Corporate Downsizing

Re “Don’t Downsize Productivity,” by Steven Rattner, Commentary, April 18:

As many businesses have downsized or are considering downsizing to stay profitable, the work force suffers. Corporate America squanders the savings from downsizing to pad their wallets and impress their investors. Meanwhile, workers after the downsizing have to work extra hard, extra long, and receive nothing extra!

I agree with Rattner’s claim that corporate businesses should take better care of their work forces by allowing wage increases to follow productivity growths and investing in retraining workers. I believe this is the best approach to stimulate further increases in productivity.

FRANK CHEN

Irvine

* Yes, our various statistics regarding employment, growth, profits, etc., are impressive--thanks to that “historic linkage between productivity and wages” being out of kilter. To maintain that competitive advantage in global markets, wages cannot grow at the same rate as productivity. An inflation of wages equal to output stagnates our competitive position. Meanwhile, other countries improve and become global leaders.

Productivity must exceed wage gains, while displaced and obsolete workers must be retired, retrained or automated. Effort and overtime are requirements. Global competition is a fact and affects everyone.

SCOTT BROOKS

Irvine