Companies who have frozen wages - when will we see inflation inline increases

Percy1983

The_White_Horse wrote: »

if public sector workers don't get a pay rise (hahaha) for a decade they will still be too highly paid.

All of them? as in every last public sector job is overpaid?

Conrad

moneyinmypocket wrote: »

I have spoken with many who had pay frozen for last 5 years - once upon a time wages where increasing inline with wages, when do you think we will get back to this? I personally think companies will drag there feet and not offer across board increases for many more years to come

This whole website is dedicated to saving money, hence keeping company costs low.

So what do you really want, low prices or price rises that flow from wage (cost) increases?

The Brits seem to want both, huh??

Conrad

N1AK wrote: »

We're currently negotiating what are effectively pay freezes at a number of sites to cover the next 3 years. In fact, for our main site it will likely lead to overall wage reductions.

With so many people available to do low skilled work companies have little reason to increase wages for many roles. I wouldn't expect to strong wage growth for 3-4 years as we need the economy to recover and drive down unemployment first. We may not see the kind of wage growth vs inflation we've seen in the past even after a recovery.

Yes, somehow British people who spend much of thier time seeking lowest priced goods, do not make the connection with wage levels.

If you buy Chinese printers, don't think we can somehow magic higher British wages.

chewmylegoff

Gra76 wrote: »

I work for a relatively small private company emplying around 20 staff, and for the last 4 years I've seen a total of 2% pay increase in that time, mainly because our new MD has decided that he thinks we're all paid too much to start with....which I can assure you we're not!

given that you are still working there it appears that he was right, as if he has only given you a 2% payrise in 4 years, and you haven't left as a result, then he is paying you more than enough to keep you there doing the job.

Pete111

Gra76 wrote: »

I work for a relatively small private company emplying around 20 staff, and for the last 4 years I've seen a total of 2% pay increase in that time, mainly because our new MD has decided that he thinks we're all paid too much to start with....which I can assure you we're not!

I work 50 hour weeks but if I worked a fairly standard 40 hour week I'd be a fraction above the national average, so we get paid fairly well only due to the hours we work, not the hourly rate.

He decided he wasn't giving pay rises last year and has said the same this year. Yet he's been on 4 holidays abroad this year already, and is due to go to Dubai for 2 weeks next Wednesday....on top of which he's just bought a brand new BMW X5. To replace his 3 year old X5. Which he's just bought from the lease company so his wife can have it to replace her 3 year old Audi TT 3.2 Quattro.

He wouldn't pay any bonuses out last year because he said the company didn't make any money. He said there's unlikely to be any bonus this year because again, he says we haven't made any money. I'm not surprised looking at the money he's spending on himself. Last christmas the entire office staff left in unison when the MD came through and said there were no bonuses, but we could draw lots on how a few cans of beer and a couple of bottles of wine were shared out. These were brought in by suppliers and customers...he didn't buy these either.

On top of that, the previous MD (his father in law) is still creaming a salary out of the company, even though he's supposedly retired.

I love private companies.

Not seeing a wage increase doesn't annoy me as much as it does that the MD is peeing money up the wall in plain sight and then saying he can't afford to give pay rises...

Sounds like you need to set up your own private family firm then....!

Gra76

given that you are still working there it appears that he was right, as if he has only given you a 2% payrise in 4 years, and you haven't left as a result, then he is paying you more than enough to keep you there doing the job.

The construction industry is flat and has been for a while. The company I work for is contracted to certain insurers so there's job security in it, which is another big reason not to leave at the moment!

Sounds like you need to set up your own private family firm then....!

This was discussed with my father-in-law (who also worked at the company) at length a few years ago and we started getting the wheels in motion to do this but he passed away not long after we started putting the feelers out to see what work we could get and the idea dropped by the wayside.

grizzly1911

Jamie_Carter wrote: »

Just because the government says that we are now out of recession doesn't mean that companies aren't still struggling. In fact you only have to walk down any high street to see more and more of the big chain stores closing. So as the wage bill is the biggest expense for most companies, many can't afford pay rises.



As for public sector workers. Some of the jobs are very specialised, and don't have equivalents in the private sector. So these people are usually stuck in the job that they do. Even though many of these professions are essential to the rest of us when we actually need them. Although you do get the odd ignorant person who criticises them until the day they actually need them.

I know you only picked retailers as an example but I don't think the wage bill is the main factor for closure:- low footfall due to PP planning and council car park taxes, high rents and business rates, reduced demand are probably bigger issues.

I agree with your comment on public sector workers. Council bureaucracy are fair game but key NHS workers, for example, no.

StevieJ

Conrad wrote: »

This whole website is dedicated to saving money, hence keeping company costs low.

So what do you really want, low prices or price rises that flow from wage (cost) increases?

The Brits seem to want both, huh??

Simple, I as a taxpayer don't want to be paying half of private sector bosses wages bills

milliemonster

grizzly1911 wrote: »

I know you only picked retailers as an example but I don't think the wage bill is the main factor for closure:- low footfall due to PP planning and council car park taxes, high rents and business rates, reduced demand are probably bigger issues.

I agree with your comment on public sector workers. Council bureaucracy are fair game but key NHS workers, for example, no.

Thanks for this, as a nurse in the public sector who trained for over 3 years and then has continued to study post grad and work hard for many years I am still only paid £11 an hour, it's quite hurtful that people in the private sector feel that I am 'overpaid'

Turnbull2000

4 solid years of pay freezes so far at my firm. That must amount to a 15% pay cut or so by now?

Some staff in a Southern based office went through a 4 day week over 12 months i.e. 20% cash pay cut.