This week, Herman Miller announced they will temporarily close …
Herman Miller confirming the company laid off 110 more people …
West Michigan-based furniture manufacturer Herman Miller, Inc. …
Updated: Thursday, 05 Mar 2009, 6:49 PM EST
Published : Thursday, 05 Mar 2009, 3:13 PM EST
If you're a blue collar worker, the notion of a furlough is nothing new. But forced time off for management and white collar workers is becoming increasingly more common.
This week, Herman Miller announced they will temporarily close most of its facilities, including corporate headquarters, every other Friday beginning March 13.
Business analysts say avoiding layoffs is not the only motivation in cases like thes. Haworth just ended a six-week period of four-day weeks for office workers.
In a statement, Herman Miller officials announced the reduction in hours and pay and added they would also temporarily suspend the matching contribution to employees 401k plans.
“As difficult as these decisions are, we are doing what is necessary to ensure the continued strength of our business while minimizing further job losses," President/CEO Brian Walker said in the release. "These steps will also enable us to be better prepared for economic recovery and renewed growth. I’m grateful for the understanding and commitment of our people throughout this economic ordeal and look forward to the better days we know are ahead.”
Business analysts say there's some strategy to avoiding white collar layoffs rather than trying to even out the pain for everybody. Nationally, companies are resorting to many measures to avoid white collar layoffs.
According to the business research firm, Watson Wyatt, planned layoffs are down 10 percent this year. That means, companies will be resorting to all kinds of ways to cuts costs.
Tops on the list of a survey of 245 large companies, asking employees to pay more for healthcare, followed by restructuring the workplace, cutting employee programs, reducing training, and freezing salaries.
Some companies are cutting salaries and agreeing to restore them when company performance improves
How do workers feel about more work for less pay? Experts say communication is the key to success
How long the cuts will last, nobody seems to know, because companies are moving in the direction to right size their cost structure to deal with the new realities of the business situation that we're in.