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27 January 2009 Pay freezes grip some January settlements while wages overall continue to rise
Pay freezes are the most noticeable new trend in January's settlements posted Out of 73 settlements that have come into effect on or after 1 January 2009, 12 - or one in six - are pay freezes either for the entire 2009 pay round or to be reviewed later in the year. The number for January alone is 50% higher than the eight pay freezes posted to Payline in the whole of 2008. A majority of the freezes have occurred in the media sector, particularly local papers and books. Others are in manufacturing, But at the other end of the wage spectrum, 10 (one in seven) deals in January were for increases of 5% or more, while the largest number - just over a quarter (20 or 27%) - fell into the 4%-4.99% bracket.
"Pay freezes are the new element in pay trends but plenty of people are still In an LRD survey of union reps' bargaining predictions, conducted in December 2008, 9% of union reps predicted or had been told to expect pay freezes for 2009 across both public and private sectors. However, the survey also found 17% of reps predicting pay rises of higher than "The pay trends in January's Payline database would seem to bear out union reps' predictions by showing a broader spread of deals ranging from over 8% to zero", said Emery. "This suggests that the downturn is affecting pay in various Payline registers pay and conditions settlements negotiated between unions and employers across all sectors of the economy. It contains around 2,300 agreements, and acts as a barometer for pay trends throughout the year. For further information about Payline or Workplace Report, contact Rebecca Johnson (Workplace Report editor) or Lewis Emery (Pay researcher). Notes for Editors
Download: Pay Freezes Press Release (Jan 09) (pdf file, 37KB) |
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