PAY DATA
Pay awards holds steady at 2%
The latest figures from IDSPay.co.uk show that settlement levels across the economy have held steady at 2% for the second consecutive month. Over half of pay awards are worth 2% or more, with a fifth of these at or above 3%.
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The figures are based on the median level of settlement for the three months to the end of October 2009. IDS gathered data on 63 settlements covering 1.75 million employees.
Fewer pay freezes
The proportion of pay freezes has fallen slightly from around a third of all settlements in the previous IDS analysis, to a quarter of deals this time around. As IDS explained: “This may suggest that freezes have already started to ‘thaw’, although this is a quieter time for bargaining than the first half of the year”.
Private sector trends
Pay deals in private services have fallen slightly due to lower awards in areas such as fast food, pubs and restaurants, with the 1.2% rise in the national minimum rate having a greater influence here than in other low-paying sectors. However, most of the big food retailers have continued to pay rises of 2% or more in the 2009/10 wage round, including Asda, Marks & Spencer, Morrisons, Tesco and Somerfield.
At Ford employees have received a basic rise of 2% in the second year of a three-year inflation-linked deal. The award was based on a formula tied to the October 2009 RPI plus 0.2%, subject to a guaranteed minimum rise of 2%. The inflation figure for October was -0.8%, triggering the minimum increase clause.
Summary of key IDS data
For the three months to the end of October 2009, based on 63 settlements covering 1.75 million employees in total:
Median (whole economy): 2.0%
Average (whole economy): 1.8%
Inter-quartile range (whole economy): 0% to 2.5%
Median (manufacturing and production): 0%
Median (private services): 1.5%
A final word
“The whole economy median has remained steady at 2% for two successive months, so it looks like a stable trend. Most large retailers are paying awards at this level, notwithstanding the fact that the rise in the NMW was lower, at 1.2%. Looking ahead, the Ford Motor Company has paid 2% from November to staff at its factories in Essex, Southampton and South Wales. Although it’s not the bellwether settlement it once was, other motor manufacturers look towards pay negotiations at Ford when reviewing their own rates.” - Ken Mulkearn, Editor of IDS Pay Report.
Want to know more?
IDSPay.co.uk is a new online source of all the remuneration data collected by IDS, on pay settlements, pay levels and executive compensation. Visit www.IDSPay.co.uk to see a demonstration or to sign up for a free trial.
IDS Pay Report, published fortnightly, is the UK's “leading source of research and analysis on pay and benefits across the economy”. For more details visit www.incomesdata.co.uk or tel: 0845 600 9355.
Incomes Data Services is the “leading UK information and research service on employment issues, providing a range of publications for employers, trade unions, government departments and other agencies”. For more details visit www.incomesdata.co.uk.