Cutting wages does not increase productivity.
It gives you the same (if you are lucky) productivity, or (normally) less productivity.
It just reduces the cost base.
It is one of the great myth-management tacthics.
As an experiement - cut your wages cost back to zero - see how productive that makes you.
Or, a case in point around my neck of the woods, reduce the cost base by 10%. (effective pay cut). And watch your productivity soar - backwards (funnily enough, same line graph as morale).
What do they teach in MBA school these days?