Private sector pay 2007/08: summary

The median basic pay award across the whole economy stood at 3.3% in the 12 months to 31 August 2008. But between different sectors, this varied considerably. We provide a summary of the pay settlement trends over the past year, with links to a more detailed review for 12 industrial sectors.

Chemicals, pharmaceuticals and oil: settlement levels still on the rise

Our latest analysis of the sector’s pay trends reveals that, over the 2007/08 negotiating round, the pace of bargaining has picked up, with the value of the median pay award now standing at 3.8% - half a percentage point above the midpoint settlement for the whole economy.

Construction: midpoint stable at 4%

At the midpoint, construction deals were worth 4% over the year to 31 August 2008, exactly the same as in the 2006/07 bargaining round. This means that the sector’s pay reviews have again kept comfortably ahead of those in the economy as a whole, by a margin of 0.7 percentage points.

Electricity, gas and water: settlement levels power ahead

We find that the value of the midpoint pay review in the utilities has increased by 0.2 percentage points to stand at 4.3%. This means it is now running a full percentage point above the whole-economy median.

Engineering and metals: downward trend in pay settlements

In the 12 months up to the end of August 2008, pay settlements in the engineering and metals sector have slipped slightly in comparison to the previous 12-month period.

Finance: merit awards rise to 4%

The median merit budget increase is worth 4% in 2007/08, up from 3.6% in 2006/07. In total, 80.4% of the pay settlements in the sector monitored by IRS over the year to 31 August 2008 incorporate some measure of performance.

Food, drink and tobacco: settlements have edged upwards

Pay awards in the food, drink and tobacco sector are running level with those across the economy as a whole, at 3.3%.

General manufacturing: median edges higher

Pay awards in the general manufacturing sector are running at 3.2%, behind the level seen across the economy as a whole, and unions are predicting difficult pay negotiations in the year ahead.

Not-for-profit (1): charity pay awards unchanged at 3%

The median pay award has held firm at 3% over the year to 31 August 2008, in line with that recorded a year ago.

Not-for-profit (2): housing association pay awards rise to 3.4%

The median basic pay award in the housing association sector stands at 3.4% for the 2007/08 bargaining round, up from 3.25% a year ago.

Paper, printing and publishing: settlements continue on an upward curve

Our analysis of the 90 deals in the sector monitored by the IRS team of pay researchers reveals that the median pay award over the bargaining round to the end of August 2008 is 3.5%.