Originally Posted by
MickG0105
Yes redundancies can be expensive. In the FY20-H1 Interim Report preparation note 5(e) alludes to an average redundancy cost of around $38,000 per person. They had supposedly exited 140 of the targeted 750 as at 31 December so the restructure/redundancy cost should have been in the order of $5.3 million.
The problem is that labour costs rose by $42.4 million! Note that Group revenue only rose by $47.2 million. Under normal circumstances, the VA EBAs being what they are you would have expected to see labour costs up by around $17 million. That leaves about $20 million in increased labour costs that are essentially unexplained. It has all the hallmarks of p*## poor cost control. That is pretty well inexcusable for any business during normal operations leave alone one that had been losing money hand over fist.
I seem to recall Karl Schruster, head of Velocity departed the group along with an exit payout, as part of his contract, of approx AUD$8million.