MORE THAN half of all firms implemented pay freezes in 2009, according to a new survey by employers’ organisation Ibec.
The survey of 508 companies, which employ 86,000 workers between them, found that the majority of enterprises had pay freezes and reductions in staff numbers this year.
According to the survey, 59 per cent of companies introduced pay freezes in 2009. Some 56 per cent of firms have reduced their pay bill by an average of 21 per cent over the past 12 months.
The survey also said that 59 per cent of employers were likely to halt recruitment in the next three months, while 45 per cent of firms said they would be retraining existing staff.
Some 31 per cent of businesses intend to eliminate bonus payments, while a further 29 per cent intend to reduce such payments.
About 32 per cent of companies surveyed expect to have to reduce their temporary staff, while this was under consideration in a further 29 per cent. A reduction in permanent staff is expected in 28 per cent of firms.
Short-time working is expected in 32 per cent of companies, with a further 45 per cent considering implementation.
“It has been costing about 20 per cent more to do business in Ireland than it has in the countries with which we trade . . . most people recognise that the survival of their enterprises and their jobs means that costs must be reduced,” Ibec director Brendan McGinty said.