Discharge productivity

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Layoff productivity is an economics term used to describe the phenomenon that a company's average labor productivity may increase after employees are laid off.

Bad word of the year 2005

The word was voted the unword of the year 2005 in Germany. When making the announcement, the jury chairman Horst Dieter Schlosser noted that suggestions from the business world, "with which management can gloss over and veil", had increased significantly in recent years. In his opinion, the term also conceals the harmful consequences of unemployment and conceals the additional burden on those who have been able to keep their jobs.

use

This word is currently used in the metal collective bargaining round by employers . For example, Gesamtmetall President Martin Kannegiesser used the term several times in the FAZ , among others . This term is now part of business administration . Gerhard Schröder criticized the word creation in 1998 . In 2005, however, the word only appeared five times in the national press.

reviews

Both Hans-Werner Sinn from the Ifo Institute , a representative of a supply policy , and the left-wing economist Rudolf Hickel from the Institute for Work and Economy (IAW) rated the election for the bad word of the year positively for various reasons. Sinn noted that layoff productivity made it clear that wage increases in Germany had been far too high in the past. He literally said, “It is the increase in measured labor productivity that is caused by excessive wage increases in relative terms Destroy unproductive jobs and leave only the more productive ones. ”In contrast, Hickel referred to the cynicism of the choice of words“ that layoffs should also increase labor productivity. However, the assumed economic connection is not tenable. "

The jury's decision was criticized by both Rolf Kroker from the Institute of German Economy (“This is not a bad word, but a technical term that describes a problem very succinctly”) and a spokesman for Gesamtmetall : “The productivity of layoffs is an established economic science Technical term that is also used by the Expert Council to assess macroeconomic development. "

Uses

"However, the high productivity of layoffs cannot be an economic justification for a further increase in labor costs."

- Employers' Association Gesamtmetall : 1998

“Dismissal productivity is the stupidest, because it is most short-sighted, variant of productivity increase, and it is also a solution at the expense of third parties, namely the taxpayer. I cannot see any creative work in it. "

- Gerhard Schröder : Campaign speech in August 1998

“With savings and rationalization, the corporations can perhaps increase their productivity - especially the 'layoff productivity' - and also support profits. The mood of consumers, that is, of employees, will definitely not improve this way. "

- Stephan Kaufmann : The auto crisis is not over yet ( Berliner Zeitung of February 23, 2004)

See also

Web links

Wiktionary: Discharge productivity  - explanations of meanings, word origins, synonyms, translations