“A lot of workers are making the decision that we’re probably better to take a pay cut than being unemployed and not being able to find work again, or not finding work for some time,” Alberta Central’s Chief Economist Charles St-Arnaud said in a CBC news article published this morning.
The story focuses on WestJet pilots’ agreement to take a 50% pay cut in order to preserve jobs, which is something we’ve seen happening in different sectors, says St-Arnaud.
For companies, pay cuts or reduced hours can be a better option than layoffs because it allows companies to retain employees so that when business improves the workforce is still available.
“If you lay them off, how easy is it to re-hire?” asks St-Arnaud in the article.
Read the full story here.
Update: listen to Charles St-Arnaud on CBC Radio’s Alberta@noon as he speaks to “What have you had to sacrifice to keep your job?”