FIRMS have started to cut pay by up to 10%, while almost a third of recent settlements were for a freeze in wages in response to the recession, according to a new report.
A study of 156 awards in the past three months showed average rises of 2.6%, the lowest for six years, but a number of other firms had postponed making a decision on pay.
Most deals were lower than a year ago, many involved a freeze and the first pay cut was recorded – a 10% reduction by a company in the engineering and metals sector, said the report by pay analysts IRS.
