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        Pay cuts marred 2011

        Pay cuts marred 2011

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          Many workers throughout the UK were dissatisfied with the situation with regard to pass rises in 2011, new research shows.

          This is mainly down to the fact that for many workers their pay was frozen or even cut with fewer people getting pay rises than in previous years.

          In excess of 3,000 workers were surveyed for research carried out by the Chartered Institute of Personnel and Development (CIPD).

          It found that less than one in five people received a cash bonus in 2011 and 45 per cent were the recipients of a pay rise in comparison to 67 per cent in 2008.

          Of course 2008 was pre the economic downturn and many have seen the pressures mounting as inflation increases and necessaries such as food and fuel also go up.

          In fact the average pay increase for 2011 was 2.5 per cent, meaning it fell well below the rate of inflation.

          Over half of those interviewed for the study did not receive a pay rise, making their wages worth less in real terms than previously and five per cent even saw their pay packets diminish.

          With redundancies rife and a growing number of people unemployed, those in work are having to perform better than ever under growing pressures and fewer resources.

          The survey found that less than one in five workers believed their pay rise was linked to their performance with many staff finding the attitude towards their employers having degraded over the past four years.

          Further findings suggested that those working in the private sector felt more valued than those working for a public company or body.

          Charles Cotton, rewards advisor to the CIPD, said: “Employers must try harder to explain what performance the organisation values and how it will reward and recognise this. If not, productivity levels and economic growth could fall, so it will become difficult to break the vicious circle.”

          Meanwhile, the Daily Mail reports that it has emerged that three quarters of council staff will bypass pay freezes, as they are automatically given a pay rise the longer they have worked there.

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