Pay cut backs during the recession?

Sniipe

I am just wondering how many companies are issuing pay cuts? Surely this is better than letting people go?

Didn't the government take a pay cut with this budget? I think rather than a company failing perhaps its better that we keep doing pay cuts across the board from junior positions right up to management?

Anyone any opinions about this?

gurramok

Pay cuts are useless for 'bestshoring' as they call it. We cannot compete on wages outside this country in the usual destinations hence headcount cuts.

A pay cut for anyone earning over 50k would be helpful but its the public sector who need to cut most as they earn more.

The private sector don't depend on public taxes for their wages plus they are been hit hard bu joblessness hence less relaince on them to take pay cuts!

justfortherecor

Think Davy enacted a 10% pay cut for anyone on 50k and over in July.
Bonus payments in Irish Banks are pretty much non-existent this year as well as far as I know.

K4t

Sniipe wrote: »

Didn't the government take a pay cut with this budget?

Irish government ministers will take a 10 percent pay cut next year as part of national belt-tightening measures but they are still far from the breadline.
The cut, unveiled in the 2009 budget on Tuesday, will bring ministers' average annual salary to around 202,675 euros (158,811 pounds), still well above the 154,324 euros annual salary earned by a federal minister in Germany, Europe's biggest economy

http://uk.reuters.com/article/businessNews/idUKTRE49D7NK20081014

Ya good on the Government. Patriotism indeed. :rolleyes:

I don't think pay cuts for the ordinary worker is the answer tbh. You won't find the bank executives who got us into this mess taking pay cuts, and if they do they'll still be earning about 5 times as much as the average worker. The Government chickened out in the budget and once again asked the poorest in society to bail out the rich.

Let's not take pay cuts, hold out until the next general election and hope Fine Gael can take the brave decisions that Fianna Fáil have not and will not take.

phantom_lord

K4t wrote: »

Let's not take pay cuts, hold out until the next general election and hope Fine Gael can take the brave decisions that Fianna Fáil have not and will not take.

c'mon don't be ridiculous.

GUIGuy

Pay cuts in the private international sector are more complicated than in the public sector. My company sells ALL of its stuff abroad, so we've really welcomed the drop in the Euro... which effectively gave us a 20% pay cut with no side effects (for staff). But in my industry I took a 10% pay cut followed by a years freeze the next year... coz the Euro was high! So we can never have complete stability.

But in the public sector yes a 5% cut for those under 50k and 10% pay cut above would save the countries finances, not effect anyone TOO harshly, not reduce frontline services and give the tax payer a sense that the public service were feeling some pain.

But I guess no govt would do that, they'd prefer to cut services rather than wages. An if we do come out of this patch I would never again allow a public pay spiral... better to spend on infrastructure and services rather than wage hikes.