26 November 2008
Pay settlement levels drop in response to falling inflation and economic downturn
The median (mid-point) pay settlement levels recorded by Labour Research Department's Payline database fell by 0.2% in the three months to October to 3.8%. The public sector median was 2.9% while the private sector median was 3.9%. The figures are for basic pay only and exclude bonuses, increments and overtime.
The three-month settlement median remained at 4.0% from July to September this year and has not been as low as 3.8% since April 2008.
"Although these deals were implemented while inflation was still at its peak, it is probable that they reflect a recognition of a likelihood of falling inflation as well as deteriorating economic conditions." said Lewis Emery, LRD's pay and conditions researcher.
The latest pay figures are published in the November 2008 issue of Workplace Report. The Payline database records details of pay settlements, and agreements on terms and conditions negotiated by unions and holds around 2000 agreements in total for the whole of the UK economy.
Notes for editors:
For further information about Payline contact Lewis Emery. For further information about Workplace Report contact Rebecca Johnson (Workplace Report editor).
- The full article appears in the November 2008 issue of Workplace Report, Workplace Report is LRD's monthly publication for union reps and negotiators.
- Labour Research Department is an independent organisation founded in 1912 to produce research on behalf of trade unions and the labour movement. More than 1,800 trade union organisations, including 55 national unions, are affiliated to it, representing more than 99% of TUC membership. LRD press releases are also available on the website at www.lrd.org.uk
- Payline is LRD's database of negotiated agreements reported to LRD by unions. It includes around 2,000 agreements with information on pay, terms and conditions and other aspects of the employment contract. A full pay round survey is conducted bi-annually in April and October.
- Pay settlements are negotiated rises on basic pay, and exclude bonus, increment, overtime and other allowances.