Benefits December 28, 2009

U.K. Employers Plan More Pay, Benefits Cuts in 2010

December 28, 2009 (PLANSPONSOR.com) – Some employees in the U.K. are expected to see additional pay and benefits cuts in 2010.
Reported by

A monthly survey by the British Chambers of Commerce (BCC) of 260 companies revealed that 63% of businesses are planning wage freezes or pay cuts next year, according to a press release. In addition, 18% are considering the removal of benefits, such as bonuses and gym membership.

Two-thirds (67%) of firms stated that they would operate at the same or reduced capacity levels in the first quarter of 2010. The BCC said this trend continues from November’s survey, when companies said a lack of customer demand was the biggest obstacle over the next 12 months.

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“The persistent squeeze on the employee pay packet is an indication that companies do not see economic conditions dramatically improving in 2010, despite hopes that the end of the recession may have arrived in the final quarter of 2009,” the BCC said in the press release.

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