UK pay deals sit it out at 3%

Pay settlements remain stubborn at 3% in the three months to October 2004, unchanged from the quarter to September. But rising inflation could finally help settlement levels buck the trend in 2005, according to the monthly analysis from pay analysts IRS (Industrial Relations Services), part of LexisNexis.

IRS Pay and Benefits editor, Sheila Attwood said:

ìThe headline rate of inflation rose to 3.3% in October, representing the highest rate in four years. With the all-items measure as the key benchmark used to determine pay increases, there is now a strong possibility that pay settlements will follow suit and finally buck the 3% trend in early 2005.î