Pay freezes continue despite rise in RPI
by Kay Murchie
A report by the Labour Research Department (LRD) has found that despite rising inflation, the rate of wage freezes is growing.
The study found that a third of all pay deals now included a pay freeze - the largest proportion since the onset of the recession.
The findings come despite a rise in Retail Price Inflation (RPI). RPI, which includes mortgage costs and is used as the basis for many wage deals, rose to 2.4% in the year December - the highest level since November 2008.
Meanwhile, the LRD’s survey of unions found that more than 60% expected pay negotiations to be tougher this year than they were in 2009.
Lewis Emery, LRD’s pay and conditions researcher, said: “Maintaining jobs and business continuity is a greater concern, both in the private and public sectors.
“But with inflation at 2.4% pay will not be neglected either,” he added.
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Tags: inflation, KRD, Labour Research Department, rise, survey, wage freezes
