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Does it sounds as though they're planning redundancies?

We had a meeting last week at work, where we were told that the company (30ish employees) was in trouble. This came as no surprise as we've all see the downturn in business. First meeting was amongst the admin/secretarial staff, second meeting was among the fee earners.

We were told that in order to survive, we had to lose £100,000 off the annual expenditure. Management had taken certain steps which had managed to lose £60,000 but there was still £40,000 to lose. Any staff suggestions for cost cutting measures would be welcomed. It was hoped it would not come to redundancies, but they couldn't be ruled out. Redundancy criteria would be length of service and other factors.

Later that afternoon, the secretarial/admin staff (that's my category) were given a letter summarising the meeting. The fee earners were not given a letter. We were told that another meeting was arranged for 21st Jan and that we could have trade union representation if we wished, but that it was for us to organise.

(This is a family run firm - mum, dad, son, daughter plus old friend are in the driving seats.)

Yesterday, we had the follow up meetings, at which all the cost saving suggestions made by members of staff were dismissed as "not going to save enough money, so not worth doing". However, management had come up with two suggestions which they wanted us to consider. One was job sharing, the other was a four day week. This was only put to the secretarial/admin staff. When the fee earners had their meeting, it was proposed that they could do the same, and the idea was dismissed. We have not have letters summarising yesterday's meeting, although we have been told there will be a further meeting next Monday.

Now - my gut feeling is that they knew full well they were going to make redundancies, and they know exactly who they want to get rid of.

Does the fact that they're holding these meetings and only giving letters to the admin staff sound like they're following a set procedure for redundancies?

Virtually all the secretarial/admin staff have agreed to a four day week. Only two, to my knowledge, have not agreed. *IF* this four day week goes ahead, apparently it won't start until April.

That rings another alarm bell as that would take us to the end of financial year. All staff holiday has to be taken before the start of the new financial year, so no staff holidays to be "bought off".

So - am I right? Does it sound as though there are redundancies on the horizon?

Comments

  • G-G_4
    G-G_4 Posts: 3,090 Forumite
    Difficult to say... hmmm.. I would be on the look out for a new job asap though, just incase you are caught up in it all..

    Good Luck
    :D BSC Member 155 :cool:
  • Optimist
    Optimist Posts: 4,557 Forumite
    Part of the Furniture
    With a small family firm as you describe the management might just be trying to do the right thing by its staff without having to resort to redundancy.
    "The whole problem with the world is that fools and fanatics are always so certain of themselves, but wiser people so full of doubts."

    Bertrand Russell. British author, mathematician, & philosopher (1872 - 1970)
  • might be a good idea to consult your union:confused:
  • How long have you worked there?
  • Hootie19
    Hootie19 Posts: 1,251 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    G-G wrote: »
    Difficult to say... hmmm.. I would be on the look out for a new job asap though, just incase you are caught up in it all..

    Good Luck

    Yes, I am looking (for various reasons I believe that if there were redundancies, I would be one of them :() but there is just so little around in our town, and for various reasons I need to work in the town I live in. Obviously if push comes to shove, I will have to look elsewhere, but that would be ripples on a pond.
  • Hootie19
    Hootie19 Posts: 1,251 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Optimist wrote: »
    With a small family firm as you describe the management might just be trying to do the right thing by its staff without having to resort to redundancy.

    I'm sure they are. *IF* they have a sudden upturn in work (highly possible, but VERY dependent on the weather) then they would find it nigh on impossible to find people who would be capable of stepping into the shoes of secretarial/admin staff, as we do soooooooo much more than just straightforward typing work. Much of it is highly important to the running of the business and the major client.

    However, given that they asked the staff for any cost cutting ideas, and several *extremely* good ideas were put forward, but dismissed out of hand, my own view is that they are definitely going to be cutting staff. I think their minds were made up before the first meetings and they are just going through the motions now.
  • Hootie19
    Hootie19 Posts: 1,251 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    adrianbrak wrote: »
    might be a good idea to consult your union:confused:

    No union, unfortunately :(
  • Hootie19
    Hootie19 Posts: 1,251 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    chilli_dog wrote: »
    How long have you worked there?

    I've been there for 18 months. I can't decide from looking at the ACAS and other websites whether redundancy pay is payable from one year's service or two years. Either way, I'm not going to walk out a rich woman lol
  • ceridwen
    ceridwen Posts: 11,547 Forumite
    10,000 Posts Combo Breaker
    oh dear....the phrase "the writing is on the wall" comes to mind and this division they are making between secretarial/admin staff and fee-earners doesnt bode at all well - for the secretarial/admin staff.

    All you can do is get well informed on your rights (try googling the TUC website) and keep your eye out for alternative employment.

    Good luck.
  • Alfrescodave
    Alfrescodave Posts: 1,063 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Hootie19 wrote: »
    I've been there for 18 months. I can't decide from looking at the ACAS and other websites whether redundancy pay is payable from one year's service or two years. Either way, I'm not going to walk out a rich woman lol

    Believe its 2 years continuous service before you're entitled to redundancy.
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