Pay cuts and redundancies in the private sector

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I have just had my pay cut considerably (20%) because of the current situation. I will be ok - just - but it’s the first time I have been in this situation in my working life. It feels weird. I know there is no impact on many sectors, but I expect that there must be lots of private sector jobs where people are being made redundant or having their hours/pay cut.

I’m sorry to hear this. Is the cut temporary?

It’s meant to be temporary, but who knows what will happen...

DH (architect) has had a 20% cut and the directors at his practice took a 50% cut. No cut in the amount of work though!

I’m public sector so still on full pay atm, but I’m glad we have savings. There are rumors of furloughs coming in my industry.

I am curious why it's a 20% cut across many different companies - not 8 or 10 or 16 or 18 or 21 or any other % number when presumably each company has done its own financial predictions.

I can understand keeping hours the same if there is still work to be done to try to protect the long-term interests of the company and its staff.

DH has taken a 10% pay cut which will run until 1st Jan 2021.

It's fine while we have zero commuting costs, but I've no idea how we will cope when he is expected to go back in to the office....

DH has a 10% paycut and has to take 4 days annual leave each month. He is very busy - probably working harder than he would in the office. He is probably saving £100+ on travel and snacks.

Our pensions have taken a hammering (to the extent I am keeping an eye on Civil Service/local government jobs).

We feel fortunate to have relatively stable employment.

Husband's on furlough. Works in logistics. I think he'll have a job to go back to and I'm grateful for that but it represents almost a halving of our monthly income. I have friends who've taken a 20% pay cut (retail) or can see their work is running out (construction).

I think the 20% is to match the furloughing rate (but that's capped, hence husband on a big pay cut).

The economy both in the U.K. and elsewhere was looking like we were headed for recession before coronavirus, but nothing in the order of what we'll get now.

I'm down to 60% until the end of May, subject to review. I can manage for a few months but not long term.

Trying not to feel resentful towards my furloughed colleagues who are getting 80%.

But we are lucky in that we should be pretty much 'all systems go' when lockdown is relaxed - busier than ever, possibly.

I am sorry to hear that. A lot of sectors are affected, more than people realise.

We work in IT.. My husband's company is furloughing people every week. In his department alone they are averaging about 60 x week.

In my company all contractors have been let go. We are now looking at the bench forming and what to do. My area is extremely busy, but who knows how long for.

I have friends in a number of sectors and again many are furloughed or taking pay cuts etc.. Job uncertainty is rife.

We own limited companies within the construction industry, we have no money coming in at all, living on savings, like other business owners we don’t qualify for any of the 80% pay schemes. Have applied for a loan but it’s been ‘pending’ for weeks. We are still trading with reduced staff, have furloughed half, while waiting to see if mythical loan is approved. If it is we’ll be able to continue for 6m or so. We still have quite a lot of ongoing contracts but we tend to have 30-90 day terms of payment (standard in construction depending on size of job) and no one is paying invoices as they’re suddenly ‘closed’ the moment we chase payment. Cash flow is drying up rapidly, wages alone even with reduced staff are £50k per week. If our companies survive at all they’ll take years to recover, a lot of our staff will have to be let go in the short to medium term. We currently employ 120 people, I can’t see us keeping on more than 20 if any at all. The predicted 35% contraction of the economy is massive, there will be thousands of job losses and there won’t be an immediate bounce back.

My dh worked 2 days over the bank holiday and is billing at 130% and is still being asked to take a 20% paycut. Theoretically that will be at a 4 day week but with his workload at the moment this will not be possible.

I wonder if some employers are taking advantage of the situation by issuing blanket pay cut policies.

It is theoretically an 'optional' pay cut however it is clear that it is expected in the interests of the business as a whole.

Our sector has been decimated. There won’t be jobs to go back to, we aren’t essential by any stretch of the imagination but we employ a lot of people especially younger people

I work for a charity and have been furloughed, but DH works in compliance for an IT company and has been asked to take a cut to 80%, but at 0.8 time too. They offered everyone either 80%/0.8 time, 60%/0.6 time, or sabbatical. They’ve made it clear it’s to prepare for potential future losses, should they lose clients/sales and hope to pay everyone back if the losses don’t come. I really bloody hope that happens.

I think cutting pay without cutting hours for anyone but the top brass is a bit of a pisstake

I’ve had a 15 per cent reduction - it’s hard, but I can only hope it helps save my job long term.

Thankfully my DH works in IT on a contract for a Govt dept. He is receiving full pay for wfh but is putting in so many extra hours unpaid.

However, the work on changes on hundreds of systems is necessary to make sure many of the population are paid during the Covid - 19 crisis. There will then be masses of work to re-instate the systems to pre covid-19 times when the crisis is over. (It isn't as if they can just change a few parameters and rates).

All other work to their systems is being put on hold which will also require doing after the pandemic is over.

The only twattish behaviour by the employer is that they expect you to have taken 2 weeks holiday by the end of June.
Needless to say, the Govt's guidelines in carrying holiday forward have been brought to their attention.

Goodness knows how they expect the work to be done and people to take holiday when they have cut staff to the bone over the past few years.

We are so fortunate though compared to others who may lose their jobs or struggle on reduced income. It's hard for everyone, no matter what the circumstances.