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I don’t know about UI but I do know that unless it was a planned company-wide downsizing severance costs came out of my budget which I was still held to. This has been the case for multiple $1B+ revenue companies in my experience so not exactly mom and pop.
A lot depends on how much severance is paid as well. If it’s 2 weeks per year, if you let go a 25 year person that’s nearly a year or severance. And in Europe it can also get very expensive in countries like Italy and France (and Germany for tenured/older workers). I had a guy in Germany that I was told to let go but it would have cost me close to 500K Euro in severance. Luckily I was able to find him a spot in another group so it worked out well.
Goodness. What kind of salary was this guy drawing? (If I may) And how long would the benefits have been paid for?
As touched upon, this unnecessary fear mongering by some in regards to job stability serves no useful purpose. Majority of jobs aren't looking to fire every single employee on a whim. I've been in the NON-union work force for nearly 20 years. I have never seen anyone fired immediately without good cause (falsifying records, lying on resume about school, not wanting to do work, sexual harassment). If you are a decent employee who works hard and comes to work on time, you'll do fine.
I've experienced horrible workers and it was a pain trying to get rid of them even in an at will state job.
When I was in a union I had to deal with quite a few cases where the company was trying to fire someone. In one case there was video of a guy throwing an object at a co-worker's head. The union did not try to save the guy's job, as the evidence was clear. But they did get the guy another comparable job, as he was horribly baited into the attack by the other guy, who had a long history of such behavior.
In numerous other cases, attempted discharges were stopped by the union because the evidence of misconduct wasn't there. Unfortunately some managers believe 'fire one, terrify one thousand.' A variation of an old quote from Sun Tzu: 'kill one, frighten 1000.' https://www.azquotes.com/quote/1414107
Goodness. What kind of salary was this guy drawing? (If I may) And how long would the benefits have been paid for?
Maybe around $150K Euro plus benefits (company car, etc.) There are a lot of “penalties” in Germany - if you make redundant someone with long tenure you pay more. If they are older you pay more. Depending on the location and trade you pay more. Plus you pay out accrued vacation time, sick time.
When I was in a union I had to deal with quite a few cases where the company was trying to fire someone. In one case there was video of a guy throwing an object at a co-worker's head. The union did not try to save the guy's job, as the evidence was clear. But they did get the guy another comparable job, as he was horribly baited into the attack by the other guy, who had a long history of such behavior.
In numerous other cases, attempted discharges were stopped by the union because the evidence of misconduct wasn't there. Unfortunately some managers believe 'fire one, terrify one thousand.' A variation of an old quote from Sun Tzu: 'kill one, frighten 1000.' https://www.azquotes.com/quote/1414107
Reminds me of the original use of the Roman term “decimation”.
The problem when you aim to “terrify” workers is that you don’t get their best work. Nobody offers ideas, they try and just hide under the radar. I’ve seen company cultures like that - usually also combined with a command & control mindset.
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