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View Diary: RX Firm to Dump Workers 2 Weeks Before Christmas (192 comments)

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  •  My good friend Bill lost his job today (8+ / 0-)

    He just called.

    He's done very well in his job. A top producer.
    He sells solar energy systems of one of the best of the new companies.

    Why did he get laid off right before the holidays?

    The energy tax credit ends next month.

    The fact is that this credit has been good for the business, obviously. Management knew it was ending. Management in this company is of the knee-jerk variety.

    The Republican "shellac" job seems to be taken as if the Republic Party is now in charge of everything. It isn't, but this doesn't seem to matter. These managers know that the Republic Party will never offer these tax credits again. Panic. Gotta make that year end number look good at all costs.

    When a business sees that sales are likely to take a hit, the correct response is to invest more in sales and advertising in order to overcome the risk. But they reduce the sales force. They didn't cut back any of their manufacturing efforts.

    Here's my take:

    Republicans would defund the out of control spending by the sales force. The fear of debt (failure) rules.

    Democrats would invest more in the sales force. Sales will increase if the sales force is funded and stimulated (incentives). The trust in people (success) rules.

    In my experience, the latter always comes out way ahead of the former in the long run.

    "All people are born alike - except Republicans and Democrats" - Groucho Marx

    by GrumpyOldGeek on Fri Nov 19, 2010 at 11:22:08 AM PST

    •  Re (1+ / 0-)
      Recommended by:
      HylasBrook

      When a business sees that sales are likely to take a hit, the correct response is to invest more in sales and advertising in order to overcome the risk. But they reduce the sales force. They didn't cut back any of their manufacturing efforts.

      Here's my take:

      Republicans would defund the out of control spending by the sales force. The fear of debt (failure) rules.

      Democrats would invest more in the sales force. Sales will increase if the sales force is funded and stimulated (incentives). The trust in people (success) rules.

      You have to make these decisions based on a rational basis, though.

      I mean, look at Blockbuster. Netflix completely destroyed Blockbuster. Their business model is kaput. The only thing they can do is close down local retail locations and lay off employees. No amount of wishing, faith in people, and investment in a failing business model is going to save them.

      Sometimes people have to lose their jobs and you have to go find another one. That's the way of things.

      (-5.50,-6.67): Left Libertarian
      Leadership doesn't mean taking a straw poll and then just throwing up your hands. -Jyrinx

      by Sparhawk on Sat Nov 20, 2010 at 06:17:45 AM PST

      [ Parent ]

      •  "go find another one [job] "is not possible (6+ / 0-)

        in this economy.  I've been out of work for 2 years.  Last week my financial advisor suggested that I should be willing to take a job I didn't like.

        He didn't understand that I have NEVER been interviewed for any of the jobs I've applied for.

        I've been laid off 2 times before; after the first layoff (1989) it took 5 months to find another job.  After the 2nd one (1993) 3 months.

        This one (2008) I've been looking for work for work and using the 'free' time for retraining to no avail.

        In today's economy, losing a job means not having a job for months and years, no matter how hard you try to "find another one".

        HylasBrook @62 - fiesty, fiery, and fierce

        by HylasBrook on Sat Nov 20, 2010 at 07:11:14 AM PST

        [ Parent ]

        •  I agree (1+ / 0-)
          Recommended by:
          HylasBrook

          However, that doesn't mean that companies should irrationally keep non-profitable enterprises operating. The economy, whether you're an individual or a giant company, is all about finding a way to be useful to other people. If you can be useful to others in a way that makes economic sense, you are successful. If you can't, you aren't. If Express Scripts decides it doesn't need that many workers, well, what are you going to do?

          I'm not sure that I know of a good solution to the issue you point out: social services? Some kind of minimum income guarantee? The present 'solution' has been increased unemployment benefit periods, but even that is paltry. However, benefits to unemployed workers come directly out of the pockets of employed workers, so there's that to consider too.

          A difficult situation all around.

          (-5.50,-6.67): Left Libertarian
          Leadership doesn't mean taking a straw poll and then just throwing up your hands. -Jyrinx

          by Sparhawk on Sat Nov 20, 2010 at 07:34:29 AM PST

          [ Parent ]

          •  That's part of the problem - (2+ / 0-)

            However, benefits to unemployed workers come directly out of the pockets of employed workers, so there's that to consider too.

            Just as some Walmart workers had to get on Medicaid or Chips because Walmart didn't give part-time workers health insurance and had a 90-day waiting period for others. (I believe the practice has changed after publicity about it.)  

            This means tax payers were subsidizing a trillion dollar company.

            So too are workers paying for unemployed workers -- partly because the rich are paying fewer taxes.  If that income was better distributed, there would be fewer unemployed.

            And as for companies 'have to do what it has to do' that is rarely true.  From my own personal experience, I watched Bank of America - already a big bank - take over Fleet Bank (not teeny either) because it wanted a presence in the Northeast & it was easier to buy it than build it.

            Then to save money, they outsourced the network department (which I was a part of) to EDS, who made this contract with BofA to 'increase market share" -this means taking a loss in hopes of getting more contracts in the future because the company was bigger.

            EDS was losing money on this account, so they made up for it by limiting benefits and giving no raises for 3 years.  (Many people stayed when this happened, because where could they go?)

            Then HP bought EDS to "increase market share" and promptly made EDS employees pay for it by forcing them to take a 5% pay cut.

            Too much of this 'have to do' is not to stay in business.  The real driving force is "my dick is bigger', which has very little to do with maintaining the viability of the company.  

            And, the bigger the company is, the more money the top executives can get for their salaries.

            Bank of America, meanwhile got so big it got into the 'too big to fail' category and had to be bailed out by the government - your taxes paid for that too.

            This rot from within this country's economy started a long time ago.  Now it is spreading with horrible results.

            HylasBrook @62 - fiesty, fiery, and fierce

            by HylasBrook on Sat Nov 20, 2010 at 08:05:29 AM PST

            [ Parent ]

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