By Jessica Shambora
It's Christmas week, always a quiet time at workplaces across the country. But this holiday is anything but typical. The quiet will stretch way beyond Christmas at many offices and factories this year.
No surprise, the Big Three automakers are temporarily shutting North American plants, in numbers correlating to their varying degrees of peril. Chrysler closed all 30 of its plants for a month. General Motors (GM) followed suit with 20. Ford (F) will shut down 10 plants for an extra week in January. Overseas production is also winding down, dashing hopes for relief from emerging markets.
While we're used to Europeans taking lots of time off, this holiday is exceptional. Among those set for an extended close: a Nokia plant in Hungary, Michelin factories in Ireland, Fiat plants in Italy, and a unit of stainless steel-producer, ThyssenKrupp, in Germany.
Workplaces across North America, meanwhile, such as a Whirlpool plant in Middle Amana, Iowa, will close for longer than usual. Even state governments, from California to South Carolina, are proposing unpaid work furloughs as they struggle to cut budgets.
And in Silicon Valley -- where I'm writing from this week -- companies are jumping to cut costs, having learned a thing or two from being at the forefront of the last downturn. Hewlett-Packard (HPQ), Cisco Systems (CSCO), Apple (AAPL), Adobe, Applied Materials and Advanced Micro Devices all plan to extend regular holiday breaks.
As the New York Times echoes in "More Companies Cut Labor Costs Without Layoffs" on the front page today, companies are turning out the lights to cut operating costs and save on compensation. Some pay reduced wages or none at all during their shutdowns. At Dell (DELL), for example, Christmas is part of a paid week off as usual. But management is urging employees to take five unpaid days off anytime during the fourth quarter. That's one way to improve earnings!
And at H-P and Cisco, employees are being told which days to take off around the holidays; those extra days count against paid vacation. That's like a lump of coal, but you don't see too many employees protesting loudly, do you? Maybe because a forced short vacation is, after all, better than a permanent one.
"You think I would have gone through what I did the last two months if I didn't want to stay?"
-- General Motors (GM) chairman and CEO Rick Wagoner, reiterating today that he's determined to keep his job. In exchange for a $13.4 billion rescue package (which will come from the government's $700 bllion TARP fund aimed at banks and Wall Street firms), executives at GM and Chrysler agreed to limits MOREPatricia Sellers - Dec 19, 2008 6:39 PM ET
"We have a chance of being hung with a softer rope."
-- Denny Fitzpatrick, chairman of the California New Car Dealers Association, in the New York Times today. A government bailout of the Detroit automakers looks increasingly likely, but that's not necessarily good news for Fitzpatrick, a Chevrolet-Hummer dealer, and his brethren. The big three -- General Motors (GM) , Ford (F) , and Chrysler -- have told Congress that they MOREJessica Shambora, Writer-Reporter - Dec 9, 2008 5:20 PM ET
As the government commits more and more money to its multitudinous rescue efforts--of Bear Stearns, then AIG (AIG), then Citigroup (C) and its bank rivals, then Citigroup again, and now more money for Fannie Mae (FNM) and Freddie Mac (FRE)--we wonder: Where, oh where, will these bailouts end? In Detroit, with General Motors (GM), Ford (F)and Chrysler securing their desperately needed billions? Alas, the road to shore up capitalism will MOREPatricia Sellers - Nov 26, 2008 2:01 PM ET
"Failure is simply the opportunity to begin again, this time more intelligently."
-- Henry Ford, founder of Ford Motor (F). If only Mr. Ford could see this day when his company's stock has sunk to $1.26. That's a 26-year low. Ford's market cap is now a mere $2.9 billion.
The leaders of the Big Three American automakers--Ford, General Motors (GM) and Chrysler--appeared on Capitol Hill again today to appeal for $25 billion MOREJessica Shambora, Writer-Reporter - Nov 19, 2008 6:09 PM ET
This morning, I read about the potential merger of General Motors (GM) and Chrysler. Then I read about the benign rivalry of two divas of the blog world, Arianna Huffington and Tina Brown. Two stories that have nothing to do with each other? You would think. But actually, they do. They point to a new reality of the business world: Competition isn't what it used to be. Competition becomes coopetition. MOREPatricia Sellers - Oct 27, 2008 5:14 PM ET
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