Pay analysts, IRS report that average settlements continue to stand at 3%; a figure that has remained unchanged for the last 18 months since April 2003.
This period of stability is unprecedented since April 1996 when pay settlements also hovered around the 3% mark until movement came about in September 1997.
Half of all pay awards in the sample of 139 pay settlements fell between 2.8% and 3% showing the narrow band in which awards are falling.
The private sector continues its lead with a median 3% basic pay increase ahead of public sector workers who report awards of 2.9% in the 12 months to end of September 2004.
Sheila Attwood of IRS said:
“As employers and pay negotiators head into the new pay round, running for a year from 1 September 2004, IRS finds that the settlement stability seen over the past 18 successive rolling quarters has again been maintained.
“While headline inflation has moved between 2.5% and 3.1% over the past 18 months, the median basic pay settlement has refused to budge from 3%.”
