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UPS laying off Technical hourly employees
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<blockquote data-quote="FEGuy" data-source="post: 80558"><p>Wouldn't stopping management bonuses save more money than letting about 380 hourly tech go? And wouldn't that make the shareholders happy....wait management is the primary shareholder. Never mind I answered my own question--</p><p></p><p>Nope, it wouldn't. It's hard for most here to understand, but, just like capital expenditures (Airplanes, trucks, etc) management bonuses come out of profits earned. They do not, DO NOT, reduce profits in anyway.</p><p>Cutting hourly or salaried positions, both EXPENSES, increase profit. </p><p></p><p>The lower the expenses, the higher the profit (all things being equal). Management bonuses....no effect on profits. That is all figured AFTER the profit is earned. It's what UPS DOES with its' profits. Majority of it is reinvested right back into the business.</p></blockquote><p></p>
[QUOTE="FEGuy, post: 80558"] Wouldn't stopping management bonuses save more money than letting about 380 hourly tech go? And wouldn't that make the shareholders happy....wait management is the primary shareholder. Never mind I answered my own question-- Nope, it wouldn't. It's hard for most here to understand, but, just like capital expenditures (Airplanes, trucks, etc) management bonuses come out of profits earned. They do not, DO NOT, reduce profits in anyway. Cutting hourly or salaried positions, both EXPENSES, increase profit. The lower the expenses, the higher the profit (all things being equal). Management bonuses....no effect on profits. That is all figured AFTER the profit is earned. It's what UPS DOES with its' profits. Majority of it is reinvested right back into the business. [/QUOTE]
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