Wage reduction argument under pressure

The idea that employees should take a pay cut or work without pay for a time in order to help struggling companies survive the recession has come under attack from a labour law charity.

Director at the Institute of Employment Rights Carolyn Jones argued that it should not be people on modest incomes who suffer for problems that are not of their own making.

Responding to calls by British Airways for staff to work for nothing for a month, she remarked: "It would be nice if you could afford to fall back on your savings and work for the company for free, but back in the real world that doesn't happen."

Such sentiments may be considered by company owners who wish to contemplate requesting staff to trim their pay to help businesses cope.

The British Airways call was made by chief executive Willie Walsh, who will forego his salary in July.

Last year the airline made a pre-tax net loss of £401 million.

Written by Christopher Evans

Published on: June 18, 2009

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