http://www.forbes.com/feeds/ap/2009/03/11/ap6156175.html
Summary:
Belo Corp, a television company, has planned to do three things to help reduce its operating expenses. First, it will cut a hundred fifty jobs. Secondly, it will reduce some employee salaries by five percent. Lastly it will suspend its 401 matching contributions. By making these decisions, they have helped to reduce ten percent of the operating expenses. However, these decisions are going to affect variety of employees. Those who are Dallas-based are going to be affect by the five percent reduction in salary. Also all the employees in Belo Corp will are going to be affected by the 401 matching program.
Connection:
In Chapter 16, it is talking about the process of a company records the salary and wages expenses in the books. Salary is actually the fixed amount of money that a company pays an employee on a regular basis period of time. Salary is usually paid every two weeks. People who are paid by salaries include teachers, office workers, supervisors and other civil servants. A second type of payment that employers pay their employees is wages. This payment is paid according to hourly, daily, or weekly basis and the quantity of goods the workers produce.
Personal Reflection:
Due to the recession of the economy, many businesses are in some kind of hard time. Since most of the companies are not making as many money as before, the only way they are going to increase their net income by reducing their expenses. One of the expenses that most business are going to reduce first is the salary expenses because they can always cut this expenses and make the workers do more work. In this hard time, workers are hard to find another job, so all they can do is to suffer in this situation. Even though this is understandable, I still think that the businesses should find some other ways to increase their net income instead of letting their employees to suffer.
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2 comments:
I think that it is really unfair for an employee, that they're getting their salary cut just so that the company could increase their net income. I agree with you when you said the companies are reducing their expense to increase their income. And I can see that more and more people are unemployed, and with us teenagers and university grads looking for jobs, it just gets harder and harder. I hope this recession comes to an end soon. It is just unfair for employees to do more work for a lower cost, although some people would still do it because they need this money to feed their families.
-Michael Li
Though it may sound very unfair for the general population - the working class (employees), businesses and companies cutting back salary expenses in order to increase their revenues earned is often the most common step taken. In economic hard-hit times like the one we're experiencing at the moment, all companies are struggling to survive. In the essence of this situation, they would find any way to cut back on their operating expenses in the best they could.
It is going to be a difficult desision to make, but it will have to be made, and it will affect everyone's lives in one way or another. Let's just hope that the economy would be out of these dark clouds soon...
- Christy Leung
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