Posted 5 months ago on Dec. 1, 2012, 11:57 p.m. EST by 10N
This content is user submitted and not an official statement
A situation where Acme Inc decides to lay off 1000 employees. I propose that this is how is should be done. Acme is required to give 1 years notice. After which the 1000 Employees return home for 2 years with pay under certain conditions. At which point Acme Inc would pay part for you Education with Government Support.
The point is to give 1 years notice to prepare. This gives an opportunity to find other work or to think about another career.
The 2 year pay would be given to a) Going Back to School b) Did not find a job c) Anytime during the 2 years span a lesser paying job (The difference is given) *After 2 years the usual unemployment procedure...
How I Justify This Economically?
In this Example we assume: i) 1000 Employees ii) Each Employee cost $50,000/yearly iii) It is Law to give 1 years notice
Facts: Acme Inc. will save $50,000 x 1000 Employees = $50,000,000/ yearly
Year 0: Notice is given out to 1000 Employees.
Year 1: 1000 Employees Laid-off
Year 2 Average Cost of Back to School per Employee (not everyone goes back to school) $25,000 $25,000 x 1000 = $25,000,000
Year 3 Average Cost of Back to School per Employee (not everyone goes back to school) $25,000 $25,000 x 1000 = $25,000,000
- Invest in Skills the economy needs
- New Skills keeps people unemployed
Year 4 Acme Saves in Employees fees: $50,000,000 School Cost for Employees : $50,000,000
Year 5 and up: Acme saves $50,000,000
In Short Transition
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