Second 10% pay cut - anything we can do to avoid this?

All members of staff recently received a letter informing us of another 10% pay cut accross the board (except those on Minimum wage already). This is the second 10% pay cut we have received, and people have also been cut back on days.

My question is, can they legally take 10% of our pay without our permission? Obviously no-one wants to take this second cut and many cant afford it with creche fees, etc.

Someone mentioned recently to us that they cannot legally take this cut from us if we decline.

Can this be verified please?

Re: Have we no choice?

honestly I do understand where the company is coming from - they offered voluntary redundancy last year to staff members over a certain salary.

No-one wants an increase in wages, we just want our wages to stay as they are now. There was a pay freeze put in place 2 years ago so no-ones wages have been improved.

The company decided when they hired us what our worth was and we agreed, hence us working here. Are we now worth less, despite doing twice the work due to lay-offs??

Re: Have we no choice?

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Thanks for all the advice guys. I'll go home and have a think about it and see what can be done. They propose this cut starting next week so I need to do something before then if I am going to decline it.

Thanks again!

Firstly, I'm sorry to hear about your situation.

I have to say though, contrary to popular belief, most employers aren't evil. The Irish (and global) economy is in serious trouble, so it's very possible your employer is losing money or is trying to avoid losing money.

You need to think long and hard if you would rather refuse the paycut and risk losing your job (because the company has to close), or take the paycut and keep your job.

The legal position is that the company can't cut your wages without your permission. They also can't select you for redundancy on the basis that you refused a pay cut. That's 100% legally water tight...

But that may all be a moot point if it folds because you guys won't accept a pay cut. Why don't the staff ask to see a set of management accounts before deciding whether or not to accept a pay cut? (as proof that it's very survival is under threat)

Some employers who are not in imminent danger of going bust have probably taken advantage of the climate of fear, and forced through pay cuts to repair their margins. Others businesses genuinely are only surviving because of pay cuts.

Personally, I'd always refuse a pay cut unless management showed proof that the company would go bust without one.

Wasn't there an example of this in the news perhaps one month ago where the staff refused to take a paycut so they were all laid off?

UFC I hope not!! If so, you might have a think about where you saw this as I'd like to do a bit of research!

RIAD - Thanks for the post, I dont think they would be particularly happy with us asking to see the Management accounts but I'll keep it at the back of my mind if it comes to that. Thank you

UFC said:

Wasn't there an example of this in the news perhaps one month ago where the staff refused to take a paycut so they were all laid off?

Click to expand...

This was the factory in Dunleer (part of the Glen Dimplex group), wasn't it?