Salary reduction for permies???

**swamp** · 23 February 2009, 11:11

Late 2001, at the start of the last IT recession, I found myself working as a permie in a dot-bomb when they asked everyone to take a 25% pay cut. I walked out.

**Moscow Mule** · 23 February 2009, 11:13

Originally posted by Francko View Post

What's next? Permanent employees are asked to contribute with their personal funding to cover company's losses????

Already happening in Japan.

Middle managers at Panasonic are "asked" to buy $1000 - $3000 worth of Panasonic goods to help bolster the company.

I expect refusing to buy the goods doesn't sit well with career prospects....

**minestrone** · 23 February 2009, 11:13

Are you allowed to drop permie wages?

**ratewhore** · 23 February 2009, 11:14

Ask EDS.

**sasguru** · 23 February 2009, 11:15

I am considering doing the same with my staff here. If it preserves jobs and there is consensus it would be better to do that than make one or two people redundant. And when the economy recovers the team is still in place.
There is a lot of pressure to cut costs at the mo.

**Francko** · 23 February 2009, 11:15

Originally posted by minestrone View Post

Are you allowed to drop permie wages?

In most countries no, but you can with the employee's consent rewrite the employment contract.

**zara_backdog** · 23 February 2009, 11:19

If they don't want to enforce cut in wages, they can implement things like
pay freezes, stopping overtime, decrease in working hours. Just happened where I as just working to both office and factory floor staff. Bounus for the company if anyne walks, but they maynot have anything to walk to in these times.

Salary reduction for permies???