Ever gone through Retrenchment?

Pho3nix

Pho3nix

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Morning all :)

Found out earlier this week that the company I work for might possibly be retrenching people :wtf::erm: which was quite a shock. Seems the company grew too big to quickly and this is the result.
Any of you guys been through it and what was the process like? Should I start looking around for a new job ? Have around 2 months savings that can tide me over, 5 if I take money from some investments.

What did you guys do and if you can share, what got your company to that point and what industry were they in?
 
The company will start sending out notices to you very shortly of how the process will be working.
They will either target the whole company or certain departments, it all depends on how big the staff complement is.

We went through it numerous times but the biggest one was when I had to retrench over 200 staff.
We did a management buyout of a Call Centre and then took it private
Wasnt the nicest thing to do, but it had to be done

I even had to get my number removed from the Phone Book as the Odd Ball calls started freaking my wife and Kids out.
 
The company that I used to work for went through one, same thing happened as you described, company grew too big.
They did the retrenchment by departments and not as a whole, they used the LIFO policy which is Last In First Out.
Packages were offered to those that were retrenched.
Its not a nice thing to go through, best of luck
 
Not a nice thing to experience at all. I was never retrenched .... yet (touch wood), but was a couple of times invloved in the selection criteria and assisting HR and Management with the logistics around the existing processes. Kept me awake most of the times, sometimes you had to think of people as numbers, because you know most of them, and it can be a bad task to complete. I suppose the process is different from company to company, but you should be notified first of the process, then there should a packages for voluntary exits (obviously consulation processes should run parallel), therafter if the company did not reach the "target", positions will be indentified where the staff need to go, this phase is normal not nice at all.

Good Luck Pho3nix, hope you are not affected at all.
 
Same thing happening where I am working. Even though I am not affected can't help but feel crap for those who got their letters. Some of them have been working with me since I started here.

Best of luck Pho3nix, hope you're spared.
 
I worked for a startup that went under due to investors pulling out.

Got a month's salary plus something extra. Was sitting at home for 6 weeks.

Initially SWAMBO was glad to have me home, but after 2 weeks she was gatvol and told me to get a new job.
 
Went through retrenchment a few years back, your best bet is to start reading up on it now so you are prepared in case you are one of the unlucky ones. There are rules to how it has to be done and how the package must be made up.
 
Its not a bad idea to send your CV out and see if any good offers come in. If you are not one of the staff retrenched then no worries. If you are one of the retrenched one's then you are a bit ahead in the job hunt category. You don't after all have to accept other offers and who knows, perhaps something even better comes along? I know someone who is close to retirement who went through 3 retrenchments and in each and every one it was the best thing that could have happened as each time he managed to get significantly better jobs and benefits! So perhaps its a good thing.

I have been fired once but it was a strange situation. It was for a good reason. The consultancy I was working for was approached by the client I was based at asking what it would take for them to take me over. They came to some arrangement and then my boss told me I was fired but for a good reason. The client made a really good offer so I did not mind all that much. Even better it meant no more 6 month contracts with the consultancy! It was permanent work that I got shortly before the 2008 financial crises so again, it can work out for the best.
 
Already fixing up my CV at the moment but the market for Juniour Dev's isn't so hot at the moment :(. Hopefully something will come up.
 
Pho3nix said:
Morning all :)

Found out earlier this week that the company I work for might possibly be retrenching people :wtf::erm: which was quite a shock. Seems the company grew too big to quickly and this is the result.
Any of you guys been through it and what was the process like? Should I start looking around for a new job ? Have around 2 months savings that can tide me over, 5 if I take money from some investments.

What did you guys do and if you can share, what got your company to that point and what industry were they in?
Click to expand...

Try to read through section 189 of the Labour Relations Act to see what the process is.

http://www.ccma.org.za/UploadedMedia/InfoSheets_Retrenchment in terms of s189A(1).pdf
 
If you have something else potentially lined up, this is your opportunity to go for it. It is an awful experience, since even those not directly affected have to go through the drop in morale, negativity and so on. We have recently gone through it in a global effort to try and make the company profits turn positive. In my group, the needed "reduction quantity" was reached, but the morale was so low (and workload/pressure so high) that additional people decided to leave, even without the incentive of a retrenchment package, forcing the company to hire new (and completely inexperienced) people.

You have my deepest sympathy - it sucks.
 
Pho3nix said:
Morning all :)

Found out earlier this week that the company I work for might possibly be retrenching people :wtf::erm: which was quite a shock. Seems the company grew too big to quickly and this is the result.
Any of you guys been through it and what was the process like? Should I start looking around for a new job ? Have around 2 months savings that can tide me over, 5 if I take money from some investments.

What did you guys do and if you can share, what got your company to that point and what industry were they in?
Click to expand...

our company went through it a few years back, first the offerd voluntary retrenchments (with as far as i recall prety decent packages) quite a few long timers took the offer to those who wanted then they went the LIFO route - and now i see they re-employing and have offerd the guys who went out on the LIFO phase first preference.
So depends how long you with the company if they doing the LIFO route and I know some places get rid of dead weight first (Managers who do nothing)
 
isie said:
... and I know some places get rid of dead weight first (Managers who do nothing)
Click to expand...

Managers who get paid too much to do nothing.
You get rid of one manager and can save another two or three heads.
i.e. Minimum loss of morale, minimum loss of expertise, minimum loss of production and maximum return in payroll savings.

Crap managers are easy to find and hire later if you need them. :)
 
Does your company have a pension or provident fund? If so compare the retrenchment package being offered for voluntary vs involuntary retrenchment, remember how you are exited has a huge impact on how your benefit will be taxed.
 
Retrenchment can be very stressful.
I suggest you start looking for another job. Consult a labour consultant to find out exactly what you entitled to. Eg. They will pay for training or they will arrange a consultant at their cost.
If you have a Provident Fund and you get retrenched, then I think the first 150k or 200k is tax free. I would suggest withdrawing the tax free portion and investing it.
Get everything in writing from your employer.....everything!
 
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