Can any former employees comment on what is being offered if layed off?
How many weeks for every year of service?
How many days do you have to accept?
Is there an option of being hired back when the upturn in the market occurs?
What happens to your pension plan? Can you use the money now or does it need to be enrolled into a personal investment?
While you claim the buddy system would claim the jobs of managers as well is the most unqualified statement I have ever heard. The easiest way for a business unit to try and stay cohesive and relevant is for them to surround themselves with people they trust and try and keep the group clicking and showing, on the surface, signs of progress. Even if numbers are down it is easy to fudge productivity among the department and selling evidence that "we are trying". Anywhere it can be said that you are trying to make a buck by reorganizing can and will be seen as an attempt to improve business (at least in that circle of business).
As a whole, this is how most service companies are run, the good ole boy system. Either you conform or you get ousted. It's a sad truth but it is the truth nonetheless. There are several departments that are and remain irrelevant but survive because of their connections even though they are a drain on the company.
It will become apparent in the coming months and years as capex remains low and the new norm of moderately priced oil these departments are unnecessary and will either be outsourced or cut. We are just scratching the surface of lower margins and leaning out. Even if another "boom" were to come (and that is a mighty big if) no company in their right mind would ramp up their business so fast that they outgrow the market again. Then again there is a saying "fool me once shame on you, fool me twice..."
How about the "wrestling" manager, who created previously unheard of positions to keep his lip servants safe during the layoff? Or how about the positions that were never posted, no interviews conducted, just conveniently filled prior to the layoff by unqualified candidates? Is that personal or just best for Berwick business?
The "cogs in the profit wheel" are the ones that spend their day under their bosses desk. Lip service is sure appreciated in Louisiana!
Cameron Cares
No they weren't offered early retirement. That's the point, packages aren't being offered - they were laid off - the best you're gonna get is 26 weeks severance. No medical.
As someone who's had to make that tough call, I think it's obvious the last post has no clue. Yes, names aren't drawn out of hat, and discussions do happen between mangers. But what gets discussed is business impact from loosing someone. It stinks, but sometimes the impact of letting someone good go isn't as big as if others are lost. We like to think we're all equal and comparatively valued, but that's just not true. Of course if you, or your buddy, got cut instead of someone you think isn't as good, you're going to try and find excuses other than "I just wasn't as impacting a loss as the other guy." But not many managers would still have jobs if they only kept their friends around instead of doing what's best for the business.
Bottom line is, this is all about making money. Stop taking it personally and recognize you are just a cog in the profit wheel. If you're not helping spin that wheel enough, you will get removed. Especially when times are tight.
I must disagree with the statement that layoffs were not personal. Names were not drawn out of a hat or at random. Managers met off site and decided who to cut. The buddy system is alive and well, with no regard to work ethic or years of service. That is clearly evident in who was let go and who was kept at the Louisiana facilities.
They were likely offered early retirement and didn't take it. That's on them. Once you reach a certain point it's worth taking the retirement offer.
I know two laid off earlier this year with 44 years of service - they both got 6 months.
From my knowledge the package offered is pretty standard for the industry but some other companies are a lot more gracious with their medical benefits, knowing that families need to transition.
For the majority, layoffs are not personal, the downturn plus a horrid business model/reputation don't help a company retain personnel.
You'll find better companies offer 2 weeks for each year of service but offer medical for through the month or, if close to the end of the month, through the next month. Also, they will offer some kind of job placement assistance. Cameron does the bare minimum.
The previous poster was correct in saying that you should not look to go back and look at another industry. For one, the recovery won't be swift and the service sector will lag behind as sales of equipment won't be needed until the industry brings all the stacked rigs online. Drilling needs to the stabilize and support the need for new equipment (this means low revenue streams for a while).
Good luck to you.
what do you think about this package compared to other company?
Lately it has been 2 weeks of pay for every YoS with 45 days to accept or decline. As another commentor stated, that it's not really clear, your vacation if you are salary exempt is accrued on a month to month basis but was never conveyed to me upon hiring nor was it displayed on any pay stubs. But they will pay any unused vacation.
Is there an option of being hired back when the upturn in the market occurs?
The paperwork will state that you are available for rehire. Having said that I wouldn't expect to return to the company any time soon as the level of recovery needed to facilitate mass hiring is not right around the corner. Also, why would you want to return to a company that could not properly plan for these conditions? I would look outside of oil & gas for the long-term.
As far as your 401K goes, you can keep it in T Row Price for a fee, withdraw it and occur penalties, or opt to roll it over to a preexisting 401K or an IRA.
I personally opted to roll my 401K to the IRA in my credit union.
Packages are different from lay offs to lay offs...
Well, it's really NOT explained very well. They pretty much say you are getting "x" amount of dollars. Vacation pay is earned 1.5 days per month. If you have taken more than you have earned, you will have to pay it back.
You have 45 days to accept your severance, of course the sooner you get it back to them, the sooner you get your money. After it is return they have 7 days before its turned in to payroll - and usually the check is cut on the following payroll cycle.
Pension not sure of, if you have a loan it needs to be paid in full before December 31st.
If you decide to take your money out of your 401k/ pension plan, talk to a CPA.
Anyway, it's a screwed up situation.
Hope that helps.