More pay freezes set for 2010
A poll conducted by the British Chambers of Commerce suggests that pay freezes which hit many in the private sector this year are set to continue into next year. The Bank of England reported last month that forty percent of private sector workers had undergone pay freezes last year and the new research suggests that well over fifty percent of company bosses intend to freeze employees pay through next year. Five percent even declared plans to cut pay.
The news will not be welcomed by those who hoped that an end to the recession might ease their financial problems. The announcement comes just before VAT is to return to 17.5 percent, prices are expected to rise and taxes will be increased. Director general of the British Chambers of Commerce, David Frost has said that the poll suggests difficult times ahead. He did however point out that the amount of companies willing to introduce pay freezes meant that the high levels of job losses had not been seen as they have been in previous downturns.
The announcement has angered unions. Joint general secretary of Unite, Derek Simpson says that although they have been tolerated so far this year if there are any pay freezes in companies which consistently declare profits next year then there will be challenges and walkouts. Already companies like Ladbrokes, British Airways and Swinton Insurance have said that they will be freezing pay in 2010. The train driver’s union, Aslef has said that they have learnt that train companies are intending to close final earnings pensions to any new members next year. The union’s national organizer, Simon Weller said that this just proved that train companies didn’t want many trains to be running in the New Year.
Comments
Got something to say?