United Kingdom - Private sector settlements will not compensate for public sector squeeze - June 30, 2010

Private sector pay settlements are not keeping pace with inflation, according to data for May from the Labour Research Department (LRD). Also, earnings in the private sector may not be able to offset the effect of pay curbs in the public sector. The three-monthly median (midpoint) for May remained steady at 2%, the same as the previous month. LRD data available so far indicate that the median for new settlements in the public sector has fallen to 1%. In the private sector pay freezes affected 13% of settlements (19% of new settlements) in the three months to May, little changed from April but down on the higher proportion of freezes recorded earlier this year. Lewis Emery, LRD's pay and conditions researcher, said: “Although currently a degree of stability has emerged in wage deals, pay rises of less than half the rate of inflation spell cuts in living standards for workers in general, not just the public sector.” (See also this Collective Bargaining Newsletter Year 3 May 2010).

English: LRD Press Release http://www.lrd.org.uk/issue.php?pagid=1&issueid=1392 

This article was published in the Collective Bargaining Newsletter. It aims to facilitate information exchange between trade unions and to support the work of ETUC's collective bargaining committee. For more information, please contact the editor Maarten van Klaveren, Amsterdam Institute for Advanced Labour Studies (AIAS) M.vanKlaveren@uva.nl. You may find further information on the ETUI atwww.etui.org, and on the AIAS at www.uva-aias.net. © ETUI aisbl, Brussels 2009.

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