20K buy down wage deal

[PO1]

Heard a rumour that in the pipeline is a 20k offer to buy down our wages to Smithies level.

Anyone else heard this?

[billyhayes]

So as long as you leave POL within 4 years you're quids in?

20K would be the same as most peoples EVR payments.

Expect a 'payback clause' stopping you from taking the money and running...

[POSTMAN]

If i may,what would the weekly/monthly difference be?

[PO1]

In reply to your question Postman:

Pay for Crown colleagues at the moment £19,150 per year / £368 per week / £1,596 per month.

Pay for Smithies at my local one is about £12,000 per year / £231 per week / £1,000 per month.

[fishtank]

Well i think as Billy says if you have an escape plan and are 100% sure you won't get a sniff at a better VR payment....fine....otherwise it's not even worth thinking about but he's right about the payback clause...we have it with our buy down payments.
2 years before you get to leave for free and at 7 grand difference a year there isn't much profit left for you..

[billyhayes]

Well i think as Billy says if you have an escape plan and are 100% sure you won't get a sniff at a better VR payment....fine....otherwise it's not even worth thinking about but he's right about the payback clause...we have it with our buy down payments.
2 years before you get to leave for free and at 7 grand difference a year there isn't much profit left for you..

Wow, cheers FT. I was just guessing at a 'clause'!!! I can read these buggers like a 1st class stamp...

[POSTMAN]

In reply to your question Postman:

Pay for Crown colleagues at the moment £19,150 per year / £368 per week / £1,596 per month.

Pay for Smithies at my local one is about £12,000 per year / £231 per week / £1,000 per month.

Even if you're out with the Smiths wages that is bad.
Cheers.

[subbie]

If they "buy down" your wages and you are tied in for a set period does that mean that they cannot make you redundant during that tie in period? Dont believe the rumour though after reading the Gov Policy doc with reference to Crown PO's.

Subbie

[PO1]

If they "buy down" your wages and you are tied in for a set period does that mean that they cannot make you redundant during that tie in period? Dont believe the rumour though after reading the Gov Policy doc with reference to Crown PO's.

Subbie

To me it ties in perfectly with the BIS document.

The mutualisation of a lot of Crowns is helped along if we're all on the same wages as whichever supermarket/smithies that wants us.

The main promise made with regards to Crowns is to get into profitability by 2015. What better way to do it than by franchising 300 plus Crowns and driving down the wages in the remaining with a small slice of the £1.34bn from the ConDems.

Fits in nicely with the no closures statement and most will be open for longer hours. Jobs a goodun!

Would Dickie like to comment?

[The BFO]

Would Dickie like to comment?

If you are referring to Mr Barker then I am sure he wouldn’t!

[onlyanother30years]

A very interesting post with much food for thought, one thought I had is this sum:

£20,000 wages (inc bonuses) + £20,000 buy down = £40,000 which = 40% tax bracket.

Then £12,000 a year to live on but receive no tax credits as earnings £40,000 previous year.

I would be financially fooked,


Higher rate: 40% Over £37,400

[billyhayes]

Good point 30years. Although we are getting a bit deep into pros and cons when no bugger knows where this classic started.

Maybe the original poster can share their source?

But my 2 cents would be that I would hope that the buy down lump would be exempt from both tax AND calculation of deductions for the following year. Otherwise, those with littl-uns are basically being 'penalised' for want of a better word. Hmmm

[POSTMAN]

Then £12,000 a year to live on but receive no tax credits as earnings £40,000 previous year.

Let's say it was a goer,then you would contact tax credits and inform them of your new wage,it will then change your credits immediately.

[PO1]

The original info was passed on by a union source. The message was "it was one of the options being considered"

MTSF refers to a buy down of grade policy "where to do so would facilitate the placement of a surplus employee". Not quite the same as what I've heard might be suggested but this part of MTSF goes on to state:

It will involve a variation to the employee's cotract of employment with no break in service.
Be paid a taxable lump sum payment equivalent to two years worth of the difference between the employee's pay immediately prior to the transfer and the pay applicable to the lower graded new job as compensation.
The employee takes up the grade and terms and conditions of the new job immediately.
Upon termination of employment for any reason whatsoever, or on promotion, during the two years immediately following the payment you will refund a proportion of the payment back equivalent to the unexpired portion of the compensation period. Any monies owing in this respect may be deducted from your wages or any other payment from the RMG including VR.

If it does appear in your mailbox if you do, think of only one thing, pension. 26/80 of my pension is a final salary payment currently this part £6230 per year with a lump sum of £18690. If it goes down to £12,000 salary that becomes £3,690 per year and £11,700. Massive difference. Short term gain long term pain.
In the words of Grange Hill "Just say No"

[billyhayes]

Good info there PO1. So we are all in no doubt that this is a wrong-un?

Is there ANYONE ie, certain age group, length of service that this would benefit?

I can't think of any myself.

The one thing I would be concerned about, (if this were an option they put on the table), is that there are a lot of people that will see the £££ signs and lose all common sense and go for it...