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The Government’s 80% wage pledge



Dick Swiveller

Well-known member
Sep 9, 2011
9,159
Surprised by this, although I wonder if it will be increasingly more onerous for someone to be applicable.

It would make sense to tighten the rules to stop businesses taking the proverbial. But there have to be loads of companies like mine that have no choice but to remain closed. Pubs, clubs, restaurants, gyms etc. are all specifically named industries that will remain closed until July at the very earliest. If the bit about employers having to contribute means, for example, that they have to pay 20% and the Government 60%, I can't see how that will be sustainable for the majority of companies. How many businesses have enough reserves to pay 20% of the wage bill with zero income?

Personally, I would rather have our business closed for longer as opening gyms and leisure centres when very few people want to go would be financial disaster as it is a low margin industry. I appreciate the support the government are giving and how much it is costing but this announcement is just a bit light on details - like most recent announcements.
 




Dick Swiveller

Well-known member
Sep 9, 2011
9,159
I doubt if my employers business will pick up for several months. If the furlough scheme ends the two directors of the franchise will happily sack staff if they are surplus, at least this way they can take back some staff incrementally if business improves. Otherwise I'd probably be looking for a job ( I am anyway but there is naff all except supermarket and care work ) almost immediately the furlough ended. No way would my bosses pay me 100% of my salary if I'm only working at 30% capacity.

I keep being told we are a "lean" organisation. You can guess what that is a euphemism for. Really not sure how much they could trim off the budget that would save enough to keep going..
 


Kinky Gerbil

Im The Scatman
NSC Patron
Jul 16, 2003
57,914
hassocks
Surprised by this, although I wonder if it will be increasingly more onerous for someone to be applicable.

I think so.

There will be checks for areas which are fully open I imagine.

It’s a way to target certain areas without saying so.
 


Kinky Gerbil

Im The Scatman
NSC Patron
Jul 16, 2003
57,914
hassocks
I doubt if my employers business will pick up for several months. If the furlough scheme ends the two directors of the franchise will happily sack staff if they are surplus, at least this way they can take back some staff incrementally if business improves. Otherwise I'd probably be looking for a job ( I am anyway but there is naff all except supermarket and care work ) almost immediately the furlough ended. No way would my bosses pay me 100% of my salary if I'm only working at 30% capacity.

We are now seeing the damage the hysteria cause by some of the media/gov.

People won’t be purchasing goods/hiring services etc because they are too scared to go out and spend money.
 


vegster

Sanity Clause
May 5, 2008
27,897
We are now seeing the damage the hysteria cause by some of the media/gov.

People won’t be purchasing goods/hiring services etc because they are too scared to go out and spend money.

People won't be going out buying many goods and services if there is mass unemployment and they have no job and either ?
 




Kinky Gerbil

Im The Scatman
NSC Patron
Jul 16, 2003
57,914
hassocks
People won't be going out buying many goods and services if there is mass unemployment and they have no job and either ?

No, but by going massively OTT people are too scared to go out and get things moving again - even if they are low risk.

The Furlough scheme is excellent, however it’s having to be extended due to the above.

Even now we are hearing scare stories based, each one dents the confidence to go out and spend.
 




Hugo Rune

Well-known member
NSC Patron
Feb 23, 2012
21,631
Brighton
I’ve been very critical of the Government in terms of saving lives and controlling the spread of Coronavirus. Their inability to block the damned thing out of the Country, lockdown too late and then failure to protect Care Homes will mark them out as one of the most incompetent administrations this Country has ever seen.

However, the furlough scheme has been mostly brilliant as has HMRC led by Sunak. They’ve come up trumps again today, I just hope that the lockdown lite does not lead to a series of spikes that would inevitably lead to the government running out of money to pay for this scheme beyond October.

Well done Rishi.
 




nicko31

Well-known member
Jan 7, 2010
17,611
Gods country fortnightly
Do we stop when debt to GDP reaches 240%?
 


Dick Swiveller

Well-known member
Sep 9, 2011
9,159
Well - at least the BBC bloke asked my question - how can companies that are closed by government decree so zero income contribute to the furlough scheme. And the answer? Waffle. It is like they are using the tactics of a TV programme or the Seagull Line on Brighton 8049. Want the next instalment? Hang on for a while. Why ruin the surprise now?
 


PILTDOWN MAN

Well-known member
NSC Patron
Sep 15, 2004
18,712
Hurst Green
Well - at least the BBC bloke asked my question - how can companies that are closed by government decree so zero income contribute to the furlough scheme. And the answer? Waffle. It is like they are using the tactics of a TV programme or the Seagull Line on Brighton 8049. Want the next instalment? Hang on for a while. Why ruin the surprise now?

I assume there’s more help on its way for your/my sector
 




Weststander

Well-known member
NSC Patron
Aug 25, 2011
64,087
Withdean area
Well - at least the BBC bloke asked my question - how can companies that are closed by government decree so zero income contribute to the furlough scheme. And the answer? Waffle. It is like they are using the tactics of a TV programme or the Seagull Line on Brighton 8049. Want the next instalment? Hang on for a while. Why ruin the surprise now?

It’s the only 12th May. Far too early to say which sectors will be allowed to open and trade by 1st August. No one, including scientists, can give any idea at this stage, we don’t know if people in the meantime will abide by the continuing restrictions, or whether they’ll take the p and lockdown will continue.

The government won’t be saying to business in a closed sector with zero income eg hospitality, you must now pay staff wages partly out of your non-existent cash reserves. It’d force businesses to close and give mass unemployment.

This current excellent scheme runs from March to July, why worry about problems from August that may well never arise?
 


Dick Swiveller

Well-known member
Sep 9, 2011
9,159
It’s the only 12th May. Far too early to say which sectors will be allowed to open and trade by 1st August. No one, including scientists, can give any idea at this stage, we don’t know if people in the meantime will abide by the continuing restrictions, or whether they’ll take the p and lockdown will continue.

The government won’t be saying to business in a closed sector with zero income eg hospitality, you must now pay staff wages partly out of your non-existent cash reserves. It’d force businesses to close and give mass unemployment.

This current excellent scheme runs from March to July, why worry about problems from August that may well never arise?

Well that is the assumption so why not just say so? He was saying it gave businesses the reassurance they want but it doesn't. He was asked the question point blank and completely dodged it. Treat us like grown ups for once. We all know they want to reduce the bill by stopping firms that could be working from using the scheme to their own ends. Everything is being drip fed and questions blanked with "There will be more tomorrow/Sunday/the end of the month". I would have expected this statement from Labour - not Tories. Reassuring workers whilst failing to give details to the company owners is very out of character. Not my job to worry about it but I have no idea how business owners plan for anything at the moment.
 


Dick Swiveller

Well-known member
Sep 9, 2011
9,159
I assume there’s more help on its way for your/my sector

That is the problem - we can only assume. There was a very simple non committal answer they could have used - we are still working out the details and will release more at the end of the month but rest assured that those businesses that are not permitted to trade so have no income will not be asked to contribute.
 




Weststander

Well-known member
NSC Patron
Aug 25, 2011
64,087
Withdean area
Well that is the assumption so why not just say so? He was saying it gave businesses the reassurance they want but it doesn't. He was asked the question point blank and completely dodged it. Treat us like grown ups for once. We all know they want to reduce the bill by stopping firms that could be working from using the scheme to their own ends. Everything is being drip fed and questions blanked with "There will be more tomorrow/Sunday/the end of the month". I would have expected this statement from Labour - not Tories. Reassuring workers whilst failing to give details to the company owners is very out of character. Not my job to worry about it but I have no idea how business owners plan for anything at the moment.

Agree about the deliberately vague communication.

I think it's because they have over 11 long weeks to get the policy right. After representations by various business sectors, unions and others. We really don't know where the UK will stand by late July - will covid19 metrics still be in retreat in the UK or will we be in a second wave? Which industries will still need total support from August, which others will be open and doing ok? Too many unknowns looking this far out. Football and Rugby Union' could be a good case study - will owners such as TB know where they'll stand on income, which staff can work, come August? Impossible to say just now.
 


nicko31

Well-known member
Jan 7, 2010
17,611
Gods country fortnightly
Can't but notice how quiet the Tax Payers Alliance are, the Tufton Street crew must just hate the actions of Red Rishi...
 


PILTDOWN MAN

Well-known member
NSC Patron
Sep 15, 2004
18,712
Hurst Green
That is the problem - we can only assume. There was a very simple non committal answer they could have used - we are still working out the details and will release more at the end of the month but rest assured that those businesses that are not permitted to trade so have no income will not be asked to contribute.

Issue we have whether it be our breweries in Italy ( Peroni and Asahi SD) Holland ( Grolsch) Czech (Pilsner Urquell) UK (Fuller’s Dark Star and Meantime) when do we brew for kegging / cask as this needs planning. The processes are different to bottling or canning so if we brew and then can’t sell to the industry we loose again. As it is we are replacing all unused kegs/cask for free.

I’m likely to be back to work in mid June to help oversee the reopening of businesses but I’m not expecting to know for certain until the night before.
 


Is it PotG?

Thrifty non-licker
Feb 20, 2017
23,384
Sussex by the Sea
Eniola Aluko makes friends.

https://www.bbc.co.uk/sport/football/52644983

Aluko.JPG
 




Kinky Gerbil

Im The Scatman
NSC Patron
Jul 16, 2003
57,914
hassocks
Question the the wise of NSC

My other half has just been made redundant from her job

Instead of paying her 3 months notice period at once they have put her on furlough/gardening leave and then topping it up to 100 percent for the 3 months.

She’s completely free to get another job as on furlough/gardening leave so can get two full wages and the redundancy payout in Aug.

Doesn’t seem legal?
 


pb21

Well-known member
Apr 23, 2010
6,330
Question the the wise of NSC

My other half has just been made redundant from her job

Instead of paying her 3 months notice period at once they have put her on furlough/gardening leave and then topping it up to 100 percent for the 3 months.

She’s completely free to get another job as on furlough/gardening leave so can get two full wages and the redundancy payout in Aug.

Doesn’t seem legal?

The whole point of the scheme is to help people remain employed until the economy recovers, not subsidise redundancy payments.

If it is legal, it shouldn't be IMO, and is going against the 'spirit' of the scheme.
 


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