10.1 Read and translate the text:

A pension is money paid to an employee when he retires, leaves on

reaching a certain age. In Britain there is a compulsoly scheme in which

the employee pays a fixed amount every week and the employer a larger

amount. Then on retirement, the worker gets his state pension. Nowadays,

however, an increasing number of companies operate their own pension

schemes to give their employees more money to retire on. These schemes

are usually governed, or ruled, by a trust deed. The trust is separate

from the company. Trustees are appointed and they hold meetings

regularly to approve money for pensions, examine the fund accounts and

so on. Every employee working for Harper & Grant, for example, pays a

certain amount of his wages into the fund. This money is invested to

increase its value, and after a certain period of employment the

employee qualifies for a pension.

As a result of the productivity drive, Mr. Grant wants to close down

unprofitable departments. Nearly all the redundant workers have been

absorbed into other departments, but there is one, Bob Hardiman, who, Mr

Grant says, will have to go. He is a craftsman in the old style, that

is, he is a carpenter able to do fine hand carving, which is now hardly

ever required. Ian Hampden, the Personnel Manager, thinks that Mr. Grant

is wrong to get rid of someone who has been with the firm for so many

years. He tries to make Mr. Grant change his mind. Mr. Grant, however,

is determined on his new plans to streamline the company, and make it

more profitable and competitive. Ian goes to see Peter to find out if he

can suggest a way of persuading Mr. Grant to see reason.

The pension fund meeting is due to be held shortly, and Bob Hardiman's

pension will have to be approved. Peter remembers that a few years ago

Bob Hardiman had to leave the company to look after his father who had

become an invalid. When his father died, Bob Hardiman rejoined the

company. Peter realizes at once that according to the articles of the

trust, if an employee leaves the firm for a time he must then work a

certain number of years in order to qualify for the full pension. Bob

Hardiman has not yet completed this time. He has, in fact, three more

years to go. If he is sacked, or fired, now and not given his full

pension it would have an extremely bad effect on everybody, since he has

been with the firm so long. Peter, at the meeting, cunningly suggests

that the company makes up the difference. In other words, the company

pays Bob Hardiman the money to make up his pension from the fund to the

full amount that it would have been if he had not interrupted his

employment. Peter is shrewd enough to know that Mr. Grant will not want

to do this and may perhaps decide that the lesser of the two evils is to

let the man stay until his proper retirement age.

In this episode we hear that the chairman, Ambrose Harper, who is an

elderly man, is very ill. Peter is worried because he knows that Ambrose

Harper owns half the shares in the company. If these are bought by a

rival firm, or a larger company that wants to take them over, the

present set-up, organization, could change completely.

10.2 Listen to the dialogue.

(In Peter Wiles's office)

PETER Ian, what's this about Bob Hardiman being sacked? He's been

WILES with the firm since it started, and he's the only real

craftsman we've got.

IAN Yes, but H.G. rightly points out that there's no call for

HAMPDEN elaborate hand-carving on desks nowadays; we don't need desks

like this one you've got here, for example. He says Hardiman

is now redundant.

PETER It'll break the old boy's heart. Wait. I've got an idea.

IAN What?

PETER The Pension Fund Trustees' Meeting. It's this Thursday. His

name's bound to come up if he's being dismissed: his

pension'll have to be approved.

IAN How will that help him? It won't save him from redundancy.

PETER No, but that's when we can speak up. There's you and me on one

side and H.G. and our dear company secretary on the other.

Which leaves our Chairman, Ambrose Harper. And you know what a

soft heart he has. The pension scheme itself was his idea.

He'll be bound to agree with us.

IAN But Ambrose Harper's ill. He's not coming to the Pension Fund

Meeting.

PETER Oh Lord! We've got to think of something... Look, I've got

another idea. Hardiman left the firm for a while, didn't he?

IAN Yes, about five years ago. He came back to us two years ago.

PETER Why did he leave?

IAN He went to live in Scotland to look after his father. When his

father died, he came back to us.

PETER I see. And what happened to all the contributions he had paid

into the pension fund before he went to Scotland?

IAN He left them in the fund.

PETER So he still qualifies for a pension?

IAN Yes. H.G. will say he'll get his pension, so what is there to

worry about?

PETER But the thing is, Ian, is Hardiman entitled to the full pension

if he broke his employment with us? Let's look up the articles

of the pension fund. Have you got a copy?

IAN I'll have a look.

(Thursday: the Pension Fund Meeting is in progress)

HECTOR Well, gentlemen, this isn't going to take us very long. You've

GRANT seen Mr. Buckhurst's pension fund accounts. They're impeccable

as usual. So it's only a question of approving them for the

sake of the record. Right. Do you all agree the accounts?

(Murmurs of assent.) Good. Well, that's all. I presume there's

no other business?

IAN Well, there is one thing more, H.G. The question of redundancy,

the case of Bob Hardiman...

GRANT That's a straightforward case. He gets his pension, less three

years, or whatever it is. You'll see to that, won't you?

IAN I don't think it's quite as simple as that.

GRANT Why on earth not?

IAN Peter will explain.

PETER There seems to be some slight difficulty, H.G. You see,

Hardiman left us for three years, as you know.

GRANT I know very well he did. I've just said so.

PETER Quite so. But I felt I should look up the articles of the fund.

Ian, of course, is already aware of this. It seems that if a

period of employment is interrupted for more than six months a

further period of five years has to be worked before the

employee is entitled to a full pension. If Hardiman continues

with us until he's due to retire, that is, in three years'

time, there is, of course, no problem. He will be fully

entitled. But as things stand at present he would get, at a

rough guess, only about three-quarters of his pension. And we

could hardly allow that situation with such an old employee.

It would do the company no good at all. He will, naturally,

have to be compensated out of the company's funds to make his

pension up to the proper amount.

GRANT But that's preposterous!

PETER But it does seem to be the only thing to do.

GRANT We'll just have to alter the articles.

PETER That would require the Chairman's vote, of course.

GRANT Oh dear!

PETER You don't think we could pay the remaining pension out of the

company's profits?

GRANT No, that would be a very dangerous precedent. No, no. I won't

consider that. Ian, this is your scheme, I'm sure.

IAN Mine, H.G.?

GRANT Well, you win. We keep Hardiman on for three more years. But,

Peter, I shall expect you to use your undoubted ingenuity in

making full use of him.

PETER Of course, sir.

(Peter and Ian get together afterwards)

IAN Well done, Peter.

PETER Not bad. Well, we saved old Hardiman his job. But something

else is worrying me.

IAN What's that?

PETER Have you heard the latest? Old Ambrose Harper is seriously ill.

If anything happens to him this company will be in a serious

position.

IAN Wouldn't Grant take over as Chairman?

PETER I wasn't thinking about who will be the next Chairman. I was

thinking of Ambrose Harper's shares in the company.

IAN What percentage does he hold?

PETER About fifty per cent, I think. Grant's father held the other

fifty, but when he died they were divided equally among his

three children.

IAN What'll happen to Ambrose Harper's shares?

PETER They'll be left to his sister, I should think. She's his only

surviving relative.

IAN She wouldn't be able to sell them, would she?

PETER I imagine they'd have to be offered, through the company, to

the other shareholders first. But can the firm manage to buy

them? If not, and if they get into the hands of a firm looking

for a takeover, well, we'll be in trouble.

10.3 Answer the questions:

1. What is Mr. Grant determined to do with the old carpenter, Bob

Hardiman?

2. What is the initial plan of Peter Wiles's?

3. Why does it not work?

4. Why is Bob Hardiman not entitled to the full pension at the

moment?

5. What is Peter Wiles's second scheme and how does it work?

6. What will happen to Ambrose Harper's shares in case of his death?

7. How can a takeover take place?

10.4 Find definitions for the terms:

fund, take over, precedent, articles, trust, craftsman, pension,

contribution, sacked

a. an annual income which an employee receives during retirement

b. a legally formed body in which legal ownership of property can be

vested and which is managed for the benefit of the others

c. an account into which money is paid for some purpose

d. a worker whose job involves a particular manual skill

e. the legally registered rules of, in this case, the Pension Fund Trust

f. told that one's services are no longer required

g. here, the weekly or monthly payments into the Trust Fund by employer

and employee

h. a similar case which has occured before which may be used by others

at a later date to argue their own right to have the same treatment

i. to assume some work or responsibility

10.5 Fill in gaps in the sentences:

1. A pension is money paid to an employee when he ... . 2. On ..., the

worker gets his state pension. 3. Trustees are appointed and they hold

meetings regularly to ... money for pensions, examine the fund ... and

so on. 4. After a certain period of employment the employee ... for a

pension. 5. As a result of the productivity drive, Mr. Grant wants to

close ... unprofitable departments. 6. Nearly all the ... workers have

been absorbed into other departments. 7. Bob Hardiman is a ... in the

old style. 8. Mr. Grant, however, is determined on his new plans to ...

the company, and make it more profitable and ... . 9. When his father

died, Bob Hardiman ... the company. 10. According to the ... of the

trust, if an employee leaves the firm for a time he must then work a

certain number of years in order to qualify ... the full pension. 11.

Peter Wiles suggests that the company pays Bob Hardiman the money to ...

... his pension from the fund to the full amount that it would have been

if he had not interrupted his ... . 12. If Ambrose Harper's shares in

the company are bought by a larger company that wants to ... them ...,

the present set-up could change completely. 13. In a private company,

shares for sale have to be offered first to the other ... .

10.6 Make new words from the root words below to complete the sentences.

produce

1. Henry Ford began the mass ... of the automobile.

2. Looking out of the window is not a very ... way to spend your time.

3. Since the new equipment was installed, ... has risen by 23%.

compete

1. We work on very small profit margins (чистая прибыль), so our prices

are very ... .

2. Our recent technological breakthrough has given us a lead over our

... .

3. The fall in sales revenues resulted from increased ... from the Far

East.

economy

1. Leading ... are predicting that inflation will rise to over 8% by the

end of the year.

2. Did you study ... when you were at the University?

3. The new Honda does nearly fifty miles to the gallon. It is very ...

to run.

advertise

1. There's an ... in the paper. It's for your job.

2. We can't print this article. Our ... won't like it.

3. Which ... agency do you work for?

direct

1. He resigned because he was unhappy about the ... the company was

going in.

2. I'd like you to meet Mrs. Gardener - she's the new Sales ... .

3. I don't know the telephone number. You'll have to look it up in the

... .

10.7 Discuss with a partner the cosequences of the productivity drive at

your imaginary firm. What benefits and losses can you see?

10.8 A short time after the Pension Fund Meeting, the Chairman, Ambrose

Harper, died. The Managing Director, Harper Grant, had a memo typed and

copies sent round to all the departments in the firm announcing the

Chairman's death.

This is the memo he sent:

------------------------------------------------------------------------

From: The Managing Director

date 20th December, 197..

To: All Personnel

It is with very deep regret that I have to announce the death of

our Chairman, Ambrose Harper. As many of you will know, he had been ill

for a very short time, following an operation. He died peacefully in his

sleep at four o'clock this afternoon. Only this morning he had been

reading the minutes of the last Pension Fund Meeting which, owing to his

illness, he had been unable to attend for the first time in forty years.

The Pension Fund, which he himself had started, was one of the first

independent schemes in the country.

Work will stop for one minute at noon tomorrow so that the whole

company may pay silent tribute to one whose initiative helped found this

great business and whose selfless energy guided its destiny over a

lifespan. All who know him regard him as a true colleague and friend.

-------------------------------------------------------------------------

10.9 Recall all the information in the units about Ambrose Harper and

tell what you know about him as a person and a businessman.

10.10 Due to a malfunctioning word processor, the following two letters

have been mixed up. One is from an engineering company enquiring about a

staff pension scheme. The other is the reply from the insurance company.

Rearrange the paragraphs and phrases to form the two letters.

a Yours faithfully, j I can arrange for an agent to

J. Steward call on you at any time, and will

Company Secretary contact you in a few days after

you have had time to consider

b Please contact me, in the this proposal.

meantime, if you have anything

else you would like to discuss. k We are a large engineering

company with a staff of 400

c The enclosed booklet will including administrative and shop-

give you details of the type of floor staff. We are contacting a

policy I think would suit you. number of insurance companies to

The minimum age for joining would enquire about a contributory staff

be 18, with a retirement plan at pension scheme to cover people

55 for women and 60 for men. who have been with us for over a

year.

d UK Engineering PLC

Brunel House l If you have such a scheme, please

Brunel Street let us have details, and we could

Liverpool L2 2ER possibly arrange a meeting with

one of your agents.

e Finally, as well as choosing a

retirement pension, we would also m Dear Sir/Madam,

like a policy which would include

life insurance, so that in the n Policies Manager

event of an early death, the Associated Insurance PLC

insured's dependants would get a 153/8 Cressy Street

lump sum in benefit payment. Liverpool L2 3EB

f Thank you for writing to us. o Employee contributions could be

arranged at 7 per cent, and the

g On this basis, we would estimate policy incorporates life insurance

those eligible at the present and benefit payment in the event

time to number about 300 or so, of death.

with ages ranging from apprentices

of 16 to skilled operatives and p Dear Mr. Steward,

administrators in their early 50s.

q Yours sincerely,

h I am replying to your letter of Ralph Meeker

15 September concerning a Policies Manager

contributory staff pension scheme Encl

for your employees.

r 19 September 19-

i The Company Secretary

UK Engineering PLC s 15 September 19-

Brunel House

Brunel Street t Associated Insurance

Liverpool L2 2ER 153/8 Cressy Street

Liverpool L2 3EB

10.11 Translate the article.

90-ЛЕТНИЕ НЕ СДАЮТ ПОЗИЦИЙ

В г. Элсуорте (США, штат Мэн) 95-летний редактор местной газеты

"Элсуорт Америкен" Джеймс Уиггинс занимает свою должность уже в течение

77 лет и не собирается уходить в отставку. "Я считаю, что обществу и так

приходится содержать слишком большое количество вполне трудоспособных

бездельников", - говорит он.

Уиггинс - один из более чем 50 000 американцев в возрасте старше 90

лет, продолжающих активную трудовую деятельность. В их числе 92-летний

архитектор Филип Джонсон и 96-летний сенатор-республиканец Стром Тэрмонд.

10.12 Translate the sentences.

1. Он отработал в этой фирме сорок лет; уж конечно, он имеет право на

пенсию, однако не торопится уходить на отдых. 2. Познакомьтесь: мистер

Стэнс, мое доверенное лицо в этом щекотливом деле. 3. Мы делаем

ежемесячные взносы в этот фонд; и каждые два месяца проверяем его

отчетность. 4. Все нерентабельные цеха будут закрыты, а работники -

уволены с небольшим выходным пособием. 5. Он - чрезвычайно искусный

мастер, и если бы вы должным образом использовали его таланты, он бы

приносил предприятию значительную прибыль. 6. Согласно статьям этого

документа, вы не имеете права на компенсацию, которой добиваетесь. 7. Он

повздорил с мастером цеха из-за условий труда и оплаты. - И что же? - В

тот же день его выгнали взашей. 8. Цены на акции растут, и акционеры

счастливы. 9. Поначалу заведующим отделом сбыта был Джоунз, затем эту

должность принял Литтлшот. 10. Любой мало-мальски здравомыслящий

конкурент в такой ситуации скупит акции вашей компании и возьмет вас под

свой контроль.

10.13 Can you describe any real experience of a person who was made

redundant?

10.14 In your opinion, what can be done by the management for such

employees?

10.15 Study the flow chart and the text describing a relocation

counselling service, and fill in the missing information below.

-------------------------------------------------------------------------

BEFORE TERMINATION OF EMPLOYMENT

_________EXPLORE ALTERNATIVES_________

¦ ¦

­ ­

No alternative Alternative available

¦ ¦

­ ­

Put together a severance package Arrange alternative

¦

­

Counsel manager who is

conducting the termination interview

¦

­

TERMINATION OF EMPLOYMENT

¦

­

Dismiss employee

¦

­

Counsellor sees employee and gives advice

------------------------------------------------------------------------

No company wants to make employees redundant, but occasionally they

have to. At Preger and Stern they provide a three-stage counselling

service designed to help everyone concerned.

Firstly, the alternatives to redundancy ... and the possibilities

of early retirement, transfer, or demotion are discussed. If there is a

suitable alternative, it ... . If not, a fair severance package ... .

Next, the manager who has to dismiss the employee ... on how to conduct

the interview.

The employee ... at the termination interview. Immediately

afterwards, he or she ... by a counsellor and ... advice on how to deal

with the shock, and other problems, such as telling the family.

10.16 Now read the rest of the text and complete the flow chart.

The following day, there is a second interview to assess the

employee's strengths and weaknesses and administer aptitude tests. The

counsellor then analyses the test results and discusses them fully with

the employee. They also advise on financial matters, if necessary. Over

the next few weeks, the counsellor helps the employee to work out a job

search plan, and provides advice on applications, CVs, and interview

techniques. Working together, they identify suitable companies for

applications and the counsellor offers support and the assistance to the

employee during the first interviews. If the company wishes, continued

support can be given until the employee is successful in finding a new

job.

------------------------------------------------------------------------

AFTER TERMINATION OF EMPLOYMENT

Employee's strengths and¦___________¦Aptitude tests

weaknesses____ _______.¦ ¦______ _______.

¦ ¦

­ ­

Results __________ ____________ and __________________

with the employee.

¦ ¦

­ ­

Employee _________¦ ¦Advice on applications, CVs,

_____________ on ¦__________¦ and interview techniques

financial matters.¦ ¦ ___________ ___________.

¦ ¦

­ ­

Suitable companies¦ ¦Support and assistance

_______ ________.¦__________¦__________ __________

¦ ¦during first interviews.

------------------------------------------------------------------------

10.17 Perform a conversation between a cousellor and a redundant

empolyee of Preger and Stern.

10.18 Read and translate an abridged article taken from the New York

Times Service.

EUROPE'S PENSIONS: WILL GENERATION X PAY THE BILL?

The "contract between the generations" that underlies most national

pension systems in Europe, as well as Social Security in the United

States, is headed inexorably for trouble, in less than a decade in many

countries.

When the post-World War II baby boom generation retires, younger

generations may not be able to keep their part of the bargain. In most

developed countries, people are living longer while having fewer

children, spelling disaster for "pay as you go"* pension systems that

tax current workers to finance the retirement of their elders.

The problem is even more acute in Europe than in America, because

Europeans rely more heavily on government pensions. And Europeans of the

generations that experienced World War II and its aftermath regard the

generational contract as part of a sacred commitment to eliminate the

economic insecurities and injustices that helped spawn (породить) that

conflict.

In a hedonistic, materialistic age that takes peace for granted,

"pay as you go" pension systems are soon going to require young people

to sacrifice a good part of their own well-being to keep their elders

living in style. Will they want to?

Don't bet on it, according to the 29-nation Organization For

Economic Cooperation and Development in Paris, which is encouraging its

members to start thinking now about switching to pension systems

financed by investment plans. Switching isn't easy.

In 1995, when a conservative government in France announced that it

would require locomotive engineers on the state-operated railroads to

work beyond the age of 50 - like everyone else - before they could

collect pensions, a national transportation strike shut down the country

until the government backed off.

When the French replaced the conservative government with a

Socialist one that immediately cancelled tax incentives for private

retirement investment plans.

The French system, too, is headed for trouble. French pensions pay

retirees about 70 percent of their average wages. Right now, with about

three workers for every person drawing a pension, financing pensions

requires an average payroll tax of about 25 percent of gross salary,

with employers paying more than employees.

But in 2015, France will have only two workers per retiree: by

2030, according to recent projections, 30 million French workers and

their employers will be expected to finance pensions for 18.6 million

retirees. Pure "pay as you go" would mean pure economic pain for those

paying.

The curve is similar in Japan and Germany, Italy and most other

European countries except Britain, where since the 1980s 5.5 million

people have opted out of the state system, taking advantage of tax

incentives offered by Conservative governments to encourage private

investment plans.

The French and other Europeans consider their social benefits as

rights, and in most countries, few people are even aware of the looming

gap in pension funding.

The most obvious solution is what Conservative governments did in

Britain: encouraging people to provide for themselves, using Social

Security as a fallback. But people can feel abused when, as in Britain,

governments change and the incentives for private investment are reduced.

* pay as you go сбор налогов посредством вычетов из заработной

платы

10.19 Answer the questions.

1. How do you understand the "contract between the generations"?

2. Why is it leading to a trouble?

3. What are the figures proving that the situation may become

critical?

4. What is the alternative to "pay as you go" pension systems?

5. What is the disadvantage of private investment plans?

10.20 Translate an article from the Expert magazine.

АМЕРИКА ИЗБАВИТСЯ ОТ ТУНЕЯДЦЕВ (sponger)

Число трудоспособных американцев, получающих социальное пособие от

государства, сократилось с момента прихода президента Билла Клинтона к

власти в 1993 году на 27%, или на 3,3 млн человек. Однако масштабная

реформа системы социального обеспечения (social service) стала возможной

лишь после принятия в августе 1996 года закона, который по сути привел к

коренной ломке всей системы правительственной помощи беднейшим слоям

населения, созданной еще 60 лет назад во времена Франклина Рузвельта.

Закон снижает срок выплаты пособий по соцобеспечению до пяти лет,

обязывает трудоспособных граждан поступать на работу не позже чем через

два года после утраты предыдущего места работы и сокращает программу

выдачи бесплатных продовольственных талонов (coupon). Характерно, что

закон также лишает соцобеспечения легальных иммигрантов после пяти лет

пребывания в стране. Эта мера явно направлена против многочисленных

выходцев из "третьего мира" (прежде всего Азии), которые годами получали

пособия, опустошая госказну, и даже не пытались найти себе работу.

Реформа системы социального обеспечения является частью

предпринятой администрацией Клинтона попытки оздоровления

государственных финансов и избавления от хронических бюджетных

дефицитов. Согласно расчетам, реформа позволит государственной казне

сэкономить в 1998-2003 годах около 55 млрд долларов. Часть этих средств

планируется затратить на создание новых рабочих мест, программы обучения

и переквалификации, налоговые скидки и дотации (dotation) тем, кто лишь

недавно начал самостоятельно трудиться. По словам Билла Клинтона, с

помощью программы "От социального обеспечения к работе и партнерству"

уже создано более 135 тысяч новых рабочих мест (как заявил президент, в

текущем году эта цифра удвоится). В то же время продолжают получать

пособия еще около 10 млн беднейших американцев, что является тяжелым

грузом для американской экономики.

UNIT 11

A LABOUR DISPUTE

trade union профсоюз

union dues профсоюзные взносы

strike 1. забастовка 2. бастовать

official strike забастовка, проводимая с разрешения профсоюзного

руководства

"wild cat" strike неофициальная забастовка, организованная без

разрешения профсоюзного руководства

profit-sharing scheme система участия в прибылях

clock in регистрировать время прихода на работу

time clock автомат, регистрирующий время прихода и ухода с работы

operative рабочий-оператор, станочник

dock сокращать, урезывать (напр., заработную плату)

shop floor 1. цех 2. вся производственная площадь фабрики

premises (pl.) недвижимость, здание с прилегающими постройками и

участком

on the premises непосредственно на предприятии

negotiate вести переговоры, обсуждать

negotiation переговоры

wage claim требование повышения зарплаты

overtime сверхурочное время; сверхурочная работа

time and a half в полуторном размере (об оплате сверхурочной

работы)

walkout забастовка, стачка; прекращение работы

welfare благосостояние, благоденствие

reference 1. рекомендация, отзыв 2. лицо, давшее или могущее дать

рекомендацию

confidential конфиденциальный, секретный; для служебного пользования