We need to improve the bottom line?

[888888]

What does that mean to you when a large company like GE says it.

To me it means that you need to make more money, and I need to provide that path. First off they will look at wages and benefits. second we will look at productivity gains which means some will lose your jobs while others will be made to work harder and do more by taking over the work of those we let go.

It's like one top level manager once told me during tough times when a few team leaders said it couldn't be done, they told me to tell them if your not working 24/7 then I don't want to hear about it not getting done.

Yep when management has a problem, workers production and their benefits become the solution of first choice.

 

[Corruptbuddha]

And?

It's a business. Businesses are in the business of making money.

What would you have them do? run in the red until they go bankrupt?

Get real.

 

[ya-ta-hey]

What does that mean to you when a large company like GE says it.

To me it means that you need to make more money, and I need to provide that path. First off they will look at wages and benefits. second we will look at productivity gains which means some will lose your jobs while others will be made to work harder and do more by taking over the work of those we let go.

It's like one top level manager once told me during tough times when a few team leaders said it couldn't be done, they told me to tell them if your not working 24/7 then I don't want to hear about it not getting done.

Yep when management has a problem, workers production and their benefits become the solution of first choice.

Mr. 8s,

Exactly, in any business plan, no matter what business, labor is the source of the greatest risk, and ergo, the best place to enact measure to improve the health of the company.

Seriously, I am suprised at your business acumin. kudos

 

[888888]

Is that what you think, if a business is having a short term problem of increasing profits they should focus in on the work force? We aren't talking about companies that are going bankrupt, we aren't talking about people who are being way overpaid, we are talking about who can we take advantage of that can't fight back.

Promises made are of no concern to people like you. My god people what do you think we should do, not reach our goals. We need to provide the numbers, and your the way to completing that task. So what if your goals have to be sacrificed, that isn't our problem.

 

[888888]

Oh maybe in your white collar world of business, but in manufacturing the cost of labor in creating product is usually under 15% of the cost. At my company when we negotiated a contract it was around 11%. And yes I understand that the easiest place for a company to add to the profits of a company is to go after wages and benefits of those who have no say. Does that mean it's right in all cases.

 

[ya-ta-hey]

Is that what you think, if a business is having a short term problem of increasing profits they should focus in on the work force? We aren't talking about companies that are going bankrupt, we aren't talking about people who are being way overpaid, we are talking about who can we take advantage of that can't fight back.

Promises made are of no concern to people like you. My god people what do you think we should do, not reach our goals. We need to provide the numbers, and your the way to completing that task. So what if your goals have to be sacrificed, that isn't our problem.

Mr. 8s,

Could your try that again, except this time without such a random assemblage of words?

 

[Corruptbuddha]

11%?

Total?

Really? May I ask what business?

Even a greasy spoon suffers a 23-36% labor total.


Labor costs represent the dingle largest cost for most organizations.

It's #2 in my business second only to operating costs (gas, maintenance, etc)

 

[ya-ta-hey]

Oh maybe in your white collar world of business, but in manufacturing the cost of labor in creating product is usually under 15% of the cost. At my company when we negotiated a contract it was around 11%. And yes I understand that the easiest place for a company to add to the profits of a company is to go after wages and benefits of those who have no say. Does that mean it's right in all cases.

Mr. 8s,

What you don't understand about business is that all costs are fixed, except for labor. You may be able to negotiate a lower price for raw materials, but that is doubtful, and even if you do, it won't affect the cost of production that much. Rental rates on equipment are fixed, as are maintenance and operation costs. Infrastructure, office operations, etc. have already been set. Things like insurance, bonding, interest on loans, advertising, marketing, accounting, taxes, etc. are all constants. The only thing in business that you can play with is labor costs. That is why when you bid something, or determine a business plan for manufacturing something, you always add the greatest markup for labor.

 

[PhilFish]

And? Let's take your (hypothetical) business. Its you...and me...baking widgets...

tomorrow comes and Big Client A says its not renewing widget contract. Revesue is as a result to decline by half...can't sustain your take home and my take home.

Friday..your mortgage bayment comes due,, the car payment on monday, and your kids tuirion bill on tuesday..

do you...A....lay me off...saving enough to cover your nut.
or B...keep me, and risk default on your payments...?