CASE # 15
CONSTRUCTION COMPANY
A family-owned construction company with approximately 100
employees, business had fallen off substantially, due to changes in the home
building industry. The company was faced with drastically reducing expenses to
stay in business. The owners met with some of the supervisors, and let them
know that business was not good. The supervisors suggested that all employees
be given a chance to participate in the decision about how to handle the
layoffs. This was done. The vote was unanimous to keep everyone working as long
as possible, cutting their hours if needed rather than layoffs. At first,
employees' hours were cut to 4 days a week. As the slow down continued, they
cut further, until employees were only working 2 days a week. Employees did
face some hardships with their hours cut, particularly when they got to 2 or 3
days a week. However, their positive attitude and motivation continued at a
high level. Everyone felt they had made the right choices in keeping everyone
working, rather than laying off some of the employees. Several times, those
with more resources chipped to help others - in raising money, providing food
at holidays and in assisting in their work. Employees felt they worked harder
on the days they did work, so none of the company's deadlines fell behind.
Eventually, the industry turned around and everyone went back to working full
time. There were no regrets on the decision to avoid layoffs, even though
everyone suffered some hardship. They felt it was better for everyone to work a
little, than some to lose their jobs altogether. Most of the experienced
employees stayed with the company, so that when the industry turned around
again, they were ready to go full steam ahead. The company continued to prosper
for many years and has not since been faced with such a serious challenge.