Announcing a Pay Cut
Useful Expressions
- The company is in the red.
- We are forced to impose a salary reduction.
- We are left with no other option but to impose a salary reduction.
- We're going to have to cut your pay by...
- I know this is not the best news.
- We didn’t take this decision lightly.
- As soon as we break even, we will get your salaries back to where they were.
- How big of a reduction are we talking about?
- How long do you expect this pay cut to last?
Dialogue Practice
Read the dialogue aloud with your teacher.
Mr. Smith has invited David to his office, to inform him of the pay cuts that are about to be implemented. | |
 Mark Smith | Hi, David. Please take a seat. |
 David | Thank you, sir. |
 Mark Smith | I called you here today, because I need to break some bad news to you. As you already know, the economic crisis has hit us very hard and for the last few months the company has been going in the red. |
 David | Yes, sir. We have all been working very hard, in an attempt to recover from the current situation. |
 Mark Smith | And we appreciate all your hard work. Unfortunately, despite all of our efforts, we are now forced to cut our expenses drastically. I am afraid we are left with no other option but to impose a salary reduction on all employees. I know this is not the best news, but this is just a temporary solution. |
 David | Okay... How big of a reduction are we talking about? |
 Mark Smith | Ten percent. And I want you to understand that we didn’t take this decision lightly. This was the only way to avoid layoffs, and job security is our first priority. |
 David | I understand. How long do you expect this pay cut to last? |
 Mark Smith | We have developed a strategic plan and we are hoping to take care of most of the deficit within the next four months. As soon as we break even, we will get your salaries back to where they were. |
 David | Okay, that doesn't sound too bad. I hope the plan will prove to be effective. |
 Mark Smith | Thank you for your understanding, David. |
Check your understanding:
1.
Why did the company decide to impose pay cuts?
2.
How much will salaries be lowered by?
3.
When do they hope to recover from the crisis?
Role Play
Role-play the following situation with your teacher.
Situation
As the head of your firm, you have to let your workers know that they will all be getting a pay cut. Your teacher will act as one of your employees. You may use the following expressions:
- Considering the recent recession,...
- We're going to have to cut your pay by...
- Despite all of our efforts,...
- We didn’t take this decision lightly.
- We had to either fire staff or reduce salaries.
Discussion
1.
Do you think decreasing salaries is a necessary action sometimes? In what cases?
2.
Would you agree to a salary cut if the reason was justified?
3.
Is salary reduction common in your country?
4.
What are some of the things that could compensate for a lower wage?
