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That’s the stage we are in. Get out and enjoy everything we can do until we can’t do it any more.
I worked for a couple drug wholesale companies- first FoxMeyer who screwed everything up and even when it looked like they had a merger worked out with another company from Ohio. My work mates and I talked and decided it all looked good and put a lot of our 401's in stock cause it was way low, and the merger price was going to be a nice profit. Well of course the deal didn't go through. They wound up filling bankrupt and kept going down. Finally, McKesson, who is a giant company, pick up what was left at a bargain. Managed to recover my 401 and had 20 years in when they decided to downsize my department since the equipment I sold, or tried to sell, was having a lot of issues and sales sank. Fortunately, I still had a real estate license and just reactivated it and got to selling houses. While there has been ups and downs, it has served me well. Finally started taking my SS at 65. Also have a Meat Cutter retirement from my dozen years at Humpty back in the 70's-80's. This with a few real estate deals and a lucky oil royalty from some rural land we had, and maybe I'll make it if the doctors don't get it.
I have been through the buyout/ shutdown process.
Lessons learned.
Lookup the Warn Act. In a large outfit, they have to give a certain amount of notice before terminating a large number of employs at the same time. It used to be 60 days notice. Bottom line is know if that alert process applies to your job. With 60 days notice I was able to time my starting at a new job to correspond with my termination, get the severance package and move into new job with no real break in income.
If it looks like a shutdown is coming:
Quietly take everything personal off your company issued electronics - most IT departments lock you out just before they tell you to clean out your workspace.
Quietly start taking your personal things home.
It's amazing what walks off in a shutdown and you don't want it to be your stuff.
You don't want to get into a debate about who's property it is on your last day.
You also don't want the rest of the place watching you clean out a bunch of stuff on your last day.
Basically, get ready to walk out with dignity.
If you are trying for a severance package:
Save ALL communications related to it.
Gather proof of your years of service.
Document any accrued benefits they may buy out or extend as part of a severance (Vacation time, sick leave, medical benefits package, etc.)
Talk to trusted co-workers, share contact information and build a network to help with reemployment. Some will leave to jobs they hate and want something else. Also if the terminations take place over a period of time. try to get a copy of the severance package and read it in advance.
Be ready for the severance meeting. Go into it prepared to leave without returning to your workspace.
When your asked to sign the severance package, READ IT and be sure terms are worth what they are offering. In Oklahoma, a noncompete agreements have been worthless in the past, but check the law as they change.
Let them know you need a photocopy of anything you sign before signing and get it immediately, no "we will send you a copy BS".
If the agreement has generic terms like "will be paid for vacation time" cross it out and put in the correct number of days and rate, then initial, and have them initial it. Same goes for "years of service". Make the document specific to you.
My prior employer tried to tell several employees, including me that they calculated our accrual of vacation time incorrectly and we were entitled to a smaller cashout than represented when we signed our papers. I got paid correctly, but it was a fight.
Regarding a buyout:
My experience is management gets replaced first, and there is a general pruning - some will be positions that are consolidated or eliminated, others will be poor performers that they can get rid of with without fear of a wrongful termination lawsuit.
That all happens in the first few months.
Watch the new management carefully for red flags.
Are they local or imported?
If they are imported, are they renting or did they purchase homes?
If they are imported and renting, it's probably a shutdown.
Are they reinvesting in stuff or stripping inventory to the bare bones?
Significant capital investment indicates a long-term interest in the company, particularly if its new production machinery.
Stripping inventory to the bare bones is a way to make it appear that you are spending less and a short-term strategy.
How does your company fit into the big picture. Were you one of several companies purchased as a package, or a single purchase.
If it's a single purchase, do they want to control the branding, or do they want the business?
If it's a group of companies, does yours fit into the new owner's business model or is it's just a tag along they will strip for cash and sell to finance the rest of the purchase?
What is the reputation of the buyer for fair treatment of employees?
Is the new corporate culture acceptable to you?
You may not be able to answer all the questions, but you probably will figure out enough to know what direction the wind is blowing.
If you think an exit (voluntary or involuntary) is in your future, prepare for it.
Discretely apply for jobs and interview.
Interviewing is a skill and you need to practice it.
If you are offered a job, you don't have to take it.
If you think an involuntary loss of employment is emanate, do what you can to improve your short-term economic stability. Try to reduce expenses and increase savings in the short term. If all goes well you can enjoy the cash later, and if you find yourself without a job, the cushion will help.
Lessons learned.
Lookup the Warn Act. In a large outfit, they have to give a certain amount of notice before terminating a large number of employs at the same time. It used to be 60 days notice. Bottom line is know if that alert process applies to your job. With 60 days notice I was able to time my starting at a new job to correspond with my termination, get the severance package and move into new job with no real break in income.
If it looks like a shutdown is coming:
Quietly take everything personal off your company issued electronics - most IT departments lock you out just before they tell you to clean out your workspace.
Quietly start taking your personal things home.
It's amazing what walks off in a shutdown and you don't want it to be your stuff.
You don't want to get into a debate about who's property it is on your last day.
You also don't want the rest of the place watching you clean out a bunch of stuff on your last day.
Basically, get ready to walk out with dignity.
If you are trying for a severance package:
Save ALL communications related to it.
Gather proof of your years of service.
Document any accrued benefits they may buy out or extend as part of a severance (Vacation time, sick leave, medical benefits package, etc.)
Talk to trusted co-workers, share contact information and build a network to help with reemployment. Some will leave to jobs they hate and want something else. Also if the terminations take place over a period of time. try to get a copy of the severance package and read it in advance.
Be ready for the severance meeting. Go into it prepared to leave without returning to your workspace.
When your asked to sign the severance package, READ IT and be sure terms are worth what they are offering. In Oklahoma, a noncompete agreements have been worthless in the past, but check the law as they change.
Let them know you need a photocopy of anything you sign before signing and get it immediately, no "we will send you a copy BS".
If the agreement has generic terms like "will be paid for vacation time" cross it out and put in the correct number of days and rate, then initial, and have them initial it. Same goes for "years of service". Make the document specific to you.
My prior employer tried to tell several employees, including me that they calculated our accrual of vacation time incorrectly and we were entitled to a smaller cashout than represented when we signed our papers. I got paid correctly, but it was a fight.
Regarding a buyout:
My experience is management gets replaced first, and there is a general pruning - some will be positions that are consolidated or eliminated, others will be poor performers that they can get rid of with without fear of a wrongful termination lawsuit.
That all happens in the first few months.
Watch the new management carefully for red flags.
Are they local or imported?
If they are imported, are they renting or did they purchase homes?
If they are imported and renting, it's probably a shutdown.
Are they reinvesting in stuff or stripping inventory to the bare bones?
Significant capital investment indicates a long-term interest in the company, particularly if its new production machinery.
Stripping inventory to the bare bones is a way to make it appear that you are spending less and a short-term strategy.
How does your company fit into the big picture. Were you one of several companies purchased as a package, or a single purchase.
If it's a single purchase, do they want to control the branding, or do they want the business?
If it's a group of companies, does yours fit into the new owner's business model or is it's just a tag along they will strip for cash and sell to finance the rest of the purchase?
What is the reputation of the buyer for fair treatment of employees?
Is the new corporate culture acceptable to you?
You may not be able to answer all the questions, but you probably will figure out enough to know what direction the wind is blowing.
If you think an exit (voluntary or involuntary) is in your future, prepare for it.
Discretely apply for jobs and interview.
Interviewing is a skill and you need to practice it.
If you are offered a job, you don't have to take it.
If you think an involuntary loss of employment is emanate, do what you can to improve your short-term economic stability. Try to reduce expenses and increase savings in the short term. If all goes well you can enjoy the cash later, and if you find yourself without a job, the cushion will help.
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My head hurts- but every word of this is so right- get yourself ready for the worst- pray it will not be, but from some who have been there- it probably will be.
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I remember hearing from an old timer, at some point a large company will screw you over. It’s not because they are bad people or hate you, it’s just a good business decision.
My company used to do all of AT&Ts electrical maintanence when the were the largest employer in NJ. When they decided to get into computers and had to compete in an unregulated environment, they got into trouble. It used to be a cradle to grave company. People assumed they were set for the rest of their life.
When they had their first round of layoffs, people had heart attacks, one guy blew his brains out in his office and another stormed into the executive section to go ballistic on the big shots. We installed Maglocks on their doors after that.
My wife worked there and survived several layoffs. Then she was split off into Lucent and then Avaya. She was eventually offered a buyout with no guarantee of her job if she stayed. Five years on her age and on her pension.
Love Ahall’s take on how things can go down.
Promises that aren’t in writing are just lip service.
My company used to do all of AT&Ts electrical maintanence when the were the largest employer in NJ. When they decided to get into computers and had to compete in an unregulated environment, they got into trouble. It used to be a cradle to grave company. People assumed they were set for the rest of their life.
When they had their first round of layoffs, people had heart attacks, one guy blew his brains out in his office and another stormed into the executive section to go ballistic on the big shots. We installed Maglocks on their doors after that.
My wife worked there and survived several layoffs. Then she was split off into Lucent and then Avaya. She was eventually offered a buyout with no guarantee of her job if she stayed. Five years on her age and on her pension.
Love Ahall’s take on how things can go down.
Promises that aren’t in writing are just lip service.
You wrote an absolutely awesome article. Everyone of your facts I have learned through experience. Twenty four years ago I was a Corporate Director of a 17billion dollar company. I was one of the first downsized and in hindsight good for me. But since then, I have had over a dozen jobs at companies that have gone through chapter 7, 11, 13, downsizing, mergers, closers, acquisitions, etc. If I could get an interview with anybody, then one of my questions was "are you solvent or looking to sell out?" When I would get hired, the only thing I had of personal effects was my backpack. So if something happened, I could leave in minutes. Sad but in today's world 1-3 years on the job is a long time!
Been retired for the past five years and it was an easy transition due to the above work trauma.
You forgot the most important To Do...which you should already have been doing, and had you been doing this throughout your career probably wouldn't be in the position you are now. RUN YOURSELF,INC AS THE COMPANY IT IS!!! YOU ARE THE CEO, BOARD CHAIRMAN!!! QUIT FARMING OUT THE MANAGEMENT OF YOURSELF,INC.
Now for the lighter side of mergers and acquisitions.
In my situation, the company got bought out, by a competitor and we all assumed they wanted the corporate logo and little else. The plant was an outdated wreck and came with a union. The buyer was from out of state and the mother ship was a non-union organization. Word was the new ownership leased the building, rather than buying it. The new brass was renting places and traveling back to the new mothership on a regular basis. Inventory levels were dropping and building maintenance was ignored to the point water ran out of electrical disconnection boxes when it rained. The writing was on the wall in big bold letters for anyone to read months in advance of any formal announcements.
Right after the buyout they circulated new noncompete and intellectual property paperwork to everyone. They wanted them signed and returned the same day. It must have been rushed, and probably reworked from another buyout because someone left the "court of jurisdiction blank" so a bunch of us filled in tribal courts or foreign countries. As we expected, no one looked closely when the forms got turned back in and we never heard anything about it. I would have loved to have seen them try to enforce those documents.
The HR manager left and a new one showed up. The new persons role was to keep things civil while handling the hatchet work at the end. When I walked pass the office and looked in it was apparent they had decorated with stuff they just found lying around, (there were a lot of empty offices with abandon stuff by that time). The decorations included 3 prominently displayed simulated bronze busts. They had decorated with Robert E. Lee, Stonewall Jackson, and George A Custer. In later discussions I learned they were completely ignorant of who the busts were. Probably not a good choice for a plant where you are about to dismiss a largely Native American and African American workforce.
When I got my 60 days notice, my supervisor, who was a new VP came to my office. He knew that as a relatively recent hire with a young family, I had gotten screwed. He told me that my job assignment for the remainder of my time was to find a new job, and I had no other obligations or duties. A few days later the assistant to the HR manager stuck her nose in my office telling me that I was not doing my job. She was a hateful little thing and liked to push people around with obscure or made-up rules. I informed her of my instructions and asked if she was really suggesting that I should ignore direct instruction from an officer of the company. It was very satisfying to see her jaw drop and watch her leave.
Yes, the plant closed, and the buildings were leveled.
Today its an empty lot.
I am just glad that I was not there long enough to have any of my identity tied up in the pace.
In my situation, the company got bought out, by a competitor and we all assumed they wanted the corporate logo and little else. The plant was an outdated wreck and came with a union. The buyer was from out of state and the mother ship was a non-union organization. Word was the new ownership leased the building, rather than buying it. The new brass was renting places and traveling back to the new mothership on a regular basis. Inventory levels were dropping and building maintenance was ignored to the point water ran out of electrical disconnection boxes when it rained. The writing was on the wall in big bold letters for anyone to read months in advance of any formal announcements.
Right after the buyout they circulated new noncompete and intellectual property paperwork to everyone. They wanted them signed and returned the same day. It must have been rushed, and probably reworked from another buyout because someone left the "court of jurisdiction blank" so a bunch of us filled in tribal courts or foreign countries. As we expected, no one looked closely when the forms got turned back in and we never heard anything about it. I would have loved to have seen them try to enforce those documents.
The HR manager left and a new one showed up. The new persons role was to keep things civil while handling the hatchet work at the end. When I walked pass the office and looked in it was apparent they had decorated with stuff they just found lying around, (there were a lot of empty offices with abandon stuff by that time). The decorations included 3 prominently displayed simulated bronze busts. They had decorated with Robert E. Lee, Stonewall Jackson, and George A Custer. In later discussions I learned they were completely ignorant of who the busts were. Probably not a good choice for a plant where you are about to dismiss a largely Native American and African American workforce.
When I got my 60 days notice, my supervisor, who was a new VP came to my office. He knew that as a relatively recent hire with a young family, I had gotten screwed. He told me that my job assignment for the remainder of my time was to find a new job, and I had no other obligations or duties. A few days later the assistant to the HR manager stuck her nose in my office telling me that I was not doing my job. She was a hateful little thing and liked to push people around with obscure or made-up rules. I informed her of my instructions and asked if she was really suggesting that I should ignore direct instruction from an officer of the company. It was very satisfying to see her jaw drop and watch her leave.
Yes, the plant closed, and the buildings were leveled.
Today its an empty lot.
I am just glad that I was not there long enough to have any of my identity tied up in the pace.
STLproA2's comments about managing and taking care of yourself are quite true.
In the buyout I went through had a staggered shut down, so folks were let go in waves. Most of the staff started looking for work, and like me, some negotiated start dates to correspond with the companies planned severance date.
The ones in the later waves who were not ready to retire, recognized that the local job market could absorb a limited number of people and that they better find work while the positions were available rather than wait for a severance package. Some key people were offered incentives to stay to the bitter end.
The folks who looked after themselves and left on their schedule without a severance package were an issue management did not plan for. People had negotiated start dates for new positions, were told when their last day was and made commitments based on the promised severance package. Then others left and they became the critical link that the company needed, and their termination date was shifted. They were left with the choice of staying on longer or leaving without a week's pay for every year of service (with a 20 year cap), buy out of vacation and sick leave, and paying for their own health insurance until the new jobs insurance kicked in. I don't know what your rights are in that situation, but if you suddenly become important, understand they probably need you more than you need them and you have some negotiating power.
If you are offered an incentive to stay to the end, you are also in one of those "we need you more than you need us" positions. Negotiate for a much bigger severance package, as your final day wont be fixed until a few days before it happens, and you will be entering a job market that just got flooded, so you will need it. Get your payment up front because once the plant closes, the agreement may be with a corporation that does not exist and has no assets.
Remember, the company is dying, and has little if anything to lose.
Shutdowns are unpleasant affairs and may attract unpleasant people to do the work.
Don't make commitments based on a promised severance package until the promise is fulfilled.
You don't have the money until the checks have cleared the bank.
Be prepared for delays on receiving a promised payment.
Severance agreements often include insurance benefits. Be sure you know how to independently verify they are paying for the policy's for the agreed timeframe after you leave. It's an easy way to cut a cost, and most folks won't have a claim and catch it. And on that note also take advantage of your annual physical, dental cleanings, and optometrist appointments well before you get let go. If something unexpected kicks up, it may change HR's ability to terminate you.
In the buyout I went through had a staggered shut down, so folks were let go in waves. Most of the staff started looking for work, and like me, some negotiated start dates to correspond with the companies planned severance date.
The ones in the later waves who were not ready to retire, recognized that the local job market could absorb a limited number of people and that they better find work while the positions were available rather than wait for a severance package. Some key people were offered incentives to stay to the bitter end.
The folks who looked after themselves and left on their schedule without a severance package were an issue management did not plan for. People had negotiated start dates for new positions, were told when their last day was and made commitments based on the promised severance package. Then others left and they became the critical link that the company needed, and their termination date was shifted. They were left with the choice of staying on longer or leaving without a week's pay for every year of service (with a 20 year cap), buy out of vacation and sick leave, and paying for their own health insurance until the new jobs insurance kicked in. I don't know what your rights are in that situation, but if you suddenly become important, understand they probably need you more than you need them and you have some negotiating power.
If you are offered an incentive to stay to the end, you are also in one of those "we need you more than you need us" positions. Negotiate for a much bigger severance package, as your final day wont be fixed until a few days before it happens, and you will be entering a job market that just got flooded, so you will need it. Get your payment up front because once the plant closes, the agreement may be with a corporation that does not exist and has no assets.
Remember, the company is dying, and has little if anything to lose.
Shutdowns are unpleasant affairs and may attract unpleasant people to do the work.
Don't make commitments based on a promised severance package until the promise is fulfilled.
You don't have the money until the checks have cleared the bank.
Be prepared for delays on receiving a promised payment.
Severance agreements often include insurance benefits. Be sure you know how to independently verify they are paying for the policy's for the agreed timeframe after you leave. It's an easy way to cut a cost, and most folks won't have a claim and catch it. And on that note also take advantage of your annual physical, dental cleanings, and optometrist appointments well before you get let go. If something unexpected kicks up, it may change HR's ability to terminate you.
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