Can our employer cut our wages by 20% ?

BettyIW

Hi, this is my first post here and would be very grateful of any advice. I have worked for a voluntary organisation for 9 years and my wages are based on an increment system. Three years ago the company changed the pay system so that new workers started on 17k and could not go higher unless through cost of living etc.
The highest pay level for my job title is 21k, although I get paid pro rata as I am part time. Recently the company reduced the pay for one team in our office, stating that the funding had been cut and it was to prevent redundancies. We have since found out from the provider of the funding that this is not the case. We know that the company are going to cut wages by 20% across the board, leaving full time staff around £380 pm worse off. A lot of us would not be able to afford to continue to work. They say the consultation process would take place and that the pay would be protected for 6 months.,, however, it is going to leave a lot of people in dire dire straits. Is there anything that we can do and/or what would you advise? We appreciate that if funding had been cut there is nothing we can do, but as this seems not to be the case and we are being lied to, we would like to pursue action when the time comes for the cuts. We are prepared to take a pay cut and freeze, but 20% is crippling. The company has union members but they have all been ousted in one way or another by the company and are of no use to us at all. Thank you for your help X

ceridwen

Sorry to hear that. Guess the writing was on the wall when they abolished the increment system 3 years ago (apart from for existing staff) and the fact that they sacked Union members.

It seems odd that they have picked on just one team in the office for a paycut.

What is the difference between your team and everyone else there?

Hmmm....the fact that they lied as to the "reason" for this paycut and that there are no Union members left there - then, to me, that adds up to "maybe they are breaking some law or something in doing this - and sacked the Union members in advance in order to stop people calling them on this".

There is, of course, nothing to stop anyone wishing to from joining the relevant Union surreptitiously - and paying Union subs direct to the Union themselves;). I've certainly done that before now myself...:). That way - you would still be entitled to request Union advice.

<wanders off thinking "Bet that 20% paycut is pretty much the difference between the top and bottom of the payscale that those existing staff are still on - and the real reason for this paycut is to abolish increments even for those staff still in receipt of them. They just want everyone on one flat rate of pay - no increments at all...">

EDIT: just got my calculator out and 80% of £21,000 is £16,800 (ie that £17,000 on the bottom of the increment scale "rounded a bit" to make it 20%). Its a 19.04% pay difference between top and bottom of payscale - so yep...that makes sense...thats why they chose the figure of 20%.

Is there anything else pay and/or conditions wise that existing staff get that new staff don't? If so - be prepared for them to come up with some excuse to try and remove that as well..

I wonder also what other thing this organisation wanted to put my missing 20% of pay towards? They have told you all a lie for some reason - and that is likely to be because they want all those odd 20% of paypackets to put towards something else. What is that "something else"?

When they say "pay protection for 6 months" - be aware that that probably means the EXACT same pay (ie no-one getting any cost of living rise due during that time)...I imagine you are all due the annual cost-of-living rise during the next 6 months, so in actual fact the paycut of 20% would probably be based on 2010/11 payrate, rather than on 2011/12 due payrate.

dickydonkin

ceridwen wrote: »

There is, of course, nothing to stop anyone wishing to from joining the relevant Union surreptitiously - and paying Union subs direct to the Union themselves;). I've certainly done that before now myself...:). That way - you would still be entitled to request Union advice.

I agree - I have also done the same thing, but on that issue, when Mrs.P was being made redundant some time ago, I went through her contract and noted that it was a requirement to inform management if any member of staff joined a union whilst in their employment.

There were no union members at her workplace, however I just thought it strange to incorporate this clause into a contract of employment.

This may be commonplace of course, I don't know, but it was the first time I had seen such a requirement.

After making such a Horlicks of the redundancy procedure, it was plain to see why this clause was put in. It was just a shame that my wifes colleagues who also lost their jobs (unfairly) did not instigate tribunal proceedings as well.

tim123456789

BettyIW wrote: »

Hi, this is my first post here and would be very grateful of any advice. I have worked for a voluntary organisation for 9 years and my wages are based on an increment system. Three years ago the company changed the pay system so that new workers started on 17k and could not go higher unless through cost of living etc.
The highest pay level for my job title is 21k, although I get paid pro rata as I am part time. Recently the company reduced the pay for one team in our office, stating that the funding had been cut and it was to prevent redundancies. We have since found out from the provider of the funding that this is not the case. We know that the company are going to cut wages by 20% across the board, leaving full time staff around £380 pm worse off. A lot of us would not be able to afford to continue to work. They say the consultation process would take place and that the pay would be protected for 6 months.,, however, it is going to leave a lot of people in dire dire straits. Is there anything that we can do and/or what would you advise? We appreciate that if funding had been cut there is nothing we can do, but as this seems not to be the case and we are being lied to, we would like to pursue action when the time comes for the cuts. We are prepared to take a pay cut and freeze, but 20% is crippling. The company has union members but they have all been ousted in one way or another by the company and are of no use to us at all. Thank you for your help X

A company cannot unilaterally reduce an employee's wages. It must do so by agreement. If you don't agree there is nothing that they can do to force you to accept the cut. Though be prepared for the redundancies if you go this route.

BettyIW

Thank you very much.

Yes, with your replies and looking into it further it seems they can end a contract and start a new one, we can sign it or not. Therefore we can accept redundancy or lose our jobs anyway.

I wondered if not being able to afford the new terms would make you eligible to claim for constructive dismissal?

We are going to request info as to why they are doing this and how they can warrant it financially. It seems the consultation process is just a paper exercise and it will happen regardless.

Thanks guys X

tim123456789

BettyIW wrote: »

Thank you very much.

Yes, with your replies and looking into it further it seems they can end a contract and start a new one, we can sign it or not. Therefore we can accept redundancy or lose our jobs anyway.

I wondered if not being able to afford the new terms would make you eligible to claim for constructive dismissal?

We are going to request info as to why they are doing this and how they can warrant it financially. It seems the consultation process is just a paper exercise and it will happen regardless.

Thanks guys X

No, it's still not that simple. They cannot say that those who don't sign the new contract have choosen redundancy

The redundancy MUST be a separate process. If, after people have or haven't agreed to the contract changes they decide that they still need to save money, they must follow the redundancy process correctly and cannot (legally) use whether an employee has agreed, or not, to the contract change as a criteria for selection.

So yes, if they don't do it as above you can clain at an ET for wrongfull/unlawful dismissal

tim

Ihatecameron

Yes, with your replies and looking into it further it seems they can end a contract and start a new one, we can sign it or not. Therefore we can accept redundancy or lose our jobs anyway.

If you do not sign the new contract and do nothing for 6 weeks, ie complain and refuse to accept it in writing. IOW if you do nothing about it, the new contract will be seen as accepted by you.