Inflation pay shock

The hike in inflation to 4.8%, announced last month, means that retail prices are now rising faster than at any time since 1991 (see also "Inflation rises to record levels" and "So just how fast are prices really rising?" elsewhere in this issue). Some bargaining groups have been able to respond, but others have found their pay being overtaken by higher prices, according to Labour Research's sister magazine Workplace Report - including those in long-term deals without an inflation link.

The T&G general union reported successes for its Mind the Gap pay campaign, including a rise of up to 20% for oil tanker drivers and 10% for Carlsberg draymen. The CWU communication workers' union got telecoms giant BT to increase its opening offer of just 2.1% to a pay rise of 4.7% this year, and inflation plus 0.5% next April.