It would certainly be devastating for anyone to have to take a 50% pay cut. That being said, a job is only worth at most 20-30% more than what it would cost to replace you with a rookie. Unions have been successul and raising wages and expectations of its members to a point now where it is just not feasible for companies to do business here. This is an unfortunate situation for the company, its workers, and this great nation. There is a proposal out there that could make the US one of the most attractive places to do business in and its called the Fairtax.
www.fairtax.org