Postcards

How the power players do it - by Fortune senior editor at large Patricia Sellers

A vacation you can't refuse

December 22, 2008: 3:27 PM ET

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.

Fortune's Most Powerful Women
Fortune's Most Powerful Women For the latest on the most influential women in business, philanthropy, government, and the arts, like us on Facebook.
Guest Posts
Fortune Most Powerful Women Fortune Most Powerful Women The rolodex that redefined power
Profile in The Washington Post
Sheryl Sandberg: Sheryl Sandberg: Don't leave before you leave
COO of Facebook
Gina Bianchini Gina Bianchini The Steve Jobs route to building a startup
Founder of Ning and Mightybell
Video
CEO Marissa Mayer on God, family, and Yahoo In her first public interview since taking on the CEO gig at Yahoo, Marissa Mayer outlines her priorities both in and out of the company. Watch
Former Sara Lee CEO on her stunning recovery Brenda Barnes famously quit a big job to be with her kids. Years later, a massive stroke nearly killed her--and her daughter returned the favor. Watch
About This Author
Pattie Sellers
Patricia Sellers
Senior Editor at Large, Fortune
Executive Director of MPW/Live Content, Time Inc.

Fortune senior editor at large Pattie Sellers has written some of Fortune's most talked-about cover stories, including "Marissa Mayer: Ready to Rumble at Yahoo," "Oprah's Next Act," "Can Meg Whitman Save California?" "The $100 Billion Woman" (Melinda Gates), and "Remodeling Martha" (Martha Stewart). She has helped oversee Fortune's "Most Powerful Women in Business" package every year since its launch in 1998. Pattie is Executive Director of the Fortune Most Powerful Women Summit, the preeminent gathering of women leaders in business and beyond. She oversees MPW programs that enable women leaders to extend their influence and empower the next generation—such as Fortune MPW Entrepreneurs and the Fortune-U.S. State Department Global Women Leaders Mentoring Partnership. Beyond her Fortune duties, she is also developing Live Content across Time Inc. Pattie grew up in Allentown, PA, graduated from the University of Virginia, and started at Fortune in 1984. Her blog, Postcards, is about how power players lead, manage others, and navigate their careers.

Email Pattie Sellers | Welcome to Postcards.
Subscribe: RSS feed | email newsletter
MPWomen go Global

The Fortune/U.S. State Department Global Women Leaders Mentoring Partnership brings rising-star women from countries around the world to the U.S. for three-week mentorships with participants of the annual Fortune Most Powerful Women Summit - among them Ursula Burns of Xerox, Laura Lang of Time Inc., Marissa Mayer of Yahoo, and Tory Burch.

Read more

Current Issue
  • Give the gift of Fortune
  • Get the Fortune app
  • Subscribe
Powered by WordPress.com VIP.