Originally posted by: Lovepig
That's how it goes in sales. They make $$$ but they are first to go in bad times.
6 months salary is no big deal. He would have had that in a few months anyway...
1 year unemployment pay is like 1/2 what he was making, and dosen't really last a year anyway - unless he is still unemployed for the full year - in which case that won't be much of a condolence. Especially in the 13th month when even his 1/2 pay unelmployment stops.
They HAVE to (by law) give you unused vacation time... A unused sick time probably isn't too much anyway. And again, he would have HAD these anyway. You make it sound like he GOT something!
Uh, the 401k IS his. Money comes out of his check each pay-period. If they kept that they would be firing him AND robbing him. They can't keep it (unless he worked for Enron...) And if he uses the 401 $ he pays big big BIG penalties anyway!!
So, bottom line is he is getting nothing he wouldn't have recieved anyway. The only benefit is that he dosen't have to work in exchange for 6 months of pay. NICE!! - but probably not worth the trade-off of not being able to work for pay after 6 months.
Additionally, we don't know what else he lost. Could be a big pension plan lost after 20 years of service, and medical benefits, plus any sales perks co. car? co. plastic? Then we need to address the intangibles like friends, sense of accomplishment, and the plain self-esteem hit for being fired. (sales folks are NEVER fired if they are performing enough! That is what brings i the co. $$$)
Then we need to address his personal situation. If he's been there 20 years he may have trouble getting another job - either for age or other adjustments.
Summary: I think you have analyzed the situation poorly and innacurately. Don't be too hasty to think it is a good thing... (unless he was planning to quit soon anyway!)
Very thoughtful post, although very misinformed.
1. He was not in sales, he was a designer for the company. Sales positions are usually comission based, so companies can afford to keep them around. If they dont sell, they dont eat.
2. 1 year unemployment is nothing close to half of what he was making. Unemployment is max $350 a week. So it doesnt make up for his income, but it does help.
3. The 401k isnt necessarily always the employee's. With companies matching you have to make it through your vesting period. I know plenty of people who have gotten shafted by their employers on this issue. Most of the time it isnt worth the court battle over the percentage the company is trying to keep. You end up just settling for what you can get.
4. No company car, CC, or expense account here. As far as friends, if they were really friends wouldnt you be able to see them more now that you have free time?
All that being said, losing your job is never completely a good thing. The person we are talking about here is very close to retirement age, and much like myself hates working. He is selling his house and moving out to the country. He is buying his new house and property with the equity from his old house. This means all he has to worry about is taxes and insurance.
All the money I mentioned that he is getting is aside from his savings. So basically he doesnt have to work another day in his life. Doesnt sound too bad to me.
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