The Scottish social care charity Quarriers has proposed cutting the pay of all its 2,000 staff.
The charity, which has an income of £40m a year, said it would launch a 90-day consultation with staff on several proposals to reduce costs.
In addition to an across-the-board pay cut, proposals include:
- A reduction in sick pay removing payments for the first three days of illness. People with long-term illnesses would receive three months’ full pay, followed by three months’ half pay.
- Discretionary rather than automatic annual pay increases.
- A reduction in maternity, paternity and adoption pay to the statutory minimum.
- A 3 per cent increase in contributions by employees in the final-salary pension scheme.
The charity said the decision had come because of the "unprecedented economic challenges" it faced.
It said in a statement: "With local authorities – Quarriers’ main source of funding – across Scotland continuing to face a challenging fiscal environment, Quarriers has submitted proposals to protect staff jobs, grow the organisation and maintain service provision for the people it supports.
"The suggested amendments to staff pay and terms of employment would bring the organisation in line with other voluntary sector providers."