Pay deals drop by 0.5%

Updated 07.24 Fri May 18 2007
Keywords: pay, business, money, britain

Average pay deals have fallen back to 3 per cent since the beginning of the year.

Research by pay specialist Industrial Relations Services (IRS) found deals had fallen by 0.5 per cent, while wage rises in the public sector hit their lowest level for seven years at 2.7 per cent.

"The first evidence of the April pay bargaining round suggests a departure from the high pattern of pay awards in January" - Sarah Welfare

Workers in private firms have also seen a fall in their pay rises, although deals remained strong, with one in four worth over 4 per cent.

A study of 184 settlements covering 800,000 workers showed that just over half were higher than a year ago.

Sarah Welfare of IRS said: "The first evidence of the April pay bargaining round suggests a departure from the high pattern of pay awards in January, with low pay deals in the public sector matched by a greater number of moderate private sector settlements.

"Behind the headline figure, however, private sector pay awards remain strong, with a greater proportion worth 4 per cent or more, reflecting the continued impact of higher retail prices index inflation."

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