Taboo over pay cuts is being eased as IT companies lead the way

The taboo over pay cuts for older staff is gradually being eroded and seven of the 385 pay deals sealed last year include provision for ‘demotion’, the Financieele Dagblad said on Tuesday.


The paper bases its claim on research by employers organisation AWVN which has examined all the pay and conditions agreements signed last year.
Pension fund ABP, telecoms group KPN and financial services group SNS Reaal are among the companies which have accepted pay cuts as an option to keep costs down.
Older workers
On Monday it emerged IT group Capgemini has asked older, well-paid workers to accept a salary cut. The reduction could be up to 10% in some cases and affect 7% of the workforce.
Sector peer Ordina has also said it plans to reduce salary scales on a limited basis and Atos said on Monday afternoon it is talking to a ‘maximum 10 staff’ about a salary reduction.
Unions reacted furiously to Capgemini’s plans, calling on the company’s board to set an example and be first to hand back pay.
The hospitality industry has already made the switch away from automatic pay rises, the FD says. Only workers whose performance merits it will get a pay rise for inflation and rise up the salary scale.
Earlier stories
Capgemini asks expensive older staff to take a pay cut


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