Well I never expected to see my divisional Managing Director to get up and walk out of a meeting with a client. He likes to keep "his hand in".
New foreign investor in an existing business asked us to quote.
Serious new money is being invested in new plant and they want us to match it. All well and good. The cash forecasts look good. The business is reasonably profitable. Our profit margin looks good.
Some of the figures don't look right. Staff numbers reduce significantly after the new plant is added but redundancy payments are no where near what was expected.
So my MD asks to visit and discuss the figures and I tag along.
Turns out the new investor has asked the staff to take serious pay cuts from about £20 per hour to minimum wage to help secure the business with a promise of better wages when things are better.
The company then will pay redundancy on the new minimum wages not the original wages.
In his car on the way back, the MD said that wasn't "cricket". The draft report was a little more detailed - if they are willing to rip their long serving staff off, the bank would be fair game as well.
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