Further pay cuts expected for coming year

The last year has undoubtedly been a challenging and difficult one for workers, who have faced pay freezes, reduced hours, and in some cases redundancy, with the recession taking its toll on industry and the economy. Whilst many may currently be trying to forget about the difficulties and challenges of the last year and enjoy some time off over the Christmas and New Year season reports have suggested that the relaxation may not last long, as another challenging year is expected in 2010 for workers.

A report from the British Chambers of Commerce has indicated that many workers will face further pay cuts over the course of 2010, with many others facing a freeze in pay as businesses continue to struggle. According to the BCC around 60 percent of bosses have said that they are going to be freezing pay for workers in 2010. The news is bad for those who will see their pay frozen again, but the BCC has said that the situation is even worse for some workers.

Around 5 percent of bosses have said that they are planning to actually cut wages next year, which means an even more bleak outlook for some workers. Nearly 20 percent of bosses are also looking at cutting benefits in 2010 in order to try and save money. This could include bonuses, gym memberships, and the like. The BCC said that the figure may have been higher but 40 percent of bosses said that their workers did not receive such benefits anyway.

David Frost from the BCC said: ‘We face a tough year ahead. It will be a really long haul. The stark reality is that business finances are still under incredible pressure.’ He added: ‘Wages freezes and cuts are unpleasant but have ensured unemployment has not risen like it did in previous recessions.’

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