Labour contracts are fixed until 2015, while new cars, such as the Chevrolet Equinox crossover, are keeping downsized factories humming at near capacity.

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If income is declining, which it is both because vacancy rates are rising and also because local councils are cutting the amounts they are willing to pay for care, labour is a fixed cost, then obviously rent needs to be reduced to avoid bankruptcy.

FORBES: Southern Cross: Solved

The demand for labour is not a fixed lump.

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