Pay freezes predicted for 2010

Many workers saw their pay frozen or cut in 2009

Workers face a second year of pay freezes despite rising inflation and the UK's emergence from recession, according to a report.

The proportion of wage freezes is increasing, according to the Labour Research Department (LRD), which compiles data for trade unions.

It said a third of all pay deals now included a pay freeze - the largest proportion since the recession began.

The findings come despite a recent increase in inflation.

The Retail Price Index (RPI) measure of inflation, which is commonly used in pay negotiations, rose hit an annual rate of 2.4% at the end of 2009.

The LRD said that companies including Nissan and Hanson Building Products had already extended pay freezes that were introduced last year.

A survey of unions found that two-thirds expected pay negotiations to be tougher in 2010 than they were last year.

Lewis Emery, LRD's pay and conditions researcher, said union leaders would focus on preventing job losses instead of pushing for pay rises.

"Maintaining jobs and business continuity is a greater concern, both in the private and public sectors," he said.

"But with inflation at 2.4% pay will not be neglected either."

Print Sponsor