United Kingdom - Pay freezes return to private sector - June 29, 2011

Pay freezes have made an unwelcome return to the private sector, contributing to subdued settlements across the board, according to the Labour Research Department (LRD). LRD Payline, which monitors agreements across all UK sectors, showed the median basic pay rise in the three months from March to May 2011 to be 2.7% - a fall from the 3% level reached earlier in 2011. This partly reflects the fact that one in five new deals in the latest period implied pay freezes. Widespread pay freezes in the public sector are beginning to make their mark on pay trends, accounting for four out of 10 public sector pay deals monitored since the pay round began last August. Yet, freezes are also returning to the private sector, where until very recently they seemed to have faded out. LRD Payline also found that the spread of settlements continued to widen in the three months from March to May. At the higher end, a quarter of settlements were worth 3.9% or more but at the lower end a quarter were worth 1.5% or less. The overall median increase of 2.7% comes as inflation hits 5.2% on the RPI measure or 4.5% on the CPI measure.

English: press release Labour Research Department (LRD)


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 at www.etui.org, and on the AIAS at www.uva-aias.net. © ETUI aisbl, Brussels 2011.

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