- Posted by Amy Dickson
- On January 18, 2018
- 0 Comments
(Image: Liverpool Echo)
It’s very heart-breaking to learn that Hundreds of NI workers face ‘large-scale redundancy’ after the collapse of Carillion. It’s important that the Government step in without delay. It’s also very difficult here in Northern Ireland with the absence of our Government bodies at Stormont.
However, the workers, subcontractors and their families are likely to suffer as a result of this dreadful news. I know many of the workers and their families and they have financial commitments to make. They need to know immediately what the future holds for them and receive reassurance and support in the meantime.
It has been mentioned in the press that contractors were being paid 120 days after invoicing Carillion, but often have to pay their own workers on a weekly basis. No company who supplies labour gets credit for labour and the workers have to be paid weekly and monthly.
There should be lessons learnt from this sad collapse of Carillion. One key component of cash flow in any business is how long it takes your customers to pay you. If you evaluate this and see that the amount of time it takes you to be paid is lengthening, you have a problem.
There are many companies in this country who work with and supply services to businesses who have unacceptable payment policies. Taking advantage of “business companions and associates” by paying them slowly is a bad business practice. It is indicative of a culture that is focused on “exhausting” people and firms not working with them to increase business and profits by providing better products and services, imparting that offering in the most motivating and compelling way.
You have 2 choices as I see it walk away from slow paying clients including clients who pay a low rate for your services and expect you to be a busy fool or stay and hit a brick wall.
Meanwhile, our thoughts are with all those who have been affected by the sad news at Carillion and we hope there is help and a speedy recovery on the way.