Pay hikes at two-year high as rising inflation feeds through

first_img Previous Article Next Article Pay hikes at two-year high as rising inflation feeds throughOn 6 Mar 2001 in Personnel Today Pay awardshave hit a two-year high, according to research by independent analystsIndustrial Relations Services. Settlementsincreased dramatically to 3.4 per cent in the three months to January 2001 – arise of 0.4 per cent from December. The IRSmeasure stands at its highest since November 1998. Half of all pay deals arenow worth between 3 and 3.7 per cent, up from between 2.8 and 3.5 per cent inDecember 2000. Reportauthor Jeremy Baugh said, “The upturn in January deals reflects the impact ofhigher headline inflation in the final quarter of last year, which has fedthrough into rising settlement levels in the early part of 2001.”Almost aquarter of deals are now pitched at 4 per cent or above, compared with 15 percent of deals for the previous quarter. At the same time, there has been a fallin the proportion of settlements below 3 per cent, from nearly a third to justover a tenth. Baughsaid, “Falling inflation, the predicted slowdown in the UK economy and thecontinuing pressure on employers to deliver low-cost competitive pay deals areall likely to help restrain demands at the negotiating table and mitigateagainst higher settlements in the coming months.“Theevidence at the start of the busy January wage round suggests that downwardwage pressures will intensify, raising the prospect of a fall in basic payawards in the months ahead.”The IRSmonthly pay analysis is based on 85 basic pay reviews, in the three months toJanuary, covering 295,000 employees. www.irseclipse.co.ukBy MikeBroad Related posts:No related photos. Comments are closed. last_img read more