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The worker/company relationship is always transactional: As long as companies feel a worker generates (a certain proportion) more in value than their salary the
by Closi 6y ago
The worker/company relationship is always transactional: As long as companies feel a worker generates (a certain proportion) more in value than their salary they will be retained. A workers value generation depends on both the effectiveness of that worker and the overall financial situation of the company (Eg total revenues).
They thought that they didn’t have that ratio right which is why any company makes layoffs. You might personally think that companies have some sort of moral obligation to retain as many of their staff as possible, but the law and economics don’t share those views out of the box.
- jacquesm 6y agoIt's not the law, it's not economics, it's ethics. I know that's a hard concept for some.
- Closi 6y agoWell ethics isn’t always a straightforward argument - you could argue that restructures strengthen the long term viability of a business, which can sometimes retain more jobs in the long term. Additionally for not-for-profits the redirection of funds directly towards their ‘mission’ can again be argued as an ethical thing to do (eg for charities more money can go directly to whatever cause they are supporting) so ethics is never really a black/white thing.
- jacquesm 6y agoFair enough, but from the point of view of those just laid off it is probably a pretty clear cut case.