BCC survey reveals 2011 pay freeze for many companies

| December 29, 2010 | 0 Comments

The British Chambers of Commerce (BCC) has revealed more than half of UK firms will either slash or freeze employee’s pay in 2011.

The survey, which covered 450 businesses, found 45% of firms would give their staff a pay rise, 49% said they would freeze wages, while 6% said they planned to cut salaries.

Companies cited a “tough environment” for the cuts and expressed their concern about the forthcoming Government spending cuts and the impact it will have on their businesses.

More than one third of companies said the cuts would have an impact on their profitability, however, only 13% said they expected to make redundancies as a result.

Commenting, BCC’s director of policy and external affairs, Dr Adam Marshall, said: “British business has proved over the past two years that it will adopt a pragmatic approach to pay settlements in a tough environment.”

However, on positive note, Dr Adam Marshall points out that many companies are “suggesting wage rises in 2011.”

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