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The British Chamber of Commerce believe that 58% of companies intend to freeze wages in 2009, while 12% said they needed to cut staff pay.
Of the 400 companies polled by the BCC, four in 10 said they would consider making job cuts in the next six months and 12% admitted job cuts would be a certainty.
Royal Mail became the latest organisation to freeze pay this year, after confirming this with a letter to the trade unions. Royal Mail stated they were in a very tight financial position which might render it unable to offer any staff a pay rise this year.
In his letter, the HR director at Royal Mail said: “Given the tough economic conditions and with the retail price index currently being negative, you will undoubtedly be aware that many other companies find themselves in a similar position of having difficulty in affording increases in pay.
“We do not envisage being able to increase pay rates for any colleagues (including all directors and managers) across the group.”
We have previously provided advice on ways in which to avoid job losses, and if you need practical guidance on this matter please contact us on 0141 572 8427.