Our latest analysis of pay settlements suggests that the economic slowdown has created a new pay bargaining environment in which employers would appear to have the upper hand.

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Pay & Benefits Bulletin
   QUICK LINKS ANALYSIS  |  NEWS   |  PAY AWARDS   |  DATAFILE   |  MORE FROM IRS...
  THE EDITOR'S MESSAGE Issue 689  
  EMPLOYERS WIN PAY RISE BATTLE
Sheila Attwood, Editor

Our latest analysis of pay settlements suggests that the economic slowdown has created a new pay bargaining environment in which employers would appear to have the upper hand. This has resulted in below-inflation pay awards for the majority of workers in the public and private sectors.

Our research - the largest survey of its kind - reveals that the median basic pay award rose to 3.3% for the three months to 31 May 2008. The headline pay award is now one percentage point below retail prices index inflation, which stood at 4.3% in May. Pay awards have now been below RPI for two years.

Elsewhere in this issue, in the second feature in our series on employee benefits and allowances, we examine the provision of health-related benefits. The findings are taken from a survey of 277 organisations. We will be covering travel and subsistence payments, and other benefits and allowances including long-service awards and salary-sacrifice schemes, in our next newsletter.

Other top stories in this issue:

Our pay reports in this issue give details of the latest pay settlements at Anglian Water, First Direct and Kodak managers.

XpertHR Sheila Attwood,
Editor,
Pay and Benefits Bulletin

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  ANALYSIS

Pay awards stay firmly below inflation, at 3.3%

The median pay award climbed back to 3.3% in the three months to 31 May 2008, according to the latest monthly analysis of pay trends from IRS.

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Survey: Benefits and allowances (2)

In the second article in our annual four-part series, we provide an overview of health-related benefits on offer in 277 organisations.

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Pay Intelligence June 2008

Reference manual: basic pay and benefits

Survey: Benefits and allowances (1)

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  NEWS

Benefits worth up to one-third of basic salary

A report based on a database of individuals responding to all Celre surveys (including the IT survey), as well as the annual Celre company background questionnaire and the IT fringe benefits questionnaire, looks at some of the most popular benefits on offer in today's workplaces.

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What will the credit crunch mean for finance sector pay?

Research from professional services consultancy, The Smart Cube, examines the likely impact on compensation packages in City of London finance firms as a result of the credit crunch.

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IT staff see above-inflation pay increase

IT and computer staff have seen an average 4.8% increase in their basic pay over the past year, according to the latest research from Celre.

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Workers value healthcare provision over bonuses

UK workers perceive the provision of healthcare to be of greater value than participation in a bonus scheme, according to Benenden Healthcare Society. These are among the key findings of a survey of 1,001 workers undertaken in April 2008.

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NHS medical directors: median pay rises to £154,896

Research from Capita Health Service Partners examines the pay of 98 medical directors in the NHS.

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Germany: Eight sectors apply for recognition of binding minimum wage

Trade unions and employers' associations in eight industries have submitted applications for their collectively agreed sectoral minimum wages to be made legally binding for all employers and employees in their sector, using the provisions of the Posted Workers Law.

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BBC scheme launches salary sacrifice

The BBC has written to members of its final-salary pension scheme, informing them that they will be enrolled in its new salary-sacrifice benefits scheme as of 1 June 2008, unless they ask to opt out.

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Public sector pay review bodies (2): the health professions

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  PAY AWARDS

Pay reports recently added to the site:

Anglian Water: 4.07% inflation-linked increase

First Direct: spot rates increased by up to 4%

Kodak management: 2% plus merit rises

Pay review update: 27 June 2008

The latest pay review update table contains pay settlements at Nissan Motor Manufacturing, Reuters, Yorkshire Water and many more.

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Pay Intelligence June 2008

Latest on pay awards, wage and salary levels

Official figures

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  DATAFILE

Statistics and forecasts

The datafile contains the most recent inflation, earnings and labour market statistics, pay settlement data and inflation and earnings forecasts. Our panel of City and academic forecasters is currently expecting headline inflation to fall gradually throughout the remainder of the year, ending 2008 at 2.9%. Average earnings growth is expected to average 4% in 2008 and 3.9% in 2009.

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Economic indicators

Statutory rates

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  MORE FROM IRS

From the blog

Launched and run by the editorial team that produces XpertHR and the IRS journals, the Employment Intelligence blog is regularly updated with news, comment and links to the latest employment developments. Recent posts include:

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