Ch. 16 Reduced Resort Rages?

http://www.forbes.com/feeds/ap/2009/03/11/ap6155146.html

Summary:
Vail Resorts, a ski resort, is planning on cutting their employees wages by as much as 10 percent to try and reduce operating costs of their resort. A move like this was predicted to save more than $10 million annually. But not all employees are getting the 10 percent cut, the percentage is decided on a sliding scale, seasonal employees receive a 2.5% cut, and executives get a 10% cut. Even Chief Executive Rob Katz said that he will not take any salary for 12 months and receive a 15% pay reduction. The effects of these for seasonal employees will take place at the end of the winter season, and the other employees will be on April 2. Also year-round employees will receive stock-based bonus values from 1.5%-7.5%.

Connection:
The biggest thing is about the wage reductions of a company in order to cut back operation costs. This goes directly with the current chapter we are doing about payrolls and the complex systems of keeping track and giving wages. With the new changes being put in place for the near future the accounting department for that company is going to be kept busy calculating the new wage amounts for each employee and giving out compensation for the employees that have been laid off. So the numbers for the coming year will be quite a experience for the accounting team. That is all the connection between the chapter and this article.

Reflection
Due to the recent recession nearly every business in the world has been struggling to keep in business, or has at least been affected in a negative way that would put them in an troublesome position. So to cope with this recession many businesses are forced to make some drastic decisions, some completely closed down, and others laid-off a lot of people, but in this case they cut the wages of its employees by a lot. But i still think that is very compassionate considering they still have a job unlike others who lost their jobs and are depending on the government to help them. But if this continues i don't think that these employees will be lucky for very long, and just end up like thousands of others.