Why are a lot of workplaces NOT taking furlough this time round?

[ssd]

I've seen loads of posts here saying people need key worker places as they arent being furloughed this time round.

Why are companies reluctant to use furlough?

We have spent the past year winning business and more diverse business (so not reliant on 1/ big contracts), so we are extremely busy. We didnt make any redundancies last year (used furlough for short time, circa 3 months) and I've hired an additional 5 people in the past 3 months - we have too much business to handle now to furlough whereas in the 1st lockdown we lost a lot of work overnight or clients were cautious. That just isn't the case now.

@ssd

This question is for places that used furlough the first time round but aren't using it again, I just wondered what had changed?

Possibly because they are on the brink of financial collapse and need staff to work, otherwise the business will go under.

For so many reasons...too many to summaries - some posters have given good examples.

The admin involved is onerous and for my employer the cost of administration is higher than the amount we’d save. It’s not the panacea people seem to think it is

Lots of employers are also getting flack for taking government money when their headline cashflow is high. Supermarkets are the subject of campaigns to make them give money back - yes they sold a lot more food but the costs of keeping staff and customers safe went through the roof. But of course no one likes that inconvenient truth so they think companies like that should just hand the money back.

I haven't seen reports of any companies getting flack?

And surely supermarkets didn't use furlough as they remained open?

Because businesses need staff in and working in order to make a profit. Why are people so economically illiterate? If a company furloughs everyone and shuts up shop it won’t make enough money to be viable. There are other costs apart from salaries.

Because I run a small ltd construction company and during the first forced closure of construction in Scotland during March April May June we furloughed employees and it covered their paye ni and pension didn’t qualify for any grants to cover other expenses like insurances etc and were forced to take out a 50k loan to survive. This time round construction is allowed in Scotland so far and the furlough would only cover 80 percent of wage not paye ni and pensions and that alone would cripple us if we had to pay that and have no income. We don’t have rateable premises and are a ltd company so are part of the excluded from government support packages. I would love to have all my guys safe at home but the alternative to them out working is making them redundant at the moment. It’s horrible we pay paye, ni, pension contributions, CIS tax, vat, corporation tax, multiple road taxes, etc and have been totally excluded from all grants

I think this lockdown isn't working sadly as too many businesses finding loopholes!!.....e.g. med size town, last lockdown only 2 supermarkets and 1 garage open, this time every shop bar a handful are now "keyworkers" with some having a metre shelf with just toilet roll, beans and tomato sauce and classed as essential!!! Get a grip this is a worldwide pandemic, close the country down tightly to save lives!!

I think a lot more businesses will open this time as the alternative is probably to close down all together

My workplace anticipated a huge downfall in workload so furloughed lots of people first time round. What actually happened is we ended up seeing a massive increase in one product/service because it fits well in a 'Covid secure' world. That caused us to pick up loads and loads of new contracts with short implementation periods and caused a huge spike in workload. Those of us not furloughed were working ourselves to death to try to meet it (on 80% salary too due to emergency cost saving measures).

This time no one is getting furloughed.

Well said @bookworm14 - the constant crowing to shut up shop and continue to wreck our economy is galling and not representative of the real worries people have about their jobs and livelihoods.

@ssd not necessarily furlough but other government support. There are some very vocal campaigns trying to get them to give public money back and some are terrified of the optics of being seen to take more public money at the moment. Supermarkets did furlough people last time, including those who were shielding, off sick or on maternity.

Because we are really busy now. Like super busy. Actually taken on more staff (temporarily). They need everyone in. If I get furloughed (which they are refusing), there’s a huge chance one of the young, childless, full time temps will be seen much more favourably & they’ll find a way to get me out. They’ve done it before.

Non essential businesses had to close last time, so factories, warehouses etc had to close.

This time they don't have to. So all those clothing factories that were busted for making their staff work are legitimate now.

In real life the people I know who support ever stricter lockdown are those home in full pay

My company only furloughed the staff who deal with letting our vacant properties and mutual exchanges as all that was stopped. (Bar a handful of staff to help with emergency moves)

Now we're still letting properties the lettings team are again required.