BBC NEWS Americas Africa Europe Middle East South Asia Asia Pacific
BBCi NEWS   SPORT   WEATHER   WORLD SERVICE   A-Z INDEX     

BBC News World Edition
 You are in: Business  
News Front Page
Africa
Americas
Asia-Pacific
Europe
Middle East
South Asia
UK
Business
E-Commerce
Economy
Market Data
Entertainment
Science/Nature
Technology
Health
-------------
Talking Point
-------------
Country Profiles
In Depth
-------------
Programmes
-------------
BBC Sport
BBC Weather
SERVICES
-------------
EDITIONS
Sunday, 13 October, 2002, 23:22 GMT 00:22 UK
Private sector pay lags public sector
Public sector worker
Low paid workers are slowly catching up
Public sector pay has risen faster than private sector pay during the last two years, a survey has shown.

Economic uncertainty has held back pay rises in the private sector, the survey by Income Data Services showed.

Meanwhile, public sector pay has risen faster due to government attempts to address low pay and due to restructuring.

The new trend is a reversal of the historical trend.

"During the 1990s, public sector workers were continuously getting lower pay rises than private sector workers," the survey's assistant editor, Sarah Miller, told BBC News Online.

Persistent trend

During summer, the trend has been more pronounced than in the past.

Since April, more than half of private sector pay deals have resulted in pay rises below 3%.

Two-thirds of public sector pay increases have been above 3% .

"There is still more to come in the government's programme to modernise pay in the public sector," said Ms Miller.

"We are likely to see some fairly high headline percentage rises in parts of the public sector, and [efforts to address] the issue of equal pay is likely to boost the pay bill further."

Pay improvements

Some public sector workers have received above average pay rises.

Physiotherapists received 8%, and low-paid ancillary workers pocketed a rise of at least 6.5% this year.

In local government, about 200,000 low-paid workers received increases of about 6.2%.

Modern matrons and nurse consultants - two new positions created by the government - received 6.6% increases.

Private sector lags behind

Retail workers and engineers have fared worse this year, the survey showed, though for some things are looking up.

There have been fewer pay freezes in recent months than earlier in the year.

The survey said pay freezes which have affected hotel and air transport workers, were beginning to ease, the survey said.

Welcome rises

Some workers in the private sector who are also involved in government projects have done very well this year.

In particular, construction and transport workers.

About 200,000 construction workers received an 8.9% pay rise this year.

Heating and ventilation industry workers pocketed a pay rise of 16%, and plumbers 13%.

 WATCH/LISTEN
 ON THIS STORY
Head of Local Government Assoc. Sir Brian Briscoe
"There is pressure in the public sector on pay at the moment"

Public pay battles

Leadership battles

Labour and the unions

Analysis

FORUM
See also:

12 Jun 02 | Business
28 Jul 02 | Business
04 Mar 02 | Business
04 Feb 02 | Business
Internet links:


The BBC is not responsible for the content of external internet sites

Links to more Business stories are at the foot of the page.


E-mail this story to a friend

Links to more Business stories

© BBC ^^ Back to top

News Front Page | Africa | Americas | Asia-Pacific | Europe | Middle East |
South Asia | UK | Business | Entertainment | Science/Nature |
Technology | Health | Talking Point | Country Profiles | In Depth |
Programmes