Pay freezes increase despite rising inflation

February 9, 2010
Lizzie Syddall

Workers will continue to encounter pay freezes despite an increasing RPI (retail prices index), according to the Labour Research Department (LRD).

Pay freezes now account for around one third (33%) of all pay settlements based on data available so far for January. When including pay deals economy-wide for the three-month period November 2009 – January 2010, this figure rises to a half (51%).

Lewis Emery, LRD’s pay and conditions researcher, says: “It is easy to see that pay will not be the sole or even the main bargaining priority in 2010, although it may be too soon to judge the effects of inflation.

“Maintaining jobs and business continuity is a greater concern, both in the private and public sectors, with almost three-quarters (72%) of respondents identifying it as a priority. But with inflation at 2.4% pay will not be neglected either.”

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