According to a tip we received, PwC is going to tell employees in their tax practice to take an 20% pay decrease along with an 20% reduction in work. This will most likely take place across the Canadian firm, but we have not yet confirmed that.
However, our tipster said that the 20% reduction in work is unlikely as staff will have the same workload as before.
This plan would start in July of this year. After employees complete 5 months of a pay cut, they would potentially receive a 4% bonus.
Partners in PwC Tax Canada said they would like to see 100% participation in the plan. This is similar to what we saw in the big 4 accounting firms in Australia. They had a voluntary pay cut in Australia, but we saw nearly 100% adoption there. People were most likely worried about losing their job their.
Read more: PwC Cuts Pay 40% In Australia
The way that most people are encouraged to get to 80% is by taking a day off. The downside is that people are still expected to be reachable on their day off.
Our tipster also heard from partners that they sought legal advice before going with this plan. Partners initially wanted to make the pay cuts mandatory, but their legal counsel told them that they could not do that. There is no word whether the partners in PwC Canada have yet taken a pay cut themselves.
According to our tipster, ratings are also being forced down. This is most likely having to avoid promotions and significant pay increases and bonuses. Discussions about lower ratings were held at the annual review meetings.