–IDS: UK Jun-Aug Median Pay Deals Hold Steady at 2.5%
–IDS 55% UK Employers Expect to Make Same 2012 Pay Deal as 2011

LONDON (MNI) – Median UK pay deals held steady at 2.5% in the three
months through August and over half of the employers surveyed expect to
award the same pay deal next year as this, according to the latest
survey by pay experts Incomes Data Services.

The IDS survey found 55% of respondents expected to award the same
pay deal in 2012 as 2011, with 33% expecting to pay a higher one and
just 13% a lower one.

That suggests the modal pay increase will not change in 2012 but
average pay could drift higher.

“While the level of pay awards of pay awards could be slightly
higher in 2012 … the pace of rises may slow as companies adjust their
budgets to the greater uncertainty on the economic front,” IDS said in
its analysis.

Bank of England Monetary Policy Committee members have repeatedly
warned of the risk of high inflation feeding through into higher pay
deals, but the evidence so far is that pay growth has been fairly
subdued.

BOE MPC member Ben Broadbent said “private-sector pay settlements
are below average.”

–London Bureau; Tel: 44-20-7862 7491 or email:
ukeditorial@marketnews.com.

[TOPICS: MT$$$$,MABDS$,M$$BE$]