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Salary Reduction

Aberwacky's picture

It's the nature of this economy, but I still don't like it.


First, there were the benefit "changes": no more match of the 401K, reduction in health care benefits, etc.


Now, they've cut salaries by 10%.  Could be worse, of course--I still have a job, after all, but it's nerve-wracking, all the same.  (And all the more frustrating because my project is actually doing well!)


Thanks for letting me vent.


Leigh


 


"Miss Piggy is not a very good singer, but she's a great fighter." -Grant

"Happiness does not depend on outward things, but on the way we see them." 
-Leo Tolstoy
kathymcmo's picture

(post #51889, reply #1 of 149)

Ouch! That is not a great way to start your week. I hope it is shortlived and take some comfort in your still having a job, but it's still a drag. I hope it's the last of the belt-tightening at your company.


Hang in there!

Aberwacky's picture

(post #51889, reply #4 of 149)

My industry has been hard-hit by the recession.  Fortunately, so far my customer is doing better than others, but that, of course, could change.


What really frustrates me is that when Congress and the news media (and individuals, for that matter) talk about corporate jets with that snide tone, they don't realize how many good-paying, American jobs the industry supports.  From building the planes, to outfitting them, to maintaining them, the general aviation industry employs more than 1,000,000 people here in the US.  These jobs aren't being exported, either--they're firmly on American soil.


I know that in Arkansas (not exactly a hub of high tech), it's over 5,000, which is a lot of good-paying jobs in a poor state. 


I happen to like having a roof over my head and food on my plate, and it's the business jet industry that puts it there.  I wish Congress would remember that.


Leigh


"Miss Piggy is not a very good singer, but she's a great fighter." -Grant

"Happiness does not depend on outward things, but on the way we see them." 
-Leo Tolstoy
kathymcmo's picture

(post #51889, reply #7 of 149)

I can now see why the current economic situation is affecting your little corner of the world. I had no idea so many jobs depended on general aviation. I would think that as time passes it should get better, a lot of companies can't really afford to have their top execs stranded in airports half the day and spending should return. The uncertainty of when is the hard part.


I wonder if my CEO has a corporate jet, I don't think so having heard him mention his second home is the Northwest terminal.


 

MadMom's picture

(post #51889, reply #9 of 149)

I definitely see your point, but the people in Congress were upset with company executives arriving in their individual private jets to ask for a bailout.  There's something a bit incongruous about that.  I know that several luxury businesses are hurting, but yet it seems they will make it through.  It is the people working for minimum wage in retail or construction who are really hurting.



Not One More Day!
Not One More Dime! Not One More Life! Not One More Lie!

End the Occupation of Iraq -- Bring the Troops Home Now!

And Take Care of Them When They Get Here!

Aberwacky's picture

(post #51889, reply #10 of 149)

"It is the people working for minimum wage in retail or construction who are really hurting."


I disagree.  All of us who are affected by this are really hurting. 


The 20 people that were laid off at my old company are really hurting. 


The 500 people that worked across the tarmac from me and lost their jobs are really hurting.


The 2000 people that Cessna laid off in Wichita are really hurting.  Why would it just be the people working for minimum wage in retail and construction (and construction workers don't make minimum, by the way) that would be "really" hurting?  At least they have a job.


And you're wrong about the Congress just being upset by the auto execs arriving in their separate corporate jets.  Did you know they tried to put a provision in the updated TARP that would force any company that took money to sell their corporate jets.  That's shortsighted and ridiculous.  Have them cut their salaries, but selling the jets in a down market when it's already flooded with used planes just negatively affects everyone involved.  They'd be sold at a loss, the companies manufacturing the jets would lose more sales to the used market, and the people that supported and maintained those jets would lose their jobs.  How is that a positive move?


General aviation is not a luxury business.  Jewelry is a luxury business.  Corporate jets are a business tool just like a PC is.  They offer speed and security to the top levels of a corporation.  Should the US government sell Air Force One (and it's twin) because we're running a deficit and need the money?  It's just a high-falutin' corporate jet, you know, and it costs the US taxpayer a fortune to operate every year.  What about the VP's plane?  What about the corporate fleet used to ferry around the top levels of government?  Should countries we offer aid to be forced to sell their head-of-state planes and have their PMs fly commercial?


Sorry, you hit a hot button of mine.  General aviation is an easy target, and that's my job you're talking about.


Leigh


"Miss Piggy is not a very good singer, but she's a great fighter." -Grant


Edited 2/16/2009 5:02 pm by Aberwacky

"Happiness does not depend on outward things, but on the way we see them." 
-Leo Tolstoy
MadMom's picture

(post #51889, reply #12 of 149)

Sorry I hit your hot button, but whether you want to believe it or not, a corporate jet is a luxury item.  Just as a corporate yacht is a luxury item, just as a $1500 wastebasket in a CEO's office is a luxury item.  This does not mean it isn't used or useful, but it is a luxury.  I understand that people who work to maintain or sell these jets can be hurt by losing their jobs (and I should have been specific...I meant that people working for minimum wage who lose their jobs are the ones who are really hurting.)  I just feel that people working for minimum wage, and I don't think that includes you, have not been able to amass savings to help them through this crisis.  Is everyone hurting?  Of course they are.  We are all in this together.  Do I feel sorry for the people who are forced to sell their luxury yachts because they're unable to afford the gas?  Do I feel sorry for the dealers of luxury RV's who can't give them away because of the economy?  Of course I do.  I feel sorry for the people in your industry who are losing their jobs.  I just feel that if I, as a taxpayer, am asked to support a company they need to tighten their belts.  If that means lower salaries, fewer parties, selling their corporate jets or yachts or putting off redecorating until times are better, so be it. 



Not One More Day!
Not One More Dime! Not One More Life! Not One More Lie!

End the Occupation of Iraq -- Bring the Troops Home Now!

And Take Care of Them When They Get Here!

AnnL's picture

(post #51889, reply #13 of 149)

It's not just the luxury businesses that are hurting.  People are cutting back all over--no more lattes, no more meals out, so that means Starbucks are closing and restaurants are closing.  It's good that people are cutting and FINALLY living within their means, but it has repercussions all over. 


The employees at one  local diner have all agreed to work for tips only to help the owners keep the diner open and to prevent anyone from being let go.  The great thing is that the towns people have stepped up to help out and are giving bigger tips.  It's nice to hear stories like this of people helping each other out through these hard times.


Ann
"The elders were wise.  They knew that man's heart, away from nature, becomes hard; they knew that lack of respect for growing, living things, soon led to lack of respect for humans, too."  Chief Luther Standing Bear, Lakota Sioux

Ann
"The elders were wise.  They knew that man's heart, away from nature, becomes hard; they knew that lack of respect for growing, living things, soon led to lack of respect for humans, too."  Chief Luther Standing Bear, Lakota Sioux

ashleyd's picture

(post #51889, reply #14 of 149)

You're right, people cutting back on anything means somewhere down the line somebody's job is at risk. I've seen it mentioned here, going out less and sharing portions, great for personal finances but don't be surprised if your favourite eatery closes. If you're lucky enough to have a job (or other income) and don't have financial pressures then I figure it is your patriotic duty to maintain your sensible spending levels (whatever country you live in). Personally I am helping our domestic economy and later in the year I intend to come and assist the American and Canadian economies in my own small way.


Age is unimportant unless you’re a cheese.

Age is unimportant unless you’re a cheese.

MadMom's picture

(post #51889, reply #16 of 149)

And don't think we don't appreciate your sacrifice!  I personally held up the Canadian economy until it just became too much for one person alone, but heaven knows I tried, even then.  When their dollar passed ours, I had to rethink my responsibilities!



Not One More Day!
Not One More Dime! Not One More Life! Not One More Lie!

End the Occupation of Iraq -- Bring the Troops Home Now!

And Take Care of Them When They Get Here!

kathymcmo's picture

(post #51889, reply #17 of 149)

And this is exactly why I am saving to buy a new TV come March. Just doing my part!

MadMom's picture

(post #51889, reply #15 of 149)

They had a short study on TV the other night of the "ripple effect."  One man lost his job, so the family stopped eating out.  They stopped using day care for their kids.  Of course they gave up lattes and movies and shopping.  Then the restaurant has to cut back.  The day care has to lay people off.  The coffee shop, the movie, the retail stores, all felt the pinch.  This isn't just a case of one person or one job, it has a snowball effect which hits us all. 



Not One More Day!
Not One More Dime! Not One More Life! Not One More Lie!

End the Occupation of Iraq -- Bring the Troops Home Now!

And Take Care of Them When They Get Here!

StevenHB's picture

(post #51889, reply #85 of 149)

a corporate jet is a luxury item.


Saving the time of the CEO of a large corporation is not a luxury.  These people work long hours under great stress for which they are well compensated.  But the reality is that they have limited time and spending it waiting in security lines at airports isn't a good use of that time.  If it's not cost-effective for them to fly privately, something is very wrong.



Maybe we'll find direction, around some corner, where it's been waiting to meet us.


Without coffee, chocolate, and beer, in that order, life as we know it would not be possible

Without coffee, chocolate, and beer, in that order, life as we know it would not be possible
AnnL's picture

(post #51889, reply #86 of 149)

If it's not cost-effective for them to fly privately, something is very wrong.


Well, I suppose it is cost-effective if you believe those CEOs that ran the companies into the ground should be paid multi-million dollars/year.  My experience with CEOs is that they don't work that much harder than the rest of us, so I'm not buying it.


Ann
"The elders were wise.  They knew that man's heart, away from nature, becomes hard; they knew that lack of respect for growing, living things, soon led to lack of respect for humans, too."  Chief Luther Standing Bear, Lakota Sioux

Ann
"The elders were wise.  They knew that man's heart, away from nature, becomes hard; they knew that lack of respect for growing, living things, soon led to lack of respect for humans, too."  Chief Luther Standing Bear, Lakota Sioux

Adele's picture

(post #51889, reply #87 of 149)

Wanna talk tense?  Friday, everyone BUT me and one other person was called into the conference room.


This morning, 4 people are gone, salaries are cut by 20% and hourly people are working 35 hours a week.  Nothing has been said to me. 


To say I'm a little stressed is an understatement. 


Can't say anything to anyone here, because if I'm NOT affected by anything they will wonder why.


But, but, it's SUPPOSED to taste like that!

But, but, it's SUPPOSED to taste like that!

BoofyQ's picture

(post #51889, reply #88 of 149)

Wow. Talk about awkward!
Hopefully things will settle down a bit now, and no one will begrudge you for not facing the reductions.

TracyK's picture

(post #51889, reply #89 of 149)

Yikes. And nobody said anything to you? Is there an HR person you could ask?


"The happy StairMaster president is on his way to a mansionette in Dallas, to be the decider of where to put the sofa."
                                                            --Garrison Keillor

Adele's picture

(post #51889, reply #91 of 149)

Nope, we never filled that position after the one doing HR left last year.   I do insurance/benefits and another lady does payroll.  She's the other one that never got called in.  She was a little shocked when one of the guys was in her office 1st thing this morning asking about Cobra!   


Rumors abound.   LOL  


Boss has been in meetings & then left for an appointment so I haven't had a chance to grab him.  We were alone Friday from 4:00 on and he had ample opportunity to talk to me then, but didn't.  


I'm leaving early today for a Dr appt.  Need to make another appt w/another Dr really quick, just in case. 


Taking car in tomorrow for Check Engine light.


Edit:  Payroll lady has NOT been told of salary reduction for me.  She did say no more overtime, of which I was getting 2.5 hours a week (came in 1/2 hour early) to make up for the increase in insurance last year.


 


But, but, it's SUPPOSED to taste like that!


Edited 2/23/2009 1:51 pm ET by Adele

But, but, it's SUPPOSED to taste like that!

Marcia's picture

(post #51889, reply #93 of 149)

I hope this works out fine for you, Adele. It's not right to make people suffer this way. :(

shywoodlandcreature's picture

(post #51889, reply #90 of 149)

Ouch! Was your salary cut too?





"If you want to make peace, you don't talk to your friends. You talk to your enemies". -Moshe Dayan, military leader and politician (1915-1981)

AnnL's picture

(post #51889, reply #92 of 149)

Wow, that is VERY stressful.  I'ld be in a panic.  I'll holding positive thoughts that you are not affected other than no more OT.

Ann
"The elders were wise.  They knew that man's heart, away from nature, becomes hard; they knew that lack of respect for growing, living things, soon led to lack of respect for humans, too."  Chief Luther Standing Bear, Lakota Sioux

Ann
"The elders were wise.  They knew that man's heart, away from nature, becomes hard; they knew that lack of respect for growing, living things, soon led to lack of respect for humans, too."  Chief Luther Standing Bear, Lakota Sioux

Syrah's picture

(post #51889, reply #94 of 149)

Thinking good thoughts for you Adele.

My perseverance will be rewarded.

"Life is not easy for any of us. But what of that? We must have perseverance and, above all, confidence in ourselves. We must believe that we are gifted for something, and that this thing, at whatever cost, must be obtained." -Marie Curie

shoechick's picture

(post #51889, reply #95 of 149)

I have to let two people go tomorrow morning, not looking forward to it.

The World is a book, and those who do not travel read only a page.  ~St. Augustine

The World is a book, and those who do not travel read only a page.  ~St. Augustine

Syrah's picture

(post #51889, reply #96 of 149)

I can imagine for people like you, who have souls, it's a really hard thing to do.


Please have tissues. I know you will, I couldn't believe they didn't think of that. I hope they get a package.


My perseverance will be rewarded.

"Life is not easy for any of us. But what of that? We must have perseverance and, above all, confidence in ourselves. We must believe that we are gifted for something, and that this thing, at whatever cost, must be obtained." -Marie Curie

shoechick's picture

(post #51889, reply #97 of 149)

It's honestly gut wrenching and when it stops, it's time to quit.  We always have tissues and a counsellor standing by.  We're pretty good with our packages, but in this economy I really hope they find something.

The World is a book, and those who do not travel read only a page.  ~St. Augustine

The World is a book, and those who do not travel read only a page.  ~St. Augustine

Jean's picture

(post #51889, reply #98 of 149)

Had lunch today with old friends and hearing stories of kids (grown with families) out of work and looking was hard to take. So far ours are doing OK, but youngest son is a painter and the work is iffy. DGS the Marine just got promoted to Corporal - he's assured of a job for at least 3 more years. :) His older brother has a good computer related job and his sister is a park ranger at Big Bend National Park and is also working on her Masters at Sul Ross U. So I'm thankful I don't have to worry about them.


We do have an extra room in a tree now should one of them need it.



What was the best thing before sliced bread?



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Gretchen's picture

(post #51889, reply #99 of 149)

We are fortunately in the same boat as you, and I spoke that same sentiment to a friend at lunch the other day.


But if DH fires me, can I come live in your extra tree!!  I think you ought to list it as a vacation getaway for extra income!!  ;o)


Gretchen
Gretchen
BoofyQ's picture

(post #51889, reply #100 of 149)

> Please have tissues. I know you will, I couldn't believe they didn't think of that.

I heartily second that! It's embarrassing enough to get fired, much less to break down in tears, much less to have to use the back of your hand to wipe them away.

kathymcmo's picture

(post #51889, reply #101 of 149)

Announcement today from corporate headquarters that there will be no merit raises this year and that a restructuring with some layoffs is coming (no word on how many).

AnnL's picture

(post #51889, reply #102 of 149)

Oh, dear.  Keeping my fingers crossed that you're job is spared. 

Ann
"The elders were wise.  They knew that man's heart, away from nature, becomes hard; they knew that lack of respect for growing, living things, soon led to lack of respect for humans, too."  Chief Luther Standing Bear, Lakota Sioux

Ann
"The elders were wise.  They knew that man's heart, away from nature, becomes hard; they knew that lack of respect for growing, living things, soon led to lack of respect for humans, too."  Chief Luther Standing Bear, Lakota Sioux

kathymcmo's picture

(post #51889, reply #103 of 149)

Me too! Thanks Ann. With my medical issues and age it would be hard to find another spot I'm afraid. But my company is enormous, probably about 35,000 people globally so it's hard to know how many would be affected in my little corner of the company.


Tough times but I count myself lucky it's a pay freeze, not a pay reduction and not, at least for now, a layoff.