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£200,000 redundancy payments for oil workers

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    £200,000 redundancy payments for oil workers

    http://www.contractoruk.com/news/003611.html

    This is one of the stories in the news section of contractoruk.com about workers being made redundant from Shell oil. Oil workers are getting £200,000 payments, but IT workers are "only" getting £50,000.
    The unions are annoyed about it.

    How on earth, or why on earth does a company choose to make such huge redundancy payments to workers? Why do they choose to pay so much, but much less to other workers?

    And following on from that, I don't think £50,000 is all that bad for the IT workers. I got £14K after 4 years service and I thought that was quite good, so I don't understand why the Shell IT workers are complaining.
    How do companies work out what redundancy payments to make?

    #2
    I'm guessing you don't want to go pissing off your core workforce, the oil workers, who happen to be heavily unionised as well. IT workers on the other hand ...
    Hang on - there is actually a place called Cheddar?? - cailin maith

    Any forum is a collection of assorted weirdos, cranks and pervs - Board Game Geek

    That will be a simply fab time to catch up for a beer. - Tay

    Have you ever seen somebody lick the chutney spoon in an Indian Restaurant and put it back ? - Cyberghoul

    Comment


      #3
      When petrol tanker drivers were employed directly by the oil companies they had a very strong union and got paid very well indeed. To slash a payroll like that by replacing them with subcontractors, the oil companies could afford a lot of money in redundancy and/or early retirement payouts.
      Behold the warranty -- the bold print giveth and the fine print taketh away.

      Comment


        #4
        A lot of petrol tanker drivers are still very well payed.

        Comment


          #5
          Originally posted by Sockpuppet View Post
          A lot of petrol tanker drivers are still very well payed.
          I can imagine. How much are we talking here? £50K?

          Just out of idle curiosity what is the normal result of a tanker driver involved in a crash that was their fault. Are they routinely fired, or do they get warnings? (Assuming they survive that is)

          Comment


            #6
            "Redundancy packages of £50,000 are being offered to the company’s IT staff, dwarfing the £200,000 packages it has pledged to its offshore oil rig workers."

            that's not what I'd call "dwarfing"!

            Comment


              #7
              Originally posted by thunderlizard View Post
              "Redundancy packages of £50,000 are being offered to the company’s IT staff, dwarfing the £200,000 packages it has pledged to its offshore oil rig workers."

              that's not what I'd call "dwarfing"!
              huh?

              it doesn't say that in the article. What have you been smoking?

              Comment


                #8
                I think they will have 40% tax on any redundancy payment greater than £30k.

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