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Wage inflation stays at 3%

Sunday 07 May 1995 23:02 BST
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Pay rises have stayed at 3% for five months in a row, according to a report published today. Increasing inflation has not fed through to wage settlements, although two-thirds of employers are giving their workers higher rises than a year ago, said pay analysts Industrial Relations Services.

The report said it was too early to maintain that the link between wages and inflation had been broken, but added: "The vast majority of employers appear to be in no mood to concede RPI-plus pay increases. This constitutes something of a reversal as traditionally basic pay awards have tended to keep ahead of inflation." The analysis covered a total of 1,100 pay settlements and showed deals pegged at 3% in the three months to March.

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