Bob,
Nucor's labor makes on an average of $75,000 per year I read in the papers. Why they have no layoffs simply put is because they have a business model that can address the cycles of the economy. They have programs like reduced work weeks and such when time are tough. Their employees are all on board with their management as their is a shared respect and a "shared" responsibility in keeping their company solvent, as it should be. I read about them some time ago and was so impressed with the way they are able to do business and make money. Some years for them are not as profitable; but none the less profitable. In plain words, if they make $1.5Billion one year and the next they make only $1Billion, they don't change their business model and philosophy and react. They maintain their proactive business plan.
If you have a management team, as we do here at U, that looks to preserve and promote management jobs, and looks to cut costs by reducing the rank and file in order to turn a profit, you have an inequality and a lack of shared vision on who is responsible for keeping the co solvent. That is where employee morale and spirit and trust begins to deteriorate.
Whose fault is it that specifically U can't make a profit? Can you blame it on labor costs again? How about management costs? there is a ton of them. How about having a management team who can take their focus off the employee costs and focus on revenue building and simplifying the fare structures, and providing a service to the traveling public, stress free, that allows for the customer to go from point "A" of the process, to "z" with ease.
Mangement states you need to PAY your management well to retain good people, as they will go elsewhere, but to the "rank and file" they say, you should be grateful you have a job, where else can you go? I heard this quite frequentely in negotiations and even presently from mangement. I bet these Harvard/Yale/Brown/MIT grads missed their classes in Industrial Psychology, cause they lack the necessary ingriedents and "balance" that will be necessary to make a company go from surviving to good to great.
This Mangement WILL turn a profit; come hell or high water. But watch the "smoke and mirrors".
Example: Ponder this, If I tell my lender that I promise that I will make my huge mortgage payment at the end of the week no matter what and that I promise to do whatever it takes to show you that you can trust my word....and then the night before I go and rob my neighbor's house and make my payment...did I keep my word to make my morgage payment? Was that the "right and honorable" way to go about getting it? Kept my word though....