News, Same job, less pay. (insurance, 2009, pension, companies)

[John1960]

NEW YORK (CNNMoney.com) -- An annual 3% raise used to be considered stingy. Now, some employees will be happy if their salary doesn't go down in the coming year.

It's not just Citigroup executives that are seeing their compensation cut. More companies are considering salary reductions as a way of cutting costs amid an ongoing recession.

To avoid layoffs, companies consider pay cuts - Jan. 7, 2009

[tallrick]

Oh yes, cut their pay while inflation is still in view. I bet that will do wonders for employee morale.

[Huckleberry3911948]

americans look to government and employers to be fair and just. where did that come from?
we need a labor movement.

[calmdude]

I bet at the same time, the top management salaries will not go down. Only in America....

[colleeng47]

Where I work we haven't had a raise in three years, but our medical insurance premiums go up each year. I figure in about 10 years, I'll have to pay them to come to work here. But, on the other hand, I'm glad to have a job.

[Woof Woof Woof!]

Less pay and companies are cutting back on hours.

[renter07]

Not only are they cutting pay (or at least not adjusting for annual inflation), they are cutting benefits as well - reducing vacation time, stopping 401k match and getting rid of pension plan.

[neil0311]

To me, this would depend on whether or not the cut was permanent or temporary until the business improves. Personally, I would much rather take a short term pay cut and stay with a job I already have, with my benefits, 401K, etc., rather than be unemployed and have to take a job for less money anyway, along with possibly less benefits or other negatives.

People have to be realistic and pragmatic.

[sheenie2000]

Originally Posted by neil0311

To me, this would depend on whether or not the cut was permanent or temporary until the business improves. Personally, I would much rather take a short term pay cut and stay with a job I already have, with my benefits, 401K, etc., rather than be unemployed and have to take a job for less money anyway, along with possibly less benefits or other negatives.

People have to be realistic and pragmatic.

I agree also it's stressful finding a new job and then trying to learn the ropes at a new job also.

[oakparkdude]

Originally Posted by tallrick

Oh yes, cut their pay while inflation is still in view. I bet that will do wonders for employee morale.

Shouldn't we be more worried about deflation? Actually, this might be a symptom as well as a cause of deflation.