Pay
awards have increased to 2.7 per cent for the three months to the end of July
2002 – a rise of 0.2 per cent on the revised June figure, according to
Industrial Relations Services (IRS).
Despite
the increase, acting editor of IRS Pay and Benefits Bulletin, Charles Cotton,
said stock market volatility is likely to dampen-down pay expectations as
uncertainty clouds much of the private sector.
Sign up to our weekly round-up of HR news and guidance
Receive the Personnel Today Direct e-newsletter every Wednesday
The
research shows that settlement levels in the service sector, at 3 per cent,
continue to run ahead of those in manufacturing (2.8 per cent), although the
gap has narrowed. It also reveals that pay deals are generally worth less than
a year ago. An analysis of a matched sample of 49 awards monitored by IRS
reveals that two-thirds of settlements with effective dates between 1 May and
31 July 2002 are worth less than the comparable deal in the same period last
year. Only 16 per cent of reviews are worth more, with a similar percentage
pitched at exactly the same level.
