Firms 'may be using credit crunch to cut wages', Unite warns

By Jill Park Monday, 27 April 2009

Union officials have expressed concern that some companies may be using the credit crunch to reduce wages and "claw back" money borrowed from the banks.

The concerns were raised at a conference in Berlin this month, which gathered together packaging and paper industry representatives from Europe, Asia Pacific, North America and Canada, Eastern Europe and Latin America.

"We suspect that there may be a number of companies who may be looking upon the financial crisis as an opportunity to exploit the situation and draw down wages," Unite national officer Peter Ellis told Packaging News.

"For example, there are companies who have over spent in trying to build up their own business and that's fine, but I think what they are doing is trying to claw back some of the money they've borrowed from the banks."

Ellis was keen to highlight that this was a global issue and encouraged workers to band together to protect their rights and tackle the problem as and when it arises.

He said that in addition to advice and representation, Unite offered members "professional financial research into the details of their employers' finances".

Delegates at the conference included Unite members representing workers at Mayr Melnhof, Chesapeake, Alcan and Nampak in the UK.

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