Recently employees at Blackpool Council have agreed to a voluntary pay cut to reduce compulsory redundancy. The initial figures of compulsory redundancy was thought to be about 1000, but has now been reduced to under 400 due to the agreements from the staff. It is a good short term retention measure to keep hold of good employees but in the long term it will need to be closely managed and the employees rewarded for their help dealing with a difficult situation. Will it work in a real business environment long term? Employees are often willing to accept short term measures for the long term success of a business but if the business does not respond and recognise what staff have done it could turn into a potential major thorn in the side of the council.
Fingers crossed for staff at Blackpool Council that the pay cut works and gets them through this difficult time.