5 March 2001, 12:28 UK pay settlements so far in 2001
LONDON (MktNews) - UK pay settlements so far in 2001 are "a little
up" on those agreed in the closing months of last year, Incomes Data
Services reported Monday.
Two-thirds of this year's pay reviews gave increases in the range
of 3-4%, with half of them worth 3.5% or more. "This is substantially
higher than in the same period a year ago, when nearly half of pay
settlements were under 3%," IDS said.
It pointed out that a key difference between the two periods is the
headline annual inflation rate which has influenced decisions on pay.
This was running at less than 2% for the nine months up to January 2000
whereas it was close to or above 3% for the nine months up to January
2001.
IDS also noted that pay offers have been made for this year, and in
a number of instances settlements reached, for over three million public
sector workers, amounting to more than half the public sector workforce.
The 3.7% award to key review body groups has set a significant
benchmark, although public sector employers in Scotland seem to be
setting a rather different course.
In the motor industry the winter pay round has largely been
concluded, yielding rises ranging from 3.5% to 4.25%.
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