Pay cut or voluntary redundancies ?
Discussion
Have any PHer’s been invited, or were to be invited by their employers to either take a salary cut of 25%, or 4 months gardening leave on 25% of their present salary, or voluntary redundancy.
Firstly, what would any PHer accept and way, if accepting the cuts in salary, what if any assurances/guarantees would/should one being seeking and looking for.
Firstly, what would any PHer accept and way, if accepting the cuts in salary, what if any assurances/guarantees would/should one being seeking and looking for.
10% pay cut was proposed but rejected by unions [management & staff alike].
some job losses have been made but very small in relation to the size of the company. shift workers have been affected by a reduction in the no. of shifts actually manned. a very small no. of workers are home on half pay.
2 guys in our office have left recently to move onto other things. we are keeping these 2 vacancies open so we can delete them if we are asked to reduce staffing.
some job losses have been made but very small in relation to the size of the company. shift workers have been affected by a reduction in the no. of shifts actually manned. a very small no. of workers are home on half pay.
2 guys in our office have left recently to move onto other things. we are keeping these 2 vacancies open so we can delete them if we are asked to reduce staffing.
IMO voluntary redundancy policies are idiotic from the employer point of view. There's too big a risk that your able young employees will say "thanks for the pay-off" and find themselves another job - leaving you with the less able and has-beens.
Yes, as an employee I've done it. Nerve-wracking but it worked out fine for me.
As an employer I've never gone near it!
It's all a question of how confident you feel versus the possible impact on any family you have.
Yes, as an employee I've done it. Nerve-wracking but it worked out fine for me.
As an employer I've never gone near it!
It's all a question of how confident you feel versus the possible impact on any family you have.
Wings said:
Have any PHer’s been invited, or were to be invited by their employers to either take a salary cut of 25%, or 4 months gardening leave on 25% of their present salary, or voluntary redundancy.
Firstly, what would any PHer accept and way, if accepting the cuts in salary, what if any assurances/guarantees would/should one being seeking and looking for.
If requested to work for 25% less money or take redundancy that assumes that there is not enough work to go around. So I'd take the 25% less money and work less hours. I'd use that time to start a new business. Firstly, what would any PHer accept and way, if accepting the cuts in salary, what if any assurances/guarantees would/should one being seeking and looking for.
The place I work at has just made a number of people voluntarily redundant, but this has been known about for a while, as a result of company restructuring announced at the begining of last year. Some more were made compulsarily redundant, as a result of a change in the economic climate.
We have enough work to keep us busy, but are shedding any ancilary jobs, such as managers who don't do a huge amount.
As for the reduction of salary side of things, I would be looking for a guarentee of not being given notice of redundancy for at leat 18 months after taking the cut, and an extension in the notice they need to give me to 3 months from 1 month, (i.e. guarenteeing 21 months salary, at the reduced rate). I'd also want some guarentee that my salary would not reduce again, and that significant increases (to higher than I was on) would be given once the business started picking up again.
We have enough work to keep us busy, but are shedding any ancilary jobs, such as managers who don't do a huge amount.
As for the reduction of salary side of things, I would be looking for a guarentee of not being given notice of redundancy for at leat 18 months after taking the cut, and an extension in the notice they need to give me to 3 months from 1 month, (i.e. guarenteeing 21 months salary, at the reduced rate). I'd also want some guarentee that my salary would not reduce again, and that significant increases (to higher than I was on) would be given once the business started picking up again.
Just had an e-mail asking people to volunteer for to go onto a four day week for 20% less cash or to take extended leave for 4-12 weeks on 30% of pay (you don't have to do either if you do not wish to). This is at a 'big 4' financial services firm too, and comes on the back of pre-crimbo redundancies.
I'd have quite fancied the latter as an opportunity to go travelling for a couple of months but the major catch is that they decide when you can do it. So you might go to a four day week, but you only get a week's notice and they decide how long the arrangements last and you might get to go off on some travels but you only get four weeks notice and they decide the length.
I'd have quite fancied the latter as an opportunity to go travelling for a couple of months but the major catch is that they decide when you can do it. So you might go to a four day week, but you only get a week's notice and they decide how long the arrangements last and you might get to go off on some travels but you only get four weeks notice and they decide the length.
AndrewTait said:
The place I work at has just made a number of people voluntarily redundant, but this has been known about for a while, as a result of company restructuring announced at the begining of last year. Some more were made compulsarily redundant, as a result of a change in the economic climate.
We have enough work to keep us busy, but are shedding any ancilary jobs, such as managers who don't do a huge amount.
As for the reduction of salary side of things, I would be looking for a guarentee of not being given notice of redundancy for at leat 18 months after taking the cut, and an extension in the notice they need to give me to 3 months from 1 month, (i.e. guarenteeing 21 months salary, at the reduced rate). I'd also want some guarentee that my salary would not reduce again, and that significant increases (to higher than I was on) would be given once the business started picking up again.
We have enough work to keep us busy, but are shedding any ancilary jobs, such as managers who don't do a huge amount.
As for the reduction of salary side of things, I would be looking for a guarentee of not being given notice of redundancy for at leat 18 months after taking the cut, and an extension in the notice they need to give me to 3 months from 1 month, (i.e. guarenteeing 21 months salary, at the reduced rate). I'd also want some guarentee that my salary would not reduce again, and that significant increases (to higher than I was on) would be given once the business started picking up again.
How can an employer guarantee that? If work continues to drop off, or companies overdrafts cannot be raised then further redundancies would be inevitable. Banks will not help companies out in most sectors. They want their overdrafts reigned in, not increased.
Our company will be going down the -10% salary route to keep it going. No reduction in hours. Most companies are having huge cash flow issues, and I'm afraid salary is a big % of that. Many have plenty of work on, but bad debtor days.
There have to be KPIs in place so it's clear for the staff to see when the 10% can be added back. Also, there need to be some incentives to staff eg. shares in the company in the future, enhanced bonuses in the future, when or if the situation gets better.
An alternative approach is to agree to take some voluntary unpaid leave that reduces your working hours and take-home pay by the required amount without affecting your nominal salary. Working reduced hours softens the blow of the pay cut. If the problem is that there is not enough work coming in to keep everyone busy then this makes sense. If the problem is that the work isn't making a profit at the current pay rates then it doesn't.
Ask me again at the end of next week. I'm 99% sure that we'll be put on a 4 day week with a minimum of 20% pay cut, or be offerred extended time off (9 months +) on 30% pay. I'm actually sat at home at the moment after being laid off for three days. Currently I'm on full pay but we've already been told that after this month that will no longer be the case.
As to whether or not I accept it, there isn't really any choice. In my line of work (manufacturing / facilites engineering) there isn't a lot of alternative work around at the moment. My thinking is any salary is better than none, so while I've got a job I'll try and keep it.
As to whether or not I accept it, there isn't really any choice. In my line of work (manufacturing / facilites engineering) there isn't a lot of alternative work around at the moment. My thinking is any salary is better than none, so while I've got a job I'll try and keep it.
Ozzie Osmond said:
IMO voluntary redundancy policies are idiotic from the employer point of view. There's too big a risk that your able young employees will say "thanks for the pay-off" and find themselves another job - leaving you with the less able and has-beens.
Yes, as an employee I've done it. Nerve-wracking but it worked out fine for me.
As an employer I've never gone near it!
It's all a question of how confident you feel versus the possible impact on any family you have.
But the management usually reserve the right to refuse to avoid these situations!Yes, as an employee I've done it. Nerve-wracking but it worked out fine for me.
As an employer I've never gone near it!
It's all a question of how confident you feel versus the possible impact on any family you have.
largerandrock said:
I will let you know at the end of the day.
Not related to this story is it?http://www.dailymail.co.uk/news/article-1119431/EX...
Wings said:
largerandrock said:
I will let you know at the end of the day.
Not related to this story is it?http://www.dailymail.co.uk/news/article-1119431/EX...
Edited by largerandrock on Friday 16th January 15:13
largerandrock said:
Wings said:
largerandrock said:
I will let you know at the end of the day.
Not related to this story is it?http://www.dailymail.co.uk/news/article-1119431/EX...
Edited by largerandrock on Friday 16th January 15:13
My department have been offered the "opportunity" to apply for other roles elsewhere in the firm with a package to compensate for lower salaries.
The salary compensation for moving is 6 months at the same salary and the next 6 months at half the difference then reverting to the lower salary. Plus a payment of £1k for every years service (taxed).
We have also been asked to put forward proposals for dropping time so working 4 day weeks and dropping 20% pay etc.
If they cannot lose enough people/time in this way they will move to compulsory redundancies.
I'm quite impressed with the scheme, plenty of other places would have had us out on the street by now.
The salary compensation for moving is 6 months at the same salary and the next 6 months at half the difference then reverting to the lower salary. Plus a payment of £1k for every years service (taxed).
We have also been asked to put forward proposals for dropping time so working 4 day weeks and dropping 20% pay etc.
If they cannot lose enough people/time in this way they will move to compulsory redundancies.
I'm quite impressed with the scheme, plenty of other places would have had us out on the street by now.
AndrewTait said:
I would be looking for a guarentee of not being given notice of redundancy for at leat 18 months after taking the cut, and an extension in the notice they need to give me to 3 months from 1 month, (i.e. guarenteeing 21 months salary, at the reduced rate). I'd also want some guarentee that my salary would not reduce again, and that significant increases (to higher than I was on) would be given once the business started picking up again.
you tell 'em 
Shop steward by any chance ?
We've been asked if we would take some unpaid holiday, the company were expecting nobody to take them up on it but nearly all of the 40 odd drivers did. Just one day this month and one next plus a few who took longer. If they can control the costs for this qtr well then it will put us in a good position for the rest of the year. No redundencies forecast for at least 6 months.
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