Initially, when an organisation encounters problems, and starts to decline in terms of revenue and/or pro ts, the typical management reaction is to assume the situation is a temporary one requiring nothing more fundamental than some cost cutting. Costs can be reduced anywhere in the supply chain, but the most obvious and usual starting point is to reduce labour costs. At rst, this may simply involve altering working patterns to eliminate overtime or, as is increasingly the case, to replace full-time with part-time jobs.