Pay freezes 'need to be across the board'
With new research suggesting that four in ten pay deals are pay freezes, an expert has said that if such measures are to be put in place they must effect everyone in the company, including directors.
A report by the Industrial Relations Services (IRS) shows that pay freezes are currently dominating the private sector, and will continue through the year.
Phil Flaxton, chief executive of Workwise UK, said that if a company has decided to freeze pay it should demonstrate that it is doing so throughout the company, and that management skills will be used.
He went on to say that "employers who provide additional benefits to staff like a pension scheme or medical insurance, what a lot of them are doing at the moment is suspending those kinds of benefits...before they actually move towards wage freezes".
According to IRS, this is a quiet period for pay deals. More significantly, figures for the busy April pay bargaining round have also been revised downwards as more awards are settled, showing that the median basic pay deal has been one per cent for each rolling quarter since the three months to April.
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Can't say I've ever worked at a company where a pay freeze wasn't across the board.
Would help the companies that need to do that if they saw the MP's and Civil Servants Mandarins go for a genuine pay freeze (including dropping all bonuses and perks) to show leadership - and not on the basis that they will just vote themselves a massive increase later on! Can't see that happening though :-)
For all the years I have been on this earth I have never heard of "pay freezes" unfortunately you didn't explain what you meant by that but your story was interested thanks for sharing.