http://www.forbes.com/feeds/ap/2009/03/11/ap6155146.html
Summary:
This article is about a resort that is planning to cut its employee wages. The name of this resort is Vail Resorts. They are playing to cut as much as 10 percent in order to reduce the cost to operate the resort. Seasonal employees will receive a 2.5 percent reduction and executives will take a 10 percent cut. This plan is expected to save resort $10 million annually. The wage reductions for seasonal employees will take effect after the current winter season and other employees will be on April 2. Vail Resort is also planning to increase the number of employees owning stock by giving them a stock-based bonus valued from 1.5 to 7.5 percent of salary.
Connection:
There is only one simple connection that I had made between chapter 16 and this article. It is wages. This article is basically talking about the wages; for example, cutting wages. The chapter that I am studying right now is on wages; therefore, there is a connection between the two. One difference between chapter 16 and this article is that chapter 16 never mentioned about cutting wages.
Reflection:
The recession had caused may business problem financially. Not just Vail Resort is cutting wages, but many companies in the world are doing the same, so they can reduce the amount of expense. If may even be a good thing for Vail Resort’s employees because at least they don’t have to lose their jobs. Many company in the world; especially car company, are laying off workers instead of reducing their wages. So I think Vail Resort’s employees are extremely lucky compared to the layoff workers. If the recession continues, more and more workers will have to reduce their wages.
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1 comment:
It's saddening to see that so many companies’ first resort to reduce their expenses is to cut their employees’ wages. In the perspective of the company, it’s definitely a fast easy way to cut down on expenses of the company. But in the eyes of the workers, it is a rip off, since they work with the same efficiency, but get paid lower than before. Normally one would expect to get paid more as they work longer, but with the depression, workers are fired and wages are cut to almost nothing. In the long run, the company would most likely save money to some degree, but for the depression it gets even worst. It would become a monopoly for company owners and those who suffer are the workers.
Kyle Cheng
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