Heatrae Sadia links pay to underlying inflation

Heatrae Sadia

Private sector

Location: Norwich

No. covered: 450

Increase: 3%, RPIX plus

0.75% in second year

Length of agreement: 2 years

Date: 1 April 2002

Hours: 39

Holidays: 25 + 8

A two-year pay deal at Heatrae Sadia, which provided a 3% rise on bonus and basic in April, links next year's pay increase to the underlying rate of inflation (known as RPIX). RPIX reflects the increase in prices excluding mortgage interest payments and has not fallen as low as the 'all items' rate during the past year. Next year's increase will be the March 2003 RPIX figure plus 0.75%. The deal also includes increased holiday flexibility (allowing half-day holidays) and a one-off £100 payment at Christmas 2002 for acceptance of a two-year deal.