Honda Staff Vote For 3% Pay Cut

[interestrateripoff]

http://news.bbc.co.uk/1/hi/business/8063719.stm

Workers at Honda's Swindon plant have voted in favour of taking a 3% pay cut for 10 months in an attempt to safeguard 490 jobs.

In return, the workers will receive a bonus of six additional days' leave, Unite the union said. Managers' pay will be cut by 5%.

Of those balloted, 89% voted for a cut after the plant closed for four months.

They were asked to take a salary reduction after too few staff took up the offer of voluntary redundancy.

The plant has been shut for four months because of a fall in demand for new cars. It is due to reopen next month.

While pay freezes have become common in the car industry, pay cuts are more unusual.

"While a number of struggling companies are imposing pay freezes on their workers, to get employees to accept a pay cut is a significant achievement," the BBC's employment correspondent Martin Shankleman said.

"It is a measure of the calibre of industrial relations at the plant."

Jim D'Avila, regional officer for Unite, said the workers at Honda were standing together in "true solidarity in difficult times to protect hundreds of jobs".

This will help govt tax revenues.

Brown needs to spend more money that he hasn't got NOW!

What is the idiot waiting for people are losing there jobs and he's not spending enough money he hasn't got to save the world. I'm beginning to think he's no hero or saviour of the world.

[AteMoose]

The power of dreams

[deadman]

Two week old news.

[grumpy-old-man-returns]

Two week old news.

I said to Mrs GOM about a week ago.

Give it 2-3 months & they will start with the redundacies.

all so inevitable.

[thecrashingisles]

I said to Mrs GOM about a week ago.

Give it 2-3 months & they will start with the redundacies.

all so inevitable.

So job losses and pay cuts for those still in work? Still preparing for hyperinflation?

[grumpy-old-man-returns]

So job losses and pay cuts for those still in work? Still preparing for hyperinflation?

we will see.

it ain't over til the fat lady sings

deflation first remember, then the real nasty stuff.....

from that link:

"Deflation or Hyperinflation

The short answer is both.

The prerequisite for hyperinflation is a deflationary depression. There is a major misconception among many economist and financial experts that the deflationary scenario we are in now will lead to a deflationary collapse. But this is a fallacy. The current deflation is the necessary initial stage of hyperinflation.

We are currently experiencing massive deflationary pressures. The total global losses in stockmarkets, real estate and commodities are estimated at $85-$95 trillion. This is what governments are fighting. The effect on the heavily leveraged financial system of a fall in assets of this magnitude will require additional money printing of massive proportions. The financial system has issued debt instruments and derivatives of $100? s of trillions, linked to these assets . This is why the financial system is bankrupt and this is why the amounts printed by governments so far are a mere drop in the ocean. But we haven't seen the end of the asset deflation yet. We are likely to see worldwide asset losses of at least $130-$170 trillion before this is over.

Governments will of course continue to print money to attempt to "save" the world. But what government don't understand is that no amount of money printed is going to save the financial system or the world economy. Throughout history no country has ever solved a credit crisis by printing more money.

The consequences of this deflationary asset and credit collapse will be hyperinflation in many countries including the US and the UK.

So how do we go from a deflationary collapse to hyperinflation. If we take the USA as an example, their continued money printing will lead to a collapse of the US dollar and a total refusal by countries like China to continue to finance their deficits. This will in turn lead to rapidly rising interest rates and collapsing bond prices. That is the beginning of the hyperinflation, in simple terms. Hyperinflation is a currency event and it is the dramatic fall in the value of the currency which will lead to hyperinflation. Prices will rise very fast, there will be a scarcity of most items and the government deficits will escalate rapidly leading to further decline of the dollar and more money printing. It becomes a vicious circle just like in Zimbabwe."

Edited May 22, 2009 by grumpy-old-man-returns

[R K]

deflation first remember

No I don't remember, but I'm tempted to put it in my sig

[grumpy-old-man-returns]

No I don't remember, but I'm tempted to put it in my sig

it's like bi-flation at the moment imo.

then high inflation leading to hyper inflation after property bottoms.

I am being very serious RK when I say I would prefer deflation....it would suit me personally much better. I have a choice to make myself very soon which will make me put my money where my mouth is.

[grumpy-old-man-returns]

No I don't remember, but I'm tempted to put it in my sig

I mean by this that we get deflation in some asset groups like property, wages, cars. I have always said this btw.

I am very consistent you know.

if they keep printing we get hyper in about 5 years.

if they stop printing this year & we let that new money settle then we get deflation. (edited - mind you that's a fooken lot of dosh to settle )

right ?

Edited May 22, 2009 by grumpy-old-man-returns

[boredwithforum]

I said to Mrs GOM about a week ago.

Give it 2-3 months & they will start with the redundacies.

all so inevitable.

Theres loads of self-employed people out of work that don't get a mention, its gonna get real bad. Ive stopped spending money on things like take aways etc the stuff that I do not need and I know plenty of other people that are doing the same.

How the hell things are going to improve when people are losing their jobs left right and centre or their jobs are at risk is beyond the mind of most people.

I honestly believe this is going to drag on for years, self feeding its self.

Spark

[Bloo Loo]

In other news, Public sector unions begin actions to obtain 10% rises and better pension and sickness benefits.

[Bloo Loo]

we will see.

it ain't over til the fat lady sings

deflation first remember, then the real nasty stuff.....

from that link:

"Deflation or Hyperinflation

The short answer is both.

The prerequisite for hyperinflation is a deflationary depression. There is a major misconception among many economist and financial experts that the deflationary scenario we are in now will lead to a deflationary collapse. But this is a fallacy. The current deflation is the necessary initial stage of hyperinflation.

We are currently experiencing massive deflationary pressures. The total global losses in stockmarkets, real estate and commodities are estimated at $85-$95 trillion. This is what governments are fighting. The effect on the heavily leveraged financial system of a fall in assets of this magnitude will require additional money printing of massive proportions. The financial system has issued debt instruments and derivatives of $100? s of trillions, linked to these assets . This is why the financial system is bankrupt and this is why the amounts printed by governments so far are a mere drop in the ocean. But we haven't seen the end of the asset deflation yet. We are likely to see worldwide asset losses of at least $130-$170 trillion before this is over.

Governments will of course continue to print money to attempt to "save" the world. But what government don't understand is that no amount of money printed is going to save the financial system or the world economy. Throughout history no country has ever solved a credit crisis by printing more money.

The consequences of this deflationary asset and credit collapse will be hyperinflation in many countries including the US and the UK.

So how do we go from a deflationary collapse to hyperinflation. If we take the USA as an example, their continued money printing will lead to a collapse of the US dollar and a total refusal by countries like China to continue to finance their deficits. This will in turn lead to rapidly rising interest rates and collapsing bond prices. That is the beginning of the hyperinflation, in simple terms. Hyperinflation is a currency event and it is the dramatic fall in the value of the currency which will lead to hyperinflation. Prices will rise very fast, there will be a scarcity of most items and the government deficits will escalate rapidly leading to further decline of the dollar and more money printing. It becomes a vicious circle just like in Zimbabwe."

it will start in the US....lets hope it stays there.

[boredwithforum]

In other news, Public sector unions begin actions to obtain 10% rises and better pension and sickness benefits.

Thats pure greed

[29929BlackTuesday]

Deflation it is then.

[InternationalRockSuperstar]

Deflation it is then.

nope.

massive inflation and abject poverty for the masses.

[ralphmalph]

I said to Mrs GOM about a week ago.

Give it 2-3 months & they will start with the redundacies.

all so inevitable.

They did the redundancies whilst the new second production line was being installed. It was voluntary. The number of volunteers did not match the amount that Honda wanted so they said to the workforce if you all take a 3% wage cut there will be no compulsory redundancies and you can also have 6 days extra paid leave.

Sounds like a very good deal to the workforce to me.

Where you get your "they will start with the redundancies" line from, sheesh.

Also I know the news does not reach the bunker that you live in but the fact that Nissan re-employed 150 of the employees they had made redundant, I am sure passed you by.

Keeping reading the nutter websites and moaning to Mrs GOM.

[Harry Monk]

T. D. Williams, one of the three largest transport companies in Wales, have just imposed a 10% pay cut on all staff, both drivers and office staff and they have been given a "take it or leave it" piece of paper to sign to agree to their new terms.

That's probably about a quarter of a million quid a year which won't be getting spent down the local shops, and so they will close and the staff get the boot and so the cycle continues....

[interestrateripoff]

T. D. Williams, one of the three largest transport companies in Wales, have just imposed a 10% pay cut on all staff, both drivers and office staff and they have been given a "take it or leave it" piece of paper to sign to agree to their new terms.

That's probably about a quarter of a million quid a year which won't be getting spent down the local shops, and so they will close and the staff get the boot and so the cycle continues....

It can quickly become a self feeding cycle, I wonder if any of this has been put into the banking stress test models?

[weebag]

I mean by this that we get deflation in some asset groups like property, wages, cars. I have always said this btw.

I am very consistent you know.

if they keep printing we get hyper in about 5 years.

if they stop printing this year & we let that new money settle then we get deflation. (edited - mind you that's a fooken lot of dosh to settle )

right ?

5 years?? Injin said June. Damn, I went out and bought a bloody wheelbarrow. :angry:

[hedgefunded]

That's probably about a quarter of a million quid a year which won't be getting spent down the local shops, and so they will close and the staff get the boot and so the cycle continues....

So the cycle shops will be OK then?

[OnlyMe]

It can quickly become a self feeding cycle, I wonder if any of this has been put into the banking stress test models?

Depends if they can work out what 6x made up income minus 10% is.

Personally, I think they'll struggle, they seemed to have trouble digesting the figures on a bank statement/income slip, so they gave up.

Another tricky one for them what is the loan cover percentage on a BTL property no tenant.

Edited May 23, 2009 by OnlyMe