The RBA will cut the rate of interest, will they not?
They might, but if you don't have a job it does not matter if rates are at zero, you can't pay the bills.
A 10% pay cut here, a 38% pay cut at coca cola. A 1% or 2% interest rate cut from here with the average mortgage will save what, 50-100 per week , and does not make up for the 10-20k reductions here in pay seen above.
See how all these car employees go paying mortgage and rents when the car industry closes. And all the subsequent jobs and buisinesses that dissapear along with it. When 40,000 + redundant workers try lookingfor what few jobs there are. And when all these savvy new (investors), try finding a tennant when these 50,000 units are completed and nobody has a job to pay it. Those poor excuses for a return will look like a bigger joke again and investors will be forced to jump ship.
So Peter, denying the obvious again. Where wages here are now falling, where wages in ALL western economies is now falling. This has NEVER happened before, an historical first, a look into the future and not the past, as the past is no representation of the future, while it may appear this way on some aspects.
Was this planned in the cycle Peter, the never ending rising wages to go with the never ending rising rents and house prices.
Face the facts Peter, and stop sticking your head in the sand as usual.
Wages in western economies are declining, an historicsl first. The result of a few things, first the mindless debt binge they have been on for forty+ years that has finally caught up with them in 2008 forcing the most desperate of measures and stupidity, whacking rates at zero and gaining another 10 trillion in debt. The result of pumping house prices to create the extra illusion of wealth to help pump their debt spree which allowed pay packets to rise with the ponzi. The double whammy now is the rise of cheap asian labour over the last ten years. Their economy was on a mission to self destruction anyway, but the rise of cheap asian labour over the decade not only bought the inevitable forward but made things worse. The other problem is modern technology and computerised automation take what other jobs are left. No rocket science Peter.
A reduced dollar doesn't just affect the price of imported goods. It also inflates the price of local goods that could be exported (ie. gas, wine, grain, steak, etc).
Calling up an Indian call centre to talk about a persons OZ family tax benefits or dole would be a wake up call for those that are still asleep though!
IBM has initiated a new training program that will cut the pay of participating employees by 10 per cent.
A copy of the September 12 memo, seen by Computerworld, was sent to IBM employees in its Global Technology Services strategic outsourcing group. The memo sent to affected employees begins by telling the worker that an assessment has revealed "that some managers and employees have not kept pace with acquiring the skills and expertise needed to address changing client needs, technology and market requirements."
It then tells the recipient that "you have been identified as one of these employees," and says that from mid-October through the end of March, "you will dedicate up to one day per week," or up to 23 working days total, "to focus on learning and development."
But IBM is coupling this training with a six month salary reduction. The key statement in the memo is this: "While you spend part of your workweek on learning and development activities, you will receive 90% of your current base salary."
You all missed the obvious - first off, this would be ILLEGAL in Australia - you can't just cut employees wages/salary! You can cut-back on discretionary bonuses, over-time etc, but not base salary/wages, unless the employee agrees and signs a new contract (but who the hell would!).
BUT - the article posted here pertains only to US employees you doufus's!!!
Quote:
Trink Guarino said the firm "is implementing a skills development program for a small number of U.S. strategic outsourcing employees.
Honestly, bear porn - you guys get sucked in soooo easily.....
A reduced dollar doesn't just affect the price of imported goods. It also inflates the price of local goods that could be exported (ie. gas, wine, grain, steak, etc).
I see what you are saying. Care to go into detail with a few examples?
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
You all missed the obvious - first off, this would be ILLEGAL in Australia - you can't just cut employees wages/salary! You can cut-back on discretionary bonuses, over-time etc, but not base salary/wages, unless the employee agrees and signs a new contract (but who the hell would!).
BUT - the article posted here pertains only to US employees you doufus's!!!
Honestly, bear porn - you guys get sucked in soooo easily.....
Pretty funny is it. Ilegal to drop wages you reckon. Guess the business will just end up closing down and you will lose your job and then have no wages at all, that's the end result. Keep laughin buddy
I noticed you have not been back to visit our shares thread. Only wish you knew how to pick stocks like that you clown.
Come and see me when you learn how to invest not pretend to .
IBM has initiated a new training program that will cut the pay of participating employees by 10 per cent.
A copy of the September 12 memo, seen by Computerworld, was sent to IBM employees in its Global Technology Services strategic outsourcing group. The memo sent to affected employees begins by telling the worker that an assessment has revealed "that some managers and employees have not kept pace with acquiring the skills and expertise needed to address changing client needs, technology and market requirements."
It then tells the recipient that "you have been identified as one of these employees," and says that from mid-October through the end of March, "you will dedicate up to one day per week," or up to 23 working days total, "to focus on learning and development."
But IBM is coupling this training with a six month salary reduction. The key statement in the memo is this: "While you spend part of your workweek on learning and development activities, you will receive 90% of your current base salary."
I've never worked for IBM, but I have worked with IBM fairly closely. It seemed extremely political to me. Also worked with Dell, which seemed less political but even worse on its own way.
Comment on the programme - as Sydneyite points out, this particular programme would be illegal in most countries. Labour laws just would not allow it.
As to whether it is a good thing or not, it depends on who gets the letter. IBM GTS absolutely relies on its employees keeping up with training and certification, and I'd have to say we found GTS to be total shits when it came to learning about the products they were supposed to be selling. Getting all your employees to keep up with their training is hard. Many will do anything to weasel out of it. One company I worked for kept back 50% of commission and bonus if you were not up with the certifications.
Cutting salary and forcing people to do training seems like a fair thing for people who have weaseled out of their job requirement for years. Firing would probably be even better. On the other hand if it is applied as a simple cost-cutting measure and impacts on people who have been doing the right thing, it is pretty outrageous.
The truth will set you free. But first, it will piss you off. --Gloria Steinem AREPS™
You all missed the obvious - first off, this would be ILLEGAL in Australia - you can't just cut employees wages/salary! You can cut-back on discretionary bonuses, over-time etc, but not base salary/wages, unless the employee agrees and signs a new contract (but who the hell would!).
BUT - the article posted here pertains only to US employees you doufus's!!!
Honestly, bear porn - you guys get sucked in soooo easily.....
If it was here they'd just make them redundant!
miw
23 Sep 2014, 08:24 PM
I've never worked for IBM, but I have worked with IBM fairly closely. It seemed extremely political to me. Also worked with Dell, which seemed less political but even worse on its own way.
Comment on the programme - as Sydneyite points out, this particular programme would be illegal in most countries. Labour laws just would not allow it.
As to whether it is a good thing or not, it depends on who gets the letter. IBM GTS absolutely relies on its employees keeping up with training and certification, and I'd have to say we found GTS to be total shits when it came to learning about the products they were supposed to be selling. Getting all your employees to keep up with their training is hard. Many will do anything to weasel out of it. One company I worked for kept back 50% of commission and bonus if you were not up with the certifications.
Cutting salary and forcing people to do training seems like a fair thing for people who have weaseled out of their job requirement for years. Firing would probably be even better. On the other hand if it is applied as a simple cost-cutting measure and impacts on people who have been doing the right thing, it is pretty outrageous.
True - it should be part of the KPIs to keep yourself trained up. I guess the problem too is the cost of certification as well, it's an industry in itself At the end of the day, in IT, you're competing with India where there is no problem training people up or finding staff willing to get certified.
It used to be the case that India was just taking the support stuff, call center etc., but now it's more likely it'll be an Aussie call center escalating to the Indian Tier 2 support. Companies will work out that people just want to hear a local accent on the phone, then farm out the high paying jobs overseas to cheaper labour.
What's also scary is the amount of consultant work, solution architects and project delivery stuff being outsourced, things that no one would have dreamed of outsourcing in the past I'd say.
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