A recently published article in the Canadian Press offers a unique approach to avoiding corporate layoffs. The article suggested that a Government program, The Federal EI job-sharing plan, exists where employees can cut their work week down from 5 days to 4 days and then collect Employment Insurance on the 5th day. This plan causes employees to take a minimal pay cut and saves the company operational costs. This is an option for employers seeking to cut costs while avoiding major layoffs.
The article goes on to claim that unemployment in Canada is expected to rise from its current level – 7.2% – to 9% by the end of the year. The Canadian market is expected to shed 350,000 jobs during that time. This federal plan has been used by many organizations since it came to exist in the 1980’s however it has been little publicized since its inception. When this plan was initiated, unemployment hit 13% after a massive streamlining in the auto; steel and industrial sectors caused by high inflation and the second global oil prices shock.
To read the full article, please visit: http://ca.lifestyle.yahoo.com/family-relationships/articles/archive/cp/home_family-work-sharing_agreements_a_shockingly_well-hidden_alternative_to_layoffs