Another Wage Shell Game

I’ve written about several forms of salary cuts: furlough days, changes in commission, reduced hours, and wage reductions.  I met with a client today who faced a different sort of problem.  He is a union employee who manages a building.  When a new owner purchased the building, he told my client that he could keep his job if he went on salary at half his normal annual income. My client, who is loyal to his union, walked away from this offer.  But let’s examine what he was being offered.

On the surface, it’s bad enough.  If my client had taken this job, he’d be cutting his annual income by 50%.  Worse still, by being on salary he would have given up all overtime payments.  Building managers are frequently called in on nights and weekends to address maintenance emergencies.  That work would now be done with no compensation.

My client said no.  He thinks one of his co-workers accepted this devil’s bargain.  I have no respect for employers that exploit workers.  In most cases, I have less for workers who accept these “deals.”  Yes, jobs are difficult to get in this economy.  But, when workers accept lower pay and fewer benefits, they are telling employers that they should offer even less next time.  We need to find a way to stand together as working people.  If we act separately, driven by fear, we will win the race – to the bottom.