Up to 50 workers in each category of skill can be put on short-time working. The cost of this (per employee per year) is:
Unskilled |
Semi-skilled |
Skilled |
£500 |
£400 |
£400 |
An employee on short-time working meets the production requirements of half an employee.
The company’s declared objective is to minimize redundancy. How should they operate in order to do this?
If their policy were to minimize costs, how much extra would this save? Deduce the cost of saving each type of job each year.