Das Boot

Snobird

New Member
Apr 13, 2010
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What would you do in this situation? A company comes wooing you from a job that you have had for a long time (in this industry) They absolutely want you to come work for them. You negotiate, accept their offer and start working for them. 3 - 1/2 months later you get the news that they are short of money and need to let you go. They don't pay you your 2 weeks because they *say* they can't afford to.

Is this common business practice? In my 17 years in the industry this has to be a first for me. I love this industry, but things like this make me want to go out on my own. Any help from people that have started up on their own would be much appreciated cause now I just don't need the B/S that goes on when promises are made and not followed through on.

Thanks in advance for your help !!!
 
It happened to me once probably 13 years ago or so. They probably are out of money ... when I was let go I had a company car that ended up getting repossessed.
 
Well, I could write a book because it is still fresh in my mind. After 25 years managing other companies from 20 to 120 trucks - I went out on my own a year ago.

I picked an industry segment that I had not previously been in. No vans, no reefers, no dumps lol. Before you consider going out on your own, on top of initial startup costs, figure on having the cash to finance your entire receivables for 40 days minimum. (# of trucks x weekly rev projection X 6 weeks), cause if you go quick pay, factoring etc., you may as well not even try. You wont get a line of credit without 1 yr accountants books.

Outside of that, perseverance, grit, balls, and maybe a little insanity helps. All that said...its a lot more fun, and a lot more stressful than working for someone else.
 
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What would you do in this situation? A company comes wooing you from a job that you have had for a long time (in this industry) They absolutely want you to come work for them. You negotiate, accept their offer and start working for them. 3 - 1/2 months later you get the news that they are short of money and need to let you go. They don't pay you your 2 weeks because they *say* they can't afford to.

Is this common business practice? In my 17 years in the industry this has to be a first for me. I love this industry, but things like this make me want to go out on my own. Any help from people that have started up on their own would be much appreciated cause now I just don't need the B/S that goes on when promises are made and not followed through on.

Thanks in advance for your help !!!


Snobird,

No, that is not a normal business practice. I know that people do play with the Canada Labour Act, because transportation is a federally-regulated industry, and abuse the 3-month rule when, in fact, it's costing them more to go through the hiring process again and again (usually to avoid paying benefits or additional severence.) You say they wooed you away from another company on promise of something better. You CAN go to the Labour Board if they did not give you your pay in lieu of notice but may have less luck establishing a case that the new employer failed to fulfill a promise only because of your status under the Canada Labour Code. I have learned that if an offer sounds too good to be true, it probably is and you should do your due diligence to screen them as much as they screen you. There's not much you can do when you offer good faith and someone abuses it in this way, except to hope that karma deals with them later on and rewards you for not acting unethically. If you do find a lawyer who will sue that company, you may end up spending good money to go after bad. Best to go to the Labour Board and let them mete out the justice you need as you do have a complaint re: your pay.

The trouble with the industry is that others generally are not treated in the same way that we expect to be treated and that is why drivers quit and salespeople take business elsewhere. It's a lack of respect and value. This is why bad employers exist. Luckily, there is no law that says you can't make a living and no one can stop you, really. I don't know if you're a salesperson or dispatcher so I'm going to say simply that if you have contacts and accounts, work them and move forward. If you don't, why not approach their competition and let them know just how hand-to-mouth that place was or see if you can get back with your original company.

In the meantime, know that businesses such as the one you described don't generally survive and, if they do, they are clearly branded for what they are because if they are doing that to you, chances are good there are other business practices being carried on there that are just as questionable. Word generally gets out one way or another so don't worry. Their competition will probably value you more than anyone.

Starting out on your own obviously requires start-up capital and cash flow to bridge the first few months if you have accounts and regular carriers you need to pay. How prepared you are to weather a drop in business or someone pulling an account is another question, however. You need to pay yourself too. I have found that companies that are too small don't have enough capital to sustain much more than what they already have and allow one additional person for any length of time to be added, so think about how big you can be for now and plan to grow when the time is right. If the market tanks, you need to have a plan for that event. Think about all the angles and what you need to do is what I suggest.

Good luck.
 
Hey guys thanks for the support and the advice. I actually did do a ton of research on this company, before I went over there, even in here and they had a decent reputation (there were a few negative posts in here about them, but then again a few is not pages !!!), I talked to carriers and they had a good reputation paying their carriers.......... so decided to make the jump. Bad move on my part. But...... I am a firm believer that things happen for a reason and this must have been a stepping stone for me........ for the better I'm thinking......... Something will come along I'm sure when I least expect it, until then UI is my new best friend..............