Your CEO. Ms Docter indicates volumes are expected to fall 15% next year because

Question

Your CEO. Ms Docter indicates volumes are expected to fall 15% next year because of a loss of a key managed care contract. Passing the bad news along, Nursing Director CherDun informs the staff that of the 800 positions, approximately 60% are at risk because they are variable. This does not sit well with union leader FritzGrauf who threatens a strike in order to save her friends Howor, Lecree, Laitir,Liblr,MacM, Miire, Smt and Whisher because they are part of that 60% variable pool. What level of staffing should be expected next year?

Explanation / Answer

According to me,

Since volume are expected to fall15% next year therefore there should be decrease in staff by at the most of 15% and these will be decreased out of the 60% variable position.

60% variable position = 800*60/100 = 480 positions

Since 480 positions are variable and company needs a reduction of 120 positions (800*15/100), company can have a discussion with union leader FritzGrauf to not to do strike since company needs to reduce only 120 position and his friends will not be included in that 120

Level of staffing expected next year = 800-120 = 680 positions

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