Dear Editor, The announcement that workers at Jaguar Land Rover in the Midlands have been asked to have their salaries delayed to help the company’s cashflow is yet another example of how, despite the economic conditions, local businesses are having to respond creatively.
ACCA (the Association of Chartered Certified Accountants) is advising local businesses not to sacrifice long-term potential with short-term thinking. While there is an understandable concern in businesses of all sizes, ACCA’s belief is that many will react with short-term measures to cut costs rather than considering the business’ long-term future.
Wherever possible, those businesses which are having difficulties should realise that there are alternative ways to reduce staff overheads without redundancies, including reductions in working week days or caps on staff pay.
Although Jaguar Land Rover made 450 redundancies at the start of the year, the incentive for staff at the company who accept delays to their salaries is to receive a one-off £200 payment.
Jaguar Land Rover’s decision to delay payment for employees may seem extreme, but at least this strategy is so far not leading to more unemployment in the Midlands.
ACCA spokesperson for the East Midlands.