Pay cut by over £3000

[LadyWimple]

I am working my usual hours, more in fact from home. This has actually increased my outgoings due to using more energy at home. Some distant parts of the large company I am working for have furloughed staff and are only paying them the 80% of their pay as per the government scheme.

My work is not affected by the current crisis but they have written to us saying how they need to cut everyone's pay to spread the pain of the current crisis. I just don't believe them, and feel they are using the crisis to cut back on pay just because they can, they didn't even bother to try and discuss it with us. My partner is disabled and unable to work to this pay cut puts both of us in a bad position financially. Some of my colleagues could face financial ruin all while still doing their job as normal, same amount of work and hours just not in the office. If there was no work and they were losing money I'd understand at least.

Am I being unreasonable to be annoyed at this?

Note: Pay is cut by £3000 over the year leaving me £250 a month worse off.

YANBU.
I feel a lot of companies will use this crisis to cut pay, change working conditions and cut the workforce permanently in order to maximise profits.

Very few businesses won't be effected massively. Most people will end u0 on reduced incomes. Hopefully a lot of people will have some savings and can cut back.

But isn't the whole point of Furloughing staff so that the company claim back the money then they don't end up out of pocket?

So why on earth would they need to cut your wages?? Makes no sense to me

@Lifeisabeach09 I agree, i saw the exact same thing during the financial crisis in 2008.

Why don’t you believe them? Lots and lots of businesses are losing income because of this, or are trying to plan for anticipated reductions, clients losing business that has a knock on effect... Why are you so sure your business is immune?

@FooFighter99 Exactly, it doesn't make sense to me either, they are playing the system and using the situation to cut back on pay in general, no discussion about it.

@EmAndes - she hasn't been furloughed.

@BuffaloCauliflower

Because we have secured government funding for projects that will last years and will encompass the spending that will be done after this crisis to reboot the economy. I am working flat out* at the moment and my pay wasn't high, to begin with. I'd understand if their was no work, no money coming in but there is loads.

• I'm taking some time out just to vent at the moment, and I'm not alone most people I work with are angry.

Lots of companies are doing this though. It's a combination of the govt scheme where possible and cuts for those still working. I know places where the cuts are 15/20% which can be huge

@Toomuchgoingon It's just not necessary in my case. They forget that we know the figures on investment and who is needed for what. If they want to cut my pay they can cut my hours but they won't do that because there is too much work for that and they are being paid for it. As said previously many companies will be using this situation as an excuse to stiff employees

Fair enough OP, your frustration sounds reasonable then. Can you raise your concerns with someone higher up and ask for justification, if your assessment of company finances is correct?

My DH has been asked to take 80% pay (but also 80% work) as they anticipate possible loss of income, but they have said if it doesn’t come as expected they’ll pay people back the loss.

They have to get your approval, they can't just automatically cut it. Is there a possibility of getting it paid back at the end of the year once things improve?

I have had mine cut by nearly £10k - around £600 a month worse off. Not much you can do - my firm are doing to try and protect jobs long term. Be glad you still have a job at all.

OP, how much is your company income down by?

If they are paying £100k fixed costs, your part of the business is bringing in £50k and another part of the business is bringing in £30k but the business from the furloughed workers, would usually bring in £50k but now isn't bringing in anything, then the company needs to cut their variable costs, ie everyone's salaries, in order to survive.

I'd be more interested to know if the board of directors have all taken pay cuts too.

Dh has had a 12k annual paycut. Still working.

I’ve had 50% pay cut and more work than ever so little sympathy from me. So many people will lose their jobs now and in the aftermath.

My husband took a 20% pay cut this morning but is also losing all bonus payments for the foreseeable which amounts to a 40% loss of income. Absolutely devastating to us. Feeling sick right now..

Wonder if the royal family will face cuts?
Or MPs and Ministers?
I suspect not.
Something makes me think we are not, at all, in this together.

I hadn't even realised that this was a thing.

It must be so frustrating OP and I can fully understand why you are upset.

My friend is has been told she must work weekends from now on, she too is worried that things will stay that way permanently and she is a single parent who's ex lived miles away. I agree some companies are using the crisis as an excuse to make un popular changes.

It's a definitely a thing - my friend's husband has just had to accept a 20% temporary pay cut and works for a company that provides outsourced services to government contracts (think PFI). So no drop in income for the company.
But something tells me that the shareholders won't be told there will be no dividend this year.

What industry is it? I already know of one person that has been advised pay cuts are coming but he works in the construction sector and they are expecting major contracts to be pulled.

Even if it's not an obvious sector, the financial impact of this crisis is going to be a lot worse than 2008 crash. So, I guess businesses are looking ahead to see how to reduce costs.

It's absolutely rubbish, but I'd rather have a pay reduction than lose my job. It really depends whether you think that explanation above is likely, or if they're taking the mick.

Be glad you still have a job at all.

Whilst I do agree with the sentiment of this, it is also a dangerous road as it paves the way for people to be totally screwed over. Like others I fear that decisions will be made and no one will dare object because they are aware that they need to hang on to their job.