Entire team asked to take 70% pay cut after incompetent boss messes up contract negotiation: 'Virtually nobody is accepting this insulting offer'

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Ben Weiss • Writer and Editor
Jun 12, 2024 8:00 AM EDT

Imagine your boss getting your entire team together and then casually asking all of you to take a massive pay cut. 

It's possible that you've been in a similar situation, where you have been encouraged to "take one for the team," so to speak. But here's the truth: taking a pay cut is far from taking one for the team. It's taking one for the boss, who likely has not been asked to do the same. In this specific instance, how could you be taking one for the team if the entire team is getting hurt by this new policy? 

Thankfully, in this case, the Redditor and their team members refused to go quietly. Folks in the comments seemed to relate deeply to the position of being faced with such a ridiculous ask by an employer. Keep scrolling below for their reactions. For more, check out this post about a duplicitous boss.

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  • 01
    THE UN 5 E E 95597674 E5 ES 0386 THE UNITED STATES ALLETS PUBLIC AND PRA EDERAL RESERVE NOTE SA ITED STATES OF AMERICANY FEDERAL RESERVE NOTE NITED STATES OF AMERICA THE F 50088469 WANNINGTON.D.C "We'd all need to accept a 70% pay cut in order to stay on the contract" ALRESERY D STATES OF 470011 RVE NOTE SOFAME L44 12 THE NOTE
    via Alexander Grey
  • 02
    Being asked to take a 70% pay cut because someone scrd up a contract negotiation
    via u/binkleyz
  • 03
    So, I work for a large defense contractor in the US. You'll have heard of us if you've walked into an airport in the NOVA/DC area, or have ever served in the military. We support the Department of Defense and a bunch of other government agencies.
    via u/binkleyz
  • 04
    The way that many defense contracts work is that the government and the company enter into a multi-year contract to provide (in my case anyway) IT and Cybersecurity/InfoSec support to a part of the DoD and/or the IC.
    via u/binkleyz
  • 05
    Those contracts are usually for one year, with an option to renew every year for a set number of years.
    via u/binkleyz
  • 06
    My company's multi-year contract with the DoD was set to end in April, but there was a long negotiation process to move to a new multi-year contact, which resulted eventually in a new contract award last month.
    via u/binkleyz
  • 07
    Fast forward to last week, and we all (there are about 500 of us on this contract) get a notice to attend a mandatory town hall meeting over Zoom.
    via u/binkleyz
  • 08
    In that meeting, we're informed that someone somewhere messed something up, and that we'd all need to accept a 70% pay cut in order to stay on the contract. This is the same company that sends us endless emails telling us how much they value us as people and and assets, and that could, if they wanted to, easily eat the cost of their screw-up and protect us as employees rather than asking us to eat the cost of their error.
    via u/binkleyz
  • 09
    Needless to say, virtually nobody is accepting this insulting offer, and what is inevitably going to happen is that the company, due to attrition, will not be able to perform the duties of the contract and will likely be financially punished to a much greater degree than if they'd just paid us.
    via u/binkleyz
  • 10
    Thankfully, by the nature of the roles, every one of us is highly certified (most have a high-level IT certs like CISSP or CASP) and have Top Secret clearances, so it won't be hard for many of us to find work elsewhere.
    via u/binkleyz
  • 11
    forgottofeedthecat . 8 hr. ago surely who ever screws up is the person on the C-suite ultimately reviewing the final contract and signing off? assuming 500x150kx70% that's a $50m cost cutting they wont to do? think C level bonuses would probably cover 50% of that and then the rest take a hit on the P&L....sounds like the project would surely still be profitable.
    via u/binkleyz
  • 12
    El_ha_Din 7 hr. ago This reminds me of a friend of my father. He had every single paper needed for large gassplants, electrical circuits, etc. I don't know exactly but very specific, specially in combination.
    via u/binkleyz
  • 13
    His boss retired and the son didn't like said friend so he made it so bad the friend quit. After that he found out they needed him really bad for some already signed contracts. If you were to hire someone like that around here their fee would be €90,-- €110,- per hour. So they called, made an offer and his counter was € 300,- and Ill come. They said no. Waited and they called again, His fee went to € 350,- an hour and they said no.
    via u/binkleyz
  • 14
    Called again and he went to 400, but he added, if you get me now right away the € 300,- stands and I can start tomorrow. He was hired for €300,- an hour. His previous salaried rate was €40,-/hour.
    via u/binkleyz
  • 15
    easy10pins 7 hr. ago They expected employees to agree to a 70% pay cut?
    via u/binkleyz
  • 16
    RetMilRob 7 hr. ago You know who to contact with the DOD to notify of a possible conflict compromising the integrity of the awarded contract. DCMA and DCCA both have channels for reporting. We both know how they look at financials when you have TS/SCI.
    via u/binkleyz
  • 17
    binkleyz OP 5 hr. ago There is a big battle between the COR and the company already.
    via u/binkleyz

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workplace-stories work stories toxic-workplace job work Horrible Bosses reddit thread Reddit company toxic-work-environment
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