After five years at the top, builders no longer head the UK pay award league table, new figures show. Transport and communication sector pay rises have pushed construction from the number one place, according to pay specialist IRS in its annual pay survey. While the finance sector also enjoys the same (median) increase of 3.75%, its pay awards are predominantly based on merit rather than basic pay, reports IRS. The Pay Prospects survey is based on IRS’s analysis of about 1,200 awards outside the public sector in the period September 2004 to August 2005. Many sectors remain unchanged but the UK’s textiles sector has seen major shifts. In the past, settlements in this sector have generally lagged behind those for the economy as a whole. In the 12 months to 31 August 2005, however, the median basic pay award in textiles was 3% – the same as the median for the whole economy. The 7.8% hike in the minimum wage was a significant factor, with the lowest paid employees in companies covered by the collective agreements for both leather goods and allied trades and glove manufacturing receiving increases at this level. Receive the Personnel Today Direct e-newsletter every Wednesday IRS Pay and Benefits editor, Sheila Attwood said: “Most people won’t be surprised that the majority of pay increases have remained at 3% across a variety of sectors. “The transport and communication sector, which covers road and rail passenger transport, logistics, communications and postal services, has managed to buck the trend. It has been boosted by several above-inflation deals in the rail and road haulage industries over the past year.”
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