As the furlough ends, will employees be scapegoats or is it ‘just the economic climate’?

I have already seen a lot of this around industry in the NE Urmstongran. I know a few larger employers who have put this to their employees. Either take an across the board pay cut (80%-90% of usual salary) or else redundancies will follow. In one particular case I was speaking to someone who said "I know my own job is safe so I am voting not to accept the pay cut" which seemed rather selfish to me. Having said that I think this may be the tip of the iceberg.

In my own case I have 3 people on furlough. They have all said that they are breaking even as not having to pay travel costs to and from work . I don't know what I will do once furlough ends as we have no work at the moment but I do hope to make use of the working half the week and furloughing the other half, which I think may go down like a lead balloon .

If the 80% is across the board, management and below, I would think it’s better than redundancies, if that is the alternative.

I’m sure many businesses have little idea how it is all going to work out when they do get working again.

My brother in law who has been a loyal general manager is being made redundant and a younger person is taking over his side of things. My son is being asked to take on extra duties. I think there will be a lot of this as companies try to save money. I feel sorry for employees. And those looking for work.

It will take big industry to get going in order to filter work down to the 1st, 2nd and 3rd tier suppliers.

It makes me mad when people assume that everyone works "in in an office" and can continue working from home.

My daughter is Head of HR for a large legal firm and this is the offer they will have come July- they are all keen to get back to work and once the barristers start earning again they can go back to full pay. DD2 surveyed all the staff and they agreed they would rather do this than have job losses.

I will continue to do every single thing in my power not to make any of my remaining lads redundant . Bigger businesses do not get so "involved" and sadly many people are just numbers on a spread sheet.

I really feel for you gillybob thsi is the frst time we haven't had staff to consider and the relief is amazing.In the past we've run up massive overdrafts rather than pay people off when times were tough.
In a small business its not employer employee ,its friends /family and when one suffers we all do .We'll probably retire early we were running down towards it anyway but with weddings and commercial work cancelled for this year and no firm dates for next yet this might be the time to bow out.We're in the 45 th year of our business and it will be sad to turn the key for the last time but we are so glad we dont have 16 folk depending on us to keep a roof over their heads .
I wish you the very best of luck for the year ahead with hopefully a light at the end of this tunnel .

It's difficult for employers and employees, hopefully most people will understand the situation and be cooperative. I expect there will be those who take advantage as always.
Would that everyone had your integrity gillybob.

I trust that the business owners will evidence their pay cut as well?

Thank you paddyanne and sodapop I really appreciate your kind words .

I am so worried about things right now and I lie in bed every night just hoping and praying that our fortunes could change soon and I could ring the lads and tell them that everything is going to be okay. We have several quotes out but despite my best efforts none have turned into orders as yet.

I know exactly what you mean about the burden of feeling responsible for keeping the roof over your employees heads paddyanne it's a massive responsibility and we only have 3 employees left these days. All youngish lads with families and mortgages.

I can absolutely assure you whitewave that most small business owners always put their employees way before themselves. Hour for hour my 3 lads each earn more than DH and I do put together and it is my ever increasing overdraft (secured on our home) that has been paying their wages for some time prior to furlough and no doubt will do again some time soon if things don't pick up .

We always put our staff before us, it would be virtually impossible to function without them. A good reliable workforce is the cornerstone of every small/medium business.

If the choice is between taking an across the board temporary pay cut or losing a staff member, it would be myself and Mr.GG13 who would take the first hit always has been and always will be.

Gillybob I do hope that your quotes become firm orders ?

It's up to all of us to try to stimulate the economy in whatever small way we can. If there's no work coming in how can businesses continue to pay staff? We're going to see what work needs doing around our house and gardens. Once they open we'll try to visit cafes and restaurants or whatever. If things improve we'll find somewhere in the UK for a holiday etc. We've not spent nearly as much as usual while in lockdown so we're keen to get out and get spending. It won't be much but it could help a joiner, a window cleaner, a plumber, a waitress, a chambermaid etc etc

Thats a good plan Jane10.

Good point Calendargirl and WhiteWavemk2 about the cut affecting the employers too. A point worth mentioning.

Worrying times. They have a mortgage. They said they’ll be okay but will have to tighten their belts. In one sense, good they have no holiday plans. And no credit card debt.

I just wonder if there’s a plan - such as ‘if we do well, you’ll be on 90% by Christmas’ for instance. I don’t like open-ended scenarios but I suppose during these unprecedented times a loaf of this is going to be unavoidable.

British Gas are laying 5,000 off apparently. Got to feel sorry for those workers. As you say gillybob ‘not everyone can work from home’.

‘lot’ not ‘loaf’
Duh.

I suspect there may be a lot more of this, and far worse, when companies start coming out of this strange time. I am so thankful that I am no longer running my little business, I had 5 or 6 part timers (many sole earners) working for me and the responsibility was heavy. Like Gillybob says, I was the last to get paid, used my own money to pay bills when necessary, but sadly, many people, including some of my employees assume that as 'the boss' you must be loaded, not the case with me, and like Gillybob I frequently broke the law by paying myself well under minimum wage. Sorry, I digress, but I think we are going to have challenging times ahead, and I wish you Gillybob and others, good luck.

I agree Jane10 and that’s why I am very much in favour of the social distancing rules to be reduced to one metre.

It would make such a difference to so many businesses across the board.

If we don’t get the economy up and running soon there won’t be any jobs left to return to.

I read that countries who did lower their distancing rules did not have the feared spike in cases.

I agree Jane10. This is a small market town with many small business and single owner shops and cafes so we will be out next week spending- I jokingly said I'll start the Christmas shopping but I might do that.