15% Pay Cut Or A 4 Day Week

[Setantii]

These are the options put to us this morning at the small printing firm I work for.

Apparently the bank (Barclay's) are putting the pressure on and limiting the overdraft. Also our main multinational customer owes us quite a lot of money and isn't fast at paying it's bills.

We haven't had a pay increase in 6 years (I'm on 15.5 k per year for anybody thinking all printers are well paid) and now this option is thrown at us. So what would you choose, 15% pay cut or a 4 day working week?

I'm almost certainly gonna go for the 4 day option unless persuaded otherwise. At least I can do some housework on the day off or look around for any other jobs.

[the stig]

I'm confused. So it's either a 15% paycut and continue doing 5 days, or the same pay but go down to 4 days? Seems like a no-brainer if so.

Sorry if i have misunderstood.

[Democorruptcy]

Check out the viability of dropping more hours and claiming more benefits to make up the shortfall. If you rent it must be a no brainer.

If dropping more hours is viable. Say to one of the other workers "I'll drop an extra day so you can work all 5 if you do the right thing.....then rub your forefingers with your thumb"

[the gardener]

I'm confused. So it's either a 15% paycut and continue doing 5 days, or the same pay but go down to 4 days? Seems like a no-brainer if so.

Sorry if i have misunderstood.

Cutting down to 4 days from 5 would be a 20% cut. So we have:

5 days, 15% pay cut OR 4 days and 20% cut.

Do the 4 days. You'll love the 3 day weekends.

[Bloo Loo]

Id be looking for a new job.

Banks are going to be unhelpful in the coming period. The biggest danger your firm faces is the immediate reduction in OD by the amount of a cheque receipt....this means,. although money is arriving, you cant pay anyone.

The Owners should open another bank account immediately.

[scottbeard]

I'm confused. So it's either a 15% paycut and continue doing 5 days, or the same pay but go down to 4 days? Seems like a no-brainer if so.

Sorry if i have misunderstood.

Presumably 15% cut, 5 days vs 20% cut, 4 days?

4 days still a no brainer I'd say. You may even get be able to get a part time job on that extra day if you want/need one?

What a rotten choice to have to make though.

[scottbeard]

I'm confused. So it's either a 15% paycut and continue doing 5 days, or the same pay but go down to 4 days? Seems like a no-brainer if so.

Sorry if i have misunderstood.

Presumably 15% cut, 5 days vs 20% cut, 4 days?

4 days still a no brainer I'd say. You may even get be able to get a part time job on that extra day if you want/need one?

What a rotten choice to have to make though.

[bewildered_renter]

I think I would go for the 4 day week too. At least then you have the extra day of free time to use as you wish. You also save a day's commuting costs.

Against the background of no pay rises for a few years, I'd say getting the 15% rate cut back is going to be tough. Whereas they'll give you the day of work back when they have the work needing to be done, and you won't have set any precedent for doing it at a lower hourly rate.

[R K]

Back of a fag packet but does the 15% cut take it down to more or less minimum wage? Is that why they've differentiated the two?

Assuming you have travelling costs and so on, on the face of it it seems better to stick to the higher hourly rate and work 4 days. I can't see the benefits of continuing to work 5 days for less. It's working an extra day for virtually nothing or perhaps even less after costs.

Good luck.

[Unsafe As Houses]

These are the options put to us this morning at the small printing firm I work for.

Apparently the bank (Barclay's) are putting the pressure on and limiting the overdraft. Also our main multinational customer owes us quite a lot of money and isn't fast at paying it's bills.

We haven't had a pay increase in 6 years (I'm on 15.5 k per year for anybody thinking all printers are well paid) and now this option is thrown at us. So what would you choose, 15% pay cut or a 4 day working week?

I'm almost certainly gonna go for the 4 day option unless persuaded otherwise. At least I can do some housework on the day off or look around for any other jobs.

Well a four day working week is essentially a 20% cut in weekly pay. - just 5% more.

In my opinion, I think if you need every penny you should go for the 15% pay cut, if not you should go for the 4-day week. If business picks up and they need more hours worked you'd probably want to be in the 4-day week at higher rate of pay position.

[Imminent_plunge]

These are the options put to us this morning at the small printing firm I work for.

Apparently the bank (Barclay's) are putting the pressure on and limiting the overdraft. Also our main multinational customer owes us quite a lot of money and isn't fast at paying it's bills.

We haven't had a pay increase in 6 years (I'm on 15.5 k per year for anybody thinking all printers are well paid) and now this option is thrown at us. So what would you choose, 15% pay cut or a 4 day working week?

I'm almost certainly gonna go for the 4 day option unless persuaded otherwise. At least I can do some housework on the day off or look around for any other jobs.

4 day working week and think about some training or education in a different field on your day off.

Printers used to be very well paid and printing firms made good money but it's cut-throat now.

[MinceBalls]

These are the options put to us this morning at the small printing firm I work for.

Apparently the bank (Barclay's) are putting the pressure on and limiting the overdraft. Also our main multinational customer owes us quite a lot of money and isn't fast at paying it's bills.

We haven't had a pay increase in 6 years (I'm on 15.5 k per year for anybody thinking all printers are well paid) and now this option is thrown at us. So what would you choose, 15% pay cut or a 4 day working week?

I'm almost certainly gonna go for the 4 day option unless persuaded otherwise. At least I can do some housework on the day off or look around for any other jobs.

Do you have another half earning money and do you have kids?

If you have kids and no other household income If you take a 20% cut that takes you right down to the point of getting rather a lot of tax credits doesn't it? like 10K pa if you have 2 children for instance.

I'm sorry if I sound like i'm promoting a life on benefits - I'm not - but it is worth considering this because the decision you have to make is a big one and you need to take into account all the financial implications.

[19 year mortgage 8itch]

As others have said 4 day week but be prepared for anything - further cuts or total redundancy.

I would imagine that those who volunteer to work the 5th day for free will be favoured over the part timers should there be reductions in headcount.

[newbonic]

These are the options put to us this morning at the small printing firm I work for.

Apparently the bank (Barclay's) are putting the pressure on and limiting the overdraft. Also our main multinational customer owes us quite a lot of money and isn't fast at paying it's bills.

We haven't had a pay increase in 6 years (I'm on 15.5 k per year for anybody thinking all printers are well paid) and now this option is thrown at us. So what would you choose, 15% pay cut or a 4 day working week?

I'm almost certainly gonna go for the 4 day option unless persuaded otherwise. At least I can do some housework on the day off or look around for any other jobs.

Would you qualify for working tax credits etc. if you went part time? I think the rules are changing such that if you work at least 24 hrs a week you may qualify for them.

Edit to say: didn't see MinceBalls poste above...

Edited February 29, 2012 by newbonic

[crash2006]

if your getting a 15% pay cut but have to work 5 days or you get a 20% cut because you work 4 days. 1) depends on how much you value having extra time 2) if you only work 4 days a week it means that you save on travel costs for that day and if you get benefits your amounts will increase.

4 days work you get 238.46

5 days work 253.36

The difference is 14 pounds, then factor in travel cost for the 5 day week that extra day you work would be worth £10.

Now you need to think about goodwill etc...

If it was just a job i'd say 4days if its more than a job then 5 days however i'd negotiate a above inflation wage increase when everything claims down.

[homeless]

just refuse both options. then they have 2 choices , well 3

1. they have to lay you off, at which point you will get redundancy pay

2. they attempt to change your terms of employment at which point you can insist they make you redundent

3. they sack you at which point you take them to a tribunal and get 1000s

either way your pay is less than someone on the dole gets anyway ie dole, housing benifit, ctax, ect ect.

And this is where society has fallen down, to lose your job is infact not such a bad thing, infact its probably for the best.

enjoy your new wealthier, easy, quality time life. and get a bit of work on the side for something to keep you occupied. welcome to uk 2012

[RufflesTheGuineaPig]

If the OP has kids and their partner isn't working, why are they working for such crap money anyway?

Just get their employer to make them redundant and there problems will be solved.

Anyone with kids has to be an idiot to actually have a job.

[Austin Allegro]

I'd go for the 4 day week (actually I opted for a 3 day week) but make sure you use the extra day constructively - get a part time job, start up something on the side, or make your time pay by doing moneysaving stuff like mending, growing food etc. It's surprising how the extra time just gets swallowed up with doing bugger all like farting around waiting for the Missus to get her makeup on while you go to the shops together, etc.

[Milton]

These are the options put to us this morning at the small printing firm I work for.

So what would you choose, 15% pay cut or a 4 day working week?

This is becoming more widespread. I posted a topic about it last month:

The Return of the 3 Day Week.

As my pal, was initially put on a 4 day week, along with a section of the workforce, [the tradesmen, warehouse workes, assemblers, skilled and unskilled. I.E. Not the Office Staff]

However, the Government will subsidise your wages for the first 5 weeks. Through your Company.

Have you been told about that? You should have a word with your Directors. I believe you are entitled to this, and the company should have done it for you. But they may not know about it.

Some Ministry. [Not DWP] sent his company letters, who distributed them to the employees, showing that they will subsidise the first 3 hours of the missing day, for the first 5 weeks....[Or £22.20, or whichever was the highest or something...] He showed me the letter. Its just included in your wage. So you dont have to do anything.

Then when its reduced to a 3 day week, it's assessed again.

I'll ask him who it was and post the info.

Edited February 29, 2012 by Milton

[Austin Allegro]

I would say your top priority is to look for another job or start getting trained to help move job/career - so the 4 day week would be my choice. Make sure you use the day off constructively, try to avoid w@nking all day at your PC.

In my experience, once a bank turns 'cold shoulder' on a business the days are numbered.

Buckers

Agreed - this sounds to me like the last stop before compulsory redundancies. A lot of companies have been avoiding layoffs because of the costs of rehiring once we 'came out of recession' but it's becoming increasingly obvious that isn't going to happen anymore. I can sympathise, the last few years have been brutal for printers, even without the recession, as more and more stuff has moved online or to computer to plate and laser systems (basically glorified photocopiers).

Edited February 29, 2012 by Austin Allegro

[Ascii]

Presumably 15% cut, 5 days vs 20% cut, 4 days?

4 days still a no brainer I'd say. You may even get be able to get a part time job on that extra day if you want/need one?

What a rotten choice to have to make though.

+1

Even without getting another job you'll find the extra day useful and will likely be able to make back the 5% by being canny - there are fringe benefits to having a lot of time on hands.

I work in the same trade (albeit self employed) and ths is far from the first timeI've heard of this happening. Printing at the minute is pretty f**ked. It has been since around 2000 when (funnily enough) easy credit came into play. Massive overcapacity and more easily accessible trade (via internet) means it is not as much fun as it was.

[Ascii]

If the OP has kids and their partner isn't working, why are they working for such crap money anyway?

Despite what they say about the national average, £15k is far from unusual.

[Killer Bunny]

I'm almost certainly gonna go for the 4 day option unless persuaded otherwise. At least I can do some housework on the day off or look around for any other jobs.

FWIW my friend, in local govt, took 4 days - and saved her job, it transpires.

Of course, she can also work in a pub or something as well, if she wants

Edited February 29, 2012 by Killer Bunny

[RufflesTheGuineaPig]

Despite what they say about the national average, £15k is far from unusual.

You miss my point. If they have kids, they will be financially better off on benefits, and then have time to spend with the kids, go out cycling/jogging, have holidays when they like, etc etc. Lower stress = Longer life expectancy.

If you have 2 or more children, usually you're better on benefits, and can have a higher standard of living and a better family life.

[LiveAndLetBuy]

if your getting a 15% pay cut but have to work 5 days or you get a 20% cut because you work 4 days. 1) depends on how much you value having extra time 2) if you only work 4 days a week it means that you save on travel costs for that day and if you get benefits your amounts will increase.

4 days work you get 238.46

5 days work 253.36

The difference is 14 pounds, then factor in travel cost for the 5 day week that extra day you work would be worth £10.

Now you need to think about goodwill etc...

If it was just a job i'd say 4days if its more than a job then 5 days however i'd negotiate a above inflation wage increase when everything claims down.

Did the same calculation but you beat me to it. In fact working that extra day probably has other additional costs such as food (eating at home is usually cheaper) so it might work out that the extra day is worked for nothing.