Wage rises end salary squeeze

02/02/12

By Anna Dubuis

Salary increases in private companies are greater than they were last year, particularly in manufacturing, according to new research.

About two-thirds of 30 awards recorded this year were worth at least 3 per cent compared with an average rise of 2.5 per cent in 2011, according to pay analyst Incomes Data Services (IDS).

The motor industry had greater wage rises, at an average of 4 per cent, while engineering and other manufacturing sectors saw higher increases than those recorded at the start of 2011.

TUC general secretary Brendan Barber said: "Employees will hope that these early indications of an easing in wage restraint spread beyond manufacturing and into the rest of the country."

Ken Mulkearn, of IDS, commented that the findings of the survey could mean good news for employees whose salaries have been frozen.

"Private sector pay settlements look like they could be higher on average than last year but the picture so far is only a partial one.

"If this turns out to be the case and inflation continues to fall private sector workers are likely to welcome the prospect of an easing-off in the squeeze on their incomes that most of them experienced over the past 12 months."