Currently, disputes over annual pay rises are in much evidence. This is not surprising given that this time of year is the traditional time for the settlement of annual pay rises, with the 1 April still being the most common settlement date for the year ahead. What is surprising is that there are so many disputes because inflation is at its lowest ever historical level in modern times. Equally surprising is that the pay offers of around 1% to 2% that employers have made have been largely rejected by employees.
Inflation has been low and declining, reaching 0.0% in both February and March this year. Inflation is expect to average 0.2% overall for 2015. Often employees have pursued higher annual rises by using strikes and industrial action. The explanation for this unusual situation is two-fold. First, with the economy returning to growth (now particularly higher and more sustained levels of growth), workers do not feel that the pay rises that they have been offered reflect the return of what they are
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