Pay awards over the economy as a whole delivered a median 2.2% increase in the year to the end of August 2011. However, private sector pay awards were worth a median 2.3%, compared with a median pay freeze recorded in the public sector.
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Pay bargaining trends
XpertHR annual review of pay trends 2011: private sector pay
We present a series of articles detailing the pay review pattern in 12 key industries in the private and not-for-profit sectors.

Chemicals, pharmaceuticals and oil: settlements continue upward trend
The pace of wage bargaining in the chemicals, pharmaceuticals and oil sector has picked up over the past 12 months, with the median pay award now pitched at 3%.

Construction: bargaining pace quickens
Although the median pay award in construction increased to 2% over the course of the 2010/11 pay round it was nevertheless pitched below the whole-economy figure of 2.2%.

Electricity, gas and water: median settlement rises to 3%
The 3% median pay award in the utilities sector is up considerably from last year's figure of 1.3%.

Engineering and metals: sector doing well with a median pay rise of 3%
Pay has lifted considerably in the engineering and metals sector, with far fewer pay freezes than in previous years.

Finance: modest pay rises for majority of employees
The majority of employees in the finance sector received a pay rise over the past year, but levels remain modest and below inflation.

Food, drink and tobacco: median award rises to 2.5%
Despite rising prices, the food, drink and tobacco sector has awarded basic pay increases of 2.5% at the midpoint.

General manufacturing: settlements on the up as freezes thaw
There has been a noticeable quickening in the pace of wage bargaining in general manufacturing, with a rise in the median award to 2.5% largely attributable to a sharp decline in the proportion of pay freezes.

Not-for-profit - charities: pay awards crash down to nil
The charities sector has again struggled with funding over the past year, the net result of which is a fall in the median basic pay award to nil.

Not-for-profit - housing associations: low pay rises are the norm
After a year of low (or no) pay rises, staff in housing associations typically did receive a pay rise in the past year, but levels remain significantly low.

Paper, printing and publishing: median pay award rallies to 2%
A noticeably sharp decline in the number of pay freezes helped push the industry’s median wage increase up to 2%, compared with 1% this time last year.

Retail and wholesale: majority of deals higher than one year ago
Pay bargaining in the retail sector has not been easy over the past year but settlement levels have improved and pay freezes are less common.

Transport and communication: rise in basic pay
While several pay awards in the transport sector continue to match inflation levels, increases in the communications sector are more modest, our review of pay deals over the past year reveals.

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This research is particularly timely in light of the slow economic recovery, and will enable participating organisations to benchmark their practices and experiences in all areas of bonus provision.

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News and views from XpertHR
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› More flexibility for pensions auto-enrolment

› OECD compares wage taxation in 34 countries

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Statistics and reference
› XpertHR pay trends homepage › Economic indicators
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XpertHR events
Working with trade unions, 26 October 2011, London
By attending this event, you will learn how to build, maintain and improve your approach to working with trade unions, as well as how to resolve conflicts as quickly and amicably as possible.

Managing employee health and absence, 23 November 2011, London
This conference will show you the most cost-effective ways to reduce absence and stress among your staff. Employment lawyers will provide vital updates on Regulations around disability, incapacity and dismissals.

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From our blogs
› Housing sector pay shows signs of recovery

› Impact of recession on household incomes: "pain delayed, not avoided"

› 2011: a year of subdued pay rises

› Economic commentary October 2011: welcome to the low-growth world

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Editor's message
Editor's message
PAY TRENDS BY SECTOR
Pay awards over the economy as a whole delivered a median 2.2% increase in the year to the end of August 2011. However, private sector pay awards were worth a median 2.3%, compared with a median pay freeze recorded in the public sector.

The median 2.3% private sector pay rise masks a divergence of awards across individual sectors. In this issue, we present an overview of pay awards in the private sector in the 12 months to the end of August 2011, as well as detailed analysis of pay trends and issues in 12 distinct sub-sectors of the private and not-for-profit sectors.

Pay award levels by sector vary from a median pay freeze in the charities sector to a 3% pay rise in the chemicals, engineering and utilities sectors. Each article also presents views from employer organisations and trade unions representing the sectors.

Email Sheila Attwood
Pay and benefits editor, XpertHR

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