09:22 Thursday 25th September 2014
BBC Radio Cambridgeshire
PAUL STAINTON: Would you take a pay cut if it meant keeping your job? Well staff at Monarch Airlines have agreed to that. They’re going to take a 30% slice off their pay packet to secure the future of the airline. Well earlier this week the struggling company said it was in talks to secure future funding. It’s Chief Executive warned though there are further hurdles to overcome. Employees voted overwhelmingly in favour of the pay cut. Let’s talk to Ed Goodman. He runs the Cambridge Business Lounge, a business he recently started. And he also mentors startup companies. Ed morning.
ED GOODMAN: Good morning Paul.
PAUL STAINTON: Are there any companies out there you know of that have done similar things?
ED GOODMAN: No there aren’t. I think it’s a very brave decision for the employees to undertake, although in the wake of Monarch announcing 1,000 job cuts only a month ago, I think that probably explains why it was an overwhelming majority that said yes to this. I myself took a pay cut when I moved from one job to another job a few years ago. But the decision was made primarily on two factors, firstly for me that actually the work was one that was going to be more enjoyable, more fulfilling, but most importantly I wouldn’t have done that if I couldn’t have afforded to have done that at the same time.
PAUL STAINTON: Right. OK. So you’ve been in a sort of similar position. Neil Darwin is with us as well. He’s the Director for Enterprise and Skills at the Greater Cambridge Greater Peterborough Enterprise Partnership. You need to get an acronym for that. Morning Neil.
NEIL DARWIN: Morning Paul.
PAUL STAINTON: Have you ever heard of this? Any local companies that you know of that have gone this far? We’ve heard of companies changing terms and conditions, haven’t we, to keep people in jobs.
NEIL DARWIN: Absolutely. Locally no, but I’ve shouted out across the office this morning, and someone said that their brother-in-law’s done it in Ireland. So it does happen.
PAUL STAINTON: Obviously keeping jobs at all costs is the way to go. People need to be in work. But 30%, that’s a large sum, isn’t it, out of your pay packet.
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