Half a million missing out on overtime cash

Page last updated at 08:52 GMT, Friday, 27 November 2009

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By Catherine Burns
Newsbeat Reporter in Bristol

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See how one plumber has been affected by losing his overtime

In the last 12 months half a million people have seen their pay packets shrink because they've stopped getting paid overtime, according to research by the Trades Union Congress (TUC).

In summer 2008 just under 4.5 million people were working extra hours for cash.

Twelve months on that had fallen to under 4 million. According to the figures, the situation's particularly bad for 20 to 24-year-olds.

Aaron Moore, 24, works at a water purification company in Bristol and has always done well out of working overtime at weekends.

But eight months ago, his bosses got staff together and told them things were tight.

They either had to cut numbers or tighten up overtime payments.

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'Sacrifice'

Aaron and his team agreed they'd rather all take a financial hit than anyone lose their job.

It means his wages have gone down by about 11% and he's now feeling the pinch.

Aaron says he's making about 11% less without paid overtime

He said: "You're talking the difference of thousands of pounds over the year, it's not pence.

"It could be a down payment on a mortgage or a deposit on a car. When you look at the big picture, it is definitely a big sacrifice."

It means his nights out have been scaled back, no one is getting fancy Christmas presents this year and he's concentrating on the essentials instead.

"The rent is expensive and changes in your wages do have an effect on that," he admitted. "You're missing a couple of hundred pounds and you have to scrimp in other places to account for that."

The decline in paid overtime has been partly caused by job losses and fewer opportunities to earn extra money.

The TUC says people who have lost payments are the "hidden victims of the recession."

But some bosses say it isn't easy for them either.

Anne Boyle is the accounts manager at Aaron's company. She said: "Times were very tough and they're still tough. But we're getting there and we've maintained a happy and motivated staff. They might be slightly reduced, but no one has lost their job."