TUC warns against wage freezes

• 03 March 2010

  Employment law and trades union rights may prevent businesses from freezing wages in a bid to cut costs.
  
  This was the warning from general secretary of the Trades Union Congress (Brendan Barber).
  
  Mr Barber explained that some firms may be doing this as a money saving move, but that unions would not give them an "easy ride".
  
  "While some firms will continue to struggle in 2010, unions are wise to companies using the recession as a ruse to boost profit margins through pay freezes and cuts," he continued.
  
  But freezing wages may eventually prove harmful to the country's economy, as it can alter consumer spending power, Mr Barber cautioned.
  
  USwitch.com revealed the results of a YouGov survey yesterday (March 2nd), which claimed that nine million UK workers thought any wage increase gained this year would be below the Consumer Price Index.
  
  And 31 per cent of people thought they would be worse-off financially this year than last.
  
  For further information on any of our Employment Law services or to find out how we can assist you please call us on 08456 122 144.
  
  Posted by James Hill

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