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this post was submitted on 18 Sep 2023
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At the tail end of a massive maintenance shutdown (16 hr days for everyone, for 2 weeks) the mill leadership started a site-wide meeting with pictures and stories of their recent trip to Japan. How they went golfing, the great meals they had, their trip to the mountain, etc. They finally wrapped that up and proceeded to tell us that cost of living raises were going to be small that year due to them being “unsure about next year’s profit margins”.
There was a pretty steady wave of resignation letters for the 6 months following that meeting.
Jesus, some people just have no awareness whatsoever.
It's almost always better for a company to have resignations than layoffs.
So it's kind of always been a thing for them to "encourage" resignations with shit like this, then hire back new people later for drastically lower salaries.
It's what a lot of places are doing now mandating return to the office.
That sounds good in theory but with layoffs you tend to at least aim to let the worst employees go. With resignations you have literally the opposite. The best people are the ones that will go and the best ones will go first as they can and will find a new job more easily.
Not saying that they don’t do it for that reason but sometimes (and I’d say most times) people are just incompetent and do stupid shit like this.
I've seen the induced attrition, but with control. So let's say the company on a 'healthy' year gives out a 14% bonus to everyone (and the salary is calibrated with the expectation of that large bonus). So they decide they want attrition, sorry, they can't afford the bonus that year, everyone just has to learn to do without. Ok, disastrous, except they also identify some key folks and give them like 30% bonus in stock that vests over two years and/or a cash bonus with a clause that they are entitled for that to be paid back if the employee quits. So those people manage to get the same money (or more), though with strings attached, so they aren't inclined to quite unless they have an amazing competitive offer.
I've also seen a new executive come along and admit the strategy was being used, called it BS, and announced bonus was going to be significant but they were laying off folks.
Someone laid off is out and angry. Maybe talking smack about them, sue, might come back and cause a scene. Someone resigning already got what they wanted, to never see the employer again. It's like when you have a mentally unstable ex and make her feel like she broke up with you so you don't come out to find your tires slashed.
The added olive on the shit pizza here is that skilled maintenance personnel, at least where I am, are a fairly small trade, and word gets around. I’ve never heard of “official” blackballing, but we ticketed folks gossip pretty readily about industry employers, and are in high demand.
Moves like that will guarantee that they can’t get experienced tradies, and even if they do, the ones that are willing to go to their next shutdown will be keeping an eye out for trouble, and at the slightest sign of bullshit and will probably cackle with glee while screwing with this employer.
Beware the phrase “I can retire anytime.”