74% of companies to freeze or cut pay - survey
Employers' lobby group IBEC has said that 74% of companies will either freeze or reduce basic pay rates in 2012.
A survey of over 400 companies by IBECrevealed over two thirds of companies intend to apply a pay freeze this year, while about 5% expect to reduce basic pay.
The group said that decisions in last year's Budget to reduce the redundancy rebate and abolish employers' PRSI relief on pensions will add to inflation this year, increasing labour costs and damaging competitiveness.
Recent survey data suggests some companies will hire over the coming months, but IBEC says pay expectations need to reflect current economic realities and pay rises in 2012 are unrealistic.
Source: RTE News
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