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It makes sense to me to trade less pay for less porformance...isn't that what pay rates are all about (performance)? So I'm not sure why you would object to someone saying: we'll take less pay if we can perform less optimally.
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Was anything said anywhere about LESS pay, at least among those presently employed? They were negotiating the amount of proposed raises.
And a much more realistic approach (which is common in the workplace) would be less hours for less time on the job. It's hard to think of a business that would agree to have their employees do a crappy job.