Posted: October 6th, 2022

As an employer wants to reduce the production cost during the economic recession,

QUESTION

As an employer wants to reduce the production cost during the economic recession, he/she could choose to (1) lay off some workers without changing wages or (2) keep all workers but cut wages for all. Which method would you choose? Why?

Additional information:

“Masters, provide your slaves with what is right and fair, because you know that you also have a Master in heaven” (Colossians 4:1, NIV).

“Look at the birds of the [a]air, that they do not sow, nor reap nor gather into barns, and yet your heavenly Father feeds them. Are you not worth much more than they?” (Matthew 6:26, NIV).

“He who oppresses the poor taunts his Maker, But he who is gracious to the needy honors Him” (Proverbs 14:31, NIV).

“…Encouraged by Wall Street investors, many companies over the past decade have slashed their full-time workforces, reduced benefits and demanded more output from the remaining workers…Many workers sense that they’re merely expendable components of an impersonal production process involving the manipulation of employees for the sole objectives of the maximization of profit and shareholder value.” — John Stapleford, Bulls, Bears, and Golden Calves. IVP Academic (p. 104)

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QUESTION

If an employer wishes to minimize production costs during an economic downturn, he or she may choose to (1) lay off some workers without changing wages or (2) keep all workers but reduce wages for all. Which method would you opt for? Why?

Further information:

“Masters, do what is just and fair for your slaves, because you know you also have a Master in heaven” (Colossians 4:1, NIV).

“Look at the birds in the [a]air; they don’t sow, reap, or collect into barns, but your heavenly Father feeds them. Aren’t you worth a lot more than they are?” NIV (Matthew 6:26).

“He who oppresses the poor mocks his Maker; but he who is generous to the destitute acknowledges Him” (Proverbs 14:31, NIV).

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