Average pay settlements remain unchanged at 3%; a trend that has seen no upwards revision for a year and a half.
Pay analysts, Industrial Relations Services (IRS) report that one-third of all pay settlements awarded a 3% rise.
Just over a quarter of those surveyed, however, said they made a pay award that outstripped inflation. While public sector workers continue to surpass those in the private sector with better pay deals.
In good news for the beleaguered sector, manufacturing workers at last have something to celebrate with the news that pay awards have increased by 0.2% points over the period matching pay deals in the service sector.
Sheila Attwood of IRS said that pay setters would be keeping a close eye on wage settlements ahead of the traditional pay review period in January.
“If headline inflation continues its upward path, there is a real possibility that pay awards will breach the 3% mark for the first time since June 2001. Most notably, any inflation-linked deals due to take effect over the coming months will almost certainly be based on an inflation rate of 3% or more. Any inflation-plus deals could help to establish a higher benchmark for pay negotiators in advance of the crucial bargaining period between January and April 2005.”
