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Author: dsbrady Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 157043  
Subject: Re: Microsoft Laying Off 18K Date: 7/21/2014 3:10 PM
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Yes, I understand that they've had issues in "temp vs. employee" workers. But that lawsuit was settled well over a decade ago. If they're only just now implementing a policy change because of it, then it's an even less nimble company than I thought.

Even with that court case, this policy applies to contractors who work through a vendor (which means the salary is provided by the vendor, which is how it worked with my example at a different company) -- contractors that that settlement shouldn't really affect (the case was about independent contractors).

But, let's say that Microsoft really is changing its policy 13 years later or so (and ignore the implications of the "speed" of that reaction). Money they might be saving to avoid treating those workers as employees will be canceled out in lost productivity due to having to train new workers to replace those that "timed out".

(Granted, if the workers are valuable enough, they can bring them on as regular employees, but that adds an additional cost to the contract vendor, as well)

dsbrady
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