Hmmm, was that brought up in this particular dispute?
I'm not sure they'd settle for this. Obviously, a pay cut is a lot better if there are less hours to work for what you get. But ultimately, someone earns enough money to make ends meet or not. If they got less pay and couldn't make ends meet, I don't think this would be acceptable.
A top-up from the social? Seriously? Is there any mechanism whereby you can claim basic assistance while you're in employment?
A pay cut isn't acceptable for people who are facing the threat of redundancy at any moment.
Your redundancy payment is based on your current wage/salary.