The
chancellor of the exchequer’s call for responsible pay rises, made at today’s
British Chambers of Commerce conference, highlights the public sector reform
challenge facing the Government, according to the Chartered Institute of
Personnel and Development (CIPD).
John
Philpott, chief economist at the CIPD, said: "Although, with unemployment
very low at a time of economic recovery, Gordon Brown is right to issue a
warning to the private sector, most private employers are already well aware of
the need to control wage costs and are taking steps to ensure that pay rises
are affordable.
"The
real challenge this year is to ensure that public sector pay rises are
justified by clearly identifiable recruitment and retention pressures and
linked to genuine improvements in productivity and service delivery.
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"While
welcoming the call for caution over pay, the best message Brown can send to
bosses is that of clear evidence that his own efforts to reform pay and work
practices in the public sector are succeeding."
