Pay deals in private firms are starting to increase in line with higher inflation as rises in the public sector are falling, according to new research today.
Average settlements in the first three months of the year were three per cent, just below the current inflation rate of 3.2 per cent, but agreements ranged from pay freezes to rises of six per cent.
Pay analysts Incomes Data Services said settlements were higher than a year ago, although inflation had since increased.
It reported: "The higher rate of inflation is pushing private sector pay settlements upwards just as Government pressure has lowered public sector increases awarded this year.
"The increase of 2.9 per cent for teachers and the offer of 3.2 per cent for a million NHS employees, both from April, now look decidedly modest."
Monday March 31 2003
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article