Redundancy-Any advice.

[Fab1]

Hi everyone,

The company I've been working for on afternoon shift for the last 15 years is closing down soon and offering redundancies to those that would like it and the rest of the staff will be transferred to one of our other factory's.

It's been a great place to work with good pay and conditions.

So far I've lost all overtime that has always been there.

When the move happens afternoon shift and night shift is no longer as we will be working day shift.

Once all these changes happen I've lost 30 to 40 k a year.

My thoughts were initially take the money dump it on the mortgage which will still leave a hefty sum left to pay off and risk not finding a job or transfer over to the other site and struggle to pay the bills more than likely as I'm struggling now without the o/t.

We are a family of three,myself,wife and one son.

My wife working is not an option as she has a serious medical condition and hasn't been able to work for the last 12 years.

Has anyone that's wiser than myself been in a similar situation how did your choice turn out.

Any advice based on being made redundant would be greatly appreciated.

Thank you all in advance.

Fabian.

[elferoz777]

Depends how much redundancy is being paid out?

I was faced with that when the Railways had their recent cuts but I luckily got another public service role albeit at a pay cut.

My situation was different as the boss is a nurse and worst case I could have taken VR (voluntary redundancy) and been ok for a while.

Its a really sucky position but I think I would take the transfer....but it all depends on the sum of the VR

Good luck mate, as I said to my boss the worst case I would join the navy or army and become an engineer

[Fab1]

Mate I'll be looking at around 70-80k but it's not going to help if I don't have a job or I get paid less money an hour than I do now

[Guest]

_{I have just had the same thing happen after 20yrs of service and it wasn't voluntary the company shut the doors.}

_{I would take the cash and invest it wisely ..maybe some on the mortgage and make sure there is a re-draw facility.}

_{80k will give you a little breathing space and it sounds like the company wont be around for much longer anyway...my 2 bobs worth.}

_{Good luck with your choice my good man.}

_{Regards Stewy}

[The Iceman]

Its a tough decision and I agree with Stewy to a point but it really depends on what your line of work is and what is available in your line of work out there you may be better off taking the transfer so you have a wage coming in You have to do your research

Like Stewy I will be out of a job at the end of the month as all our work has been transferred to Melbourne and I took the redundancy option over the transfer as it was better for me after 25yrs with the one company

[rockfisherman]

Hi everyone,

The company I've been working for on afternoon shift for the last 15 years is closing down soon and offering redundancies to those that would like it and the rest of the staff will be transferred to one of our other factory's.

It's been a great place to work with good pay and conditions.

So far I've lost all overtime that has always been there.

When the move happens afternoon shift and night shift is no longer as we will be working day shift.

Once all these changes happen I've lost 30 to 40 k a year.

My thoughts were initially take the money dump it on the mortgage which will still leave a hefty sum left to pay off and risk not finding a job or transfer over to the other site and struggle to pay the bills more than likely as I'm struggling now without the o/t.

We are a family of three,myself,wife and one son.

My wife working is not an option as she has a serious medical condition and hasn't been able to work for the last 12 years.

Has anyone that's wiser than myself been in a similar situation how did your choice turn out.

Any advice based on being made redundant would be greatly appreciated.

Thank you all in advance.

Fabian.

I havnt been in your situation yet, but being the sole bread winner with a mortgage, and a new born its amazing how many times "what if " crosses your mind. The advice I'm offering is what I might do in your situation.

70-80k isn't exactly a small sum of money.

I'm not sure what qualifications or experience you have, but that money gives you a pretty big buffer zone. It gives you enough time to look for a job, even possibly undertake training of some sort like a forklift licence, or a short course at tafe... obviously you need to capatalise on your stregths and expirience to propel you forward and grow. It might seem hard or like a chore if you've been at the same company for 15 years and nothing much has changed.

You'll probably have to create a CV. You'll be able to find a template and other ideas on the Internet.

You could stay and get transferred to one of the other factories and get a second job (bunnings or a department store) to supplement some of the money you've lost out on from loosing your OT, won't be the same, but its some thing.

I hope it works out for you mate.

Harry

[Berleyguts]

I took voluntary redundancy from Australia Post 2 years ago after nearly 24 years with them. Yes, I got a pretty good payout which provided a buffer but our mortgage is bigger than it should be due to borrowing against the house to invest and then the GFC hit (won't use that financial advisor again!). I expected that I would find a job that paid maybe $10-20k less but that wasn't so easy after all at 51 (at the time). Admittedly, I was being selective with where I wanted to work, figuring I could take lesser pay if I worked closer to home etc. but I didn't really feel like going back to study. After enjoying a short break and treating ourselves to a few nice things, I took a full-time job at a local Bunnings, which I enjoyed but I didn't like working every weekend. I now work for a former colleague from Aussie Post in his Licensed Post Office, close to home with great hours. I don't miss the 90-120 minute commute to the city... I'm more relaxed, fitter, happier, even if I have dropped about $40k per year. I haven't dipped into my super yet and overall life is good. If I need a bit of extra cash, I can still take some casual shifts at Bunnings if I want (and I keep the staff discount ) I do miss my friends from the office and some of the perks but I don't miss the politics!

I was lucky in that my employer provided extensive career change counselling through Ranstad. That was worthwhile, even if I didn't go after a big office job again. If you can get some counselling, I recommend it. It can be a bit daunting but most people I have spoken to agree that in about 6 months, you wonder what you were worrying about. I agree.

Good luck in whatever you do.

Baz

Edited August 11, 2013 by Berleyguts

[The Incredible Hull]

Hi Fabian,

I can see your concern.

As what Iceman said, a major factor in your decision, should be based on what you do for work. By that, I mean is your job a common one? I.e. How likely are you able to find another similar job and how long would it take?

Also, after 15 years of being in 1 company, you'll get a lot of perks, OT and payrises etc, don't be surprised that your next job won't pay as much. It's something you'll need to earn again...

Perhaps speak with some recruiters in your market, I'm sure they will help you.

Here I just randomly googled it:

http://www.bluecollar.com.au/

If finding a job within 1-2 months is possible - even if its a paycut by 10-20k, I'd take it. With the redundancy package, you need to consider tax... 70-80k in cash, is more like 130-140k pre tax of actual work, which for most people will take over 2-3 years to save, probably longer.

Similar to what Stewy mentioned, I'd put half an "offset" account and the other half directly into your loan. Interest rates are predicted to hit as low as 1% too, which is good news for us.

Good luck mate

Dave

Edited August 11, 2013 by The Incredible Hull

[Geoff]

I was made redundant 3 times over a 15 year period. Redundancy money is there to tie you over until a new position becomes available so don't rush out paying the mortgage just yet..

Every one's situation is different so it's difficult to provide specific advice but here are a few that may be of interest,

The first is to check the market for new position. There are no shortage of employment agencies around. Depending on your experience & industry a good place to start is with SEEK & My Career. There are links there to creating a job profile.

This is not a CV but a list of options that you match your profile or preferred jobs.

As jobs that match that profile become available they are E Mailed then it's up to you to apply. In essence , just sit back & wait for the mail to arrive.

You can set up as many profiles as you like. It is wise to have one for permanent work & another for temp , part time or contract work.

As to the financial side , place the money in the bank , perhaps some in a term deposit. Whilst interest rates are crap at present it is important to have easy access to funds for day to day living.

Once you have a job then consider paying off some debts. However , having said that , if you have personal loans or credit card debt which are incurring high interest then paying all or some off should be considered.

With home loan interest rates being at an all time low this would be the last payment option on the list.

Geoff

[hnsgeq]

My wife went through her job being made redundant a few years ago. She didn't have a choice but to leave where she was working for over 20 years.

The money was good but as you'll mostly find with a lump sum of money, it ran out with some house renovations etc.

I remember how upset she was at the time but looking at it now, she agrees it was the best thing to ever happen to her.

Overall, if you take the money, it's a change and they say a change is as good as a holiday!

The only word of caution I have for you is speak to an accountant as I think, although not exactly sure, that there are different tax rules for volutany redundancy v's forced redundancy. I thought forced redundancy was taxed less, but again, not sure and you should really find out as it can make a big difference to the $$$$ that end up in your bank account at the end of the day.

Hope this helps.

[elferoz777]

My wife went through her job being made redundant a few years ago. She didn't have a choice but to leave where she was working for over 20 years.

The money was good but as you'll mostly find with a lump sum of money, it ran out with some house renovations etc.

I remember how upset she was at the time but looking at it now, she agrees it was the best thing to ever happen to her.

Overall, if you take the money, it's a change and they say a change is as good as a holiday!

The only word of caution I have for you is speak to an accountant as I think, although not exactly sure, that there are different tax rules for volutany redundancy v's forced redundancy. I thought forced redundancy was taxed less, but again, not sure and you should really find out as it can make a big difference to the $$$$ that end up in your bank account at the end of the day.

Hope this helps.

I now public service VRs are taxed less...significantly less.

If you walk away with anything over 75 k in the hand I think it is a goer.

Change is scary but it can be great...

When I was forced out I landed a job 15 mins from home (compared to 90 mins by train before) and learnt new skills.

You'll be right!

[locodave]

Hi mate,

I have been there twice within 6 years! I don't have a family but I still have a couple of mortgages and it was tough.

Like some of the posts above, 6 months later and there are no regrets. Mind you my packages were way smaller as I was only in the company 1 or 2 years max.

The amount you are getting is quite a large amount and should be enough to carry you through to another job. If you are concerned about the less pay by staying within the company, and you know you are worth more, then why not take the risk, accept the redundancy package, have some faith in yourself and begin looking for a new job?It will happen!