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Sour Mash

Bt To Offer Low-paid Leave...

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Just heard it being discussed on BBC News channel .... apparently you can take a year off in return for 25pc pay. A way to keep workers but cut outgoings.

Interestingly, one of the presenters thought it was a great idea with the only problem being that you would still have to pay your mortgage.

Not if you were smart enough to see this coming and are renting mate. :lol:

Rather a good example of the stone around the neck that meeting whopping mortgage payments is for a huge section of the population though.....

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The thing that scares me sh*tless is what happens when BT/BA suss that its not just a recession?

Mike

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The thing that scares me sh*tless is what happens when BT/BA suss that its not just a recession?

Mike

what when they realise this is not just a recession, it's a marks and spencers recession?

Seen any shops NOT having a sale?

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Guest BoomBoomCrash

There's bound to be some fiddle which involves waiving any right to redundancy pay.

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F me. I'd jump on that one and go live a beam bum existence Spain or somewhere warm, for as long as BT kept the money rolling in.

Well, at least until the bottom completely drops out of the £pound.

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My neighbour has been offered this as his division is closing but BT have a policy of no redundancies apparently.

His salary is £100k so he will receive £25k for his 'sabbatical' .

He intends to work as a contractor at a minimum £500 per day, deducting holidays etc thats 230 working days totaling £115k PLUS his £25k so he will be £40k better off.

And WE will be paying for this - don't forget, even if your telephone account is not BT, the line rental is still paid to them as operators of the infrastructure!

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Rather a good example of the stone around the neck that meeting whopping mortgage payments is for a huge section of the population though.....

simpsons-stone-of-triumph.jpg

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I'd jump at that. And use the time to make serious efforts at my own business, aiming to bring it to the point where I had no need to return to BT.

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This kind of stupidity will end in tears, bieng paid NOT to produce is suicidal to the company paying out.....Bt are fecked anyway, broadband will not take off really until linerental is abolished...it is cheaper to go mobile for phone calls and if you get together with neighbours you can share broadband!! B)

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Fortunately this trend seems to only be with the soon to collapse former bastions of British industry where they have more retirees on final salary pension that employees.

I'm just trying to remember the name of that other really big employer who has something like 5 million staff at present all on gold plated pension schemes. I wonder if that employer may soon have to take similar measures.

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Fortunately this trend seems to only be with the soon to collapse former bastions of British industry where they have more retirees on final salary pension that employees.

I'm just trying to remember the name of that other really big employer who has something like 5 million staff at present all on gold plated pension schemes. I wonder if that employer may soon have to take similar measures.

The easiest way out is to fold up the business. Pensions will be guaranteed by the respective states, but the terms will be greatly reduced.

Just look at what the GM has done to their pensioners.

A snip from the NYT...

Q. Are pensions and retiree health care benefits protected?

A. The White House said Sunday that, assuming the sale went forward, G.M. workers’ pensions and health care benefits would transfer to the new company and remain in force.

Companies have the right under bankruptcy law to ask to terminate their pension plans. If pensions were terminated, employees would receive reduced benefits through financing from the federal pension agency.

A company can also eliminate retiree health care benefits for nonunion employees; they would subsequently be covered by Medicare if they were 65 or older.

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QUOTE

Q. Are pensions and retiree health care benefits protected?

A. The White House said Sunday that, assuming the sale went forward, G.M. workers’ pensions and health care benefits would transfer to the new company and remain in force.

Companies have the right under bankruptcy law to ask to terminate their pension plans. If pensions were terminated, employees would receive reduced benefits through financing from the federal pension agency.

A company can also eliminate retiree health care benefits for nonunion employees; they would subsequently be covered by Medicare if they were 65 or older.

More liabilities for the employer with 5m gold plated pension in waiting, plus the other millions already retired still on its pay roll.

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On first thoughts, I had two questions:

1) If you're on holiday, holiday pay, at 25% of your salary, would this break minimum wage?

2) If you're paid 25% of your wages you'd be on a low wage ... could get a Working Tax Credits top up I bet.

25% of £16k isn't a lot for a single person, but 25% of £40k if you're in a couple and your partner is still earning £40k sounds like a bloody good year off.

:)

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I know lots of ex-BT people - the stories I hear seem to indicate that BT pay alot of people obscenenely high salaries for doing very little - certainly more that most other private companies would pay for the same job.

The ones who took redundancy a few years ago got massive payouts and have great pensions.

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I know lots of ex-BT people - the stories I hear seem to indicate that BT pay alot of people obscenenely high salaries for doing very little - certainly more that most other private companies would pay for the same job.

The ones who took redundancy a few years ago got massive payouts and have great pensions.

Wouldn't it be ironic of these high paid wasters took the time off but it made no difference to BT or productivity increased.

How quickly would BT sack them.

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What happens at the end of the year off, when they tell you your services are no longer required?

Yes - that would be the big worry.

Having said that, if I got 25% of my current salary to b****r off for a year with a tentative promise of continued employment after that then I'd bite my employer's hands off.

But then of course, I don't have a mortgage millstone around my neck :P

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Yes - that would be the big worry.

Having said that, if I got 25% of my current salary to b****r off for a year with a tentative promise of continued employment after that then I'd bite my employer's hands off.

But then of course, I don't have a mortgage millstone around my neck :P

Very few people could afford to take 75% off.

I would only consider it if I thought I could get another job in year off which would be difficult in a recession.

Think about it, the average wage is £25k so they would be offered £6.25k for the year and that is before tax. Your looking at sub £100pw after tax.

Not a wage you could live on.

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On first thoughts, I had two questions:

1) If you're on holiday, holiday pay, at 25% of your salary, would this break minimum wage?

No, because it is not remuneration for "hours worked"

As an employment lawyer, this is a topic close to my heart.

Could I please put out a plea for HPCers who are aware of news reports of companies making attempts to save staffing costs, as I am giving a seminar on the methods soon and would like to refer to some concrete examples. I am aware of British Airways asking staff to take a pay cut, BT's sabbatical scheme, lots of redundancies...if you are aware of anything else in the news could you post it here?

thanks

g

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Tell that to my mum, she's on less and lives a perfectly happy life.

I find that improbable. She may be living on £100pw but it will also include the capital of previous labour.

So you could well live on £100pw if you already have a home paid off (in reality you are not living off £100pw but £100pw plus the pasts capital)

If you disagree care to put up some sums.

Just FYI it costs £75pw just to rent a ROOM in most places of the country.

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I work for BT and I'm going to take up the part-time working option which is part of the flexible choices they're offering.

If you cut your hours and sign up to this for 3 years, they'll give you a lump sum equal to the salary your giving up. You can reduce your hours by 80%

Eg, say your on £40K and went from 5 days to 4 days, you'll get a lump sum of £8K and you work part time for 3 years before being allowed to consider upping your hours. If you leave etc you need to pay it back proportional to the time you've worked part-time for.

I'm going to work 4 days a week and the missus is going to go from 3 days to 4 days given both kids will soon be in full-time school. We were thinking of doing this anyway, so we'll actually end up getting more money due to not paying 40% tax etc + a nice lump sum (taxable unfortunately!). Plus I get a whole day to myself!!!

The other part time option is like the above, but with no tie-in - they'll give you £1K for this one.

Regards,

crude.

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