Tuesday, January 12, 2010

Snow to cost economy billions

Workers forced to stay at home by the heaviest snow in 50 years risk losing wages or holiday entitlement as companies try to recoup losses caused by the freezing weather.


Snow-bound workers 'face having pay docked' during icy weather
A sledger climbs a slope in Chesham, the Chilterns Photo: ANDREW CROWLEY

Up to three million people are thought to have missed work because of the snow on Tuesday, costing businesses £600 million, according to the Federation of Small Businesses.

Parts of the country saw 1.5ft (47cm) of snow fall over night and the freezing temperatures are expected to continue for at least another two weeks. Forecasters are warning of another six days of snow, threatening continued disruption to road, rail and air transport.


The Centre for Economics and Business Research predictes that more than 2,000 companies could go bankrupt as a result of the cold snap.

Some may take steps to try to recover losses from workers' pay packets by deducting pay from workers who are trapped at home in the snow, accoring to reports.

Tesco, Asda, Marks & Spencer, and HSBC are among employers who say some of their staff may be asked to take missed days as part of their holiday entitlement or additional unpaid leave, according to the Guardian.

Barclays said If an employee on its staff is off work due to poor weather conditions, this will be authorised as paid leave and individuals will not be required to take this from their holiday entitlement.

The companies say they are being flexible and have offered a range of options to staff but unions gave warning that “scrooge bosses” who dock pay or holiday will cause “unnecessary resentment”.

A spokeswoman for Tesco told the paper that decisions would be taken on a local level: "There are lots of options for staff and stores including taking unpaid leave," she added.

A Marks & Spencer spokesman said workers who couldn't make it in were offered the opportunity to work at an alternative store. "If they don't go to work at all, it is at the discretion of the individual store manager as to whether they are paid. But they are encouraged to take the day off instead."

The closure of more than 10,000 schools yesterday meant that many parents had no option but to take time off or work from home.

But even those who can travel will face perilous conditions in coming days as an extra level of ice forms on top of the snow.

Councils are already struggling to cope. In the last three weeks, 200,000 tonnes have been spread on roads across Britain.

Salt Union, the company supplying 80 per cent of the country’s grit, admitted it could not keep up with the extra demand from councils, raising the prospect of shortages as the big freeze continues.

Some councils have been unable to take delivery of extra supplies while others rationed the use of grit, using it for major roads only, to ensure they had enough to last.

Yesterday the Government activated its "salt cell" programme that allows it to overide exisiting contracts and distribute supplies to the most needy areas.

There have also been concerns about surging demand for gas.

Demand for natural gas is almost a third above normal seasonal level, with an estimated 453 million cubic metres of gas being used yesterday, smashing the previous January record in 2003.

The Government was forced to deny reports that Britain is likely to suffer shortages after the National Grid issued a warning about consumption earlier in the week.

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