E.ON call centre workers have had their pay cut while bosses have escaped from any wage reductions, it has been reported.
The plans, which will cap pay for the lowest-paid staff at £17,850 from 2012 or 2013 onwards, will result in a reduction of £2,000 for about 2,500 staff. The workers will receive a £1,500 one-off cash sum to compensate them for the changes, the Telegraph has reported.
Last year, Johannes Teyssen, the chairman and chief executive, saw his salary rise from £958,333 to £1m. Other directors are reported to have seen their salaries rise too.
An E.ON spokesman said the move was a “pay realignment” designed to ensure pay offered matched the level paid by rivals.
“There is an element of job security in there, because we’re guaranteeing pay for two or three years,” he said. “Our payroll costs are quite high against the rest of the market, and the main drivers behind the move are that we are looking to reduce costs because [government regulator] Ofgem is trying to get us to reduce costs.”
Last month, the British energy supplier said it would close its Rayleigh call centre in June with the loss of 600 jobs.