Should I be worried...?

stokegal

I was at work today and it was announced that the company I work for is in the process of being sold

http://news.bbc.co.uk/2/hi/business/6897687.stm

Now I have only worked here for 6 weeks and I LOVE my job and don't want to leave unnecessarily but I can't afford to be between jobs if I do get made redundant.

I understand that we're being sold but to be totally honest I don't understand the full implications of it having never been through it before. Can someone please help as half the people I work with are panicking about loosing there jobs and the other half are saying that everythings ok.

Thanks
Stokegal

lynzpower

I dont tihnk anyone can truly say.

my gut feeling is that Pipex is a strong brand with a pretty loyal customer base. ( although i might be a bit out of date there) so tiscali COULD just own pipex, but allow pipex to continue as it is. they coulds amalgamate it into tiscali, but then tiscali has a carp reputaion as far as I understand it.

Do you have trade unon- what are they saying about it?

fermi

Part of the Tiscali press release says this:

"Significant synergies and efficiencies can be achieved through this acquisition in particular through network integration, customer migration and indirect costs efficiencies. Over a four-year period, we estimate cumulated synergies in the region of £150 million at EBITDA level ca £50 million to secure the synergies and efficiencies. In addition, we will be able to offer our new Pipex customers the full range of Tiscali's compelling and innovative services including broadband, telephone and TV. This acquisition provides us with an even greater opportunity in rolling out our double and triple play offers."

The rest is here: http://www.tiscali.co.uk/presscentre/press_release/2007/july/071307pipex.html

I think all that corporate doublespeak means that they are going to merge some of the technical and product areas. What that means for the workforce is anyone's guess and depends on how they wish to approach things. Although Pipex is obviously a healthy business to merit the takeover on these terms.

Not sure that helps at all.

These things are difficult to second guess.

stokegal

Thanks for your quick responses

Lynzpower - there is no trade union at work and I have read through my contract which pretty much states we get the minimum of any benefits or entitlements.

Fermi - I currently work in their Credit Control department which is based in Stoke as the rest of Pipex is based in Manchester and Tiscalli from what I can see is based in London - do you think will have an effect on anything?

fermi

I'm afraid stokegal that with these sorts of things it is impossible to tell.

The internal structure and divisions within a company/organisation are normally subject to change and reorganisation at the best of times. When you start to get into the territory of take-overs and mergers this 'muddy water' becomes thick black treacle.

Geographic location has never meant much either, and is becoming less day by day.

Is it definite news that your division/section will be part of the sold assets?

The sale is of the Broadband/Voice divisions according to the press statement.

Are you attached specifically to them?

Just asking because I know how wild rumours can fly around an office as the result of some news in the press, with no real evidence to justify that much concern.

cazziebo

I know this kind of change can be very unsettling but try not to worry. You and your colleagues are protected by law - the TUPE regulations

- The new employer (i.e. the transferee) takes over the contracts of
employment of all employees who were employed in the “organised
grouping of resources or employees” immediately before the transfer, or
who would have been so employed if they had not been unfairly
dismissed by reason of the transfer.6 The new employer cannot pick
and choose which employees to take on. It follows that they cannot
terminate contracts and dismiss employees just because the transfer has
occurred (see Part 4 below for more detail). However, the new
employer does not take over the contracts of any employees who are
only temporarily assigned to the “organised grouping”. Whether an
assignment is “temporary” will depend on a number of factors, such as
the length of time the employee has been there, and whether a date has
been set by the transferor for his return or re-assignment to another part
of the business or undertaking.

That's taken from the DTI website.

If they are going to "exploit synergies"which often means downsizing, then they have to act fairly and stick to heavily governed redundancy procedures ie a consultation period would be necessary. With only six weeks service then you won't qualify for redundancy pay at this time, but would have to be given contractual notice. These takeovers can take a while to implement - and there will then be a bedding in period until the new company knows what's what so you have some time.

Fingers crossed that it will all go smoothly - and try not to worry!