Is legal to reduce a persons wages and withdraw works van with no consultation.?

My son was coerced from his at the time present job back to his old job some nine months ago.He was offered �10 per hour and a works van.Today on enquiring at the wages office why he had been underpaid he was told by the wages clerk that he has had his hourly rate reduced to �8 75 per hour and he would also be having to give up his works transport. He understands there is a recession and would have been more than happy to have negotiated for the sake of the firm but feels this is not acceptable.Would be pleased to hear views from anyone in the transport Business. Thankyou