British Telecom becomes the latest UK employer to freeze staff pay
British Telecom has become the latest of many UK employers to freeze staff pay as the economic slump continues to bite and companies need to reduce their cost bases. It has been agreed with the unions that the 100,000 BT staff will not get any pay rises until at least 2009/10 and even then the economic situation at the time will be taken into account. This comes at a time when UK banks continue to pay bonuses and award staff pay rises even though in the eyes of many experts some of them were technically insolvent before the government bailout.
There is no doubt that the ongoing funding of the UK banking sector is causing serious disharmony in the UK workforce with more and more companies struggling, more employees losing their jobs while the financial sector (seen by many as the main cause of the economic downturn) continues to be supported with billions upon billions of UK taxpayers money. There is a strong backlash against the banking sector growing in the UK and this could cause serious difficulties for the UK government at the European elections later this year and general election expected next year. Why should UK taxpayers continue to fund what are in effect often discretionary bonus payments and pay rises when the rest of us struggle?
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