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View Full Version : need some feedback on this interesting situ this week



westrig
04-21-2012, 12:24 PM
Nice to be a member of this forum it looks pretty good, now here's my situ

Back story :
I cannot go into detail as exactly the type of work involved here but you will get the point.
My profession is in a highly specialized/ risk field. In our area there is not a very big pool to draw from for this type of work.
Worked for a local company, let's call them company X, on and off for many years part time on call, no contract involved. This company is basically a satellite branch with other offices in other states providing the same service. providing unskilled labor and a skilled high risk smaller crew as well.
Not many can be hired off the street and perform this type of work, there is some training and a period of learning etc to build skills confidence etc.
Alot of this happens on the job So the amount of company investment $ is minimal.
This particular company hires employees on an on-call part-time basis. They will even deny unemployment claims based on this. no bene's etc.
The director has a history of " if you work for another outfit ( in the same field) you will not work for us" Even though the employees are not under any contract. when its busy they can work 30-50 hrs for a week here and there seasonally and when slow 10-15 or not at all for weeks.

Recently since I had not persued or have gotten any work calls from them. i secured a few one off jobs where I used several of my old co workers out the company X who were available. Company X had put a bid in for the same jobs but i under bid and won.
they did wind up providing some low level labor not associated with my contract.
btw:I am set up as an LLC and it is intentioned for a huge contract that will start in a year so I was/am not actively looking for other jobs right now, the below contract was just good timing.

Here's where it gets juicy:
A very good friend of mine worked for company X as a F/T manager and recently gave notice and left the company to work for another in the industry but not in the same competing level ; they provide the equipment to a client who would hire labor to install it.
They had a contract with a client who also need some skilled crew. My buddy gave me the connection and I bid. Was told that company X was bidding as well. I knew company x's rates so i underbid . Classic huh ?
The client 2 months ago had said sure they'd probably use them( company x) as at that time they were the only 'game' in town. But there was not even so much as an idea of this job, only a date when it would happen. At that time my company was not up and running yet.
The client had asked the equipment vendor for a recommendation as to who they would like to see install their equip. based on the connection I had with them, knowing my experience level etc they recommended my outfit.

When company x lost out due to being higher priced, the director was very pissed due to in his words "we put alot of advance into this with them and don't know why we didn't get the contract and to be told at last minute we got under bid..etc etc." I know this due to a little birdy.
Well there was no bidding end time frame, no final plans, labor numbers etc were not finalized until a week before, the point I put my bid in. SO how could they accurately develop plans, put a bid in and with no signed contract be at all pissed ? Disappointed sure.

We show up, complete the job in fine style the client loves us wants to use us all the time. I pay the guys way more than company x does and they are happy to do a great job. So things are good. I hang around to make sure everything is fine along with one of my guys.
Small labor from company x shows up does their job I say hello chat a bit,they ask me nothing about who did the other job, did you do it etc. I simply quipped: I'm here to see some old friends working for the equip vendor ! thinking they gotta realize we did the job.
Of course company x's labor reported right back to their director what they had seen : myself and another part timer of their company onsite.
My guy later checked his schedule with company x who had previously confirmed him for several days work next week and saw that he had been taken off everything he originally had from them !
Here is a guy who did not cancel on them to do my job, works great and as with all of us doing this work, always need the $.

The director of company x I believe allowed his personal feelings to get involved and in some way needed to take it out on someone , one of my guys.
He called several of my crew and insisted they tell him who they were working for, how much they were making etc etc. they declined to answer.- company X has no right to know this info, in my viewpoint.
The only action they can legally do is choose not to use these guys in the future. But to intimidate them to the point of " you work somewhere else you'll never work for us again" is childish selfish and creates a bad rep for that director -who is already well known for his scrupulous practices like showing up where a worker was on another job for a different outfit with no conflicts and sat in his car to observe if any of "his guys" were there, saw one and left his biz card on their windshield wiper !

So conclusion i wonder: if that director had issues with this current scenario why did he not call me directly to talk about this ? he surely knows i put together this crew for this particular job. He's got my #.
Why does he not be of the logic of : let the guys work where they can when not working for company x ?
I made sure before calling the guys that there were no schedule conflicts with company x . I am of the mind of we can all work and be respectful of who works when and where to not have any conflicts etc. They are free to choose the work and with another company in the mix there is more work, making the guys happy.
I am not out to rule the world or have my outfit take over company x's clients. ( a nice thought though! ) just want to make a paycheck for myself and the guys. With my company making alittle profit for running expenses.
Company X has several owners elseware out of state.In past times in other states when a competing company has started , they have tried to buy out that business for cheap in order to squash them, never successful though. They are known as a cheap company to work for.A huge markup on their labor rates versus what they actually pay their labor. They start new employees at the lowest possible wage with few raises ever given. A clear effort to take advantage of an unskilled pool yet the employee gains skills quickly on the job but stays at the same rate of pay forever.

I for one do not care if they never call me again i have better work out there and not just thru my company and offer no loyalty to them at all especially for the low rates they pay, with no pass down to employees when contracts are renegotiated for more money, the employees see no wage increase ever. OT is payed after 12 yet company x charges the client after 8.

Funny how i was entertaining meeting company x director for lunch and telling him what I was embarking on so there would be no conflicts and we could send each other work when things got overwhelming for one or the other. I wanted to see how this job went first to see if i even would enjoy being on this side of the business. But after his reactions i will not even make a call to him now. Waste of my time.

Sorry for the epic length novel here it was doozy this week ! Would appreciate any thoughts of the above

Business Attorney
04-21-2012, 08:37 PM
The director of Company X isn't the first and won't be the last person to try to bully people into not working for competitors.

Sometimes preventing an independent contractor from working for a competitor is justifiable based on his possession of confidential or proprietary information. Sometimes it is justifiable because the first company is investing in their training and the competitor would get an unfair pricing advantage of getting skilled services without incurring any training costs. Most often it seems that there is no justification - the person does it because he has the power to do it. You are right that it sounds childish, but if it keeps his prices high and wages low by keeping out competition, I suspect that he will keep doing it.

billbenson
04-21-2012, 08:59 PM
With his prices high and wages low, I see opportunity. He may be able to bully at the present time, but I also see an opportunity for someone smaller to take a business model of lower prices and good wages for the employees.

westrig
04-22-2012, 12:26 AM
Thanks Mr Staub for your reply and while there had been some minimal training mostly from on the job: hence employee were being trained and making company x a profit at the same time. While i do gain somewhat in that a few of the guys I hired are very good I also needed the comfort level of knowing they can do the jobs without much supervision and fear of mistakes especially for new clients.
I believe company x manager is hording so that when it does get busy he does not have to spend money "importing" from the companies other satellite offices in order to fill the roster,yet how long can someone wait around for work that may or may not come ?

Bill Benson:
Exactly the plan i use, To keep my start up small maintain a very low overhead since it is a service based on skilled labor. NO retail of equip.
Be able to pay a decent fat wage, do respectable,quality work, make the client happy, and have fun.

Having just finished the first contract, I actually turned down another one for tomorrow due to short notice and a bit of heebie jeebies by a couple of the guys and this is where it is sad. I tell them to not give in to company x's intimidations yet they seem to not realize by switching crews to mine, it could be more financially beneficial.
I actually gave that client a referral to company x due to his being in a bind. Even though company x 's manager is what he is, I still referred cause I know some of those guys and they too need work.
At the jobs end last night I was also approached by the clients associate who had another assignment he was inquiring of me to see if it could be done. he showed me what it was and i said "sure can be done and here's how" So that's how it comes in this biz word of mouth about very likable team members and a can do attitude.

So I calculate when another choice is presented when there had typically been only one, It opens up more opportunity since prospective clients may have been put off due to higher rates and no other choices.