Builders pushed off top place for UK pay rises

After five years at the top, builders no longer head the UK pay award league table. Transport and communication sector pay rises have pushed construction from the number one place, according to pay specialists, IRS (Industrial Relations Services) in their annual pay survey, released in IRS Employment Review.

While the finance sector also enjoys the same (median) increase of 3.75%, its pay awards are predominantly based on merit rather than basic pay, reports IRS in the second part of their annual Pay Prospects survey. IRS Employment Review is published by LexisNexis Butterworths. The Pay Prospects survey is based on IRSís analysis of approximately 1,200 awards outside the public sector (private sector pay and some not-for-profit) in the period 1 September 2004 to 31 August 2005.

Many sectors remain unchanged (see rankings below) but the UKís textiles sector has seen major shifts. In the past, settlements in this sector have generally lagged behind those for the economy as a whole. In the 12 months to 31 August 2005, however, the median basic pay award in textiles was 3% ñ the same as the median for the whole economy. The 7.8% hike in the minimum wage was a significant factor, with the lowest paid employees in companies covered by the collective agreements for both leather goods and allied trades and glove manufacturing receiving increases at this level.

IRS Pay Prospects Survey 2005ís other key findings include:


Sectors ranked by Median Pay Increase

Sector Median Pay Increase 2004/2005

Finance - 3.75%
Transport and communication - 3.75%
Construction - 3.5%
Electricity, gas and water - 3.4%
Chemicals, oil and pharmaceuticals - 3%
Engineering and metals - 3%
Food, drink and tobacco - 3%
General manufacturing - 3%
Not-for-profit - 3%
Paper, printing and publishing - 3%
Retail and wholesale - 3%
Textiles - 3%

Sector Comparisons with last year - ranked by level of increase

Finance continues to do well and ranks highly.

IRS Pay and Benefits editor, Sheila Attwood said:

ìMost people wonít be surprised that the majority of pay increases have remained at 3% across a variety of sectors. The transport and communication sector, which covers road and rail passenger transport, logistics, communications and postal services, has, however managed to buck the trend. It has been boosted by several above-inflation deals in the rail and road haulage industries over the past year.

ìDuring the past 12 months, there has been a distinct shift towards higher pay deals than in the previous year. Looking ahead, however, we expect to see the trend reversed with UK pay rises smaller in size; headline inflation is a key factor in this slowed-down growth.î