Employees willing to take pay cuts

08/12/2009

UK workers are willing to put up with pay freezes and even reductions in order to hold on to their jobs in the recession.

New analysis from the Institute for Employment Studies suggested today (December 8th) that most employees know someone who has been made redundant due to the downturn.

Duncan Browne, director of reward services at the organisation, also said that workers are well aware of the fact that unemployment is rising.

Latest official figures put the UK's jobless total at almost 2.5 million, with estimates from business group the Confederation of British Industry indicating that unemployment will peak at 2.7 million towards the middle of next year.

A survey from SimplyWired.co.uk also suggested last week that 69 per cent of workers would take a pay cut from their present job as a way of avoiding redundancy.

Mr Browne said: "If you said to me, 'Would you rather have a pay cut or do you want to lose your job?', I'd have said 'yes'.

"The general situation is that unemployment has gone up to two and a half million. Most people know someone who's been made redundant in the last year or so."

Kevin Still, EuroDebt director, said: "Loss of income remains EuroDebt's primary reason for people starting a Debt Management Plan and this reflects consumer attitudes to trying to hold down a job even if it means taking a pay cut or working reduced hours, which is affecting millions of people. Part of our debt advice when dealing with people in financial difficulty is to ensure that they prioritise payments like their mortgage, rent, council tax and utilities.

"We normally have to look at negotiating reduced payments to the unsecured creditors and put forward realistic repayment arrangements for arrears on priority creditors."

Tags; Young Family Finances, Job loss, Credit Card Lifestyle, Recent Graduate Debt,

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