As inevitable as downsizing may seem during
downturns in the economy, some fi rms have survived
decade after decade without any layoffs. How do they
do it? One fi rm, Nucor, has not laid off a worker in 20
years. However, it maintains a three-day workweek
with an average wage of $8 per hour. When large
contracts come in, the company expands to a sevenday
workweek and $22 per hour wage. Other fi rms
have entered into agreements with their workers
under which the fi rm promises not to terminate
workers for reasons of the economy as long as the
workers agree to lower wages or decreased hours
during tough periods. For instance, in December
1998, Volkswagen in Brazil was suffering under the
collapse of that country’s economy and the resulting
25 percent downturn in the Brazilian car market. It
avoided terminations at its 20,000-worker plant by
moving to a four-day workweek.