On Wed, 23 May 2007 13:02:51 -0500, "Gig 601XL Builder"
wrDOTgiaconaATsuddenlink.net wrote in
:

Larry Dighera wrote:
Isn't a policy that reduces staffing, and then authorizes mandatory
overtime (with its federally mandated time-and-a-half pay rate) just a
bit irrational?


I'll bet is cheaper to pay two guys for 60 hours each than 3 for 40.


Let's use $10/hour as a labor rate just to keep the math simple.


2 personnel X 60 hours X $10/hour = $1,200
2 personnel X 40 hours X $5/hour overtime premium = $400
Total = $1,600



3 personnel X 40 hours X $10/hour = 1,200
Total = $1,200



$1,600
-$1,200
-------
$400 Savings


How do you figure it?