Won't it make a run on the banks more likely...

Cannon_Fodder

JFC wrote: »

Ok..so they lose 2.5 hours a week in money, but they also know that it could have been their job on the line.

I thought the solution was a wonderful idea

After a couple of months, the boss comes back to the Manager and says, sorry it didn't work, we will still have to make someone redundant...

...and the redundancy package is based on their last months salary, missing the 2.5 hours, multiplied by X years employment, makes for a smaller payout.


real world example; http://news.sky.com/skynews/Home/Business/Construction-Giant-JCB-And-Truck-Maker-Leyland-Announce-Job-Losses-Totalling-More-Than-600/Article/200811215151057

"The announcement comes after thousands of JCB workers voted to accept a £50-a-week pay cut last month in a bid to ward off job cuts"

kennyboy66_2

Cannon_Fodder wrote: »

After a couple of months, the boss comes back to the Manager and says, sorry it didn't work, we will still have to make someone redundant...

...and the redundancy package is based on their last months salary, missing the 2.5 hours, multiplied by X years employment, makes for a smaller payout.


real world example; http://news.sky.com/skynews/Home/Business/Construction-Giant-JCB-And-Truck-Maker-Leyland-Announce-Job-Losses-Totalling-More-Than-600/Article/200811215151057

"The announcement comes after thousands of JCB workers voted to accept a £50-a-week pay cut last month in a bid to ward off job cuts"

Except in this case (which was surely worth trying), the cut in hours and pay had no impact on the redundancy packages.

Chris2685

pickles110564 wrote: »

Where will you put your 50p? Under the bed.
You are talking a load of rubbish, just imagine if someone broke into your house and nicked your life savings, how would you feel then? Pretty stupid I guess just like you must feel now when reading your original post.

lol, what a muppet. Just because my money wouldn't be in a conventional savings account if I was being charged to keep it in one, doesn't mean that it would be under my mattress...

What an obnoxious smart arsed person you are!

JFC_2

Is the redundancy payout in that case based on their last months salary though?

JFC_2

Also if instead of cutting hours when they did, they made people redundant. Would the missing amount add up to the earnings they made for those months anyway?

One thing it would give the employees, is time to sort out their financial affairs and look for other work. Its the sudden redundancy announcements that cause the most stress.

Andrew64

The bank run seems to be occurring:

http://www.thisismoney.co.uk/saving-and-banking/article.html?in_article_id=478349&in_page_id=7

Banks were put on red alert today after customers withdrew more than £2bn from savings accounts in just one month. Industry figures showed deposits at High Street banks fell by £2.3bn in January, the first significant drop since 1999 and the largest since British Bankers' Association records began in 1997. It came as customers shifted money to more attractive investments after banks cut interest payments in line with the Bank of England, which has reduced rates from 5% to an all-time low of 1%.

Wookster

Andrew64 wrote: »

It came as customers shifted money to more attractive investments after banks cut interest payments in line with the Bank of England, which has reduced rates from 5% to an all-time low of 1%.

The high street banks just simply have to be more competitive in their savings rates otherwise savers of the world will move elsewhere to get higher returns.

whathavewedone

I've got about 30k in savings and while it is a major bummer that it isn't making much money at the moment (I didn't fix in time) there is no way I'm putting it in a safe and running the risk of getting burgled and losing the lot.

I think the majority of savers will grumble but just put up with the situation until interest rates rise again. Alternatively they might buy assets with it. Personally I already have my house and am keeping that money to live off if oh loses his business until one of us gets a job or to service higher interest rates or to stave off negative equity once our fixed rate expires. I'd love the money to be making money but at the end of the day I feel safer with it in HSBC than I would with it in a safe in my house.

Really2

whathavewedone wrote: »

I've got about 30k in savings and while it is a major bummer that it isn't making much money at the moment (I didn't fix in time) there is no way I'm putting it in a safe and running the risk of getting burgled and losing the lot.

I think the majority of savers will grumble but just put up with the situation until interest rates rise again. Alternatively they might buy assets with it. Personally I already have my house and am keeping that money to live off if oh loses his business until one of us gets a job or to service higher interest rates or to stave off negative equity once our fixed rate expires. I'd love the money to be making money but at the end of the day I feel safer with it in HSBC than I would with it in a safe in my house.

Exactly banks have alwayse been "Saftey Deposits" first good interest is a bonus but in the current climate savings will be getting the same bouses as every one else. Very small or non at all.

It's just the way it is in the current cliamte any one would think people are having money taken off them for saving.

Reaper

Wookster wrote: »

The high street banks just simply have to be more competitive in their savings rates otherwise savers of the world will move elsewhere to get higher returns.

The problem is that the government has been bullying them into dropping rates when they didn't want to. The obvious acton to make banks more solvent is to increase rates to reduce lending and attract savers but that just want the government doesn't want.

Persoanlly I think the governemnt took it too far and should have just let the banks pocket the last rate cut.