It is just business. You make $55 per hour. I need that work at $37 per hour. I am not stupid, so I surplus only 15% of your team. Those remaining can carry the load while I try to backfill at $32 per hour. That leaves me some flexibility with the replacement hire. Maybe I have to go with $39. I still save $33K per year, but I offer the replacement employee reduced benefits AND I pass along 100% of the cost of those reduced benefits to all other existing employees. Rinse and repeat. Every September I tell all employees I have negotiated the best benefits package known to man for the coming calendar year. Welcome to Corporate America.
Disclosure: Customers should not read anything into this corporate spin on reality as we treat our customers with nothing but fairness, transparency, and the utmost integrity. You can trust us.