Reps being rebadged in 2S

And to add on to my post 38-

The outsourcing arrangement also frees Merck of employer side taxes - they have to match social security (6.2% of first $100k in salary or so - you can look up the 2014 limit), Medicare 1.45% on all wages, no cap, state unemployment tax (driven higher each year by unemployment collection by those severed), federal unemployment (called FUTA also going sky high from collections and based on # of employees) and I could go on and on.

On the face of it the price swap between in house employees and outsourcing looks like a wash but if you were in finance you'd know all the behind the curtain benefits they don't advertise but are the biggest part of the decision.

 

Pension is why many older reps are staying on, especially if they do not have a livable sized pension. Without it they will be forced to move on.

Once you get to about 55, time is not on your side. You cannot work for an income that enables you to scape by. When you're approaching the retirement years you must have either a pension or a very sizable income that permits you to save enough for retirement.

This company will lose many good workers if they drop salary, pension and benefits. Moving to a contract company will basically destroy the employee base, while the contract company prosper with the diverted incomes that should be in the pockets of the workers.

 

Ever notice how it never a good idea to outsource anything above worker bee level?

All those SS & medicare/aid taxes that the employer pays, just get shifted to the outsource company - Merck still pays them through the money they pay the contract. Only cost savings to Merck is on Merck's admin on the payroll and benefits side.

Bottom line it all... front-line workers will make less$. Merck execs make more$$, outsourcing company execs make more $$$. And in an economy like America's, where 70+% is consumer spending, having front-line workers less able to buy goods and services (including drugs) is sending our country down the crapper.

When General Electric does this, Kenny cries because less people will be able to afford the products his company sells. But When Kenny does it, its good business.

 

All the S and LER reps...or just the low S groups....1..2?
PC, DF....all divisions...who?

 

I don't disagree with you at all but the older you are, the more of a burden you are on Merck. Higher salary, more pension, and higher utilization of health benefits. In their book you cost more than you're capable of producing but they can't just chuck you out like they wish thanks to age discrimination laws. Oh, but yeah, they have ways around that too.

Good luck to all.

 

CTLs & DCOs will probably be retained as Merck employees and their motivation will be to implement this change in order to cover their own A$$e$. "I was only following orders.."

 

A reduction in salary is eminent. If we are able to keep our jobs, and stop the downsizing, I think most people would agree to reducing their pay. Maybe start with a bonus range that is flat across all levels. Also, if they cut everyones pay by $10%, and do away with the pension, we could possibly keep our jobs.

 

Pay and level cuts have already been introduced in MMD. No reason it won't be elsewhere.

 

Any meaningful influence a rep has to drive sales and/or market share has been declining steadily for years, and we're now at a point where anyone making and honest assessment of the value of a rep would have to conclude that today that contribution is almost zero. As screwed up as Merck has become they are at least smart enough to arrive at the same conclusion, and will cut reps and reduce pay to make the salary fit the job. The only reason that this hasn't been done sooner is that as that even though management has nothing but contempt for field sales, they are the necessary evil that keeps them employed and their salaries inflated. Oh well, irony can be a bitch!

 

And this is exactly how they will spin it! "Everyone must cut back in order to save jobs!" Reminds me of Ken F's story about pruning the tree to increase the tree's crop production. Good story unless your nest is on the branch being cut. Maybe we should cut out award trips and sales meetings first and see how much that will save Farmer Ken.

 

Have any Inventiv reps been converted to direct employees of Merck?

 

Inventiv contracts are not being renewed at this time. May be a deal to have extra spots available for Merckies second half of this year.

 

Bud, you are wrong.

Age does not equal a high salary or a big pension. Not all people have the years in or the rank.

Know a quite a few older reps who are making low salaries. They also have small, basically minuscule pensions. Its all about having decades of service and high ranking status.

As for healthcare, know of more young and middle aged reps with chronic and acute health woes than I see amongst any of the greys. Your point has no validity in real life.

 

Isn't it interesting that we were all strongly urged to put our career profile/resume on the MyCareer website by March 1st? Do you think they will use that information when rebadging?

 

I don't like the idea of my resume up there. Shouldn't this be strictly for HR or a hiring managers? I might not opt to participate.

 

Duh, ya think?

Of course that had everything to do with it. Problem is if you don't fill it out, you'll probably be one of the first to go.

 

Why? If a job is posted couldn't we still apply? If they want a synopsis of our background HR has it. Why isn't that enough?

 

Why can't Ken Frasier be re-badged to McKinsey or some other management consulting company?

 

Good question, I don't know. But remember who you work for. The current management is certainly not known for its proficiency.

 

Re-badge Ken into the unemployment line. What would he consult on? How to destroy a company from within?