Monday, December 27, 2010
The new stagflation: prices of essentials rise while wages stagnate
More than half of UK companies plan to freeze or cut their employees' pay in 2011, according to a survey by the British Chambers of Commerce (BCC). While 45% of firms surveyed said they would give their staff a pay rise, 49% said they would freeze salaries, while 6% said they planned to reduce wages. A BCC spokesman said the response showed companies were taking a "pragmatic approach to pay settlements in a tough environment".