Our main feature this issue reports on a new six-year low for pay awards. With the economy in recession and retail prices index (RPI) inflation falling rapidly, it is no surprise to see that organisations are cutting back on their pay awards.

However, as much as this is a landmark, it is by no means the end of the story. Pay settlements are likely to tumble further as the year progresses - especially as we head into April, the busiest month of the year for pay setting. Around one-third of the pay deals concluded so far this year awarded nothing, and we have recorded our first pay cut, with several others in negotiation. Many organisations are simply refusing to make a decision on their pay award, deferring a deal that would normally be paid from January until the middle of the year.

We collect the largest sample of UK pay settlements - please help us to maintain this by submitting details of your organisation's pay award.

Other top stories in this issue include:

• Real earnings growth is negative for UK workers
• Professional qualifications attract 37% wage premium
• Germany: minimum wage laws passed

Also in this issue we present detailed coverage of three new pay settlements: the electrical contracting industry, environmental engineers and the refractory industry.

Sheila Attwood
Editor,
Pay and Benefits Bulletin

Pay reports recently added to the site:

Refractory industry: 2.7% minimum increase

Environmental engineers: 4.25% increase to grade minimum salaries

Electrical contracting industry: 4.5% increase to minimum rates

Pay review update: 20 March 2009

The latest pay review update table contains pay settlements at Bentley Motors, Citigroup UK, Haymarket Publishing, Magnet and many more.

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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 expects retail prices index (RPI) inflation to fall to -3.3% in the third quarter of 2009. Earnings growth is also expected to reach a low point in the third quarter, at 2.6%.

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From the blog

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

• Will quantitative easing reduce the real value of our wages?
• UK interest rates cut to 0.5%
• Fancy being paid not to come to work?
• Would you take a pay cut to keep your job?

Today's tip: find reward practice case studies

Are you conducting a major review of pay, benefits or grading at your organisation, and would like to see how other organisations have tackled similar issues? You can view our latest case studies from the Pay and Benefits homepage to read in detail about other organisations' methods, processes and lessons learned.

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