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.
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