small company help, pay and conditions

small company help, pay and conditions

Author
Discussion

db

Original Poster:

724 posts

170 months

Monday 28th March 2011
quotequote all
hi,
i manage a small factory, plc, 15 employees.
there is no link from management to employees, management says pay rise is this...
we've grown continually, last year by 50% and management are taking the p... a bit. should there be involvement between management and workers, or is it really a "if you don't like it.." thing?

Stevenj214

4,941 posts

229 months

Monday 28th March 2011
quotequote all
...what's your question?

_DeeJay_

4,898 posts

255 months

Monday 28th March 2011
quotequote all
Stevenj214 said:
...what's your question?
To me the questions sounds something like 'can management set the pay rise for employees without consulting anyone'. The answer of course would be yes (assuming no trade unions etc), they can do whatever they want.



Bonefish Blues

26,805 posts

224 months

Monday 28th March 2011
quotequote all
Your company is too small to be covered by the "ICE" regs, I'm afraid.

See here: http://www.acas.org.uk/index.aspx?articleid=1598

db

Original Poster:

724 posts

170 months

Monday 28th March 2011
quotequote all
sorry, very poorly worded. deejay guessed well.
no unions involved and just feel like they're taking the pee a bit.

Stevenj214

4,941 posts

229 months

Monday 28th March 2011
quotequote all
If you think you're worth more than you currently get you have 2 choices. Ask for more or find someone else who values you more.

db

Original Poster:

724 posts

170 months

Monday 28th March 2011
quotequote all
i've no idea what i'm worth, but can't complain about what i get.
my concern is about those below me. i've asked to be involved in pay rise discussions before, the result has been presented with £5 per week, last 2 years for them. this year will be "a bit more"
this, despite a 50% production increase in the last 6 months. the guys are running themselves into the ground to manage this and i don't see "a bit more" going down well at all

Zad

12,704 posts

237 months

Monday 28th March 2011
quotequote all
The answer is don't run yourselves into the ground. People repeatedly make the mistake that there is some sort of law of moral obligation, and if you work yourself silly then it will be rewarded. It won't, it will simply come to be regarded as normal and taken for granted. Don't assume a favour will ever get repaid. Is there any efficiency increase to go with the 50% production increase?

At the moment, I'm seeing a lot of pay freezes, shorter weeks and even pay reductions at all levels in industry. Expect a rise when it actually happens.

TurricanII

1,516 posts

199 months

Wednesday 30th March 2011
quotequote all
When dealing with the management perhaps you could acknowledge the hard times and ask for no pay rise - but a small profit related bonus instead. As some companies do crazy accounting things that eat into profit, a turnover based bonus may be more beneficial. This way the company is protected against a poor year and the staff are rewarded for working hard. It might also be wise to ask for the bonus to be paid quarterly if the company is volatile, rather than wait til the end of the year for them to pheonix!

db

Original Poster:

724 posts

170 months

Thursday 31st March 2011
quotequote all
TurricanII said:
When dealing with the management perhaps you could acknowledge the hard times and ask for no pay rise - but a small profit related bonus instead. As some companies do crazy accounting things that eat into profit, a turnover based bonus may be more beneficial. This way the company is protected against a poor year and the staff are rewarded for working hard. It might also be wise to ask for the bonus to be paid quarterly if the company is volatile, rather than wait til the end of the year for them to pheonix!
my guys will not appreciate a £10-£15 pay-rise. they do get a bonus every 6 months tho. i've been told there may be a slightly larger bonus in june, but i wont know until the accounts are in.
i can't tell them that, which won't help with the hissy fits next week

TurricanII

1,516 posts

199 months

Thursday 31st March 2011
quotequote all
The point I missed out was to make sure that their profit related bonus is agreed so it works out much better than a £10-£15 payrise. I guess it is you who has to sell the idea to the company owner/management above you. The benefit to them is happy workforce, low wages and protection against a poor year, the benefit to the guys below you is reward for the hard work when it turns out that the company turns a good profit from their hard work.

If you get something set up but the company does not turn a profit/can not pay an extra profit related bonus then I would adjust the formula or question whether the company

Burrito

1,705 posts

221 months

Saturday 2nd April 2011
quotequote all
db said:
i've no idea what i'm worth, but can't complain about what i get.
my concern is about those below me. i've asked to be involved in pay rise discussions before, the result has been presented with £5 per week, last 2 years for them. this year will be "a bit more"
this, despite a 50% production increase in the last 6 months. the guys are running themselves into the ground to manage this and i don't see "a bit more" going down well at all
What was production like before the 50% increase? Has the company moved from making a loss to being able to make a bit of profit and maybe clear some debts?

Has there been an increase in staff to handle the increase in production?
Has the raw material cost increased meaning a reduced margins?
Are the employees paid hourly, so (assumed) increase in hours has already meant increase in pay?