Showing posts with label redundancy. Show all posts
Showing posts with label redundancy. Show all posts

Wednesday, December 19, 2007

Chocolate Class War

Cadbury's announced this year that it would cut 7,800 jobs world wide and is currently fighting union resistance to factory closures in the UK .

However , billionaire corporate raider Nelson Peltz, who has been building a stake in the confectionery giant has been demanding that Cadbury Schweppes should return as much as £1.7 billion to shareholders after the spin-off of its US drinks business next year or face an attempted boardroom coup . He and his confederates dmand that by adopting more aggressive trading margin targets, Cadbury could push the value of its shares up to 970p and pay a special dividend of 80p per share – handing back £1.7bn in total – when the drinks business is spun off. The stock was up 15p to 623p yesterday. Cadbury's chief executive promised this year to raise the company's trading margins from about 10 per cent currently to a mid-teens percentage by 2011. Mr Peltz says the target should be closer to 20 per cent

The veteran financier made hundreds of millions of dollars in profit from previous forays in the food and drink business, most recently buying Snapple for $300m (£149m) and selling it three years later for $1.5bn.

So there is the answer to why jobs are lost or out-sourced - to fill the pockets of investors

Friday, January 19, 2007

Mental health and redundancy

In a previous blog and in another Socialist Courier discussed redundancies and the inhumanity of employers and their business plans when it comes to discarding workers .

The psychological effects upon workers made redundant has been well documented but new research reveals that even amongst those workers who escape dismissal , the continual fear and threat of redundancy increases the stress and anxieties .

Researchers found that men made redundant during downsizing were 64% more likely than those in completely unaffected workplaces to receive prescriptions for drugs such as antidepressants and sleeping pills. However, their former colleagues still working were not far behind, with men having a 50% increased chance of being prescribed the such same drugs.

The researchers said that it was clear that downsizing could increase the workload and reduce job security of those who stay in their jobs and may pose mental health risks among employees.

"The trouble is that employees don't tend to believe their employer when they're told there is no risk of further redundancies ..." Professor Cary Cooper, who carries out research into organisational psychology at the University of Lancaster .

A frightened worker is a docile worker !!