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Company coruption

Tell me how legal this is, i work for a steel company, we sell bars,tubing and angles, plus plate. We buy our material from the mill baded on weight, for example, tubing 4×4×.375" thickness by 48 feet long, now it comes to us in bundles of 9 pcs. From yhe mill they mark the end in chalk the actual thickness usually 10% less. Its our tolerance, but we sell all our steel by book weight ,so the customer pays a fake weight thinking that the material is actually .378" thick per foot, when its actually less, plus the pay a mark up on selling this tubing, now think of this in the bigger picture when we sell millions of pounds of steel perday when we really pay exact weight from yhe mill, everyday for a year just how much profit we scam from every customer we sell too, it adds up on every bar,plate tubing,sheets,angles, and machined parts that are cut for customers too. I signed a non disclosure paper almost 26 years ago.im disgusted on my companies corruption all our material is marked up by 10 % but thats not counting on the actual price we pay for our material from the mills. By law the mill has to provide exact measurements and weights for deliveries of such material. The law ends there. Whats your opinion of yhis fact ?
ArishMell · 70-79, M
I operated a factory materials store for several years, and as far as I know all metals were sold to us by size not weight. The weights of stock bars were known from the catalogues and other references but for engineering, not sales, purposes.

Also the designers would have known the size tolerances on stock metals; the finished dimensions allowed for that and the working surfaces were all machined anyway.

So we could not be short-changed in that way; and no-one was infringing any laws.

When I cut the bars into billets for issuing that was always by length so the work was costed by length actually used; plus whatever the Accounts added as my charge-out rate. The machinists were on set wages and overheads but booked time-on-task; I was on a set charge-rate irrespective of product and batch.

However we also bought plate materials, mainly aluminium. There I would book out the overall plate used, but some finished parts were fairly large L-shapes so I'd cut the bulk of the angle out (leaving about 3mm all round for machining) and keep the off-cuts back for smaller components, not necessarily even for the same product. So those bits were effectively booked out twice but at the correct blank size per product; and the amount of metal actually scrapped was very small!

Corrupt? Not really. A bit cheeky though. The extra profit was not that large, the products were still costed correctly, it reduced the waste, and no supplier or customer was harmed in the making of these parts.

++++

One day I wanted for my own purposes two large-diameter rings cut from 20mm mild-steel plate. We did not use such metal so I went to another engineering company on the same trading-estate. When I returned a few days later to pay and collect, I saw the off-cut centres propped against a wall.

"Oh, and I'll have the two centre-pieces please!"

The store-keeper looked surprised.

"I work in a metals store in another manufacturing company," I said, "So I know how things are priced!"

I went home with the two rings and their centre "off-cuts".
DeWayfarer · 61-69, M
It's unfortunately a standing practice in all industries. A 2" by 4" really isn't a 2" by 4" either.

The DV (Daily Value) percentages on food products, same thing.

The ethics in business is long gone. Why they can get away with selling the air in bags of potato chips. After all that air has the SCENT of potato chips.

This is actually allowed because otherwise the government would be considered anti capitalism.

This started BTW with pet rocks back in the 1960s.

The government had to consider the value of such a rock and what could be considered false advertising.

Thank capitalism for this moral value insanity.
Tugasaki · 56-60, M
@Virgo79 when it comes to my purchases on vending machines and their prices i always buy the products that have the most gram weights, 70 grams for $1.20 vs a chip bag of 32 grams at yhe same price is just foolish.
Virgo79 · 61-69, M
@DeWayfarer says right on the bag
DeWayfarer · 61-69, M
@Virgo79 I never noticed that the bag mentions it's nothing but air! 😆

Perhaps in the very smallest print? 🤷🏻‍♂️😈
Tugasaki · 56-60, M
Legally your allowed 10% +/-, your right but everything we get is underweight when you are charging a customer by our book weight on what the material rwally is, a full bundle sold straight out to a customer is charged by what our book says the weight is, but the mill tag shows a lower weight. The customer is getting hosed big time, and our rule on the floor is to tear off the mill tag before shipment, the company says to not advertise the company we buy from, but in real fact the stenciling is on the material where the material was made from, so ripping off the mill tag the customer can see his charged weight and mill weight is not the same, hence all tags to be ripped off before shipment ,this is just one example of how corrupt my company are.
Tastyfrzz · 61-69, M
@Tugasaki this could become a safety issue if the stock is below the engineering tolerences. Someone could use it in a bridge or structure with a low factor of safety and end up killing a bunch of people.
Tugasaki · 56-60, M
@Tastyfrzz i have checked +/- 10 % its allowed to be, i have mic'd many msterial its within tolerance, my main point is that the company buts it from the mill based on weight, but resells the material by book weight and almost all material is never in book weight. This is where they make a stinking amount of profit over a years time. When we ship 100's of thoasands pounds per day.we load full semi truvk per night at least 5 to 6, not counting what gets shipped during the day time.it adds up.
Tastyfrzz · 61-69, M
So its up to incoming inspection to verify the weights but i brt there's a clause in the terms and conditions of sale allowing for +/_ 10% variation in the weight due to mil tolerances.
Tugasaki · 56-60, M
@Tastyfrzz i work as a machine operator, i cut steel to the customers specific measurements i have kept a record in the last year where i returned material back to stock because i used yhe drops from one order to cut more parts to the next order, every order i do for this one customer says to scrap the drops or off cuts, i dont, that means this customer has been paying for more material than exually needed, and has been charged for the full amount, orders are not made up unless the cutomer approves the material needed this is my ace in the hole, if i ever get fired i will provide the customer all the evidence order numbers and material used with dates, i will be a ehistle blower, until then i just keep recording what the salesman kepts ripping off this one customer.i provide great cuts and i love my job but it eats at me on how corupt my company is treating this one company i cut for. I have complained to all my supervisors and they say nothing. What can i do. I know in the long term if that customer were to do a audit on their one years worth of business just in my dept alone, they would be pissed.

 
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