Instead of laying off older employees why not decrease the pay??

Question

These companies are reduced to getting rid of older and overqualified employees and sending them out on the street to scrap around for another job, in this economy. (I read an article... age 45+ are getting the boot from lots of companies)

Why not just lower their pay or something? It's better then kicking them out on the street like a dog. These guys are old and overqulified to find another job....

Employers are turning pretty heartless these days....

Answer 1

Some companies, and even the government have resorted to a combination of both. For example, teachers and school staff have not only been laid off because of budget cuts, but the remaining teachers have had decrease in pay. For example, National Board certified teachers used to get a bonus every year, and now that has been cut.  Summer school has been cut all over the nation, and teachers cannot earn the extra money that they are used to.  In the corporate world, management's bonuses have been cut, value of stocks has decreased and accounts have been frozen.  Scholarships to colleges and universities are being canceled, and students that used to qualify for financial aid are being re-evaluated and "kicked out".  At this point, it seems like everyone is being affected by the resent turn of events in the economy, including children.

Answer 2

Instead of doing either of those things they should pay them a normal salary..we're all going to be old someday..I think CEOs forget that

Answer 3

Lowering their pay is pretty heartless too.  When you reach a certain age, you need a certain level of pay....45+ really?  I would think it's higher.....what they should do is offer buyouts.....it lets you leave with some dignity.

Angry much????  So I'm guessing from your replies to peoples answers that this is happening to you and we are all supposed to jump on the "All Corps are Evil" bandwagon?  Did you think they were anything else but???  Corps care about one thing; making a profit.  They always have and always will.  This doesn't make the Evil but it doesn't make the Good either; they just are.

Answer 4

Traditional (incentive/motivational) progress dictates that wage rate increases with increased responsibility and rewards longevity.

Dumping the older folks preserves this--the other edge of the sword is not considered until age 45 or so.  A modern ethic however is that if you don't have it made by 45 you are not going to make it anyway !

Any across-the-board wage decrease offends all employees who are affected, overall morale can thus diminish, risks attrition among desired employees beyond just  those who have outlived their immediate usefulness !(in managements view)

Younger employees have greater financial burdens with dependent families than the  older ones whose children are more likely to already have left the nest.

Young aggressive management can be occluded by aged, mature deliberately rational direction.  Young managers are not limited by ethical standards that have proven to hinder corporate expansion. (This is okay for as long as cell space remains available in our prisons)

Answer 5

Yes, I was forced to take a pay cut, not because of my age, but because my union is weak. I still have to pay the same $4 /gal for gas that the superintindent pays, yet he is granting himself another large pay raise, while the rest of the school district is having to take forced furlough days and a pay cut. He wants us to show our solidarity to the governor! Sure, that makes sense.

Answer 6

Some companies do that - they renegotiate the salary. But that's not always possible in, for example, a unionized environment, or without changing the job requirements as well.

We have created a compensation system that rewards based on years of experience and seniority - when people sign up for a job, that's part of the contract. Simply changing it is breaking a contract and can be cause for legal action.

Answer 7

Because no one who has worked at a job for that many years is going to tolerate a pay cut if they have any pride.  Let me ask you this;  how about if that was done to you?