[Solved] Child not positioned correctly on rotation

I must be missing something basic here.

The short version:
I want child objects to rotate around the parent’s axes, not their own local axes.

The long version:
I have two cubes: one at world origin, the other at 0,0,1. The one at 0,0,1 is the child of the cube at origin. When I rotate the origin cube the other cube inherits the rotation, but not the relative position. ie. it rotates around its own axes, not the parent’s axes.

Okay, problem solved.

I had a scale of 1,0.5,1 applied to the root object which totally screwed up the child positioning.

Root object scales scale the local coordinate systems for every child object too… So try to avoid it wherever possible.