Fact Service (January 2013)

Issue 2

Pay tensions in 2013

Pay will continue to cause tension as austerity measures continue, John Taylor, chief executive of the conciliation and arbitration service Acas, has predicted. He has also highlighted the need for employers to motivate and engage workforces.

“With forecasts for continuing long-term austerity measures and a possible triple-dip we may very well see increasing tensions and conflict around pay. Pressure on employers to keep wage costs under control could clash with the desire by employees to catch up with the cost of living - inflation has been outstripping median pay awards for the last three years.

“If inflation and interest rates rise then this will increase wage demands. If the private sector meets these demands through increases in the level of pay settlements then the public sector could see pressure for their pay to catch up after periods of restraint.”


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