Are you expecting a wage freeze this year?
Hey, at least somebody’s getting a raise.
As local Chinese governments raise minimum-wage requirements — and impatient workers clamour for higher salaries — pay scales in China are expected to rise sharply.
Foxconn, China's largest contract manufacturer, which produces goods for Apple and other electronics giants, implemented a one-time minimum-wage increase of more than 33% to 1,200 yuan a month — only to double that bump a week later. And Honda workers recently won a 35% pay raise following two week strike.
Back on the farm here in Canada, things don’t look as promising. The average salary increase is projected to be 2.8% nationally this year, up from the 2.2% increase actually awarded in 2009. In fact, 6.5 % of employers are planning to freeze salaries altogether, according to Hewitt & Associates.
Alberta's nurses, for instance, recently signed for a three-year deal recommended by a mediator which calls for a wage freeze in the first year, a 2% "productivity" payment in the second year and a 4% wage increase in the third year.
Their last three-year contract netted them 5% salary increases each year, making senior nurses in the province among the best paid in Canada.
But that was then. Manitoba’s NDP government, for instance, recently announced it would seek a wage freeze for its public employees, prompting community college workers to gear up for a strike.
There is some good news, however: About 20% of employers have money set aside to reward employees who are high performers or who have ‘hot skills’ that are in demand.
What about you? Do you expect to get a raise this year? Or are you just hanging on?
By Gordon Powers, MSN Money