Bosses get richer, workers poorer. ho-hum.

Tom Lehman TLEHMAN at lor.net
Sun Jan 24 08:31:02 PST 1999


Dear Margaret,

In Ohio last year there were layoffs of 17,600 plus people that can be attributed to mergers or NAFTA or both. These were mass layoffs of 50 or more persons at a time. So the smaller layoffs of less than 50 people are not counted and no reason for the layoff given.

In general the jobs lost were better jobs paying good wages and benefits.

Did anyone notice that Scrabble closed their plant in Vermont and the Scrabble pieces will now be made in China. This layoff involved less than 50 people.

Your email pal,

Tom L.

Margaret wrote:


> "NEW YORK (Reuters) - Merger-related layoffs soared in
> 1998 to nearly double the level of 1997, reflecting a
> slew of high-priced mergers and acquisitions, the
> outplacement firm Challenger, Gray & Christmas reported
> on Monday. Job cuts resulting from mergers totaled
> 73,903 in 1998, up 99.6 percent from the 1997 total of
> 37,033, the international outplacement firm said.
> The annual merger-cut figure was the highest since
> 1995, the first year the firm began tracking such data.
> Merger-related cuts comprised 11 percent of the total
> 677,795 job cuts announced last year, Challenger said.
> While the number of mergers remained relatively
> moderate in 1998, the high price tags of many of the
> mergers that did take place forced companies to make
> big staff cuts in order to cut costs, the report said.
> The number of mergers in 1998 totaled 11,630, just 4
> percent higher than the prior year's total. But the
> value of last year's mergers and acquisitions
> jumped 80 percent to $1.6 trillion from $907.5 billion
> worth of deals announced in 1997. Nine of the 10
> highest-priced mergers and acquisitions in U.S. history
> occurred in 1998, Challenger said."
>
> Note that the mergers 'forced' companies to get rid of
> people. No responsibility there, just the inevitable
> result of physical law at work.



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