DNEG threaten to cut pay upto 25% and offer staff repayable 'loans' to make up for lost earnings

Today, we want to address a concerning development at DNEG. They very recently announced pay cuts of up to 25% for its employees, coupled with a rather unconventional approach to compensate for these losses through 'loans', which their staff need to repay overtime.

As of now, DNEG is imposing these pay cuts for a period of 7 months. To 'help' offset the financial impact on their staff, the company is offering 'loans' to their employees. While offering financial support during challenging times is usually commendable, the repayment terms are causing deep concern within the Animation & Visual Effects community, especially around their legality.

The loan offered by DNEG comes with a significant catch: employees are required to pay back the loan over a three-year period. This means that even after the pay cuts are reinstated, employees will be obligated to allocate a portion of their salaries to repay the company. Aledgedly, there is no interest on the loan (tbc). This approach has sparked a considerable backlash within our industry.

We at the Animation & Visual Effects Union voice very strong concern and opposition to the pay cuts, as well as the loan method. We believe pay cuts should not be compensated through loans with long-term repayment plans, placing a heavy burden on the employees who are already facing financial challenges.

This situation underscores the importance of open dialogue and collaboration between employers and employees during challenging times. While businesses often need to make tough decisions to navigate economic uncertainties, it's crucial to strike a balance that doesn't disproportionately impact the livelihoods of their dedicated workforce.

What can be done about this?

If you are a member of the Animation & Visual Effects Union, get in touch with us immediatly and do not accept any pay cuts yet. You can email your BECTU official Stefan Vassalos stefan.vassalos@prospect.org.uk to get advice and organise with your colleagues at DNEG.

Remember, you MUST give your consent for a paycut. It is ILLEGAL to impose a cut without it. You DO NOT have to consent to a pay cut. Legal action can and will be taken against paycuts without consent. Anyone affected please get in touch with us immediately so we can represent and protect you and your livlihood as much as possible. BECTU has the power and resources to challenge moments like this, so it is imperitive YOU take action and contact us. Talk to your colleagues and get in touch. It is only through solidarity and collective effort that we can address these challenges and shape a brighter future for our industry.

Please feel free to share your thoughts and insights on this matter. Your input and perspective are valuable as we navigate these unprecedented times together.

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