Work for a very large IT Services company who have been brought by a larger IT company who make hardware and want to get into IT services.
Despite that the fact that we are on course to make a very significant profit we are are being asked to take a pay reduction and accept that there will be redundancies. The pay is being cut and no commitment has been made by the company to return it to its current level when times are better, no commitment that the to reduce the number of redundancies or any offset for the pay reduction.
As we are non-unionised every individual has to be asked for their consent to allow their pay to be reduced. Based on talking around I reckon if they get over 5% agreement they will be doing well.
Remember that taking the pay cut affects pensions, insurance and ability to get a mortgage. There appears to be one of two companies using the current problems as a means of reducing their cost base rather than trying to get through a short term crisis.