General > General Technical Chat

Just lost my job thanks to COVID-19, who else ?

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nctnico:

--- Quote from: thinkfat on March 31, 2020, 12:10:12 pm ---Yep, I'm afraid most people don't realize that most companies are not sitting on loads on money waiting to be spent. Money rushes through a company like diarrhea, if you don't keep up the supply, they're quick to dry out and die.

--- End quote ---
That is not entirely true. A lot of companies get their working capital through a credit line from a bank. In the end letting money sit without using it is more expensive (no interest) compared to paying interest over money that is actually used to make a profit. Trouble starts if the expenses continue and sales dry up. A viable company should be able to extend the line of credit somehow. Several countries have instated government backed loans to companies for example.

thinkfat:

--- Quote from: nctnico on March 31, 2020, 06:01:48 pm ---
--- Quote from: thinkfat on March 31, 2020, 12:10:12 pm ---Yep, I'm afraid most people don't realize that most companies are not sitting on loads on money waiting to be spent. Money rushes through a company like diarrhea, if you don't keep up the supply, they're quick to dry out and die.

--- End quote ---
That is not entirely true. A lot of companies get their working capital through a credit line from a bank. In the end letting money sit without using it is more expensive (no interest) compared to paying interest over money that is actually used to make a profit. Trouble starts if the expenses continue and sales dry up. A viable company should be able to extend the line of credit somehow. Several countries have instated government backed loans to companies for example.

--- End quote ---

I said nothing else. Companies don't have money in the bank waiting to be spent. They cannot afford it, it's not reasonably to have money and not using it for generating profit. It's just worse if your working capital is a bank loan.

Try extending your credit line (which just means you're going deeper into debt as a company) when the bank doesn't see a perspective in your business. You have no customers now, what makes you think this will change, is the question you'll get asked. You better come up with a convincing projection. For example, you sell shoes. But the bank doesn't expect shoe stores reopening for several months. You'll not get money for sitting around. You'll get money for investing into selling "differently" so that they can be sure to get the money back eventually. While every other shoe store is doing the same.

blacksheeplogic:

--- Quote from: thinkfat on March 31, 2020, 12:10:12 pm ---Yep, I'm afraid most people don't realize that most companies are not sitting on loads on money waiting to be spent. Money rushes through a company like diarrhea, if you don't keep up the supply, they're quick to dry out and die.

--- End quote ---

There are a lot of companies that are just trying to survive and they don't have the resources to weather this though without aid. I'm all for the government helping these businesses out given the current situation where the government has forced most business to close down. Work from home is not viable when your business cannot ship it's products.

However, there are some truly horrible business out there taking advantage of the situation and it taints public perspective of businesses as a whole. Some businesses here for example have applied for the wage subsidy which requires employees consent and then fired their employees once the paper work is done to keep the government subsidy (illegal), others are getting the subsidy but not paying it there employees or claiming the employee has to use holiday/sick leave (illegal). I'm sure some companies are using this as an excuse to fire workers without consequence. The government here is going to publish the names of all companies that get the wage subsidy so the ones abusing it can be reported on.

One a side note, I also read in the US companies are claiming the stimulus package money given to people will be deducted from peoples pay checks. The greed is really bottomless.

Unfortunately, when people hear of these cases they don't think about the majority of business that are doing everything they can for there employees. It's like any group, a small minority of aholes taint the group as a whole.

Zero999:

--- Quote from: blacksheeplogic on March 31, 2020, 08:39:33 pm ---
--- Quote from: thinkfat on March 31, 2020, 12:10:12 pm ---Yep, I'm afraid most people don't realize that most companies are not sitting on loads on money waiting to be spent. Money rushes through a company like diarrhea, if you don't keep up the supply, they're quick to dry out and die.

--- End quote ---

There are a lot of companies that are just trying to survive and they don't have the resources to weather this though without aid. I'm all for the government helping these businesses out given the current situation where the government has forced most business to close down. Work from home is not viable when your business cannot ship it's products.

However, there are some truly horrible business out there taking advantage of the situation and it taints public perspective of businesses as a whole. Some businesses here for example have applied for the wage subsidy which requires employees consent and then fired their employees once the paper work is done to keep the government subsidy (illegal), others are getting the subsidy but not paying it there employees or claiming the employee has to use holiday/sick leave (illegal). I'm sure some companies are using this as an excuse to fire workers without consequence. The government here is going to publish the names of all companies that get the wage subsidy so the ones abusing it can be reported on.

One a side note, I also read in the US companies are claiming the stimulus package money given to people will be deducted from peoples pay checks. The greed is really bottomless.

Unfortunately, when people hear of these cases they don't think about the majority of business that are doing everything they can for there employees. It's like any group, a small minority of aholes taint the group as a whole.

--- End quote ---
Perhaps your government isn't applying the subsidy properly?

In the UK, the company will have to continue to pay their employees 80% of their wage up to £2000 per month, then claim it back from the government.

Fortunately I've been given full pay, even though the company can't claim all of it back from the government. The only thing I'll lose is a four days annual leave, but I don't care about that.

MapleLeaf:
I was just was told that my 5 days a week became a 3 day work week. But, get this, the two days that i am off i get payed full for the next 8 weeks. Something to do with the gov. After that i will have to burn vacation time. I have accumulated 300 hours of it so i am good for another few months.
As long as i keep this up i get full benefits also.   This may be the best summer I have had in 40 years ;D  Almost as good as a sabbatical.

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