Pegulas taking heat for treatment of PSE employees during quarantine; donate 1.2 mill to WNY pandemic relief

[YoloinOhio]

Quote

 

There are a lot of dark ways about the inner workings at PSE,” said the former employee, who was granted anonymity to avoid impacting his future employment chances. “They are very much about the bottom line and financials — very little about the ‘One Buffalo’ way they shove down this city’s throat.”

A PSE spokesperson did not respond to an inquiry from The Athletic regarding the layoffs, but did email this quote from Verni, which was also included in the termination letter to hospitality workers.


The restaurant decisions follow a misstep in another part of the Pegula empire. While NHL teams and owners have decided nearly en masse to pay arena event workers during the postponement of the season, the Pegulas announced they will wait for a cancellation before giving checks to the employees they are responsible for in KeyBank Center and Rochester’s Blue Cross Arena.

There is no timeline for cancellations, so it could be months before workers receive the pay they have been promised for hockey games, concerts and other arena events. It is the only income for many of the security guards, ushers and ticket takers, who are not technically Pegula employees but are contracted through the teams and receive their paychecks from the Pegula organization.

 

Quote

The hospitality layoffs follow other employee dismissals within the empire. Sources tell The Athleticthat PSE has been examining personnel cutbacks across multiple departments for months in an effort to recalibrate an overambitious portfolio expansion that turned unwieldy.

In November, PSE fired 10 of 30 staffers at PicSix Creative, a marketing and communications subsidiary established just two years earlier to service outside clients.

“They took on more than they can chew, and the people at the top don’t know how to handle anything,” said another former hospitality employee, who cited a secrecy surrounding the organization’s dismissals. “No one knew what was going on. That is how they do it. They are too afraid to address staff and give them possible scenarios. They say they know nothing, and then, bam, ‘You are all screwed. Good luck collecting unemployment.’”

Edited March 25, 2020 by YoloinOhio

[DJB]

Ralph  is cheap ! !!!!

[Matt_In_NH]

Businesses all over the country are laying people off.  It sucks for sure.  And there is no guarantee business ever gets back to how it was.  

[Your Brown Eye]

[Mango]

But I thought he could just drill another well....

[YoloinOhio]

1 minute ago, Mango said:

But I thought he could just drill another well....

Terry Pegula made his fortune in natural gas. When he was introduced as the Sabres’ new owner in 2011, he declared money would be no object to creating a winning culture and hoisting Stanley Cups. He famously remarked, “If I want to make money, I’ll drill another well.”

Natural gas was selling at $4.21 per unit that day.

The price closed Thursday at $1.65, one day after dipping to an all-time low of $1.555. With global concerns and warmer weather ahead, a substantial rebound is unlikely any time soon.

The petroleum industry has been devastated in recent weeks by concerns over COVID-19, Saudi Arabia’s formidable investments into its natural gas operations and a Saudi-Russia price war over crude oil.

 

[Protocal69]

41 minutes ago, Mango said:

But I thought he could just drill another well....

Per the Athletic:

Terry Pegula made his fortune in natural gas. When he was introduced as the Sabres’ new owner in 2011, he declared money would be no object to creating a winning culture and hoisting Stanley Cups. He famously remarked, “If I want to make money, I’ll drill another well.”

Natural gas was selling at $4.21 per unit that day.

The price closed Thursday at $1.65, one day after dipping to an all-time low of $1.555. With global concerns and warmer weather ahead, a substantial rebound is unlikely any time soon.

The petroleum industry has been devastated in recent weeks by concerns over COVID-19, Saudi Arabia’s formidable investments into its natural gas operations and a Saudi-Russia price war over crude oil.

 

[billsfanmiami(oh)]

I mean, to be fair I don’t think there’s a lot of employers out there that are going to pay their employees for work not performed (mine included). Reeks of typical buffalo media muckraking.

[Protocal69]

Just now, YoloinOhio said:

 

 

 

Damn Yolo we must copy and pasted at the same time

[RoyBatty is alive]

Inevitable and so predictable someone was going to criticize them.

 

How about the drama, "But here’s the fine print: They’re not saving their jobs for them." Really?  Are they supposed to guarantee them jobs?

 

 

[Sherlock Holmes]

Wow, who would've thought...Billionaires all about the bottom line and don't give a single flying **** about us/employees/anybody but themselves?

Edited March 20, 2020 by Sherlock Holmes

[RoyBatty is alive]

8 minutes ago, Mango said:

But I thought he could just drill another well....

 

Drilling Almost all natural gas wells are uneconomic in the US, as are the oil wells.

[YoloinOhio]

3 minutes ago, billsfanmiami(oh) said:

I mean, to be fair I don’t think there’s a lot of employers out there that are going to pay their employees for work not performed (mine included). Reeks of typical buffalo media muckraking.

It could be. I noticed several bills reporters retweeting and saying Essentially that it was terrible form from them which surprised me (Parrino, Trapasso)

[PromoTheRobot]

12 minutes ago, billsfanmiami(oh) said:

I mean, to be fair I don’t think there’s a lot of employers out there that are going to pay their employees for work not performed (mine included). Reeks of typical buffalo media muckraking.

 

This is Vogl's crusade of late. I wonder if he thinks the Athletic will keep paying him if they have to shut down?

[CoudyBills]

Cuts both ways.  The masses can't demand the economic shutdown and demand they be paid too.  

[whatdrought]

I get the sentiment, and my company is gonna do our best to pay employees if they miss time, but I imagine if the shoe was on the other foot how this conversation would go?

 

Company can’t afford to pay employees for whatever reason, outrage that employees don’t come work their scheduled hours anyway... 

 

 

I get that this is a unique situation, but it’s still basic at will employment situations. The ones that are paying are doing a good service, but I’m not sure there’s a ton of reason to be outraged at those that aren’t paying their people to not work...

[ngbills]

We can make excuses for him because we like the team. Just bc he owns does the Bills and Sabres doesnt mean he is a good person. It does suck when the owner of the team you support is selfish and heartless. He will rebound from this even if he does have to pay his hourly workers for a time period. He also has options to temporarily lay them off with the promise of a job and continuation of benefits. Seems like he is going the cheapest way possible. 

[MJS]

Do former employees ever have anything good to say about an organization?

[mjd1001]

With oil prices so low for now....'drilling another well' may not be a profitable as it once was...so they gotta tighten the belt in other places to make up for it.

[Lurker]

Bring back the Rigas' ...

[PromoTheRobot]

10 minutes ago, ngbills said:

We can make excuses for him because we like the team. Just bc he owns does the Bills and Sabres doesnt mean he is a good person. It does suck when the owner of the team you support is selfish and heartless. He will rebound from this even if he does have to pay his hourly workers for a time period. He also has options to temporarily lay them off with the promise of a job and continuation of benefits. Seems like he is going the cheapest way possible. 

 

And you know this how?

 

Never forget the Bills are still here ONLY because of the Pegulas. 

Edited March 20, 2020 by PromoTheRobot

[ngbills]

1 minute ago, PromoTheRobot said:

 

And you know this how?

Of course this is based off the reports and what employees have said, what the article says and the fact that termination letters and firings have taken place. Most in my industry have been doing what we can to keep and support employees best we can. Wont be forever, but we are not jumping straight to firing people. Sounds like they were waiting to do this and it gave them a great opportunity to do so. 

[PromoTheRobot]

So Terry and Kim were waiting for a pandemic so they can trim payroll?

Edited March 20, 2020 by PromoTheRobot

[RoyBatty is alive]

22 minutes ago, ngbills said:

We can make excuses for him because we like the team. Just bc he owns does the Bills and Sabres doesnt mean he is a good person. It does suck when the owner of the team you support is selfish and heartless. He will rebound from this even if he does have to pay his hourly workers for a time period. He also has options to temporarily lay them off with the promise of a job and continuation of benefits. Seems like he is going the cheapest way possible. 

 

 

1) Good thing you dont judge. You do realize running a business is not a charity.

2) You know for a fact he will rebound from this do you?  Do you have any idea how much debt he has?  The cash burn he has?

 

Something tells me your business acumen is derived mostly from emotion and  chatrooms. 

Edited March 20, 2020 by RoyBatty is alive

[Hapless Bills Fan]

34 minutes ago, RoyBatty is alive said:

Inevitable and so predictable someone was going to criticize them.

 

How about the drama, "But here’s the fine print: They’re not saving their jobs for them." Really?  Are they supposed to guarantee them jobs?

 

I don't think that any hospitality employer is guaranteeing or saving jobs.  They really don't know the timeline or how things will look as we ramp back to normal.

Are the workers guaranteeing or saving themselves for those jobs?  Works both ways.

[TroutDog]

It’s time for the federal government to pony up. Just like the company I work for can’t pay everyone, PSE can’t either (when no revenue is coming in). Reality is a b sometimes. After defending our country, this Is next in line for the  US government...and they better hurry up or schitt is going to get hairy for many (47% of the workforce works for small businesses). 
 

Bailing out the big boys provides a news cycle splash but doesn’t help the many. 

[Doc Brown]

40 minutes ago, billsfanmiami(oh) said:

I mean, to be fair I don’t think there’s a lot of employers out there that are going to pay their employees for work not performed (mine included). Reeks of typical buffalo media muckraking.

I'm not sure about that.  I mean he paid Percy Harvin nearly seven million for work not performed.

[ndirish1978]

Are people able to collect unemployment if they have been essentially furloughed with job security guaranteed when the business re-opens?

[Charles Romes]

If they didn’t know how to make tough business decisions they wouldn’t have become Billionaires, wouldn’t have bought the team, and the team would be in Toronto right now.  No problem whatsoever with the actions taken here. 

[ngbills]

15 minutes ago, RoyBatty is alive said:

 

 

1) Good thing you dont judge. You do realize running a business is not a charity.

2) You know for a fact he will rebound from this do you?  Do you have any idea how much debt he has?  The cash burn he has?

 

Something tells me your business acumen is derived mostly from emotion and  chatrooms. 

Hilarious. I have been running a number of successful businesses as well as consult. Been doing this for 20 years in the silicon valley. I am spending hours each day on conference calls discussing these topics with other business owners and executives. Some businesses can succeed and place little value you on employees, but the majority succeed by having loyal and dedicated workers. That starts from the top and is modeled by how owners and key executives treat people. I could tell you countless stories of failed businesses due to bad culture that comes from the top. 

 

And obviously I dont have all the details. But I do know unless he is on the verge of bankruptcy there are many tools out there to help avoid immediate layoffs at the current time. 

[HardyBoy]

Was there a severance package?

[Augie]

51 minutes ago, YoloinOhio said:

It could be. I noticed several bills reporters retweeting and saying Essentially that it was terrible form from them which surprised me (Parrino, Trapasso)

 

That could hurt them down the road. It seems they don’t know enough to be taking a stand. This sucks for EVERYONE and PSE isn’t doing anything not happening EVERYWHERE. They should be held to no higher standard than the rest of the industry.

 

Our future daughter-in-law works for a huge hotel. They met this week and she was one of 40 out of 600 to still have a job. Still, she expects to be gone in the next wave. Life comes first, but the economic impact of this will be enormous. 

 

 

 

.

 

Edited March 20, 2020 by Augie

[Reed83HOF]

[Kelly the Dog]

10 minutes ago, ndirish1978 said:

Are people able to collect unemployment if they have been essentially furloughed with job security guaranteed when the business re-opens?

Someone told me earlier today that the reason the Pegulas did it that way was because the employees could now collect unemployment. I haven't had time to find out if this is true or not, but it seems like it would make a big difference. I have no idea if the Pegulas are being selfish, cold, unsympathetic or not. But that seems logical.

 

Anyone know for sure? About this specific incident? Anyone? Bueller?

[The Fiend]

17 minutes ago, ndirish1978 said:

Are people able to collect unemployment if they have been essentially furloughed with job security guaranteed when the business re-opens?

 

Yes, happens all the time when workers know they are being recalled. I don't even think they are required to have to look for work either.

 

5 minutes ago, Kelly the Dog said:

Someone told me earlier today that the reason the Pegulas did it that way was because the employees could now collect unemployment. I haven't had time to find out if this is true or not, but it seems like it would make a big difference. I have no idea if the Pegulas are being selfish, cold, unsympathetic or not. But that seems logical.

 

Anyone know for sure? About this specific incident? Anyone? Bueller?

 

They can collect  unemployment either way.

Edited March 20, 2020 by The Fiend

[Beast]

1 hour ago, DJB said:

Ralph  is cheap ! !!!!

Is there a rule for the Pegula’s that they should give their money away?

[HardyBoy]

 

Also, my wife owns a small business. The law that was just passed says she needs to pay up to 2 weeks of sick pay for every employee. Personally I think that having sick time for people is good, would make wages go down slightly, but you won't lose your job if your kid gets sick (sort of loke insurance).

 

That said...a totally unplanned huge expense like that, where the government is saying don't worry, we got you covered, you can take out a 0 interest loan (that converts to 12% interest on any unpaid balance after the first year).

 

This isn't going to just put her out of business (honestly I think it would anyway, and she is potentially going to pivot to something else), but this is going to take all the profit she was able to make over 3 years and put us into debt. 

 

Don't worry, they are going to help with social security payrol tax credits...will help all those companies that go out of business or need cash right when they start up again...

 

Anyway, the pegulas might be trying to help people with the timing, but also heard if you did layoffs before the bill was signed you wouldn't have to pay...of course hopefully I'm wrong on above, I just know what is swirling around in the business groups she's in...she built it up to 25 employees with no start up money.

[The Fiend]

4 minutes ago, Kelly the Dog said:

Someone told me earlier today that the reason the Pegulas did it that way was because the employees could now collect unemployment. I haven't had time to find out if this is true or not, but it seems like it would make a big difference. I have no idea if the Pegulas are being selfish, cold, unsympathetic or not. But that seems logical.

 

Anyone know for sure? About this specific incident? Anyone? Bueller?

 

https://www.thestreet.com/politics/what-is-a-furlough-14832476

 

"A furloughed employee may also take unemployment benefits for their time without pay. Since unemployment is paid by states, not the federal government, it will not suffer a budgetary lapse in the case of a federal government shutdown."

[ColoradoBills]

33 minutes ago, PromoTheRobot said:

So Terry and Kim were waiting for a pandemic so they can trim payroll?

 

Sneaky ain't they.

 

Seriously, lot's of people will be negatively affected in the coming months.

 

Hopefully Terry didn't pull a Judge Smales.

 

 

[RoyBatty is alive]

19 minutes ago, ngbills said:

Hilarious. I have been running a number of successful businesses as well as consult. Been doing this for 20 years in the silicon valley. I am spending hours each day on conference calls discussing these topics with other business owners and executives. Some businesses can succeed and place little value you on employees, but the majority succeed by having loyal and dedicated workers. That starts from the top and is modeled by how owners and key executives treat people. I could tell you countless stories of failed businesses due to bad culture that comes from the top. 

 

And obviously I dont have all the details. But I do know unless he is on the verge of bankruptcy there are many tools out there to help avoid immediate layoffs at the current time. 

 

Congrats on running a successful business, then my smart ass comment as about your business acumen were unwarranted, maybe.

 

You do realize the labor in the fast food/service industry in WNY (mostly)  is radically different from what,  i assume , the type of business you run in Silicon Valley.  Totally different dynamic.

 

And you dont wait to make tough financial decisions until you are on the verge of bankruptcy, when that happens you are too late 99% of the time. Then NO  One gets rehired.  with al due respect that type of comment screams to me that you are not being intellectually honest here.

Edited March 20, 2020 by RoyBatty is alive