I would not post this if I did not here it from my supervisor who is in the know. Because of the huge spend and the trickle of cash in flow it is now being seriously considered that a temporary pay cut and rolling lay offs occur. The rolling lay off would be 2-3 months spaced out that you would be off with no pay. He said they did not run each separately but together. He knew of the ROM before the it was ever mentioned, Project Matrix was discussed in March. He said you will be OK because of your rating. If cash flow constricts and earning plummet anyone with a poor rating in the last 3 years would be terminated and it is so now. So now pay cuts and time off without pay. I love the time off without pay part. Has anyone else heard this?
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I would jump on something like this. 2 months without pay and a pay cut I can handle. Trying to support a family and find a similar job in this industry in this price environment makes me very nervous. I'm glad they are considering different options.
"What is a RIF?" You can't use google? Should we call a meeting or a Fit Break to discuss? Get off yo' lazy azz and figure it out. You must be one of the typical "great" Chevron employees that has the fantastic Chevron Way Behaviors and nothing in the "way" of performance based doing. Yep, this is what it is to work at Chevron. Stupid azz questions from people that should know their jobs... but don't. ...very nice people though. Human Energy and all that.
http://lmgtfy.com/?q=Meaning+of+RIF
No way. This is BS. The current cuts save us $1 billion per year. By that measure cutting 50% would only save us about $5 billion per year. FYI folks, we are spending $2-3 billion in Australia. PER MONTH! Eliminating the entire workforce does not even begin to address the budget problem. Don't let the top deck confuse you.
This is some scary shit. If we re going through this and the other operators are not then I don't see how top management can keep there jobs. And I personally think many people would like 2 month off, maybe with no pay if they are decent psg.
What is a RIF?
The furlough is being considered. It by no means is a done deal. Vacations will be suspended and in place off that, 2 months off without pay. There will most likely be another RIF. If after that RIF and there is still a cash crunch they will start the furlough. Take the furlough with health and 401k benefits or layoff package. Weeks or half a month is semantics, and it actually accrues as pay periods within a calendar year (not months or weeks).. Now what will piss off everyone is if they screw the workforce to pay a dividend. The reason I say this is the cash targets for the furlough line up perfectly with the dividend. No dividend will mean extreme job uncertainty for Watson and his team. BTW there is talk in pay cuts at the very top. Millions that would in actuality be less than 10% of their pay. But they won't mention percent only total dollars. I think this whole furlough scenario has to be looked at in proper context. This true desperation and a very strong sign of the trouble Chevron is in with cashflow and meeting short term debt obligations and expenses, such as salaries.
Yeah this makes a ton of sense. What happens with the work load when you are gone? It gets shifted to others in the group. So why where you employed to start with if you are not needed? This is a perfect place to get rid of the next 1500 wastes of space and salary.
4 pay periods is 2 months. Chevron pay periods are half of a month, not 2 weeks.
So they would premise this on the assumption that no one can jump ship. Well have to say even now the best of the bunch can still leave and might if they do this. So they only risk loosing the best. 5%.
Unless they only do this to those they don't risk losing.
I agree on how this gets on an internet board when this was just floated a few weeks ago by a select few. This will be the marketing of Project TS. Pay cuts would be temporary. Once cash flow returns to an acceptable level (There will be very transparent numbers and communication) the cuts will be lifted and returned to normal. If oil stays low it won't return to "normal" for quite sometime. They can do this as no one is hiring in the oil field. AS others have posted on here, if you are a corporate office guy hell freezes over before a job surfaces in the industry right now. Those who do have boots on the ground experience have limited opportunity in the industry to gain employment. You will spend most or all of your time on a location managing "safe" work. Think coveralls, hard hat and safety toe boots. The rolling month off without pay will be presented as "Who will volunteer for this?" If enough people volunteer they won't make it mandatory. Right now it's not 3 months but 4 pay periods or 8 weeks. Again, understand there are no corporate, office jobs in the industry at the moment. So in the short run you will take it or not have a job in oil and gas. But as the market turns they will loose staff. All the other majors and big independent's financials are ok. It's commodity price pressure that is constricting earnings, but they don't have Chevrons debt and expense. Chevrons Financials (balance sheet/income statement) are bad. In the next few quarters it will be panic bad with all of the expense for 80-100 billion in MCP spend. There is round 2 for layoffs that have been agreed upon in principle to discuss along with Project TS. Do they do layoff #2 then implement project TS. That's seems the most logical. The spin will be "see you can at least pay your expenses."
I rather risk continued layoffs than paycuts. How do you keep a competitive workforce if you don't pay comps?
Chevron management must be dying on these posts. This is presently called Project TS as in top secret. Not top secret now. Maybe if the change the name to double top secret everything will be ok lol.
Yes this is true. Chevron revised long term price of oil to 55. With the current spend and revenue at 55 something has to give. And if this price last until the very early winter your post will magically come true.