Buyouts or layoffs, the effect on morale is the same

A Guild blog reader suggested we post the link to a newyorker.com column titled "It's The Workforce, Stupid!" Author James Surowiecki writes that recent research has concluded that workforce layoffs is an effective way to cut costs, but the practice is a temporary fix and has a "negative impact on morale."

Staff cuts negatively impact morale because those left behind are expected to produce more – in addition to their own work – to make up for work previously done by their departed colleagues and often for less pay and longer hours.

Union contracts usually have seniority provisions in the event of layoffs. Union members appreciate seniority provisions because a) it prevents employers from forcing out older workers; b) the layoffs would be made by the very same mismanagement that decided on downsizing; c) union members get to bargain over the impact on work schedules and workloads; and, d) it allows the unions to negotiate for better buyout provisions to employees losing their job through no fault of their own.

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