Pay and Bargaining Prospects 2007/08

This special issue contains the IDS Pay Report annual analysis of the outlook for decisions on pay and conditions for the coming year, and examines the key trends over the past year.

It is aimed at helping practitioners plan for the year ahead, looking at the pattern of pay settlements during 2007, inflation forecasts for 2008, pay rises already agreed for 2008 under long-term deals, and the pattern of pay awards by sector. Subjects covered include:

• The agenda for the year ahead
  The economy; the labour market; pay rises; average earnings growth; National Minimum Wage; equal pay; skills shortages; migrant workers; collective bargaining; family-friendly provisions; holiday entitlement; age discrimination; Government policy on pay; London and South East pay.

• Inflation forecasts to the end of 2008
  A round-up of predictions on the rate of increase in RPI inflation from the leading City analysts.

• Pay planning calendar for 2007/08
  Key dates for the pay practitioner’s diary.

• The labour market in detail
  Analysis of key trends in employment and unemployment, economic inactivity, women’s labour market participation, and employment rates by sector including a closer look at public sector employment.

• Pay settlements in 2007
  The median level of pay settlements rose sharply at the beginning of the year, from 3 to 3.5 per cent, under the influence of higher inflation and improved economic prospects. However the median disguises wide variations between sectors, with public and voluntary sector deals at lower levels, while parts of manufacturing, the utilities and transport have been awarding upper-quartile increases.

• Bargaining trends by sector
  Analysis of pay developments over the past 12 months, and key issues and prospects for 2008 in chemicals and pharmaceuticals; food and drink processing; construction; retail; engineering; financial services; public sector and not-for-profit sector.

• Pay rises agreed already for 2008
  Analysis of increases under long-term deals for the final quarter of 2007 and into 2008.

• Profit-sharing and bonuses
  Many companies have made changes to bonus arrangements or introduced new schemes over the past year. In addition, this year saw record payouts in the financial services sector while in retail, share-save schemes at key firms have matured, producing higher payments than in 2006.