Would you take a pay cut to save your job?
The news that the 25,000 strong workforce of steelmaker Corus have offered to take a 10% pay cut has prompted the question, would you take a pay cut to save your job?
The move comes amid signs from the company that a number of factories were pencilled in for either a short-term shutdown or ultimate closure. This seems to have prompted a discussion between the unions and the company's workforce which is rumoured to have resulted in an offer to cut wages by 10% for a maximum of six months. Whether this will save the long-term future of the particular factory in question remains to be seen but it is an interesting development.
The problem with taking a pay cut is not only the fact that it places yet more pressure on all members of the workforce, but it also lowers wage rates for the future as employees will be starting from a lower level, unless there is a specific agreement to return rates to the former levels in due course. The union involved has so far refused to discuss the rumours and there are concerns that if one employee was to attract such an option then more employers may look to the unions for similar assistance.
Share this..
Related stories
Will the British Airways employment changes be replicated elsewhere?
News that a significant number of British Airways staff have agreed to work unpaid for up to a month, take unpaid leave or move to a part-time basis has been welcomed with open arms by Willie Walsh, the chief executive of British Airways. The move is set to save the company around £10 million a year and further efficiency savings can be expected in the short to medium term. But does this change t...
Read MoreMinister makes energy bills warning
Recent rises to gas and electricity bills might be here to stay, business secretary John Hutton has warned. In an interview with the Daily Telegraph, the government minister said that there is currently "genuine concern" about the difficulties low-income households are facing in paying their bills. The comments follow the latest round of price hikes from UK energy firms - with market leaders Briti...
Read MoreScottish tax payers set to take £45 million hit
While there is no good time to lose £45 million of tax payer's money, the news that Scottish local authorities have around £45 million with Icelandic banks is not good news for councils, for the government and for tax payers. As the SNP government continues it relentless crusade to place councils under as much spending pressure as possible - often taking the praise for scheme which are unfunded...
Read MoreCo-op releases first-time buyer research
First-time buyers plan to save an average of £20,000 before purchasing their home, the Co-operative Bank has revealed.New research, undertaken by the bank in collaboration with Places for People, also showed that the typical buyer is planning to wait two years before getting on the property ladder, the Press Association reports.The group were found to be conservative on matters of property, with...
Read MoreHouseholds reveal radical plans to save on energy bills
Some Britons are considering not turning on their central heating at all this winter - in order to save on their energy bills.According to new figures from Moneysupermarket.com, around three per cent of households will take the radical action.Meanwhile, 25 per cent say that they will turn their heating systems on less - while 19 per cent are planning to turn their thermostats down to save money.Th...
Read More