Background

In the event of a looming financial problem that would require a cut in staff costs, the HR committee would nominate an ad hoc Layoffs and Reduction Report Committee. Staff would discuss and approve the appointments of the individuals on the committee. The committee will then consider the issues involved and make a report to the staff collective suggesting a way to proceed.

Formation of the committee

The committee should only be formed after alternatives to staff cuts have been considered including various ways to increase revenue and reduce other costs.

Mandatory considerations

There must be a target amount of savings that needs to be achieved. This must be provided by the staff to the committee.

In considering layoffs or hours reductions, the committee must keep in mind the the whole organization's needs in determining the recommended course of action. It should consider both the operational and financial impacts to the organization. The committee should also consider the possibility of shuffling people to other positions to minimize negative impact on Free Geek.

The report must consider the impact on Free Geek's mission.

Order of criteria

The ways to determine where to make the cuts should be considered in the following order:

Wage reduction and voluntary hours cut

A staff-wide wage reduction should be evaluated and presented for consideration
Staff members who voluntary wish to reduce their hours should be asked to come forward. Staff members offering that their hours be cut should actually plan to work less hours. (They should not volunteer to work "for free" since this can lead to an imbalance in staff expectations.)

Merit-based cuts

By department and job function
- Consider what would happen if a program were cancelled or a job were eliminated?
- Is there any overlapping job functionality that could be consolidated?
- Consider whether a staff member's job or program is costing rather than raising money.
By a person's performance
- Consider what would happen if the person left the collective?
- Consider data from existing staff reviews.

Seniority

After the above criteria have been considered, seniority would be used as a tie-breaker if necessary.

Recommendations

The report should provide either recommendations or options for consideration to the full staff collective. These recommendations must be based on the above considerations.

Staff action on the report

The staff must then review the report and decide on a course of action.

Layoffs and Hours Reduction

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