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If he had mentioned layoffs first and then wage reductions, many probably wouldn't have accepted it. Then, those who stayed would have continued to cause trouble.
But by mentioning a wage reduction first to lower their psychological expectations, and then bringing up layoffs, he could use the limited number of positions to pressure them and push their limits.
They would worry about whether others might yield, trapping everyone in a chain of suspicion. Even the slightest bit o ...
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