IE
Irish unwilling to accept voluntary redundancy
22 October 2009
Irish employees are beginning to accept pay cuts of up to 20% as part of life in the current economic climate, but few would opt for voluntary redundancy if the opportunity presented itself.
Research by recruitment firm Hays in Ireland shows that 70% of firms have or are considering reducing pay. Richard Eardley, managing director of Hays in Ireland says that qualified accountants are particularly badly hit, with some reporting salary reductions of up to 20%.
Surprisingly, this doesn’t seem evident within the banking sector. This week both Bank of Ireland and AIB revealed that they had actually increased pay this year, with the latter upping compensation by an average of 3%. Anglo Irish Bank, of course, insists pay has remained static.
While these are hardly astronomical figures, many have found them difficult to stomach, particularly in the wake of state bailouts for the banks.
More pressingly, though, of the financial services firms that have announced redundancy schemes in Ireland, many have opted to take the voluntary, rather than compulsory route. However, with scant other opportunities available, the majority of employees are refusing to take it up, suggests Hays' survey.
“The findings should send out a warning signal to any company which opts for voluntary redundancy as a payroll cost cutting measure – our survey would suggest employers may not get the up-take that they need,” says Eardley.
Ulster Bank announced 250 voluntary redundancies in its commercial lending division in August, and we understand that no one has stepped forward for these as yet.
This trend could also pose a problem for Anglo, which is set to unveil plans for hundreds of voluntary redundancies by the end of October.
Soon firms could be faced with no other option but to impose compulsory cuts.
