% cut in salary in real terms (pay freeze)

danothy

MrRedundant wrote: »

I would suggest you concentrate on why you deserve a payrise. Using RPI/CPI is not the answer.

What do you bring to the company and what do they stand to lose (that couldnt be replaced at market rates) if you where to leave?

While what you say is true that the C/RPI don't reflect on company performance and personal worth of the employee to the company it is relevant to the overall cost of living to the employee and it's important to note the value of your take home pay in terms of buying power as it's what effects you personally.

Your approach seems sound in terms of negotiating the best deal available to yourself (i.e. pump your value to the company for all it's worth and either gain as much as you can or loose as little as you can), but the C/RPI approach indicates the threshold that wouldn't be a step back for you if you weren't prepared or able to make that step.

But you are right from the employer's point of view, C/RPI are meaningless to company, personnel and industry performance (the aspects an employer most considers when negotiating). I just think it's important to take into account both sides in the negotiation of wages. The fundamental reduction of the value of compensation an employee receives as a result of a pay freeze during a period of inflation is the metric that matters most to them, so a compromise considering them both has to be found.