In a Downturn, Employers Cut Jobs Rather than Pay - BusinessWeek

Why would they cut workers' wages when most are not making a living wage anyhow? [excerpt] ... By raising pay while cutting jobs, companies can "thin the herd" while giving remaining workers "the big corporate hug they need," says William C. Yoh, CEO and president of Yoh, a unit of Day & Zimmerman Group that supplies high-tech temps. Starbucks (SBUX) recently announced it was cutting jobs but isn't cutting pay or benefits. "We have to take care of our partners [i.e., employees] and keep them engaged," says spokeswoman Tara Darrow. ... Read more at: BusinessWeek