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Well, looking at real-world examples, one large Basque cooperatives managed a downturn by agreeing for everyone to take a temporary pay-cut. > the Erreka Group
by helpfulmandrill 3y ago
Well, looking at real-world examples, one large Basque cooperatives managed a downturn by agreeing for everyone to take a temporary pay-cut.
> the Erreka Group averted layoffs by temporarily trimming wages by 5 percent. It continued to pay workers stuck at home in exchange for the promise that they would make up some of their hours when better days returned.
https://web.archive.org/web/20210103102831/https://www.nytimes.com/2020/12/29/business/cooperatives-basque-spain-economy.html https://web.archive.org/web/20210103102831/https://www.nytim...
- IMTDb 3y agoYou are talking about a 5% reduction. No one even talks about a "round of layoff for hard time" when the number is that low. What would it look like if the company had to downsize by ~30% ? Would people still be able to pay rent ?
- conductr 3y agoDidn’t Covid just hit restaurants pretty hard. If they survived that I’m sure they’ve seen hard times
- helpfulmandrill 3y agoWhat sort of hard times are you talking about? Like the 2008 crash, for example?
- IMTDb 3y agoAny. Eg of what's happening next to me: a tunnel has to be closed for repairs, so it's becoming way harder for customers to access your location. As a consequence you are loosing a lot of customer for whom it's really inconvenient to come now. You have roughly 50% less customers for now. Repairs will last 2 years, and insurance helps you pay for the rent until the end of the repairs.
- helpfulmandrill 3y agoI think most companies would struggle in these circumstances. Co-ops can and do lay people off and/or reduce hours.