Chapter 16 Article

Ch 16 Article
http://www.gamesindustry.biz/articles/sony-freezes-staff-wages

Summary
The article is about the reduction of the wages in Sony Corp. It states that the Sony Corp has frozen its employee's salaries for a year starting in April. The purpose of this reduction is to improve the company's flagging profitability. Sony Corp will also lower the workers' bonuses to the equivalent of four months pay rather than six months. The annual compensation for managers will decrease by 10 to 20 percent through wage and 35 to 40 through bonus reductions. "Executives will also be slugged with huge cuts to bonuses and salaries." Nikkei said. However, the spokesperson of Sony Computer Entertainment Europe said that they will not plan to change their employees' wages because they want to stay competitive in the market.

Connection
The connection between the article and chapter is taht they are both talking wages. The Sony Corp is reducing employees' wages and bonuses. The managers and excutives are also affected. This kind of deduction is different with the one in the text book. The deduction in the book is about taxes and those pension plans.

Reflection
This kind of news are very normal to see because almost all business are doing the same thing during the depression. I think the reduction of wages of Sony Corp is a normal reaction after the recession. However, it might be a bad thing to the business. That's because it would affect the employees' performance. Therefore, the decesion of the SCE may not be a very bad decision during the hard time.