1 in 3 firms freezing pay
One in three firms have implemented pay freezes in the past year, according to new figures from Income Data Services (IDS), with many companies justifying such moves by committing to saving jobs.
According to the analysts' latest report, pay freezes have been particularly common in the motor industry, construction, chemical, road and air transport and media sectors.
"In many cases pay freezes have been justified through commitments to safeguard jobs. Firms are conscious of the need to retain a skilled workforce for when the market picks up," it said.
However, a number of sectors did still experience pay rises, with the average wage increase standing at 2.9 per cent.
Ken Mulkearn of IDS said that firms which did not award pay increases this year may return to upping wages in 2010.
The firm predicted that if inflation rises as expected private sector pay is likely to increase on average by about three per cent.
Last week, it was reported by the Times that the government is considering a pay freeze for top judges, civil servants and NHS managers next year in a bid to cut down on public spending.
Have you experienced a pay freeze this year?
Facebook
LinkedIn
Twitter
YouTube
Comments
why is it there is never a pay thaw following a pay freeze?
Not yet but it will come. Better a pay freeze and a job than the opposite scenario.
Agree but one thing we always seem to miss is truly how people are placed on income / expenditure v's pre collapse. I would hazard a guess that with the collapse in the interest rate and the linkage to a high % of mortgages people are in fact now tracking either in line or better off in disposable income terms if of course they still have a job that is.
In the book "Animal Spirits" there are a couple of key chapters around money illusion and fairness that are worth reading in relation to this.