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Wednesday
Jun242009

Recession brings workplace truce

Management and staff have called a truce in their continuing battle for workplace supremacy to claw their way out of recession, according to new research.

The Confederation of British Industry (CBI) says that both sides would rather unite than see businesses close and jobs go in a new era of co-operation and flexibility,  a new survey of workplace trends reveals. The CBI says about 66% of employers recognise that surviving the recession is about management of change and that they must negotiate new working practises with staff to protect businesses and jobs.

Instead of conflict, both sides are showing restraint by agreeing new working patterns, including:

    * 45% of employers surveyed have introduced flexible hours, extended shut downs and extra holidays

    * 43% have cut paid overtime

    * 55% are introducing or considering pay freezes

    * 30% are not taking on any more staff to fill vacancies

This new meeting of minds has allowed firms to stay in business and protect jobs by cutting costs.

John Cridland, CBI Deputy Director-General, said: "This has been a particularly bruising recession, but one of its most positive and striking aspects has been the commitment of many businesses and their staff to work together to try to trim costs and save jobs.

"The UK's flexible labour market has proved a huge asset during these testing times, and flexible working changes have enabled employers and staff to create leeway on working hours.

"While pay and recruitment freezes should disappear as the economy recovers, the spirit of flexibility and the willingness of many staff to engage positively with employers on these issues will hopefully be a more permanent benefit of the UK economy."

Graduates also face a tough time getting jobs as two fifths of firms (38%) have frozen graduate recruitment, and a further 10% are recruiting fewer graduates than in 2008.

Nine out of ten (90%) of firms said they would make no changes to their redundancy packages because of the recession.

Average redundancy payments are running at £12,100, varying from £21,300 in banking, finance and insurance to £5,700 in construction.

 



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    Recession brings workplace truce - Tax, Legal & Business News from London - St Matthew Accountants London
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    Recession brings workplace truce - Tax, Legal & Business News from London - St Matthew Accountants London

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