Companies plan to cut or freeze salaries
Published: 03 January, 2011
UK: More than half of British companies plan to freeze or cut their employees' pay in 2011, according to a survey by the British Chambers of Commerce.
Of the 450 businesses surveyed, 45% said they would give their staff a pay rise, while 49% intended to freeze salaries and 6% said they planned to reduce wages.
The BCC said the results showed that companies were taking a 'pragmatic' approach to challenging financial conditions, and that some were choosing to cut pay as an alternative to making staff redundant.
Firms taking part were also asked about the impact of the Government's spending cuts on their businesses. Thirty-eight per cent said the cuts would have an impact on their profitability, and 18% said they would delay investment plans as a result. Only 13% expected to lay off workers as a result.