New year pay rises may put firms under pressure

first_img Comments are closed. The newyear wage round could prove painful for employers, following the release offigures showing pay awards have broken the 3 per cent barrier for the firsttime in almost two years.But therise is seen as temporary and unlikely to influence the bigger pay awardsseason in April. Latestfigures from pay analyst Industrial Relations Services show that awards rose0.2 percentage points to stand at 3.2 per cent in the three months ending inOctober. The risewas set off by higher inflation during the summer months when the all-itemretail prices index recorded a 3 per cent rate. But inflation is forecast tofall next year.JeremyBough, the report’s author, said, “An inflation rate of 3 per cent plus duringthe remainder of this year means that the recent pick-up in pay deals could besustained over the coming months and set the scene for the crucial new yearwage round when a quarter of all settlements are due to be concluded.“Butfalling inflation over the first half of next year, the impact of the highpound and the demands of consumers for lower prices means there is littleprospect of any sustained and decisive take-off in pay awards in the yearahead.”Most of therise came in private sector wages that account for three-quarters of the 41 payreviews analysed. The T&Gunion said it was logging pay awards of 2 to 3.9 per cent over the same quarterbut expected the levels to fall.By KathyWatson New year pay rises may put firms under pressureOn 5 Dec 2000 in Personnel Today Previous Article Next Article Related posts:No related photos.last_img

first_img Comments are closed. The newyear wage round could prove painful for employers, following the release offigures showing pay awards have broken the 3 per cent barrier for the firsttime in almost two years.But therise is seen as temporary and unlikely to influence the bigger pay awardsseason in April. Latestfigures from pay analyst Industrial Relations Services show that awards rose0.2 percentage points to stand at 3.2 per cent in the three months ending inOctober. The risewas set off by higher inflation during the summer months when the all-itemretail prices index recorded a 3 per cent rate. But inflation is forecast tofall next year.JeremyBough, the report’s author, said, “An inflation rate of 3 per cent plus duringthe remainder of this year means that the recent pick-up in pay deals could besustained over the coming months and set the scene for the crucial new yearwage round when a quarter of all settlements are due to be concluded.“Butfalling inflation over the first half of next year, the impact of the highpound and the demands of consumers for lower prices means there is littleprospect of any sustained and decisive take-off in pay awards in the yearahead.”Most of therise came in private sector wages that account for three-quarters of the 41 payreviews analysed. The T&Gunion said it was logging pay awards of 2 to 3.9 per cent over the same quarterbut expected the levels to fall.By KathyWatson New year pay rises may put firms under pressureOn 5 Dec 2000 in Personnel Today Previous Article Next Article Related posts:No related photos.last_img

Leave a Reply

Your email address will not be published. Required fields are marked *