Multi-national company trying to impose 5% pay cuts

[Dakkon]

I am hoping to tap into those far more knowledgeable than me on UK employment law.

A friend works for a multinational IT firm that has sent out an email this morning to all employees saying from 1st April there will be a 5% pay reduction to all employee's salaries.

He has just sent me an email with lots of swear words in it.

Now it is my understanding that UK employee's have to actually agree to this first?

There is also a large Dutch office and Dutch employment law is even more protective than the UK's.

Are there any good sites where he can check his rights?

[buzzsaw]

April Fool?

[Dakkon]

buzzsaw said:

April Fool?

No, a very serious email, I asked that, he sent me a reply with more swear words in it

[Mr_Yogi]

There was a thread on here the other day about the EDS 5% pay cut, have a search for it, there might be something interesting in it

[The_Burg]

Lucky b@stard, 10% from large multinational IT outsource company i work for. Mid December and they even tried to backdate to the start of December.
Oh and got huge increase of workload and OT ban too.
Your friend is very, very lucky.

Unfortunately IT market is saturated, (unless your skill are very specific), and there is always someone prepared to do it cheaper!

On the plus side i have been recomended for an increase end of the month, somehow i don't expect i'll get it though.

[bigTee]

5% is better that 100% which I guess is the alternative.

[Piersman2]

In the UK they cannot FORCE you to take a 5% pay cut, my OH's company is doing this right now. Their US office can have it imposed, the UK one can't.

But following a meeting it would appear everyone in the UK has agreed to it and the saving will probably just come out of the company pension contributions rather than a cut in the salaries.

[ratbane]

Piersman2 said:

In the UK they cannot FORCE you to take a 5% pay cut, my OH's company is doing this right now. Their US office can have it imposed, the UK one can't.

But following a meeting it would appear everyone in the UK has agreed to it and the saving will probably just come out of the company pension contributions rather than a cut in the salaries.

You can't be forced into a change in your Contract of Employment. Both parties need to agree.

We've recently taken a 10% cut. 100% were in agreement.

[SirTainly]

Of course you can just opt to work 5% less (knock off at 4 on a friday or something )

[Orb the Impaler]

The_Burg said:

Unfortunately IT market is saturated, (unless your skill are very specific), and there is always someone prepared to do it cheaper!

Absiolutely. I am one of those people. I'd take your wage reductions chaps, cos if you don't then I will gladly do your jobs for a lesser amount.

Just as someone would take it from me for a lesser amount.

It's going to be dog eat dog out there soon. I've contracted at sums up to 70 quid an hour over the past 16 years and I'd snap someones hand off for a tenner or less an hour now.

So count your blessings.

[Mr POD]

bigTee said:

5% is better that 100% which I guess is the alternative.

If there were 20 people in your office and they said either one of you can go home now (and we'll draw straws ) or you can all take a pay cut, would you agree or not ?

Having taken a paycut of >5% when my wife gave up work with ME (Joint income per month went from £2600 to £1600) I can't see that 5% should be a problem.

[Dakkon]

Cool, thanks chaps, it is pretty much what I thought.

[Mr POD]

SirTainly said:

Of course you can just opt to work 5% less (knock off at 4 on a friday or something )

Or you could work 5% more efficiently and go home at 2.

[Mojocvh]

5% is that all?