Union research indicating that the rate of pay freezes will accelerate this year has been published just as an influential employment advisory body hosted an international conference to focus on the UK’s future strategy for skills, jobs and growth.
 

The new study undertaken by the Labour Research Department found that pay freezes were now more common than at any other time during the recession, with January having seen a marked toughening of employers’ attitudes.
 
Over the last few months, such freezes have formed the basis for a third of all wage deals, although the figure rises to more like 51 per cent if deals negotiated on a multi-year basis are included. Many employers that denied staff pay increases during 2009 also indicated that they are likely to maintain the policy for the rest of this year.
 
As a result, union negotiators are pessimistic about pay settlements over the year ahead, with three quarters in the public sector and half in the private sector saying that they expect 2010 to be tougher than 2009.
 
Challenges such as weak order books, pension deficits, maintaining jobs and ensuring corporate survival are likely to be higher up the agenda than pay issues despite the fact that Retail Price Index inflation rates increased by 2.4 per cent in the year to December.
 
The news came as the UK Commission for Employment and Skills (UKCES) held a two-day conference in London bringing together both national and international experts to clarify the new shape of the global economy and its likely impact on the jobs and skills market.
 
The aim is to explore potential policy responses to the crisis and the findings are intended to form part of the UKCES decision-making process. The UKCES in a non-governmental public body that provides advice to the UK government on skills and employment policy.