Enhanced redundancy offer or enforced pay cut?

SwiftRider50

I have worked for my employer - a charity - for 21 years. Last year, after some years of appalling leadership both at management and Trustee level leading to drastically falling income, we were acquired by another charity. The paid off our debts and promised much investment in IT and product development. A few months after the acquistion, it appeared that our new owners were themselves in dire financial circumstances due to some creative accountancy at senior level - missed by due diligence procedures clearly.
Large scale redundancies at the Head Office ensued and in Feb this year a proposed re-structure of our business was put forward losing 10 posts. Mine was not one of them. The re-structure was then withdrawn after the acting MD accepted from staff and management that it did not reflect a sound business plan going forward. A new re-structure proposal was promised.
Meanwhile, anybody was invited to put in for an "enhanced redundancy" ie voluntary redundancy with a small sweetner.
In March, we were informed that redundancy measures were not enough to help with the budget short fall and that there would be a wage cut across the organisation. Discussion on how much and how applied is ongoing, but probably would be in the region on 10% for me.
I am completely confused as to what to do for the best. I may not be in the latest re-structure....but chances are I will be as the hints are that it is not so different from the original. If I stay on, I will lose 10% of my salary (currently is £29k). There is no guarantee that the business will have the investment it needs to be successful and may well be wound up before the year is out...in which case I will be on a new contract with a smaller salary with compulsory redundancy (I assume?). However, if I opt for applying for "enhanced redundancy" and IF it was accepted, I would get £21k. As it is "enhancd" and not "voluntary" our mortgage cover would be OK I am assured by HR. We have 12 years left on our mortgage, I am 51 this year and the job market is not good at the moment. My husband earns less than me but his job is reasonably secure...at the moment.
Any ideas? I have to say that the company who acquired us have dealt with ths appallingly.

somethingcorporate

I didn't want to read and run but you need to check with your mortgage cover people as to whether your redundency would fall under voluntary or not and you would be entitled to cover, your HR department have nothing to do with it (unless you get mortgage cover from the same company that you work for!) so any assurances from them are literally worthless.

Good luck.

SwiftRider50

Thanks for the advice SomethingCorporate. Our Staff Council spoke to the HR consultant working with the mother company to get assurances about the wording used on redundancy packages and it was he who said that the word "voluntary" would not be used. But yes, of course you are right. It would make much more sense if I asked the mortgage provider. Will look into this asap.

This is such a mine field. And we, at our small business, all feel so angry and let down by the outcome after the promises of "saving" us. There is a lot of patronising rot going on with all this too. We've been around for nearly 50 years so actaully know what we are doing, just been let down by top managers and poor decisions....

getmore4less

Get out with the cash the place looks like it is doomed.

If they really need your skills or they make a turnaround then you can try to go back.

Statutory redundancy for you would be around £10k.


A lot of peope realised that the charity sector was easy pickings at managemnt level so they moved in and made a killing sucking the charities dry, lower level people still do it because they do the cause.

I have met someone that actualy promoted this at a business school.