Thursday, March 12, 2009
Laid off
Well this had some sting to it, I was laid off from my work in mid-January. The reason was the opportunity cost for my boss to work two additional shifts in addition to her usual 60+ hours a week was too much for her (I was working part-time at this restuarant 3-4 days a week). This was in contrast to the usual economic slowdown following the December shopping season, where everyone's hours were cut so that marginal cost was above the price of labor and average variable cost. So my boss wanted to fill those 2 day shifts when I was in class during the week, but not at the cost of another part-time worker. So in hindsight I see that she hired a college dropout who could work my shifts plus those extra two other ones my boss had to fill herself without having to give him another shift or two to make the work worth his while to be there (who wants to work 2 shifts a week that change constantly?). The shady part was that I was not notified until this was a done deal and I had trained the new guy, I called on a Sunday night for my schedule to be informed that I was now laid off. So the restuarant gained a worker for full-time employment at the same rate it was charging me and someone to fill those shifts while at the same time eliminating me from a job to cut costs (instead of two part-timers working 3-4 shifts each, one person works 5 shifts= lower overall average variable cost). I believe this was the decision making process for my employeers as to this situation, and as a firm reducing cost while maximizing profit is necessary.
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