Grant, Ill tackle this issues point by point. Firstly got to say some of your points are valid. Hastie has suffered huge losses which are more then just general industry problems which I must admit i didn't put forward.
I personally believe the previous management knew a lot more of the losses and didn't go to market honestly hiding losses and unrecoverable amounts in their balance sheet as recievables. This management "I hope" have been honest but with the EBIT downgrade their not starting well. They also will "hopefully" put the screws down on risk management.
--->> You used up 100% in your breakdown before profit. (50 - 30 - 20) So where to pull the profit? Labour? Subbies? <--
Im not sure how I worded and possible I had a typo in it but what I was getting at was the breakdown was about 50 Labour, 30% materials and 20% was overheads and profit. So that was a break down of the total project price.
The reason for mentioning overheads and profit in the one, is these two work hand in hand and are the major drivers on the job. This is why Hastie have put such a focus on reducing overhead costs and I'd hope they have put more attention to risk management.
---->EBAs are Company wide, not sector wide. Each company locks in their labour costs individually. Locking it in industry wide is collusion. You can go to jail for that. Be careful of your accusations.<---
Most plumbers, fridgies, sparkies work under EBAs negotiated by their unions. Most companies EBA's are cut and paste copies however a few specialists companies do go above it slightly but no one goes below it. Due to the likely hood of industrial action that could cost them big bucks. It isn't collusion to pay everyone in the industry the same and is common practice.
HST Price at posting:
16.0¢ Sentiment: LT Buy Disclosure: Held
