The Equity Issue LO5682

Fri, 16 Feb 1996 11:58:12 -0700 (PDT)

Replying to LO5644 --
Ron writes:
> Although some layoffs occur simply because a group of workers has
no useful skills, most often they occur because those needed skills can
be had elsewhere for less money.

I disagree with your assumption of layoffs.
I have been directly involved with downsizing issues here at Boeing for
a number of years. I have helped executives work through mitigation
programs and reworked processes for redeploying people. What I have
found is that there are three primary reasons for downsizing:
1. Reduction in production rates - resulting in fewer people needed
to deliver fewer products
2. Process improvements - sometimes referred to as re-engineering.
This results in people working themselves out of a job.
3. Cost cutting - resulting in dollar goals being set without
reference to work statements

Each of these carry different issues in downsizing and possibly different
strategies for mitigating their impact. We need to keep these in mind
when discussing downsizing effects on LO so that we can address each
of the issues differently. If anyone would like to explore the differing
issues behind each of these, I would be happy to participate in the

For now...
David Reed
(206)655-3245 E-mail:
Human Resources Strategy Development


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