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Consider the fact that during the past few years, many firms have laid off thousands of workers, frozen employee pay and eliminated or reduced bonuses. Yet at the same time many of these firms have retained "key employees" and CEO by giving them huge compensation increase. This has created large inequities in the workforce within some organization. What are the pros and cons of such action? Explain.
Second, what impact of unions can have on pay for performance strategies within a firm?
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