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Latest NewsHR strategyMergers and acquisitions

US takeovers boost UK employees’ salaries

by dan thomas 18 Apr 2006
by dan thomas 18 Apr 2006

Workers whose employers are taken over by a US multinational are likely to see a significant rise in their salaries within two years, according to research.

The study by Nottingham University reveals that on average, skilled workers can expect to see their earnings increase by 8%, while unskilled workers’ pay goes up by 13%.

In contrast, staff at firms taken over by multinationals from European Union countries feel no such benefit.

In a study to be presented at the Royal Economic Society’s 2006 annual conference, researchers at Nottingham University explored whether acquisitions of UK companies by foreign multinationals are a threat to domestic labour.

The results suggest the wage benefits are directly linked to the nationality of the foreign acquirer and the skill group of the workers.

www.nottingham.ac.uk/economics/res/index.html

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