These are the options put to us this morning at the small firm I work for.

Apparently the bank (Barclay's) are putting the pressure on with the overdraft. Also our main multinational customer expects us to hold six months stock for them, only payable as and when they actually recieve the goods.
We haven't had a pay increase in 6 years and now this option is thrown at us.

So what would you choose, 15% pay cut or a 4 day working week?

I'm almost certainly gonna go for the 4 day option. At least I can do some housework on the day off or look around for any other jobs. Or perhaps I should just refuse both offers and ask for redundancy? However if I do that they don't have any money to pay me off so would almost certainly have to pull the plug, meaning we all lose our jobs.

Choices, choices . . . . . .

Presumably a four-day week involves some kind of pay cut?

A cut in hours = 20% pay cut (but I get to have Friday's off)

Extra day off, at least you won't be getting paid less for the same amount of work. And just thunk of the extra day off

Take the 4 days week, presumably with a cut in salary. Look around for other work on a Friday, you might be able to find something that is 1 day a week and pays pretty well as a result.

... because it's a job seekers' market ...

Suggest a compromise of having Friday's off but only losing 15%.

take the 15% as the 4 day week equals 20% wage cut. you would gain an extra day off a week but lose an extra 5% pay cut too.
however another thought is if you have travelling costs and could probably claw back that other 5% and more over the year by working 1 less day??
hopefully you will still have a job when its all decided.
good luck.

If the difference between the 20% and 15% is not critical the day off may prove best IF you use it wisely and can manage to find another job in a more secure firm.

However, which do you think the employer would prefer you to take, if they even have a preference? Might be best to go with what they want as if they have to lay people off later they may keep those who have been more amenable.

Either way, a difficult position for you, your colleagues and employer. Good luck.

4 days id choose.

eg if you earn 400, on a 4 days would be 320, but 15% loss would be 340, would it be worth working that extra day for 20 (quarter of a days pay in reality for a full day), youd lose that in travel, lunch tax and NI id guess.

Also do Tax credits come into it ??