5% Pay cut

mariemcg

We have just had phase 2 of redundancies, have "lost" our overtime pay which we got for covering evenings/weekends (worth at least £3k a year) and have to take time off instead. Today we have been informed via email that there will be pay cuts:

"This will include a goal of temporarily reducing the pay of our senior managers and experienced professionals by approximately 10%, while the pay of most other team members will be reduced by 5%" :eek:

I know I am lucky to still have a job (and fortunate in a way that I will only be eligible for a 5% pay cut rather than 10%) but I'm a bit shell shocked.

When is it going to end??? I have always maintained that things must get better at some point but this morning I'm finding it hard.

I now feel as if I have to up my moneysaving even more to compensate for losing 5% of my income. I'm feeling a bit overwhelmed.

therealdessie

Well there has to be a bright side: it's 5% pre-tax...?

And you still have a job.

mariemcg

Don't know. We haven't asked. Probably. We will know more on Monday.
I was just a bit shell shocked this morning and feeling a bit panicky about money.

Swans1912

We will not be having our contractual 5 - 10% annual pay rise this year in october, thankfully not a pay cut... yet!

I can see this as a very common move for a long time to come!

Pee

Just to say I'm thinking about you. It's going to happen to a lot of people I'm afraid, which doesn't make it any easier for you at the moment.

Let's hope it doesn't last too long.

tomstickland

Where I work we all took a 20% pay cut a few months ago.
Now we're facing approx 1/3rd of the workforce being made redundant (find out Monday).

savingholmes

mariemcg wrote: »

We have just had phase 2 of redundancies, have "lost" our overtime pay which we got for covering evenings/weekends (worth at least £3k a year) and have to take time off instead. Today we have been informed via email that there will be pay cuts:

"This will include a goal of temporarily reducing the pay of our senior managers and experienced professionals by approximately 10%, while the pay of most other team members will be reduced by 5%" :eek:

Have they consulted on the pay cut - as my understanding is that legally they have to? If you are more than 20 people they have to consult for 30 days, over 100 people for 90 days....

Also it is a forced change to your contract - so potentially your notice period could also apply?

Have they agreed this via a union or elected reps or are they just trying to get it through as an alternative to redundancy?

You may want to give ACAS a call for advice on 08457 47 47 47 as they are not entitled to unilaterally change your terms of contract... Technically if they do they are in breach of contract. In which case you have 3 options :

a) accept it and grin and bear it
b) continue working but put in a grievance regarding breach of contract and continue work but state you are doing so "under protest"
c) leave (very risky - not recommended) and claim unfair dismissal - you may or may not succeed depending on whether they have followed due process and how desperate the company finances are - tribunals do take this into consideration....

Hope that helps

getmore4less

Make sure that you know what the alternatives are, remember last out get nothing.

It is a good idea to get it done as a temporary measure to be reviewed in say 6 months and that any futere redundancies are based on the previous full pay.

hundredk

iKennett wrote: »

We will not be having our contractual 5 - 10% annual pay rise this year in october, thankfully not a pay cut... yet!

I can see this as a very common move for a long time to come!

Wow, 5-10% contractual rise...even at 5%, componded year on year you are doing well vs rpi. Where do you work?

http://www.incomesdata.co.uk/statistics/statrpi.htm

brightonman123

5% pay cut (or more), so does that mean they expect 5% less work?

seems only fair to have an early afternoon once a week, if not paying you the full whack? (40 hours x 5% = 2hrs off?)..

hundredk

brightonman123 wrote: »

5% pay cut (or more), so does that mean they expect 5% less work?

seems only fair to have an early afternoon once a week, if not paying you the full whack? (40 hours x 5% = 2hrs off?)..

Probably more a case of simple economics - in hard times people and companies need to make savings.

Another way of looking at these maths is if the company has, say 100 employees, then to keep pay their current wage the company makes 5 redundant, and then expect you to work "full whack" because of the savings made on the 5 redundancies....of course that is assuming you are not one of the 5.

Or they could just keep paying everyone full whack and go into liquidation and then expect nothing from all employees