In answer to the global recession and period of major financial insecurity, it seems that the answer to the problem for some companies is to offer their workers pay cuts in order to save possible redundancies. Although this appears generous, to ensure the long term viability of large national and international companies, it will have quite an effect on those taking them.
Will benefits be available for these workers who are given wage decreases? Unlikely, but it seems this is a course that could either kill or cure where the recession is concerned. British Airways have negotiated a 2.6% decrease in their pilots’ salaries to help the long term survival of BA that has recorded an annual loss of £401m.
BA has also asked its staff to work for a month unpaid and volunteer to take unpaid leave, to help them fight against their financial problems, as well as trying to freeze cabin crew pay.
BT has also made a similar move in offering extended holidays in return for pay cuts, as they are finding themselves having to fight aggressively against their financial difficulties. One of the options available to staff is a 25% reduction of their annual salary and an incentive of £1000 for those prepared to go on part time hours.
It seems some of the big companies have fallen hard during this recession and are desperate to give themselves the best chance for survival, whilst also retaining as many of their skilled workers as they can for the future, which will hopefully mean better times.
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