Employer reducing salary?

[klmall]

In 2003 the trickledown from 9/11 started affecting our school system and my central office job was abolished and while I was given first crack at applying for a few others I ended up back in a school for my last few years (at a 20% salary reduction) before finally retiring. We thought we could manage on DH's salary and my meager retirement until the house sold but you can guess what didn't happen! A year later I'm back at temporary work and happy to have it. Luckily I work for a big company in the Washington DC area that has lots of federal contracts and isn't likely to be hard hit.

Nowadays even with jobs being advertised there are plenty of people looking too. Most of the people I work with are desperate to find better jobs than our meager $12.50 an hour wages/no benefits but they are either unskilled or possess only rusty skills. Our county government is laying off workers for 2 days in 2009 and has a hiring freeze except for police and fire personnel.

I say keep the job and tighten the budget. Find ways to cut down and save if you can. I think things are going to get much worse before they get better.

 

[Carly_Roach]

I'm sorry this is happening to your father. Unfortunately it's happening to a lot of people. Unless your dad signed a employment contract with his employer that outlined salary terms or is in a union, there isn't much he can do. It's just become the way of the world now that employers can reduce wages, benefits, etc and employees have one of two choices - accept it or find a new job.

This has already happened twice where I work. In October I had to take a 10% pay cut myself, so I know how the OP's dad is feeling. My choices were exactly as Tink put it: accept it or find a new job in a state that has (on record) over 8% unemployment and (off record) over 12% unemployment.

The only thing you can do is sigh, be grateful you at least have a job, and hope for better things to come in the future.

And clip coupons.

And hope for a brighter future.

And eat only what's on sale at Meijer.

And hope for a brighter future.

And give up your charities.

And hope for a brighter future.

And get your clothes repaired instead of buying new ones. (We have WONDERFUL tailors around here!)

And hope for a brighter future.

And do everything you can to keep your car running for as long as you can.

And hope for a brighter future.

And put plastic over all your windows and keep the themostat at 60 degrees.

And hope for a brighter future.

And vote on November 4

And hope for a brighter future.

 

[Planogirl]

Our company moved tons of jobs to South America and downsized by increasing requirements and making many of the jobs so miserable that people left in droves. We also got a whopping 25 cent raise per hour.

It's not the same as losing pay but our jobs have definitely become much worse than they used to be.

 

[4forMe]

I say keep the job and tighten the budget. Find ways to cut down and save if you can. I think things are going to get much worse before they get better.

ITA

My brother works in the financial industry and has survived the last two sets of layoffs but continually worries that he will be losing his job soon. He is very thankful he has a job.

My BIL works for a small business and was told last month he had to take a 20% pay cut if he wanted to continue working. He took the pay cut.

My DH owns a small business and had to restructure the hours starting this month due to a downturn in business. One of his employees came back from maternity leave several months ago and is very upset her hours are cut; however, he can't continue to pay people hourly when they have no clients.

I think cuts in salary will become more the norm than the exception, if they haven't already.

 

[Dee & Greg]

This week, Emmis Communications based in Indianapolis who owns multiple radio stations across the country sent a memo out that they were laying off employees, and any remaining employees making $50k or more would have a 3% pay cut. That rule applies to everyone... high management included.
They are also suspending the company's 401K match.
times are tough...

 

[LOLCAT]

5 years ago I took about a 40% pay cut.
I no longer work at the same place...

Wow, what type of industry were you in?


I have heard of wage reductions before, but usually you have to agree to it.

(ie) they bring you in and say sorry, we have to reduce your pay or we can lay you off, and then you decide. Also, sometimes it's just for a temporary time period or there is a date where the situation will be reviewed again. Also, time off is offered, reduced hours.

 

[famofsix]

our situation was take a cut in pay or they will absolve the position and merge it with someone else. A pay cut is better than a loss of job. They both hurt though

 

[Carly_Roach]

This week, Emmis Communications based in Indianapolis who owns multiple radio stations across the country sent a memo out that they were laying off employees, and any remaining employees making $50k or more would have a 3% pay cut. That rule applies to everyone... high management included.
They are also suspending the company's 401K match.
times are tough...

It's nice that they cut it off at $50,000 or above. It's been my experience that it's typically those who make $50K or below get the first pay cuts.

 

[CBoysMomLovesDisney]

I've received over a 40% pay cut this year. DH lost his job and works for
a 1/3rd of what he did with no insurance.

Many people were let go, so my work load has increased. I am doing everything we can to cut back, because atleast I have a job and insurance.

 

[C.Ann]

it will be even worse when obama raises your employers taxes and small business employers will be laying off people.

-----------------------------

And yet another thread turned into political propaganda..

Election Day can't come soon enough..

 

[L107ANGEL]

Almost a year ago I was given 3 choices.
Work my full time job in part time hours
Take a drastic paycut
Go find a new job
This was on the heels of being with a small family owned agency for nearly 10 years, 10 days before Christmas. (not my family )
I was devestated!!! But I put my vow of jolly on and enjoyed the Holidays and was back to work in Feb at a great agency with MANY benefits.
It happened at the right time for me, this agency rarely has openings and I really lucked out!
I hope your Dad makes out with whatever happens

 

[MarkBarbieri]

It's a tough world. Without a contract saying otherwise, most companies in the US have the option of changing pay for future work (not any work already done) at any time and for almost any reason. An employee does not have to accept the change; they can quit. Conversely, an employee has the same right to demand more money for any future work with the employer having the right to fire them.

Try to make sure that your market value, should you lose your job, is above the income you need to maintain your lifestyle. Also, keep a sufficient pool of liquid, secure emergency savings to get you through several months of unemployment or underemployment. Even with all that, you should be prepared to weather storms beyond the best of your preparations. A person truly needs very little to be happy, which is something that people sometimes discover when times get very tough.

 

[disney1990]

Does anyone have any experience or legal background re: salary reduction by an employer?

My father recieved notice today that, as of Monday, his salary will be reduced by 15% due to the impact of the economy. It's not just him, of course - it will affect everyone working at the company. He has been working at this job for about 25 years and has witnessed the decline of management, but this really caught him off guard.

Unfortunately, I don't doubt that this is legal, but my mother requested that I do a little research on what the law actually says, so if anyone has details about where to find the information, I'd be grateful.

I've tried to explain to her that with business so bad (although you'd never know it by the number and quality of ads his dealership runs and the perks his superiors receive), it may have been a matter of reducing everyone's salaries or letting a number of people go, but that's of no consolation. My parents (as we all have) have seen their living expenses increase dramatically, and now the cut in income will definitely be felt all the more.

I guess I shouldn't complain about not getting a raise this year - obviously things could be worse.

I would gladly take a salary reduction in order to prevent more layoffs where I work. Unfortunately, they don't give us that option. Instead at 10-15% of my coworkers are about to lose their jobs.

 

[Fantasmic303]

Wow - I'm sorry to have set off such a depressing thread! As I have previously noted, I was pretty sure I knew the answer to this, and I appreciate everyone sharing their experiences. I know times are getting tougher for everyone, and I am, of course, happy to still be working. As is my father, even at the reduced rate. I think that beyond the frustration of tightening an already snug belt a little more, he and my mother are also concerned about this being just the beginning - scared about what the next round of letters might say.

The "funny" thing is, there was a round of layoffs at the end of August that was supposedly a downsizing to help keep the dealership running at full force. Some of the people who did NOT get the slip were offered jobs at other places with comparable pay and benefits but stayed at my dad's place out of loyalty. I think that's adding to the uneasiness - the layoffs came unexpectantly but were supposed to help the situation. Two months later, it's salary reductions. By the end of the year...who knows.

The other factor in my dad's situation is that he's a few years from retirement, and we're unsure how the change in his wage will impact his Social Security.

It's just a mess. I'm planning to go back to graduate school and had a rough plan mapped out in terms of working, school, and tuition, but with everything in the country (and world) changing so quickly, I'm starting to rethink things...

 

[Pin Wizard]

With this cut, hoping things still go well for your dad!

My company pride's itself on the fact that it has never laid off one employee. Let's hope that continues. We have had to give up all OT unless we're clinical. However, special circumstances are presented to the higher ups. They do make exceptions in some cases, and a few of our coworkers have worked occasional OT.

A few of us have been crossing our fingers that we will still see a bonus at the holidays. Word on that hasn't hit yet. But it wouldn't surprise us if it's decreased again (as it was last year.) Hopefully, nothing worse than that.

 

[arminnie]

The other factor in my dad's situation is that he's a few years from retirement, and we're unsure how the change in his wage will impact his Social Security.

You can get some answers on the social security site. Your father should be receiving the yearly social security statement. He can request one that shows his current benefits and also one that assumes future wages. The links are at the bottom of this page.

http://ssa-custhelp.ssa.gov/cgi-bin...nMuc2VhcmNoX25sJnBfcGFnZT0x&p_li=&p_topview=1