Wage increases and CPI

[Deleted User]

Now that the CPI has hit 3.3% what will this mean for yearly wage reviews? Let's say a company increased salaries by 3.6% when the CPI was 2.0% (last Sept - http://www.statistics.gov.uk/cci/nugget.asp?ID=19) would it be reasonable for this figure to track the CPI and hence increase by 1.3% (2.0 + 1.3 = 3.3%). Hence the standard increase would be 4.9%??

In general do companies track the CPI for basic wage increases? Do they change this monthly?

Quietgirl

My company, which is a big one, has offered 4.7% pay rise, with back pay to April, the union have snapped there hands off.

[Deleted User]

Bump - can anyone offer any advice?

CLAPTON

companies are influenced by many facts... like what profits they make, how easy it is to recruit etc... that affect how much they pay.

Viper_7

This is just what we don't want.

Consumer products rising / utility bills rising, hell everything rising, yet the economy slowing.
If people start getting pay increases then it just makes matters worse!

Public sector and your screwed to be honest.
Private sector then it depends on the type of business as to how it will weather the storm, and how much it needs it's employees.

I'm in the private sector and looking at around 15% rise this year.
Wife in the public sector is looking at about 2%

vipes

maninthestreet

If you're a Shell tanker driver, you get 14% over the next 2 years.

[Deleted User]

Viper_7 wrote: »

This is just what we don't want.

Consumer products rising / utility bills rising, hell everything rising, yet the economy slowing.
If people start getting pay increases then it just makes matters worse!

You're getting the wrong end of the stick...

yearly wage reviews

Not just pay increases whenever due to the current climate.

I appreciate pay increases have many factors but lets just say in general, 3.6% was there standard increase for everyone last Sept when the CPI was at 2.0% - would you expect your company to take into account the current CPI when offering a pay rise? If not then if I got a 3.6% pay rise it'd actually be 3.6 - 3.3 = 0.3%! :eek:

Badger_Lady

Most of the private sector companies I've worked for don't take CPI into consideration. The last company in fact awarded below-CPI increases both years I worked there, even to staff who'd performed well.

The only way I'm planning to get any kind of "real" payrise this year is by exceeding expectations and aiming for promotion. Just "doing your job" won't be good enough any more, as payrises across the board will only exacerbate the country's economic downturn.

[Deleted User]

Badger_Lady wrote: »

Most of the private sector companies I've worked for don't take CPI into consideration. The last company in fact awarded below-CPI increases both years I worked there, even to staff who'd performed well.

Yikes! That's not what I wanted to hear!

Thanks for the input though, it's personal experiences like this that I wanted to get from people. At least I won't be surprised now when I go into the forthoming meeting!

I should note I'm referring to the Private sector...

[Deleted User]

A very appropraite article weirdly wrote only yesterday!
http://news.bbc.co.uk/1/hi/business/7466227.stm

lkmc01

my partner works for probably the biggest bus company around - begins with ' f ' you know which company I mean. He's a bus driver. April 2008 he got a 2.94% pay rise and will get the same for April 2009.

All was decided on in 2007.