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25 January 1999

No evidence yet of fall in pay rises
Although there has been a downward trend in inflation since last May there is little evidence of pay settlements falling, according to the latest figures published in the trade union negotiators' magazine Bargaining Report.

The median increase in private sector pay deals over the three months to December was 3.5%, unchanged from October and November.

The median pay rise across the whole economy was 3.8% for the same period. However, this is somewhat distorted by figures for the public sector as a result of the impact of the second stage of the phased increases for 1998 (which were paid from 1 December). The overall picture was, in fact, more or less unchanged on last month's figures.

Early indications for 1999 are that the economic downturn has had some impact with the re-appearance of pay freezes in a small number of agreements and evidence of companies closing sites, but elsewhere rises are holding up.

Below are the latest details on pay settlements contained in Bargaining Report 190, January 1999. These are based on the Labour Research Department's database of nearly 1,800 agreements covering over nine million people.

Percentage increases on lowest basic rates By agreements covered, for the three months up to and including:



SEP OCT NOV DEC this payround (Aug 97- DEC98)

All agreements 3.8 3.5 3.5 3.8 3.8

Private sector 4.0 3.5 3.5 3.5 3.6

Public sector 2.7 3.2 3.2 3.8 3.8

Manual 4.0 3.5 3.5 3.5 3.7

Non-manual 3.2 3.5 3.6 3.8 3.8

All industries 4.0 3.5 3.5 3.5 3.5

All services 3.5 3.7 3.5 3.8 3.8

For the 12 months up to and including:

SEP OCT NOV DEC

by agreements 3.7 3.7 3.7 3.7

by workers covered 3.4 3.5 3.5 3.8

Note to table: The figures show median (midpoint) pay settlements among all the agreements monitored through the LRD pay and conditions database. Separate figures showing the weighted median, (by number of workers covered) appear in the 12-monthly table.

Notes to editors

Bargaining Report is the negotiators' magazine published by the Labour Research Department (LRD). Single copies cost ?3.20 to LRD affiliates, ?3.95 to other union/voluntary organisations and ?16.00 to businesses. Subscription rates start at ?23.95 - for details telephone 0171 928 3649.
The Labour Research Department is an independent trade union and labour movement organisation founded 88 years ago. More than 2,000 trade union organisations, including 55 national unions, representing 99% of total TUC membership are affiliated.
For more details contact Lewis Emery on 0171 902 9807 or Dave Statham on 0171 902 9809.
 

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