Workers facing pay freezes
Mar 16 2009
One in ten UK firms are freezing their employees' wages, while more are pushing back pay decisions, it has been reported.
A study from independent research organisation Incomes Data Services (IDS) found that more companies are telling their staff that annual wages rises will not be carried out this year, according to the BBC.
Furthermore, firms are trimming their workers' hours in an attempt to retain their experienced staff in the current economic climate, while speculation that the Retail Prices Index - which is used in pay settlements - may enter negative growth could lead to more wage freezes and cuts.
Ken Mulkearn, editor of the IDS Pay Report, adds: 'We are also seeing pay pauses, where it comes to the time for an annual pay review and firms are saying they will put off a decision on what to do about pay.'
However, the research reveals that average pay continues to rise, albeit at a slower rate, and some sectors such as utilities and defence are unaffected by wage freezes, the news provider reports.
According to business advisers BDO Stoy Hayward, the next three months could see another 320,000 workers made redundant as companies attempt to lower their costs.
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