Some 42 per cent of managers questioned by consultants Deloitte and Touche believe wage inflation will cause job losses at their companies this year.
Some 42 per cent of managers questioned by consultants Deloitte and Touche believe wage inflation will cause job losses at their companies this year.
On average, they expect 9 per cent of staff to be laid off in the face of what they describe as unsustainable pay rises. Eighty per cent of 303 managers surveyed say wages are the biggest drain on resources. Only 9 per cent cite raw materials as the principal cost.
Thirty eight per cent said wage increases are a key test over coming months. Respondents appear divided over the new national pay agreement: 45 per cent feel it will curb inflation but 35 per cent disagree. Fifty three per cent think the economy will deteriorate in the next six months.
Cisco posts higher quarterly profit
Cisco Systems the number one maker of equipment that directs Internet traffic, yesterday posted a higher quarterly profit, but sales slipped from the previous quarter amid the weak corporate spending environment. The California-based company reported a net profit of $987 million (€874 million), or 14 cents a share, for the fiscal third quarter ended April 26th, compared with $729 million, or 10 cents a share, in the year-ago quarter. - (Reuters)
'Telecoms to bear brunt of data law'
Telecoms companies will struggle to shoulder the cost of new laws compelling them to capture and retain some data for a minimum of three years, a lobby group for the sector has warned.
If implemented the Telecommunications (Retention of Data Traffic) Bill will grievously undermine competitiveness in the industry, ICT Ireland, a division of employers' body IBEC, predicted.
GE may have to make disposals
General Electric will come under pressure from European regulators to make significant disposals to win approval for its $2.1 billion (€1.86 billion) takeover of Instrumentarium, the Finnish medical devices group. The European Commission, which vetoed GE's $42 billion bid for Honeywell, is preparing to take a tough line. People close to the Instrumentarium case say the decision could depend on GE's willingness to sell at least parts of the group's patient monitoring business. - (Financial Times Service)
