What happens if employees refuse pay cut

Yes

having said that, what were the consequences for the company and you and your colleagues if all staff refused the pay cut. Redundancy and closure?

They didn't state that they would close, the company had already made staff redundant last year and then more this year with the remaining staff taking a pay cut.
Majority of staff in the company are low paid too, it wasn't as if we were over paid etc.
 
My reading of the Lufthansa Technick dispute is that the Union on behalf of it's workers faced down Lufthansa on two seperate occassions and negotiated improved terms on behalf of it's members both times.
Brinksmanship perhaps but it worked !

Yes, and it only cost the good will of the management, the plants efficiency ranking within the organisation and quite possible the long term viability of the whole operation here. Just another good days work for the bearded brethren.
 
Yes, and it only cost the good will of the management, the plants efficiency ranking within the organisation and quite possible the long term viability of the whole operation here. Just another good days work for the bearded brethren.
I would suggest that the workers in Lufthansa have a greater knowledge of the way the company operates than you or I have.
The basis of any Trade Union is to protect the terms and conditions of it's members who democratically turned down what turned out to be the two opening offers by Lufthansa and eventually agreed to an improved accepted offer.
I quite agree " a good days work "
As to losing the good will of management I sure they would agree that it's merely the cut and thrust of normal Company/Union negotiations.
The final point I would make is that if the Company was non unionised they would have arbitrarily carried through their initial offer without negotiation - hardly fair I would have thought !
 
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As to losing the good will of management I sure they would agree that it's merely the cut and thrust of normal Company/Union negotiations.
Isn't it strange how no-one worries too much about 'goodwill' when O'Leary boasts about raping Boeing when he does a deal for new planes. He is their hero. But others are supposed to worry about maintaining goodwill.
 
I think the other posters are right and your friend has been very naive. I understand that she wants to do what she thinks is best, but it doesn't work like that. For starters, her decision is selecting only single people for paycuts is divisive, and I would find it offensive. Secondly, if your friend's business is no longer making enough money to support all of her staff, and the staff will not accept pay cuts, then her only option is redundancy. Clearly she must follow proper redundancy procedures and select people for redundancy fairly.

I understand that this person is your friend, and you want to be supportive, but every employer must have a basic understanding of employment law. It doesn't take very long. An hour on google would give her a least a basic insight.
 
I would suggest that the workers in Lufthansa have a greater knowledge of the way the company operates than you or I have.
Actually I know quite a lot about that particular company.
As for good will, the best thing the management can do is explain the situation and why they are proposing what they are proposing clearly. Everyone within the organisation is then informed as to what the facts are and they can make a decision to secure their existing pay and conditions or their long term future.
Hostility between people working for the same organisation (groups that the bearded brethren, still living in the 1920's call "workers" and "management") is not good for any organisation. I know that such division is what unions seek to ferment so that they can live off it but in reality it is utterly unnecessary.
 
Isn't it strange how no-one worries too much about 'goodwill' when O'Leary boasts about raping Boeing when he does a deal for new planes. He is their hero. But others are supposed to worry about maintaining goodwill.
Are you seriously suggesting that the relationship between employees in the same organisation could or should be equated to a purchasing negotiation between two businesses? Do you know the first thing about managing or running a business?
 
I think the other posters are right and your friend has been very naive. I understand that she wants to do what she thinks is best, but it doesn't work like that. For starters, her decision is selecting only single people for paycuts is divisive, and I would find it offensive.

Discussed at length already see other posts.

Secondly, if your friend's business is no longer making enough money to support all of her staff, and the staff will not accept pay cuts, then her only option is redundancy. Clearly she must follow proper redundancy procedures and select people for redundancy fairly.

Again, discussed and employees accepted pay cut see above
 
Yes, and it only cost the good will of the management, the plants efficiency ranking within the organisation and quite possible the long term viability of the whole operation here. Just another good days work for the bearded brethren.
You get this wrong, the management agreed to the deal as well. They are not a charity, therefore this deal must have been better for them short term and long term, than the closure of the company, which would be the other option.
So it's not a win-loose, but a win-win situation for the Union and management.
 
You get this wrong, the management agreed to the deal as well. They are not a charity, therefore this deal must have been better for them short term and long term, than the closure of the company, which would be the other option.
So it's not a win-loose, but a win-win situation for the Union and management.

Rubbish; in the short term they need to fulfil their contractual obligations to their customers and maintain their delivery record. In the long term they need to deliver maximum return on investment to their shareholders. That means that they run their business from the location that offers the best ROI. If costs are higher and work practices are less efficient in Ireland than another plant in another country then they will increase capacity in the other facility. This takes time so in the short term they will agree to the union’s demands but in the long term they will seek to maximise their return.
 
Hi,the company i work for introduced a 10% pay cut and no bonuses across the board in Feb.I also have to work on Saturdays without pay.
To-day i was informed of two options:
1)They make my only other member of staff in my dept redundant and i also take another 10% cut.
2)They make me redundant.
I cannot afford to take another 10% cut when i will be doing the work of 2 people.
Cananyone please advice me?
 
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