A33. The following appeared in a memorandum from the president of Sinecor, a computer-software company.
“The amount of money Sinecor spent last year on paid vacations and medical benefits increased by 30 percent. To offset these expenses, we should increase to 30 percent the portion of our employees who are temporary or contract workers. Since we will not have to give these workers vacation time or medical benefits, we will save money by employing them. In addition, our regular employees will be motivated to work harder to preserve their jobs as well as their vacation and health benefits. These changes will improve Sinecor’s overall profitability and ability to compete with other companies.”
1Last year's increase in vacations and medical benefits is not necessarily that important as the author indicates. It may just be an incidental happenning which was in accordance with the overall trend.
2Whether the temporary or contract workers are immediately accessible and whether they can substitute the regular workers are still open to doubt.
3Other aspects of the substitution of temporary workers with regular workers are not considered by the author, thus making the assertion of benefit increase groundless.
Other expenses should be careful considered when the company decides whether to adopt the substitution of temporary workers with regular workers, such as the costs of training temporary workers.
more temporary or contract workers will exert the negative effect to the stability of work force in our company and will be hamful to the long-term development of the company.
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