Full-time employees 40 hours per week at the local steel


Cycling through Pittsburgh, Pennsylvania, to look at its industrial heritage is an event open to the public. This intriguing ride is laced with the economic challenges that steel mills in Pittsburgh and other areas in the United States have faced resulting in company reductions and shutdowns. Situations similar to the following example are not uncommon. Full-time employees (40 hours per week) at the local steel mill were used to earning up to 10 hours of overtime in a two-week time period. They would typically work five overtime hours Monday through Friday and five overtime hours on the weekend. Many got used to the extra pay and began living beyond the means of their regular pay. Then overtime was cut. The average laborer's pay is $25 an hour. They earned 1.5 times their regular hourly pay for overtime Monday through Friday and 2 times their regular hourly pay on weekends and holidays.

Calculate their typical pay before overtime was cut.

Calculate their percent pay lost when overtime was cut.

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Financial Econometrics: Full-time employees 40 hours per week at the local steel
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