Public would rather struggling firms cut pay than slash workforce

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The survey showed 47 percent support for cutting wages by 10 percent but retaining all staff as opposed to cutting the workforce by 10 percent, which had 22 percent backing.
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Businesses making workers redundant during a recession and expecting the remaining workforce to make up the shortfall may find themselves facing a consumer backlash, according to a new survey.

The survey, commissioned by communications firm Anthem and done by market research firm Talbot Mills, showed just 18 percent of the more than 1000 respondents believed redundancies in a recession were fair, with 67 percent saying it was not.

The survey showed 47 percent support for cutting wages by 10 percent but retaining all staff as opposed to cutting the workforce by 10 percent, which had 22 percent backing.

Other findings included 35 percent of respondents saying they were likely to stop spending with a business which had significant layoffs, compared to 29 percent who keep spending, although there was a significant 36 percent unsure. Nearly half said they would have less trust in a firm with a track record of laying off staff in tougher times, while 36 percent said it would make no difference.

Talbot Mills managing director David Talbot said how difficult decisions were made in difficult times mattered.

“The research should serve as a reminder to businesses that there are significant reputational risks in the way they conduct themselves through financially difficult times.

“Businesses should ensure their decisions are seen as fair and necessary with honest and transparent communication to build understanding and trust with consumers.”

The survey showed the majority were concerned about the exploitation of migrant workers, with 81 percent backing stiffer penalties for offending employers and 56 percent wanting stronger protection for workers.

And there was a notable lack of belief in the way firms consulted with staff over redundancies, with 34 percent of respondents thinking it was a window-dressing exercise, box-ticking with predetermined outcomes.

The number believing the consultation process was fair roughly equalled those thinking the system favoured employers.