How screwed am I getting?

[prolesunited]

Because of a cash flow crisis through the end of the year at work, they are cutting pay across the board based on salaries:
$35,000+ = 15% pay cut
$25,000-$30,000 = 5% cut
Under $25,000 nothing

This way no one gets laid off. They aren't touching benefits or raising premiums and were optimistic pay levels will be restored in January.

Sounds like it sucks, BUT, they are giving us unpaid time off equivalent to our cuts. So, this means I will get 1 and 1/2 days off per pay period.

Honestly, I do have a part-time job so I can really swing the pay cut (minus a few splurges I've indulged myself in this year). And this part about extra time off sounds pretty good.

Am I being delusional here in thinking this is not such a bad deal?

Would you go with the flow or put your resume out there now?

[jjmalonejr]

1. Go with the flow...

...BUT there's no reason NOT to be floating your resume. If you can get a better deal somewhere else, why not keep your options open.

[GOPisEvil]

2. Could it be worse? Yes.

If you are on good terms with this employer, I'd stay until you find out if they are planning on keeping their word re: restoring full pay. If you get the feeling they aren't then move on. However, if a good job popped up, I'd move on in a heartbeat...

[nothingshocksmeanymore]

3. I've taken cuts before and they moved back up after the

period of reorganization. It doesn't always turn out bad..but it's good to have your resume updated anyway.

[salib]

4. I have run businesses, and

I do not see how such a scheme will resolve a "cash-flow" problem. Making payroll is the biggest stresser in business, to me at least, and cash-flow issues are resolved with credit, at least if one is "on the up-and-up." Again, my own opinion. But, please, understand that by taking it out of your hide, they have just demonstrated that they really do not expect any loyalty. Want to lose some people IMHO.

[pmbryant]

5. That sounds like a fabulous deal to me

Seriously.

I would not advise leaving an employer that clearly values their employees as much as yours apparently does to offer such a deal despite a financial crunch. At least not without being very careful. :-)

Elsewhere, you are not likely to be as fortunate.

Wherever I've worked, layoffs are the norm. I've both been laid off (twice), and survived rounds of layoffs (several times). And even for those who survive the cut and retain full pay and benefits, the spectre that you yourself won't make it past the next cut hangs over everyone like a guillotine, destroying morale slowly but surely.

:scared:

The scenario you describe sounds like a much, much better deal for all involved. Good luck. Let me know how you're doing.

--Peter

[Norbert]

7. Excellent points

This employer sounds like he values his employees enough to iron out the best solution for all. Unless you feel the financial situation with this company is teetering on the edge I would stick with them.

Also you might find these people may compensate you down the road for sticking with them during the rough patch. Like most on this thread said, keep your resume updated.

[Terran]

6. That could be a hell of a lot worse

I'd say you're lucky, in this economy. I'm amazed managers are being cut too; you must work for a fairly progressive employer.

And the paid time off? That awesome.

All in all, congratulations. I hope it works out for your company.

[VoteDemocratic2004]

8. They are screwing you out of a portion of your raise

I use to work at Kraft's headquarters and they are screwing you out of your raise because they are cutting you 15% and when your raise hits they only have to give you a raise on the lower amount. Over the long run it rips the employees off because you never get what you had before.

But, it's better to have a job then not have one.

Kraft makes there employees sign a 5 year contract that they will not stay with the company longer then 5 years.

I use to ask why the media doesn't do a story on corporations like Kraft and the 5 year contract and I know the answer now it's because the right wingers own the media. I use to work as an auditor for Kraft and after I gained weight they transfered to another bldg. that dealt with pay cuts, plant closings and benefits.

The days off will give you time to do a few things that you can't get done on the weekends.

[jburton]

9. This is a good deal

Most places would simply lay off workers rather than bother with the numbers you mentioned.

If you were laid off, you would have to find a new job, and I can guarantee you it would pay more than 15% less than your old salary.

And benefits are rare at any McJob you might find.

Might as well stay where you know what's going on and have benefits.

[HEyHEY]

10. Have they provided a financial statement to prove their claims?

I suppose at your work though they wouldn't try lying considering.

[Osama_Bin_Winnin]

11. I'd love that. I could use the time off

as long as it's not permenent. Hell, with all your bennies in place it sounds great. But, ehhem, how is this cash flow problem gonna get straightened out ?

[rasputin1952]

12. This isn't a bad hit really...

It could be a lot worse.

Once the cash flow situation stabilizes, you should do well. They could have gone another route and really knocked some people out of the park.

Sounds to me like you work for a realtively fair company....far more others would have tossed people out the door, and then taken a bonus for Mgmnt....:(

[prolesunited]

13. More information

Can't go into detail, but I don't work for a for-profit business, and there is a guaranteed stream of revenue coming back in in January. It's complicated, but I'm pretty familiar with the financial details so I know they're not screwing with the employees.

They could have just cut our salaries without giving us the time off, which makes it more palatable. I'm used to working six days a week, so it will be nice to have two days a month where I actually can make a weekend by having Sunday and Monday off.

Even the head head honchos are taking cuts and don't have to because they're on contract. I liked how those who could least afford it weren't effected. The plan hasn't been announced but I imagine a lot of grumbling nonetheless.

The more I think about it, maybe it's not so bad. I'll keep my eyes open just in case.

[Osama_Bin_Winnin]

15. Damn can I get a job there next January ?

[bearfan454]

14. Do it.

I recently got laid off. I would have much rather taken a pay cut.

[Thor_MN]

16. Could have been worse... Straight 10% pay cut with same hours.

That's what I had to deal with two employers ago. Several pay freezes, IIRC, 2 six month and 1 twelve month. And twice the 10%pay cuts. I stuck around through the first pay cut and they brought it back after six months - I left the industry when they did the second pay cut. Got 10% over what I was making before the cut and a $10K/year raise after six months of doing the same stuff for someone else.