Quote from: niko on February 10, 2013, 08:22:28 PM

Example: majority of people involved decides to hire a new engineer. Everyone's share is reduced to accomodate for the new hire's sallary of 1.23% of the net profit. The net profit is expected to increase due to increased productivity, so everyone's happy.

Pay based on company performance could definitely work, and is already done with stock options today, however, co-op management and your example likely won't. Employees often don't have management skills, and can't see the whole of business operations from the top, and thus can't make business changing decisions like where to concentrate resources or whom to hire.

Quote from: dree12 on February 10, 2013, 09:14:55 PM

In our current inflationary system, the bulk of the power is granted to the business owners. Owners are free to bully their employees, refuse to give wage increases, and attack unions.

And employees are free to leave and find a job elsewhere. The job isn't the employee's, it's given to them by the business owners.

Quote from: dree12 on February 10, 2013, 09:14:55 PM

With a deflationary system, the power is reversed. The employees can choose to decline wage decreases if they do not consider them fairleaving the owners to negotiate properly with the unions.

The employee can decide to decline a wage decrease, and the owners will just fire them. Especially if the business doesn't make enough money to afford them any more. The power is still will the one who owns the business, and gives the jobs.