Settlements creep up to 3% in second quarter

Average pay settlements crept up from a midpoint of 2.7% to 3.0% in the three months to June, according to Workplace Report, the monthly magazine for negotiators, published by the Labour Research Department (LRD). The median for the public sector was zero.

The overall median figure means the gap between pay rises and inflation has narrowed, but remains at a full two percentage points, an analysis of settlements on the LRD Payline database showed.

Workplace Report said pay rises of 5% or more are being awarded as the pay round progresses, helping to protect pay levels at a time when living standards generally are still being squeezed, providing a counterbalance to pay freezes elsewhere.

The latest deals of 5% or more come mainly from the transport sector, at railway companies like Eurostar and Virgin Trains, bus company Stagecoach South West and London’s light railway operator Serco Docklands.

In manufacturing, construction equipment firm Komatsu increased pay by a maximum of 5%, while at gas distribution company Scotia Gas Networks a deal for industrial and non-industrial staff worth 5.5% came into force in July.

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