02/04/2009 - More firms choose to freeze wages
More companies have taken the decision to freeze wages and among those implementing an increase, the average amount given has fallen, new research has revealed.
Pay analysts IDS studied 110 settlements and found one in 10 included freezing pay, with many companies, particularly in the motor industry, postponing their decisions regarding pay.
In the three months prior to February average wage rises were 3.4%, a fall of 0.1% from the quarter to January.
Ken Mulkearn of IDS, said: "Pay settlement levels in the private sector are coming down and are likely to drift lower. In fact we may see private sector awards come into line with those in the public sector, where 2009 awards under long-term deals are already centred on the relatively modest figure of 2.5%."
Brendan Barber, general secretary of the TUC, said: "A limited slowdown in average pay rises is to be expected during a recession but this data shows that talk of freezes across the board is wide of the mark."
Copyright © Press Association 2009
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