Economic Issues?

[the chi]

Here's a story from my local area...the comments are rather intriguiging...

This is a HUGE thing that will affect MANY of the locals here.

I know how I feel about this, how do the rest of you feel? Are you seeing similar issues where you are at? And someone weigh in on the collecting unemployment issue, I've never dealt with it so im not sure how it would apply.

http://www.nwfdailynews.com/news/peo...e=1#slComments

Legendary Inc. announced Friday that the company will trim individual employee pay by 25 percent in an effort to avoid layoffs.

The move affects several hundred employees.

"We've chosen not to cut back in staff," Legendary CEO Peter Bos said. "We have chosen to keep everybody together. ... There are not that many jobs in this area that people can move to.

"I was pretty proud of our management team for voting to keep people together as a family," Bos added. "It's a lot easier to cut staff underneath you instead of taking a cut yourself. ... These are very difficult times, and all the things we've been hearing are hitting Main Street."

Legendary is a major employer in development, retail and tourism in the area.

The company owns and operates the Emerald Grande resort (which includes HarborWalk Village), Legendary Marine, Regatta Bay Golf and Country Club and Destin Commons shopping center.

Legendary President Hugh Sawyer said "several hundred employees" would be affected by the compensation cut, including salaried and hourly positions.

"Not equal pay, but equal sacrifice," Sawyer said. "That's the moral thing to do."

As for possible fallout in having employees leave, Sawyer remained optimistic.

"Fortunately we have a very loyal employee base," he said. "We don't experience much employee churn and I would hope in this circumstance we would retain substantially all of our employees. Although that doesn't mean to suggest some won't make a personal choice, because that's what people are compelled do."

Economist David Goetsch of Northwest Florida State College didn't see it quite that way.

"Within the company they'll have a tough time dealing with the morale issue," Goetsch said. "At first people will be glad to still have a job, but after the next round of bills comes in, then you'll have the challenge ... because people's morale is tied to their pocketbook.

"And the issue is not how many they lose, it's which ones they lose," he added. "The people you lose are your best people, because they can find another job. There's a humane element in this, but from a business perspective it's a tough one to make work."
Sawyer said the slowed economy has impacted Legendary's businesses.

"All of our business is directly related to consumer issues, which are external," Sawyer added. "We like our portfolio of assets but they are not immune from the downturn in the economy - and it's ‘out of season' here right now."

Preliminary indications from around the region are that tourists still visited the Emerald Coast this year, but they simply did not spend as much.

"I don't think you can take one incident and say it's a bad omen or it's something we look to in the near future," said Shane Moody from the Destin Area Chamber of Commerce. "I think with each company, resources are different, the timing is different, the situations are different.

Goetsch saw it differently.

"Legendary is so widely known and has been such a success story that other businesses that are struggling may try to replicate that model," he said. "This may confirm in the minds of people who weren't sure that the tourist economy isn't doing that well. It will certainly create concern if not create panic."

[smileyman]

Tourism seems to be up here. Our state being one of the cheapo vacation spots...We really do have a great time when gas is high and plane fares go up On the other hand our jobs are mainly service industry so we need every tourist dollar we can grab...

[the chi]

A key point to remember, I dont think the article clarified, down here, on the Emerald Coast, its ALL tourism that supports this economy outside of the military. If your not military or a military dependent, or a tourist or snowbird, you are a RARE creature indeed.

This company also laid off several hundred people right before Christmas of last year...

[t-homo]

I would guess that a large number of people who would have been laid off will quit trying to find a higher paying job. 25% is a huge number.

[the chi]

sadly, there are no jobs to be found. Even places like McDonalds and gas stations arent advertising for employees...these people will be in dire straights, but most likely have to suck it up and stay if only to keep a paycheck of some sorts coming in...

[marko138]

I guess on one side of the coin it's a good move so people don't loose their jobs. But at the same time...can those same people afford to sustain such a pay cut? They may still not be able to pay bills, mortgage, etc with a 25% cut. Thats drastic...and in effect, much like loosing your job.

This economy sucks. Corporate just put a hiring freeze on us. And they've begun laying people off in our Tulsa station. Can't wait to see what happens in two weeks when all the election ad revenue dries up.

[jeeps84]

Our local paper mill has done this more than once. Most do get mad and quit while others stick it out and get raises when orders start coming in.

[Lamnidae]

Originally Posted by marko138

I guess on one side of the coin it's a good move so people don't loose their jobs. But at the same time...can those same people afford to sustain such a pay cut? They may still not be able to pay bills, mortgage, etc with a 25% cut. Thats drastic...and in effect, much like loosing your job.

This economy sucks. Corporate just put a hiring freeze on us. And they've begun laying people off in our Tulsa station. Can't wait to see what happens in two weeks when all the election ad revenue dries up.

agreed.



I'm a lil' worried about the safety of my job AFTER the election... we'll see what happens.

[Captain Morgan]

I would not want to take a 25% pay cut. I make about 35k/yr. (laughable, huh?) and it would be difficult to make any less. Kinda funny how those who make 100k a year feel like it would be difficult to take a 25% pay cut, yet here I am with 65% less than that. It's all a matter of perspective. I get by, but I don't have the materialistic things I would really enjoy. I don't NEED those things, but I'd really enjoy them. It's all about what you've grown accustomed to having and the feeling that you can't do without some of those things. I'm living proof that it's not much fun, but you can get by with less if absolutely necessary.

[Cutty72]

Originally Posted by Captain Morgan

I would not want to take a 25% pay cut. I make about 35k/yr. (laughable, huh?) and it would be difficult to make any less. Kinda funny how those who make 100k a year feel like it would be difficult to take a 25% pay cut, yet here I am with 65% less than that. It's all a matter of perspective. I get by, but I don't have the materialistic things I would really enjoy. I don't NEED those things, but I'd really enjoy them. It's all about what you've grown accustomed to having and the feeling that you can't do without some of those things. I'm living proof that it's not much fun, but you can get by with less if absolutely necessary.

I make about the same, and that's good/decent money around here!
Take off 25% of that?... yeah. The house would have to go, and that wouldn't do me much good with current house prices either...

Oh, and as far as unemployment, it doesn't pay much.
the only time I was ever on it (for 1 week) I made $230/week off of it.
Luckily I was getting severance pay from my last job, or I would have been screwed!