Madam, – The introduction of wage cuts has not been nearly as extensive as many commentators have been suggesting, and hence their puzzlement that the CSO earnings data do not reflect widespread reductions in basic pay levels (News Feature, September 12th).
A survey of senior people managers conducted over the summer by the Chartered Institute of Personnel and Development (CIPD Ireland) and Deloitte found that one quarter (26 per cent) of respondents had implemented cuts in pay in the previous six months. This is broadly in line with similar findings earlier in the year by Ibec, Mercer and Hay. Of the minority of organisations that had introduced wage cuts, most were in the 5-10 per cent range with about one-third (37 per cent) implementing larger percentage cuts for higher-paid employees. Just over half of the organisations (51 per cent) had introduced a pay freeze while 28 per cent had provided some increases this year.
The pay squeeze has naturally been more noticeable in sectors closely aligned to the property bubble, and national media organisations, from The Irish Times and Independent Newspapers to RTÉ, have implemented significant cuts in their wage rates, fuelling the perception among media personnel that this is a widespread national phenomenon.
Cutting wage rates is a fundamental change in conditions and terms of employment and needs clear management skills to implement effectively while minimising the impact on morale and employee engagement.
Those who have experienced the really severe wage cuts are the 200,000 people who have joined the live register in the past year, and many of the 100,000 who have left the register and secured employment, often at wage rates below what they would previously have earned. – Yours, etc,