate.

I was shocked to hear of this and thought I might share this with the rest of you who might be switching jobs.

Tru,

I guess I'm not too surprised if the contracts are that open-ended. But who woulda thunk? Kind of being blindsided, alright.

Kind of hard to plan a ten year budget for a family, when the vultures are waiting in the bushes for the first opportunity to turn a previously expected raise into a "lower". I think people need to own their own jobs more in the future, so to speak. Maybe Mike hit it on the head.

=============

Steve,

Friends might feel, in anger, that they would want to terminate every employee. But that is kind of like firing all the guys rowing the boat. The business is basically done, dead in the water. It seems like, to make any money (or move the boat at all), some compromise will be in the making. If it is a business they can do all the labor themselves, then it might work.

Wes

...

[4RE KLR]

Wes,
In some situations, I understand your thoughts.

However, I will bet that more and more employers, will follow suit and use contract labor to avoid these issues.

Believe me, as an employer myself, I understand the benefits of having a strong team. But if I am forced to pay for something I cannot afford for my employees AND their families. I will also either get rid of all employees, or close the business all together.

There are some situations where the consumer will just not pay for any more pass through expenses. When the customer no longer buys, because the product cost is too great, the companies will close on its own, out of default.

I am sooooo afraid, that this will cause even more jobs to be sent over seas.