I find myself in similar conditions.
I didnt have to take pay cuts tho.
My wages continue to rise, but when fuel cost double and health care premiums rise its a wash.
My salary was reduced from $70,000 to $64,000 but I only had to work three days a week!
In 2004, when my salary was returned to $70,000 my work week was extended to four days.
If you factor in the actual days that I work each week, I have done rather well.