Share price now above yesterdays close, and only down 15c on yesterday morning.
Meanwhile, the BBQ at Sky City continues.
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Share price now above yesterdays close, and only down 15c on yesterday morning.
Meanwhile, the BBQ at Sky City continues.
I thought it was quite obvious I hold a very different view about FBU than the consensus average of analysts...
https://www.nzherald.co.nz/business/...ectid=12279097
Guess we will hear more from the 'Titanic' insurance broker!
http://www.sharechat.co.nz/article/5...after-firehtml
My guy in the construction game reckons easily the total cost will now top $1.5 billion and reckons everyone will be lucky if its completed in 2022.
Also reckons a lot of subbies will be badly hurt with lost tools and retention payments on work completed, effectively frozen until after Christmas.
Reckons a lot of subbies and their families are going to do it very tough with Xmas this year.
Just to clarify, the insurance broker advises FBU on the appropriate cover. There are insurers that will underwrite this cover. The most important party here is the insurer however stuff like this highlights the cover usually recommended by the broker and should match the risk. The giant uncertainties are procedure following, negligence, delayment penalties and future profits loss. Someone is going to take a hit.
It will be a titanic shift of shareholders money to the lawyers and FBU payouts. The contract dispute will be mighty.
The subbies have been having a whale of a time in the last few years, milking the construction boom, overcharging for their services and stuffing developments around by having many jobs at the same time. No need to feel bad for them.
Give the contract to one of the Chinese, Korean or Japanese construction companies with their own construction teams and they will have it completed in 6 months, in time for the APEC summit.
It is seriously embarrassing to go to any of the Asian capitals and observe how quickly they finish a project - within cost and well ahead of time.
So true ... every time I go to Singapore (once or twice a year) there are new high rises and big halls where the time before was just green or brown land ...
They certainly show it is possible to complete building projects much faster (and without catastrophes) than we seem to do here in NZ.
Obviously - different work morale and working standards. Work is going on 24/7 - instead of leaving machines for 2/3 rd's of the working day and the whole weekend idling around ...
Building quality ... well, they do make mistakes as well, but haven't seen over there that much consistently low quality work like FBU likes to produce every day, but maybe I am too harsh after having seen some of their earthquake repairs in Christchurch - absolutely incompetent and shoddy work.
https://www.nzherald.co.nz/nz/news/a...ectid=12279055
And like a maggot to a smelly piece of garbage, the ever-caring and profile seeking Jacinda arrived to check out the fire for herself - and without any face mask to show her solidarity with City dwellers by breathing in some of that black toxic smoke.
She will appear tonight on TV no doubt in fireperson suit in a repeat of the hijab wearing to show sympathy with all affected by the fire?
And yes, businesses affected can count on her championing compensation - from Auckland council and the government. What a champion she is!
No sympathy from her however for the businesses sent to bankruptcy by the Albert Street never-ending road & underground rail works - no votes there.
And here she is mate
https://twitter.com/fireemergencynz/...563282944?s=21
Now if you want to see someone just absolutely loving it - smiling, grinning and lapping the disaster up - you can see the ever opportunistic Jacinda in action.
Nothing like a disaster or tragedy (Pike River comes to mind) to milk political capital off.
Thanks, W69 for the link - I think everyone now can see Jacinda for what she absolutely is.
Getting a lot more bang for their buck on the share buy back though
The "maggot to a carcass" PM that we have looked pretty happy about it all too. She is seen broadly grinning. Never one to miss a photo-op, Ardern turns up to get in the way of emergency services for the cameras. She obviously was all toothy smiles and relentless possidividdy for what is a utter disaster for Auckland. I suppose it is JK's convention centre burning down so she would be over the moon.
On another note, what green eco nonsense to build the roof from plywood, straw and tar. Whoever decided on that needs to have their head read. Go woke, go broke, really applies here.
So which is it - smiling a good look or an indication of the opportunistic politicking that disasters bring to the hijab (read - Oppression of Muslim women) wearing Jacinda?
Next, we will have our ever 'caring' PM smiling broadly at all the delays to just about everything (projects, policies, tree planting, hospital care etc etc) under development - it's the Kiwis' optimism way, see?
Pathetic.
https://www.bloomberg.com/news/artic...-just-168-days
It's the kiwis' way, see - others build whole factories and mega-buildings in less than 1 year, the kiwi way is to stretch it out to 5 years so that the government, executives, contractors, subbies, etc can milk the projects for as long as possible.
And as the Christchurch earthquake showed, shoddy workmanship (resulting in whole buildings collapsing like pancakes) from decades ago - not just today!
Such high aspirations!
https://www.stuff.co.nz/auckland/116...centre-on-fire
And roads could remain closed for 'days'.
You get the feeling that they are all enjoying this?
A different perspective https://www.msn.com/en-nz/news/natio...cid=spartandhp
I know many have been doing really well out of contracting on this job but I also know most people are hopeless at saving, (hopefully nobody on here falls into that generalisation), anything meaningful for a rainy day and its literally bucketing down. Not sure what the answer is or even if there is one.
They get no sympathy from me. All I have ever witnessed and heard over the last few years in the building & construction industry is how unreliable and unprofessional the majority of the subbies are and have been - not turning up on time, screwing homeowners & developers, mucking everyone around by taking on multiple jobs, holding up projects etc etc.
According to Kiwi contractors, the best tradesmen are the foreign workers from Asia (on short term 2 year work visa) who work hard, are always on time, put in long hours day and night to get the jobs done and diligently save the money because theta's what they are here for - work, earn money, save and then, go back to their homeland.
Wonder if the local subbies here ever spare a moment of thought for the home-owners and developers they screw and stuff around - because they can. Everyone is paying a heavy price for their lack of professionalism.
Prime best example has to be the tradesman who left the blowtorch on while he went for a smoko on the NZICC - hell of an attitude and typical of the lack of professionalism.
http://www.sharechat.co.nz/article/a...ct-disputehtml
Interesting stuff.
Interesting indeed. Mind-boggling that a company like FBU relies on "partially oral and partially written" contracts for multi million dollar contracts. Interesting as well that they continuously seem to change the specifications and add additional work but then seem to expect their subcontractors to deliver to the original (apparently orally agreed?) price.
Maybe they should not have made their project managers redundant .... they could manage for them the projects which now all seem to be out of hand :p;
I thought this was going under $4.xx while the fire and after. A little staggering that this one has actually gone up since the fire was put out, given the uncertainty and the duration this will take to sort out. I guess this speaks more to the general environment that we are in more than what is happening with FBU specifically.
Insurance in place - but news media coverage was all extremely negative, casting doubts on whether the insurers will payout. Probably scared the hell out of some shareholders who bailed.
Now that the fire is well and truly out, cooler heads will prevail and assess the implications more dispassionately.
https://www.nzherald.co.nz/business/...ectid=12279097
Excerpt : "Earlier today, both Fletcher chief executive Ross Taylor and Stephens rejected a suggestion that their insurance contracts could be nullified if the fire is proven to have been caused by negligence."
Not easy for any insurance company to try and not payout - they may try but the reality is that FBU & Sky City have both paid tens of millions of dollars in insurance over the years for precisely such an event.
Good example of an insurer trying to weasel its way out but faced with a heavy-weight client who decided to take them to court, look at how quickly the insurer settled.
https://www.stuff.co.nz/business/117...ht-his-insurer
Excerpt : "Faced with the challenge from multi-millionaire Christian, who paid for contamination-testing that proved carcinogens remained at high levels in the home even after the insurer's $35,000 clean-up, NZI has agreed to a confidential settlement."
Nice info Balance, but negligence is a very tough area to get a payout for. What would a reasonable person do? I assume leaving a blow torch on would be hard to classify as reasonable...
Maybe because he is young that is what they do therefore reasonable for a 20yr old...- leave stuff on and forget about. I think the building site management and processes are going to looked at very closely.
One thing I do know if Im stumping up for a $100M+ payout Im not wanting to cover a person dropping a blowtorch and forgetting about it. Was it deliberate?
Interesting reading: https://insider.zurich.co.uk/industr...ers-need-know/
https://insider.zurich.co.uk/app/upl...ork-Permit.pdf
https://insider.zurich.co.uk/app/upl...ks-safety_.pdf
Announcement Today:
Update on NZICC fire6/11/2019, 8:30 amGENERALUpdate on NZICC fire
Auckland, 6 November 2019: Fletcher Building Limited (“Fletcher Building”) today provided an update on the New Zealand International Convention Centre project (“NZICC”), which was damaged by a significant fire that started on 22 October.
Over the past two weeks, Fletcher Construction staff have been working closely with fire and emergency services teams, local authorities, and SkyCity to manage the impact of the fire. Fletcher Building wishes to acknowledge the considerable efforts of people from across these organisations for their hard work and support during this period, along with the people of Auckland for their understanding during this disruption.
The NZICC site has now been handed back to Fletcher Construction, though access remains restricted as safety and structural assessments and investigations into the cause of the fire are completed.
Fletcher Building is working closely with the insurer for the Contract Works and Third Party Liability insurances which are in place on the project. Fletcher Building notes and agrees with the comments by SkyCity confirming the credibility of the insurer and their ability to meet their obligations.
Fletcher Building is working to determine the impact of the NZICC fire on the project’s delivery timeline and costs, the timing of insurance proceeds and project cash flows, and any potential impact on the Construction provisions announced in February 2018. The Company confirms that based on information currently available it remains within these provisions.
The Company will continue to give active consideration to this matter as additional information becomes available, and expects to be in a position to provide a further update at its half-year results announcement in February 2020.
#Ends
Things won’t be getting any better for Fletchers in Australia
https://www.news.com.au/finance/busi...c3c6260f0d8fbe
Nice rise by FBU today.
Another escape from the much dreaded exit from the MSCI quarterly re-indexing today - so shorters were scrambling to cover.
Interesting that Mercury has been added back without FBU being taken out - suggesting that NZ's indexing on the MSCI global index has gone up slightly to accommodate the two.
In which case, FBU should be safe from being exited for a while.
Appears Fletchers may be getting a big payout for Ihumatao. Thanks Auckland ratepayers. Soz to the 480 home buyers.
https://www.nzx.com/announcements/345090
FY20 Guidance: Fletcher Building expects EBIT before significant items for FY20 to be in the range of $515 million to $565 million. In FY19 EBIT before significant items (after adjusting for discontinued operations) was $549 million.
She's a big organization which has been allowed to run feral under the previous board and management - be a little while yet to get all the house-cleaning done.
But hopefully, the big ones are out of the way.
Then, you get an unexpected event like the NZICC fire!
GS Downgrades FBU NZ$4.70 with SELL recommendation ........... no surprise
Don't hold and not likely too
Fletchers must be making concrete coffins? Or maybe they have contract for building hospitals in China?
Or is it just that all the bad news in the world is taking the media heat off them?
Hey can understand your outrage at having to bring your rental property up to scratch with insulation & proper heating, but here in NZ we have levels of preventable 3rd world diseases like Rheumatic fever, & meningococcal which frankly are a disgrace and way out of step with the rest of the developed world. The rates of these infectious diseases rose by over 50% between 1989 and 2008 and public health specialists have been begging successive govt’s to do something about the poor quality cold damp (mainly rental)housing stock which is directly contributing to 17,000 extra hospital admissions a year & costing the country tens of millions in avoidable healthcare costs. NZ couldn’t continue on ignoring this, against all public policy medical advice & that’s why this govt has done something about it. It will have huge benefits for the country but can understand your resentment as a property investor, why would you spend the money if you didn’t have to.
As for the user pays extra petrol tax, no one likes increased costs but you might not have noticed National also raised petrol taxes actually quite a lot & with cities like Auckland at gridlock, many commuters would prefer to pay a few extra dollars to get the roads fixed. Fortunately there’s a huge long overdue infrastructure catch up coming.
I can assure you that no government regulation so far made my cold and damp rental any better :D. Only thing working is me spending heaps of money on heating and dehumidifier. Current government made insulation rules for rentals are a joke. I got 2 different companies tell me our 3cm styrofoam floor insulation with 0.5cm gaps in between is up to the code :D.
You pay less tax!,All expenses can be off set.
will you pay tax on capitol gain on your rental? Residential property in major centres have increased in value $350k + over past 5 years. I find residential LL miserable bastards.As a commercial LL, to attract and retain tenants you spend to maintain/upgrade property.Why are residential LL so reluctant
There is an elephant in the room. A mammoth really. And it is a really serious risk factor for infectious diseases and also other health vectors. And guess what, it is never mentioned because it is harder to resolve than forcing tenants to pay for rental upgrades. Yes tenants because landlords pass on costs.
The mammoth is overcrowding and there is plenty of NZ research, and not just from the biased and well funded Otago Uni Public Health people. For example. Department of Health research based on 2013 census data - just on 400,000 people live in crowded conditions with children over represented.
Who knew? Not exactly reported in the media is it.
So landlords can improve the health of their tenants by terminating the tenancy if it is overcrowded. Fortunately there is a queue of other tenants waiting.
Sure, no question overcrowding is a well known problem & contributing factor, but cold damp mouldy houses are going to cause rheumatic fever & other serious infectious skin and respiratory diseases whether the house is overcrowded or not.
We can fix the latter quickly & easily with proper insulation and heating, saving a lot of human misery and healthcare costs, the former going to take much longer, so why not?
Don't quite understand what you've got a bee in your bonnet about.
And yes & sadly we know there's many avaricious landlords (though not the decent ones) who pass all the costs of upgrading their rental property investments onto the tenants.
What a load of sanctimonious rubbish.
A higher tax deduction means there was a higher expense which means there is a lower income.The net yield on my property has been below 1% per annum for the last several years. And don't get me started on the local property tax (aka rates) which goes up by double digits every year. As for attracting tenants, my current tenants have been in there for at least 15 years (I'd have to pull out my files to check exactly how long) so I assume they are happy with my efforts to maintain the property. And then there's the changes to tenancy laws which have steadily eroded my rights as the owner of the property.
And people who have no clue about basic economics wonder why there's a shortage of rental accomodation.
As this thread is about FBU, I'll stop posting on this subject with apologies for starting a thread jack.
Got to be honest, after reading all the annual reports and comms, I really like the way the new Exec team has come in here and adjusted the way some employees are motivated. Past performance doesn’t indicate future performance and it works the other way round too.
Very interesting place right now. Watching the TL.
Attachment 11005
boral just released there results and saying in outlook they will be impacted in AUS in the next financial yr due to bush fires
Amazing lack of interest in one of NZX largest stocks leading to its results presentation tomorrow morning!
So will the convention centre fire prove to be the final act in the decline of fortune for FBU from where the group's fortunes start to finally recover?
There is something cleansing about a totally unexpected event like a fire.
Will FBU rise like the phoenix from the convention centre ashes?
under pressure still in most divisions except residential , steel crushed and aus operations not going to improve in a hurry. guess they be hoping to win a large chunk of govt roading contracts
Fletcher Building announces FY20 half year results and dividendAuckland, 19 February 2020: Fletcher Building today announced its results for the first half of FY20.Summary:
- Revenue of $3,961 million, in line with market conditions
- EBIT before significant items of $219 million, compared to $248 million in HY19
- Net Profit After Tax of $82 million, compared to $89 million in HY19
- Balance sheet remains strong, with improved cash flow
- Interim dividend of 11 cents per share declared, to be paid on 9 April 2020
- FY20 Group earnings guidance in the range of $515 million to $565 million reconfirmedFletcher Building Chief executive Ross Taylor said: “HY20 results are in line with our expectations and those set out at our Annual Shareholders’ Meeting in November 2019. Our business is now stabilised and focused, providing the foundation to drive consistent performance and growth into the future.”Group revenue was $3,961 million, 5% down on HY19 as anticipated, owing to reduced revenue on legacy construction projects and tougher market conditions in Australia. EBIT before significant items was $219 million. Trading cashflow from continuing operations (excluding legacy projects) increased to $88 million from $36 million in HY19 due to ongoing improvements in working capital.“Our New Zealand core businesses outside of Steel delivered a solid performance, with earnings in line with last year and improved operating margins in several areas. In Steel, trading conditions remain challenging, though we have seen volumes and margins improving as we enter the second half. “Residential house sales are benefiting from strong demand, with a large volume of committed sales due for settlement in the second half. Construction has secured new work in target areas, and there is no change to the legacy project provisions. Insurance will respond to loss and damage to the NZ International Convention Centre caused by the October 2019 fire, and an extensive work programme to determine the rebuild plan, timeframes and cost is now underway.“In the context of a challenging Australian market, we are seeing the benefits of the cost out programme, as well as our investments in digital and product innovation flowing through. With the reset well advanced, we have assessed our portfolio and decided to divest the Rocla business and are now focused on driving growth and operational performance in our other Australian businesses. The sale process is expected to be completed through calendar 2020.“We continue to make investments in innovation and local manufacturing to drive long-term, sustainable growth for our shareholders. “An example of this is the new state-of-the-art plasterboard facility we are building in Tauranga, Bay of Plenty, which we also announced today. The facility is a firm commitment to local manufacturing, which will enable us to meet customer demand for the long term. It will also create around 100 permanent regional jobs and supports our goal of reducing carbon emissions by 30% by 2030.“Our balance sheet remains strong, with our leverage ratio below the bottom end of our target range.“In September 2019 we commenced an on-market share buyback of up to NZ$300 million to deliver value to shareholders. We continue to make good progress and have acquired 27.9 million shares for $141 million, representing 3.3% of issued capital.“The Board has declared an interim dividend of 11 cents per share. This will reflect a more normal first-half, second-half weighting for FY20 and will be paid to shareholders on 9 April 2020.“As reported at the Annual Shareholders’ Meeting, Group EBIT (excluding significant items) for FY20 is expected to be in the range of $515 million to $565 million with earnings weighted to the second half owing to the Australian cost out programme benefit, residential settlements and improved steel performance flowing through,” concluded Mr Taylor
"Insurance will respond to loss and damage to the NZ International Convention Centre caused by the October 2019 fire, and an extensive work programme to determine the rebuild plan, timeframes and cost is now underway."
Misleading statement and potentially fraudulent.
Anyone know how much SkyCity has paid to FBU so far for the project?
i guess the good news is that there was no more bad news. yet.
Hmmm, and this from the NBR
“The current estimated cost to complete is within insurance indemnity limits,” it said.
However, “certain costs resulting from the fire may fall outside the scope of the Contract Works and Third Party Liability policies, with the possibility that recovery may be sought from the group.”
Fletcher’s NZICC client SkyCity said last week if insurance did not cover the cost of completing the build it would seek to make recovery from Fletcher.
Other than the NZICC, all its loss-making legacy projects would be complete by June, said Fletcher.
responding to a claim doesnt imply agreement on quantum :(
Listening in on the web cast - I thought Ross Taylor answered the question on NZICC rather well.
Underlying tone of conference call - confident and positive as webcast ran overtime as they fielded heaps of questions from the analysts.
Sounds like FBU will be meeting analysts over next 2 weeks around the financial capitals to run through results and outlook.
I would like to point out that Ross' and FBU's opinion is irrelevant to the ICC. He is at the mercy of the insurers and SKC. I would be watching them rather than FBU. The insurer holds the money and SKC will be the multiplier.
Agree. Where there's smoke there's fire. (opps that was an unfortunate cliché). Already there's hints insurance won't cover all of it which is code for this is going to be a serious problem going forward.
Whenever FBU have hinted at problems before it always turns out MUCH worse.
What happened to the workers' union agitating for compensation for breathing in toxic fumes btw?
Asking because it all seems to have died down and there has been no news.
I have not bothered to follow as unions only do one thing - keep the executives there in cushy jobs* and power. Sounds like Cindy & the Labour Party actually!
* Talk to Rob Campbell if you do not believe! He left his all powerful job in the Union where he was feared - figured he might as well become a multi-millionaire and be a real power-broker instead of wasting his time and energy with the union and the other useless union 'leaders'.
Good point. Has there been an announcement on the expected insurers assessment and judgement timing?
"On 22 October 2019 there was a significant fire at the NZICC project construction site causing damage to both the International Convention Centre and Hobson Street Hotel.
Contract Works and Third Party Liability insurances are in place on the project, and the Fletcher Construction Company Limited is an insured party under these policies.
Insurers for the project have confirmed that, based on their assessment to date, the Contract Works insurance policy will respond to loss and damage resulting from the fire.
In December 2019, the insurers made a progress claims payment under this Contract Works policy.
TheThird Party Liability insurance policy is expected to respond where legal liability exists and cases are being reviewed on a claim-by-claim basis.There are no third party claims or legal proceedings in respect of this matter that require additional provision in these financial statements.
The NZICC project continues to be accounted for under NZ IFRS 15: Revenue from Contracts with Customers and NZ IAS 37: Provisions, Contingent Liabilities and Contingent Assets.
The Group has assessed all relevant known facts and circumstances related to the estimation of cost to complete and insurance recoveries and concluded based on current information that there is no impact to the NZICC forecast project loss as a result of the fire.The assessment required key judgments and estimates (including an assessment of the cost to complete remediation, the likelihood of receipt of insurance recoveries and quantification of any claims and costs that it is probable insurance will not cover) and as such is subject to change as the project progresses.The current estimated cost to complete is within insurance indemnity limits.
Closed up on the day’s high of $5.41 on reasonable volume. Guess the market liked the presentation by the company.
Interesting to watch the sp now for the next 2 weeks to see how the international investors respond to their meetings with FBU executives.
Then there’s the share buyback kicking back in.
Up again today - looks like FBU's turnaround story may be getting traction with the institutions out there.
I think we will see $6.00 by the time their roadshow to fund managers around the financial capitals is completed over the next 2 weeks.
https://www.zerohedge.com/markets/bu...-ebitda-report
Charlie Munger's hatred of EBTIDA or any 'adjusted' earnings always makes me think of FBU and chuckle a little bit. He once also called it "earnings before all the important stuff".
"Earnings before significant items" is not a legitimate reporting metric but FBU uses it some sort of bottom line reporting metric.
On page 2 of the earnings presentation, there is a caveat in size 8 font that reads like a terms and conditions:
"In certain sections of this presentation, Fletcher Building has chosen to present certain financial information exclusive of the impact of significant items and/orthe results of the businesses divested in the year ended 30 June 2019."
Buyer beware.
Actually, the biggest put-down of EBITDA happened during the Enron era. EBITDA was described as an acronym for 'Earnings Before I Totally Duped Auditors'. :D
Like all valuation methods (PER, Dividend yield, NTA, P/Book, Enterprise multiple, free cashflow etc etc) used by analysts and the market, extreme care needs to be exercised when using any of the valuation techniques.
EBITDA is used extensively for valuations in takeover situations - as the acquiring company may be able to/can access debt and replacement fixed assets at far superior terms than the taken over entity.
But where did you see FBU using EBITDA in its presentations extensively?
From what I read, FBU uses EBIT which (after Enron and the demise of Arthur Anderson for happily signing off falsified accounts) is used extensively by all companies as a measure of earnings from operations.
Almost all companies use operating earnings - being EBIT or EBITDA - to measure underlying operational profits.
Interesting indeed W69 that several of the 'darling' companies on the NZX like Ebos & AIA have EBITDA peppered all over their recent results presentations?
Likewise, ATM!
Sub $5, watching.
Just checking again the quality of the predictions of our share market analysts.
In February 2019 the FBU share price peaked at $5.28. At that stage the combined mental power of 12 share market analysts forecasted that over the 12 months to February 2020 the FBU shareprice will slightly rise to $5.45 (consensus), i.e. they predicted a 3% share price appreciation.
They have been correct - the FBU shareprice in February 2020 actually peaked at $5.39, which is only 1% off the forecasted consensus - clearly good enough (Pass).
Looking into the consensus buy recommendation - it was in February 2019 a strong "HOLD"(5.6/10) - i.e. analysts said that the share will slightly outperform the NZX. NZX went up by 21% and FBU went up by only 2%, i.e. FBU underperformed the NZX50 by 19%! Not very exciting for a proposed HOLD and outside the pass criteria I set for this exercise - i.e. this is a "FAIL"
I am doing this exercise as well with other NZX listed stocks - the overview is here:
https://www.sharetrader.co.nz/showth...arket-analysts
14 stocks checked so far (checking for each consensus and buy recommendation);
Consensus shareprice forecasts correct: 2/14; analyst hitrate: 14.3%
Consensus recommendation vs NZX50 correct: 4/14; analyst hitrate: 28.6%
Be interesting to see if spending all their money on share buyback sets them up for failure. Global construction is taking a hit at the moment with this perfect storm and some Chinese companies being forced to walk away from billions of dollars for example. https://wolfstreet.com/2020/03/05/ou...-but-its-hard/
All in this together now boys:
As reported by Fairfax.Quote:
Fletcher Building has proposed its executives take a 15 per cent cut in pay, but other staff could see a 70 per cent slash in income...
No worries - the government just working to add lots of infrastructure projects to the "economic response package". While a focus on spending now money for infrastructure projects is sensible ... I am a bit worried that the company which managed the Christchurch rebuild incredibly inept will be again first pig at the trough.
Surely this is the wrong way around. The execs could comfortably get by on a 70% pay cut given the size of their salaries, while the workers take the 15% cut (which no doubt would still hurt with mortgage repayments, day-to-day living costs, etc). 15% off for the fat cats and a whopping 70% off for the poor old workers? What a slap in the face!
Unfortunately, the day to day workers don't make the decision but I'm sure the execs do or at least have a say. It says a lot of the leadership of a company and historically been very poorly run. I'd say if a exec is getting a base pay of $5m the incentive program if way out of what it should be. Even Tim Cook the CEO of Apple only have a base salary of $3m and the rest is tied to the performance of the business.
Disc: Not a holder. If you couldn't make money in the longest and potentially greatest bull market in history then you ain't making money in a recovery any time soon.
The workers offer, including office staff is 80% average after special leave this week, until end April. After that nothing is certain. Union is going nuclear. Good on them.
Fletchers have a strong negotiating position, despite reservations here they’re the biggest employer and crucial to kick starting the recovery in construction.
Taken from the Kathmandu thread, but also mentions FBU....dunno if Wesfarmers are that brave/stupid.
https://www.smh.com.au/business/companies/qantas-could-be-taken-over-by-cashed-up-wesfarmers-macquarie-says-20200402-p54gcb.html
So Fletchers senior execs have agreed to raise their haircut to 30%.
Can they please justify why they don't stump up and match the 70% pay cut they are expecting their (much lower-paid) staff to take?
https://www.stuff.co.nz/business/120...ve-ross-taylor
"I am writing to you because of my partner's slumped shoulders, because of the way he held his head in his hands when he got the official company communication announcing the 70 per cent pay cut for Fletchers staff over the next 12 weeks amid the current Covid-19 crisis."
You believe it? A Fletchers company that I am aware of have, during lockdown, a one week special leave on full pay, then until current lockdown period ends, decreasing pay each week progressively to 50% in week four. In total an average of 80% pay per week for the lockdown period. After that no one knows.