10% effort

**boblocates** · February 17th, 2010, 08:47 PM

ELM needs to do some MATH!

10% pay cut? I doesn't stop there....

10% more damages?

10% more wasted paint?

10% more gas wasted?

10% more fluffed time on the old time card? (fyi this is stealing)

10% less production?

10% more truck repairs?

10% more training cuzz you just lost your A team

All the ABOVE are now factors because you killed MORALE. This was a very poor business decision.

**yahoo** · February 18th, 2010, 06:26 PM

i would have to agree with that....hope it works out for you dude!!!

**LocateChecker** · February 18th, 2010, 07:10 PM

I've heard that some of the utilities are getting nervous about the sudden pay cut and whatever else might be lurking beneath the surface that they don't know about. Not to mention the obvious damage and on time ramifications.

**boblocates** · February 19th, 2010, 02:24 AM

Talking to a couple of locators, managers and utility companys, seems like you don't pull a move like this unless your in SERIOUS trouble.

You can beat the economy, WALMART did it with less sales in the 4th quarter, they cut cost smartly and increased profit 22%.

By aiming for a modest 25% cut in overall operations cost you could turn a loss into profit.

1. Goal 15% less damages (backed with a measure able program)

2. Fuel 15% less (better routing, mileage tracking) find a discount.

3. Paint 10% less, ask for a discount or shop!

3. Production increase 15% (program backed by a review - resulting in a paycut/bonus)

4. Shop your insurance truck, health and risk/damage. 15% cut

5. Manager incentive plan for exceeding all your NEW reduction and production goals.

6. Upper management takes a pay cut until company is profitable again, with an end of year bonus incentive for reaching the above goals.

These goals may seem high, but many of them ARE attainable.

Just a thought, just a thought....

**sprayandpray** · February 19th, 2010, 06:59 AM

Originally Posted by boblocates

Talking to a couple of locators, managers and utility companys, seems like you don't pull a move like this unless your in SERIOUS trouble.

"You can beat the economy, WALMART did it with less sales in the 4th quarter, they cut cost smartly and increased profit 22%."

1st time in their History that their gross sales went down instead of up! More Obamanomics?

**justanotherlocator** · February 19th, 2010, 11:40 AM

Originally Posted by LocateChecker

I've heard that some of the utilities are getting nervous about the sudden pay cut and whatever else might be lurking beneath the surface that they don't know about. Not to mention the obvious damage and on time ramifications.

I'd be nervous if they worked for me. On top of the pay cut, rumors are they are reducing overall staffing as well in some areas. Reduced pay + Reduced staffing= Reduced performance. I'm curious if some of their clients are going to wait for it reach an unacceptable level or prepare for a move before it does.

**TheCableVine** · February 19th, 2010, 03:15 PM

Seems to me there was a thread that came up a while back concerning ELM underbidding contracts. I speculated that they had underbid the qwest contract in the idaho region. If this is true, I don't know. But, since they are now doing what some might consider outrageous measures to cut costs, then I would say my speculation seems to be solid. I still don't know for sure, though.

**ProfessionalLocator** · February 19th, 2010, 05:19 PM

Originally Posted by justanotherlocator

I'd be nervous if they worked for me. On top of the pay cut, rumors are they are reducing overall staffing as well in some areas. Reduced pay + Reduced staffing= Reduced performance. I'm curious if some of their clients are going to wait for it reach an unacceptable level or prepare for a move before it does.

Well, there is some hard info coming in but a lot more of rumors.

A situation like this will draw attention from the clients and the sharks.

The client companies will not likely drop the contract unless they evaluate such a firm as being in such poor condition that they are about to close their doors and leave them without coverage. Most likely they will just wait and see but pay a lot more attention to the firm than usual.

The sharks smell blood and money in the water. The sharks are the big contract locate firms and the holding companies that own them. They would see a firm in trouble as vulnerable to a buyout. A firm in trouble would be most appealing as a buyout if it can be gotten before they lost all or most of their business.

Most of the stock of these contract locating firms is not sold on the stock exchange though the holding company that owns the majority of stock may itself be openly traded. Many of these firms started out as partnerships or family owned and run firms. If the majority of stock is still owned by individuals rather than a holding firm it may be very vulnerable to a buyout or hostile takeover if you will. To gain control the shark only need get the majority share of the voting stock, just enough to control the voting outcome. Over time the stock ownership usually becomes spread among some number of people. The head honcho may only have 40% of the stock and the remaining stock is so spread out that no one faction gets enough votes to control the outcome of votes over what the head honcho wants. Often some founder of the firm has say 40% of the stock and the proxies, the signed right for him to cast the vote, for another 20% of stock owned by family members giving him control of 60% of the stock.

If such a firm is floundering the stock value begins to fall. It can be sold today for a princely price but if the firm continues to fail the stock will rapidly lose value. This prospect of losing value is often enough to get some stockholders to sell their shares to the sharks. It may be your brother's firm but you were counting on that stock for your retirement and the urge to sell now and get out often get's stronger than family ties.

None of my comments are directly related to ELM but are about such companies in general. I have no real info on ELM's situation and most of what we have is still rumor.

From what we have heard here the pay cut is not a rumor but the extent of the pay cut still needs some more information. Was it truly nationwide or restricted to certain states and contracts? These are very important details and need to be confirmed.

**yahoo** · February 19th, 2010, 08:02 PM

it is confirmed that it's going to be 10% for all involved!!!! not a rumor!!! don't see that company being in business 5 years from now probably will be bought out by Kolberg or Dycom!!!! those workers need all prayer for all involved!!!

**ProfessionalLocator** · February 19th, 2010, 08:16 PM

Originally Posted by yahoo

it is confirmed that it's going to be 10% for all involved!!!! not a rumor!!! don't see that company being in business 5 years from now probably will be bought out by Kolberg or Dycom!!!! those workers need all prayer for all involved!!!

If they are in trouble the effort to buy the controlling majority share of stock will take place long before they fail. The closer to failure a firm is the less interest in buying them.

For a locate firm the main interest in buying out the stock is not to own the company so much as to get control of the company's existing contracts. This way they do not have to bid against other firms to get those contracts. By purchasing the level of stocks to get controlling interest the firm still exists and the contracts are still binding. Without those contracts all they are buying is a lot of used equipment and there are dealers for that and the dealers are cheaper.

Unfortunately having your ailing firm bought out is not a guarantee of things getting better. The company that put out the money to get the company, often many millions of dollars, will demand a return on their investment.

**yahoo** · February 19th, 2010, 08:25 PM

no firm owns this company....it is privately owned!!!! heard that today from a reliable source!!!!

**yahoo** · February 19th, 2010, 08:26 PM

hey LOPRO ...you think that is a good move ELM made??? would that work for any company in our line of business....what do you think???? just curious!

**ProfessionalLocator** · February 19th, 2010, 08:30 PM

Originally Posted by yahoo

no firm owns this company....it is privately owned!!!! heard that today from a reliable source!!!!

Privately owned means it is a corporation with the stock held by one or more persons. It is possible to be a proprietorship but that is unlikely, anybody with sense would incorporate to remove themselves from liability.

**Bad Robot** · February 19th, 2010, 08:31 PM

Originally Posted by ProfessionalLocator

If they are in trouble the effort to buy the controlling majority share of stock will take place long before they fail. The closer to failure a firm is the less interest in buying them.

For a locate firm the main interest in buying out the stock is not to own the company so much as to get control of the company's existing contracts. This way they do not have to bid against other firms to get those contracts. By purchasing the level of stocks to get controlling interest the firm still exists and the contracts are still binding. Without those contracts all they are buying is a lot of used equipment and there are dealers for that and the dealers are cheaper.

Unfortunately having your ailing firm bought out is not a guarantee of things getting better. The company that put out the money to get the company, often many millions of dollars, will demand a return on their investment.

Once again friend you simply amaze with your insight! Folks. this is a real representation of what has been going on, and more importantly, where this business is going.

And that comment about return on investment? Truer words were never spoken. My company has taken much away from me, and several hundred others in the recent past. And demanding more. And threatening more. Because my friends, to them you are a simple cheap suit. To be worn, and worn out. And discarded. And it's getting worse every day so far this year.

**ProfessionalLocator** · February 19th, 2010, 08:35 PM

Originally Posted by yahoo

hey LOPRO ...you think that is a good move ELM made??? would that work for any company in our line of business....what do you think???? just curious!

I had to form an opinion without having all the details. Overall I do not think it was a good move and I have in other posts written at length as to why I think that.

There are many jurisdictions but in some a pay cut does not have to be accepted. If a person rejects the pay cut they do not get their old pay scale but they can refuse to work for the new pay. So if they reject the new pay they are then considered terminated by their employer but not "for cause" making them qualified for unemployment.