Showing posts with label redundancies. Show all posts
Showing posts with label redundancies. Show all posts

Monday, 2 June 2014

The Queen's speech - the slippery slope to fascism

The slippery slope to fascism – soon to come to a village near you

Fracking on private land to be permitted in Queen’s speech – leak

An infrastructure and competitiveness bill to be announced in the Queen’s speech on Wednesday will change trespassing laws, allowing shale gas exploration firms to drill on private land without requiring the permission of the owner, UK media report.



RT,
1 June, 2014

The Queens speech marks the formal start of the parliamentary year and sets the proposed government agenda for the session, which will run from June 4.

On Sunday, British media started leaking the contents of this year's address, its topics varying from fracking to a “radical shake-up of workplace pensions.”


Fracking


The fracking bill will allow companies to drill on private property without asking permission through reform of trespassing laws, according to ITV.
Shale gas extraction is not really popular with affected communities. Manchester saw hundreds rally in March demanding to ban the practice. Environmental activists are strongly opposed to the technique, which has already been proven to cause small earthquakes in the US. A number of studies have alsorevealed water pollution, and the practice has also been linked to health problems, including birth defects in unborn infants in the US.


[PHOTO 1] Not for . Anti protest 09/03/14

[PHOTO 7] Says... Anti demo 09/03/14

Green Party leader Natalie Bennett stated that the Government was ‘focusing on the fantasy of fracking.’

We're obviously opposed to that because we're opposed to the whole idea of fracking. I think it's really a demonstration of how this Government - which we might recall once claimed to be the greenest Government ever, which is now a very sad, sick joke,” Bennett Told Sky News' Murnaghan program after hearing the news.
A leading fracking company has previously made statements saying that the industry will be completely crushed in the UK if government doesn’t allow it to drill under people’s private property without their permission. 



Cuadrilla chief executive Francis Egan told The Times it would be ‘impractical’ to negotiate with every individual landowner.

Pensions

Alongside fracking, other issues to be addressed include terror policies, excessive pay of NHS executives and the implantation of controversial Dutch-style ‘collective pensions’. 



The pension scheme is supposedly less vulnerable to fluctuations in the stock market. Payment goes into a collective mega-fund. 



Pensions minister Steve Webb has told the Sunday Telegraph that such schemes are “some of the best in the world” and that they give “people greater certainty and probably better value.” 



Administration Costs are cited to be lower because of the collective nature – therefore pension income will be higher, according to its proponents.ature – therefore pension income will be higher, according to its proponents.
Reuters / Luke MacGregor
Reuters / Luke MacGregor


However, critics state that any returns won’t be guaranteed. If the ‘collective fund’ investments don’t generate the profits anticipated by investors, then pensions could fall, Altmann stated. 



“If markets don't perform or life expectancy rises by more than expected, then it might be necessary to cut pension incomes,” she said. 



Under a process known as ‘smoothing’, this risk may be alleviated by profits from good investment years being distributed in years of negative return. 



However, there is a certain degree of loss of personal control for each personal investor, which has proved controversial in the Netherlands.

'Revolving door' public sector redundancies

Highly paid civil servants and NHS management or executives and quango bosses will not receive massive redundancy packages before they resume similar employment before the end of the year. 


If they leave a job with a high redundancy payoff, they will not be able to return to a similar level/position within a matter of months – thereby stamping out costly ‘revolving door’ policies. 


“We must end the revolving door where highly paid public sector workers can leave with redundancy, only to rejoin a short while later,” Nicky Morgan, the Financial Secretary to the Treasury told the Telegraph. 


Some 17 percent of the 19,000 redundancies in 2010-2013 were rehired; 13 percent were reemployed with the NHS.
Reuters / Suzanne Plunkett
Reuters / Suzanne Plunkett


Terrorism
The Queen will also be notifying the British public of a crackdown on terror. Some 400 extremists who have traveled to Syria are thought to have some terrorist links. 


Only terror-activities plotted for the UK can be prosecuted, which means that British nationals who use a foreign base to plot attacks can escape prosecution. 

“People who prepare and train for terrorist activities should be in no doubt of the action we are prepared to take to protect our national security, including prosecuting those who break the law,” an anonymous government source told the Daily Mail. 


“Our message is clear – the UK advises against all travel to Syria. Anyone who does travel, for whatever reason, is putting themselves in considerable danger,” the source said.

Saturday, 23 February 2013

Body blows to the NZ economy


Here are some pretty solid blows in the New Zealand economy This follows the collapse of the country's third-largest construction company.

It is clear, despite the propaganda, which way things are moving.

Govt 'asleep at wheel' on Solid Energy
The Government and Treasury missed the chance to step in and force change at troubled state-owned coal company Solid Energy when problems became apparent to officials and ministers about 18 months ago, the Opposition says.


Mechanical fitter Ross Vernon says Huntly mining workers were "sold a dream" which never eventuated. Photo / Christine Cornege


23 February, 2013



Solid Energy is currently in crisis talks with Treasury and its bankers over ballooning debts now totalling $389 million.

It blames its woes on low international coal prices, weak demand and the poor performance of its investment in alternative energy assets.

Just a few months after 450 job cuts last year, the company's remaining 1,200-strong workforce are staring down the barrel of further redundancies once a restructuring package is agreed.

Finance Minister Bill English has not ruled out a taxpayer-funded bailout.

Huntly East miners yesterday said they felt betrayed by former Solid Energy chief executive Don Elder, whom they hold responsible for the crisis.

Third generation miner and Huntly East mechanical fitter Ross Vernon said only last year 70 workers were employed on the promise of a 25-year future with the state-owned enterprise.


Mr Vernon said it was heartbreaking that most of those workers were then made redundant in a recent restructure after being "sold a dream" which never eventuated.

"I firmly believe Don Elder has a lot to answer for. He should be ashamed and I wouldn't employ him."

He said Solid Energy should never have spent money on "peripheral" businesses that failed such as converting coal to bio-diesel.

Labour's state-owned enterprises spokesman Clayton Cosgrove savaged SOE Minister Tony Ryall and Mr English for being "asleep at the wheel" as Solid Energy deteriorated over the past 18 months.

Problems at the company first came to light in mid-2011 through a "scoping study" conducted to assess the company's readiness to be partly privatised under the Government's "mixed ownership model".

A few months later, in late 2011, the first public indications of the company's troubles emerged when the Herald highlighted a $1 billion gap between its board's $2.8 billion view of the company's value and a $1.7 billion estimate prepared by a private sector analyst.

Treasury explained that discrepancy as being the result of differing views on the outlook for international coal prices.

Mr Cosgrove said he was "getting very tired of Mr Ryall saying there's nothing he could have done as these were all operational matters".

"He can't tell the board what to do but he can ask questions and demand answers and he can say 'you're sacked'."

Mr Cosgrove said one of those questions in the face of falling coal prices was whether the company had developed adequate contingency plans to cope with them.

Clearly it hadn't, he said, but former chairman John Palmer and former chief executive Don Elder continued in their jobs until recently.

Greens co-leader Russel Norman said the situation at Solid Energy appeared to have "gone to custard without the Government realising what's going on".

"The people who should have had all the information at their fingertips were Treasury's Crown Ownership Monitoring Unit, they're the ones who presumably have had full access to everything inside Solid Energy all the way through.

"The question is why didn't they raise alarm bells about what was going on?"

A Treasury spokeswoman yesterday refused to comment on what action it took after learning of Solid Energy's problems other than to say it had been "very involved".

Dr Elder, who resigned two and a half weeks ago yesterday, told the Weekend Herald he had been "out of contact" since then and was "not up to speed" with the latest developments at the company.

He refused to answer questions about the company or "performance-based payments" or bonuses he had received in recent years.

"I still have commitments to Solid Energy and I'm unable to say anything whatsoever."

Chairman Mark Ford, who took over from Mr Palmer after a board cleanout in November, yesterday said he believed Solid Energy was "a very viable business but only based on our core business - coal production".

Mr Ford said a number of investments made under the previous board and management were done when the New Zealand dollar was lower and prices higher.

They were no longer paying sufficient return, and would all be sold or otherwise "exited".


Unions say redundant Telecom workers may leave country
The Council of Trade Unions says workers soon to be made redundant by Telecom will struggle to find employment in New Zealand.


23 February, 2013


Telecom on Friday downgraded its profit forecast and announced it would cut hundreds of jobs in the coming months as it made a strategic shift to become a mobile and data orientated service provider.

CTU secretary Peter Conway said the redundant workers will be highly skilled and many will be unable to find equivalent jobs in New Zealand's faltering economy.
He said if there is growth it is highly concentrated in some sectors and is either not leading to extra jobs or, where jobs are created they are not very good ones. "That's the concern and that will keep driving people to Australia."

The Engineering, Printing and Manufacturing Union represents about 40 Telecom workers. National industry organiser Joe Gallagher said those who lose their jobs will probably have to leave the country to find employment.

Telecom's announcement follows recent job losses at Mainzeal, Summit Wool Spinners and Contact Energy.

The Household Labour Force survey for the December 2012 quarter puts the number of unemployed at 163,000 and Mr Conway said 111,000 part-time employees are looking for extra hours.

In Australia, telecommunications firm Telstra announced this week it was cutting jobs and and moving some of them overseas.

The company is axing 648 jobs axed from its ailing advertising and directories arm, Sensis, representing almost 20% of its 3500-strong workforce.

The Australian Manufacturing Workers Union said 400 of those jobs are earmarked to go to workers in the Philippines, AAP reports.


Transpacific cuts 200 jobs
Waste management company Transpacific Industries will axe 200 jobs as it seeks to lower costs amid weakness in its manufacturing and industrial markets


23 February, 2013

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Affected staff will leave over the next two to three months as jobs are slashed across all parts of the business in Australia and New Zealand, AAP reports.
It follows 1200 job cuts announced earlier by Australian firms Telstra, Iluka and Origin Energy.

Transpacific chief executive Kevin Campbell said the decision to cull the workforce came after a recent review of the company's organisational structure.
He said the number of management layers in the business was being cut from an average of nine to an average of six.

Transpacific is accelerating its cost cutting program, advising the market on Friday it planned to take out $A50 million of costs over the next three financial years to 2014/15.

This was above previous market guidance of $40 million of savings over the same period.

Mr Campbell said the company, like a lot of other firms, had been "suffering from the malaise of the lack of infrastructure projects and general downturn in manufacturing and industrial markets".

He said Transpacific's waste management businesses had been hurt by a drop-off in volumes in landfill and a product mix change in the industrial liquids market that has resulted in lower margins.

Hundreds of job cuts announced in a day

Earlier in the week three major Australian companies announced nearly 1,200 job cuts between them on just one day, as weak earnings force businesses to focus on driving down costs and adapt to changing markets.

Telstra said on Thursday it would cut 648 jobs from its struggling Sensis business - a division that has suffered massive revenue falls as demand for its key White Pages and Yellow Pages directories plummets.

Gas and electricity player Origin Energy announced it will cut an additional 350 jobs, in addition to 500 already flagged, during 2013 as it faces falling profits.

And 200 workers will be sacked from Iluka, a miner of mineral sands used in high-tech metals and paint pigments, after weak market conditions forced a 33 per cent slide in full year profit.

Thursday, 14 February 2013

NZ Post

NZ Post says job cuts needed to stay competitive
New Zealand Post says it needs to make redundancies so the business can stay competitive in a tight market.


14 February, 2013

The company announced on Thursday it is axing 100 workers in Wellington and Auckland, saying the job losses are the result of an upgrade of its printing systems.

The New Zealand Post-owned print and mailing house Datam will close its plant at Petone near Wellington at the cost of 75 jobs, and some Auckland roles.

However, 30 new jobs will be created at its Christchurch plant.

Spokesperson John Tulloch said on Thursday the decision has been driven by new technology which can do more work with fewer workers and the company is working to relocate employees where possible.

The Engineering, Printing and Manufacturing Union said the redundancies have come as a shock to workers.

Postal sector organiser Joe Gallagher said the union has serious concerns about the state of the job market for its members.

Sign of the times - Joyce


Economic Development Minister Steven Joyce says it is always a concern for people who lose their jobs, but more lay-offs reflect the changing state of the economy.

As well as the New Zealand Post job cuts, Contact Energy said on Wednesday it plans to cut more than 100 positions in the face of flat demand for electricity.

Mr Joyce said on Thursday the situation is reflection of the state of international and domestic economies.

"We're getting lower levels of growth than we have historically, and that's because of the global financial crisis. We are seeing growth in some areas, but we're seeing job losses in other areas as well.

"So it's not easy, it's still challenging but actually anybody who suggests they could wave a magic wand and make it disappear is, frankly, just having you on."



Saturday, 27 October 2012

UBS redundancies


UBS To Terminate 10,000, Or One Sixth Of Its Employees
 


24 October, 2012

There is down-sizing; there is trimming-the-fat; and then there is UBS. The once-giant Swiss Bank just announced it will cut up to 10,000 jobs. This comes on top of the 3,500 from last year - which makes a rather dramatic weight-loss strategy for the 63,500 employee firm. As the FT reports, they will not happen all at once (so just after the election then?) but will lead to the closure of a sizable part of UBS' fixed-income trading operations (and other capital intensive areas of the investment bank).


Perhaps in the understatement of the day: "There were several options on the table but UBS has decided on the most radical one," a person familiar commented as the plan is hoped to reduce complexity and costs - so no more Bloomberg Terminals?


One thing surely gone is a source of fixed income axes: "The new strategy, hammered out in several executive board meetings in New York this week and set to be announced next Tuesday, will lead to the closure of a sizeable part of UBS’s fixed-income trading operations and other capital-intensive areas of the investment bank."


The winner: Goldman of course, which in a world of collapsing trading revenues has taken to Lehmaning its competition once again, only this time not using brute force but the far more classical war of attrition in a collapsing economy.


Via FT:


UBS is set to unveil a radical downsizing of its struggling investment bank next week in a move that will prompt the loss of up to 10,000 jobs across the Swiss banking group.
Switzerland’s largest bank by assets will significantly shrink the trading side and complexity of its investment bank and as a consequence also cut thousands of jobs in its back office over the next few years, three people close to the situation said.
The job cuts will amount to almost a sixth of the bank’s workforce of 63,500 at the end of June. They will not happen all at once and the precise number is still unclear as the exact impact on back-office functions has not yet been determined.
It comes on top of another – still ongoing – programme announced last year to cut 3,500 jobs.
The move highlights how banks around the world are trying to adapt to a radically changed regulatory and market environment that has left them with lower returns and much higher capital needs for certain business areas and national subsidiaries.
The new strategy, hammered out in several executive board meetings in New York this week and set to be announced next Tuesday, will lead to the closure of a sizeable part of UBS’s fixed-income trading operations and other capital-intensive areas of the investment bank.

....
 
There were several options on the table but UBS has decided on the most radical one,” one person familiar with the plan said.

Thursday, 6 September 2012

Digging for the real reasons for Solid Energy redundancies


This excellent article is reposted from Frank McSkasy's blog to give the widest possible readership.

His blog is available HERE

The real cause for Solid Energy mass redundancies?
 


26 April, 2012

On 16 August, Solid Energy undertook a review of it’s operations and workforce. CEO, Dr Don Elder,  announced,

 ”While many in the industry still expect demand, driven by Asia, to pick up again strongly sometime in 2013 Solid Energy needs to plan to withstand these market conditions for at least the next 12 months and possibly for 24 months or longer.” he says. “As a consequence, we are reviewing all areas of our business, including current and future operations, all fixed and variable costs, and the values of some of our assets, which will result in us taking significant impairments. Our aim is to preserve cash through reduced spending while, as far as possible, maintaining our longer-term value opportunities.”


By 29 August, Solid Energy announced  140 jobs to go and a suspension of  operations at Spring Creek mine on the West Coast. A further 123 jobs were  to be cut at Huntly East Mine in Waikato.


The following day, that number had risen to 250 job losses on the west Coast, and as one Greymouth retailer put it,

” Two-hundred-and-fifty jobs, we’ve got a population of 8000 – it’s probably the equivalent of 40,000 people in Auckland jobs getting affected, so that puts it in perspective. “


On the same day, Solid Energy  reported a “loss” of NZ$40.2 million in the year to June 30, 2012,  compared to  a profit of NZ$87.2 million in 2011. (More on this shortly.)


No one can rationally argue that job losses on this scale, with ensuing loss of wages and company spending, will  have a devastating impact of the West Coast economy.  The losses will cause incalculable harm.

Solid Energy has attempted to justify redundancies by pointing to a drop in international coal prices; a fall in demand from  China; and a $40.2 million “loss” in profits.

Two of the above reasons have a degree of merit – the third reason has been mis-represented to the public.

International Coal Prices

Coal prices have indeed dropped.

From a recent high of NZ$185.47 per metric tonne in January 2011 – to NZ$113.33 at the end of July, this year. This is a drop of NZ$72.14 per metric tonne.

However the July 2012 price (NZ$113.33 per metric tonne)  is not  much different to the November 2009 price of NZ$115.52 per metric tonne. As a result of the November 2009 low price, Solid Energy had minimal redundancies,

There were 18 redundancies in the year at a cost of $367,050.”


That figure of 18 redundancies is in stark contrast to the 360 redundancies  this year.
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Demand from China

There is no doubt; demand for coal from China has  dropped,

” Globally diversified miner Anglo American PLC said the global thermal coal market looks bearish in the short term, partly due to displacement of U.S. coal demand by shale gas and an economic slowdown in China, but it is still an attractive market over the medium to long term.

In the short term, we will have a bearish market,” Norman Mbazima, chief executive of Anglo American’s Thermal Coal division, told analysts at a seminar. But “there is very good demand outlook for coal. Coal will continue to be the mainstay of electricity production in the world and this will underpin good prices into the future,” he said.

Gareth Griffiths, head of Anglo American’s Thermal Coal Marketing department, said that the main reason behind the recent collapse in thermal coal prices has been a slowdown in Chinese coal consumption growth.”


” Coal demand is also expected to be fragile amid a weak economic outlook for the rest of the year.

A Reuters poll forecasts this year to see the slowest full-year of economic growth since 1999 as demand for China’s factory goods falls due to the debt crisis in its biggest customer the European Union.

The coal market will remain challenging,” said Ivan Lee, a coal analyst at Nomura Bank.

FACTORY-DRIVEN REBOUND
Chinese coal prices can only rebound if demand recovers considerably, which requires the manufacturing purchasing managers index (PMI) to rise above 50, economic growth to climb above 8 percent and power plants’ coal stocks to fall by half, Lee said.

The data, however, is not encouraging. The latest PMI showed China’s manufacturing sector contracted at its sharpest pace in nine months in August, with the index falling to 47.8 from 49.3 in July.

Even if China decided it needs more coal, which is unlikely, it will not seek it abroad as imports have become more expensive than domestic supplies, traders said.

Australian imports, based on the globalCOAL index, now cost around $3 per tonne more than Chinese prices, although some traders are selling blended material at lower rates. “


Whilst this may impact on Solid Energy’s profits (as compared to this year and 2011), Solid Energy’s viability does not seem threatened.

The only threat to Solid Energy is it’s saleability.  The more profit Solid Energy makes – the higher the share price when it is floated on the Stock Exchange. By contrast, the lower the the profit, the lower the share price.

Which may explain Bill English’s comment in the media item below, “English – Solid Energy not ready for sale”.

Solid Energy Profits

According to Solid Energy’s own Results Announcements 2012 report,  the company’s income was actually better than the preceding year,

Good operating performance overtaken by asset write downs

Trading performance was good in a deteriorating market with strong NZD. Underlying earnings were $99.7 million (2011: $86.2 million).

• Asset write downs of $110.6 million net of tax and other adjustments have resulted in a $40.2 million loss after tax (2011: $87.2 million).


In plain english (not the mumbled  Prime Ministerial  version), Solid Energy made an after-tax profit of $99.7 million – an increase from $86.2 million in 2011.

Employing a  book-keeping, accountancy “trick”, Solid Energy  reduced theire own asset values by $110.6  million. (That’s like saying your house was worth  $300,000 in 2011, but only $250,000 this year. You still have your house and you’re living in it – nothing else has changed. Only the theoretical valuation has ‘reduced’. Next year that valuation could rise back to $300,000 or even more or maybe less. That’s creative accountancy for you.)

The point is that Solid Energy’s profit rose from $86.2 million to $99.7 million.

In fact, Solid Energy’s revenue in 2012 was $978.4 million – almost a billion dollars –  18% increase franom the previous year.

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See: Ibid
Good earnings” indeed!

Any “loss” by Solid Energy is there a paper loss only; an accounting mechanism to revalue assets.  It’s profits remain unchanged.

Solid Energy therefore cannot rely on an imaginary “loss” to justify redundancies – because there was no loss.

It is noteworthy that Solid Energy’s decision to “mothball” Spring Creek mine and reduce staff at Spring Creek and Huntly follows one week on from this event,

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Don Elder rejects all allegations that planned  redundancies are a covert attempt to increase Solid Energy’s profitability by reducing it’s labour costs,

This restructuring is not about increasing value, this is about saying `we have to do what we can afford to do.”


To which this blogger replies,
  1. There has been a downturn in international coal prices, and,
  2. Despite that, Solid Energy is profitable and it’s 2012 revenue exceeded last year’s, and,
  3. Bill English stated on 21 August that  “We wouldn’t be planning to float it [Solid Energy] any time soon”, and,
  4. A week later Solid Energy announced 250 redundancies and the closure of Spring Creek mine and,
  5. By contrast, there were only 18 redundancies in November 2009, even though the price per metric tonne was similar.
Coincidence? I think not.

Despite Elder’s protestations to the contrary, this blogger has no doubt whatsoever  that Solid Energy employers and the entire West Coast are paying dearly for National’s privatisation agenda.

There are some very dirty back room deals going on, and the wafting smell ain’t methane escaping from West Coast mines.