14 Private Sector to Face Pay Cuts in 2010
A recent survey initiated by the British Chambers of Commerce (BCC) reveals that the private sector might have to face another tough year in 2010, as businesses continue to face financial turmoil because of the difficult trading conditions, shattering hopes of all those who anticipated an end to the recession.
According to research two thirds of businesses were planning wage freezes or pay cuts next year, while 18% were pondering over the scrapping of benefits, such as bonuses and gym membership.
A large number of firms questioned revealed that they plan to work at the same level or reduced level in the beginning months of 2010.
The lack of customer demand was the biggest stumbling block over the next 12 months making 2010 critical for the UK economy, companies said.
David Frost, Director General of the BCC, said, "It's clear that another tough year is in store for the private sector. Thanks to businesses and their employees, who have made huge efforts to avoid extra redundancies during this downturn, unemployment is lower than most expected”.
The declaration about the pay freeze by the companies has angered worker unions forcing them to think about challenges and walkouts in case of pay freeze in companies declaring consistent profits next year.
Adding to this David Frost said that tax will be reduced in order to enable private sector to generate investment, growth and jobs.
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