Pay awards delayed by pandemic and show all to play for...

During “normal times”, three quarters of pay awards are implemented in the first few months of the year. This year, the Labour Research Department’s nationwide survey of reps* has revealed that at least 35% had seen their pay rounds disrupted by the Covid-19 crisis. This figure may even be higher, as there were many public sector respondents who have national level bargaining.

Reasons given for the delays have been the difficulties with carrying out negotiations online, uncertainty around finances and inability of the employer to engage meaningfully during a crisis.

According to information provider XPert HR, at the end of 2019, before the pandemic, 72% of employers expected that their pay groups would receive a pay increase as part of the 2020 pay settlement. The only question was how much.

By May 2020, during the pandemic, its research has shown that only a quarter of employers were proceeding as originally planned. Many employers are now exploring their options.

Between 10 and 20% are now expecting a pay freeze, with the worst sector affected being “small private sector services”. In medium to large manufacturing, private sector services and the voluntary sector, the outlook is uncertain, with around half the employers surveyed yet to decide on their pay awards.

*Read more about the LRD reps survey on pages 15 to 17