Forced reduction in hours

WOCO Frank

We have a relatively nice problem. We're overstaffed with productive employees. Through technology changes, we've vastly reduced the workload of our office and clerical staff. Initially, we tried to come up with additional things that needed to get done, but we've run out. Now, at about 2 p.m., everyone is done with their work and they sit around and gab, go on extended smoke breaks, or whatever.

Ownership is reluctant to do anything about this, because these are mainly longtime employees *and* we are about 4 months away from a potential acquisition that would increase their workload again.

I get to be the bad guy.

My first thought is to ask if we have any volunteers to go parttime, at least through the summer. If I don't get any, I will probably shorten the workday.

1. I would appreciate your thoughts on potential pitfalls I might be exposed to.

2. Our two employees most affected by the reduction of workload are salaried. How can I effectively and legally reduce our labor costs there?

TIA

Gillian

Based upon your comment that ownership is reluctant to do anything I will assume that you have a workplace which is kind of "family". If that is the case I would start by evaluating the damage that would be done to the group by shortening hours or having layoffs when you expect to ramp back up in four months. Maybe that has already been done. If you need to do something then I think that your idea of voluntary layoffs or shortened hours have merit. It would be a good idea, especially in a family type of work group, to involve the employees by way of soliciting their input and sharing the reasons why you need to make some changes. If it can be done, if the employees would be eligible for partial unemployment pay and the group is reasonably large, you might be able to get your unemployment agency to visit and help the employees with the paperwork to draw unemployment. This can be done in my state but I don't know about yours.

Don D

On the other hand, if the company is privately held and 'ownership is reluctant to do anything about it', I get the notion that to the ownership, they're not concerned as long as the work gets done. I don't understand that motive; but, maybe ownership is satisfied to ride with a 4-month period of less than full utilization of ee's, then things pick back up.

WOCO Frank

I think it *was* the case that management was okay with the temporary utilization, but it's been about 6 months now. My fear is this pending acquisition will not happen and we will have let the situation continue much longer than it should have. We are entering that territory where underutilization could become part of the corporate culture, and I don't want to let that happen EVER.

Rockie

On your salaried people, you can reduce their total salary by a percentage, but not based on an hourly rate. You will probably need to negotiate with them on a new salary such as a 10% reduction, 15%, etc. Most employees, if they can afford it, would probably jump at the chance to take a temporary reduction in hours for the summer.

trc454

How bout close the Office on Friday or every other Friday

WOCO Frank

That was my initial suggestion - office open a half-day on Friday. I think we may give that one a shot, and it shouldn't be difficult, since the Friday afternoon workload is next-to-nothing.