Aegon UK has proposed a pay freeze for all of its staff in a bid to cut £2.5m from the company wage bill.
The proposal, which has been put to union representatives Aegis and Unite, follows confirmation in June of plans to cut costs in its UK operations by 25% by 2011. Wages rose by 2% following last year’s pay negotiations.
An Aegon spokeswoman says: “It is our standard practice each year to negotiate proposed pay awards with Aegis and Unite, the trade unions that represent our staff. As part of this year’s negotiations, the unions have decided to ballot their members to determine whether there is support for this proposal. The result of the ballot and the outcome of pay settlement negotiations will be confirmed in due course.”