Broadcasting and publishing see lowest pay settlements
LONDON - Publishing and broadcasting staff saw pay deals slump to the bottom of the private sector pay settlements league, according to new research.
The media sector has been heavily affected by the downturn in advertising revenue and pay deals have slumped accordingly, according to the survey published today in IRS Employment Review.
From a 3% median award in 2000/01, there has been a marked decline to 2.2% this year
The IRS 'Private Sector Pay in Perspective 2001/02' survey reveals wide variations in pay settlements in the bargaining year ending August 2002.
The only sector to see a rise in the median basic pay award was construction, where settlements rose to 5%, from 4.5% in the 2000/01 pay round.
In the year ending August 31 2002, pay awards across the private sector as a whole edged downwards, from 3% in September 2001 to 2.5% by the end of the bargaining year. The downward drift in settlements reflects a combination of weak corporate profitability, sluggish economic growth and a benign inflationary environment.
A breakdown of industry sector pay deals is highlighted below:
Business Sector 2001/02 2000/01 Change
Call centres 3.0% 3.1% 0.1
Chemicals 3.0% 3.1% -0.1
Construction 5.0% 4.5% +0.5
Electricity 2.5% 3.1% -0.6
Engineering 2.6% 3.0% -0.4
Finance 3.5% 4.0% -0.5
Food, drink 2.8% 3.0% -0.2
Manufacturing 2.6% 3.0% -0.4
General services 2.6% 3.2% -0.6
Hotels and catering 2.5% 3.0% -0.5
Printing 2.5% 3.0% -0.5
Media 2.2% 3.0% -0.8
Retail/wholesale 2.5% 2.9% -0.4
Textiles 2.3% 2.5% -0.2
Transport/comms 2.6% 3.3 % -0.7
Voluntary sector 2.5%
This table sets out basic pay rises in 16 industrial sectors, based on the median (mid-point) level of settlements in each sector for the 12 months ending 31 August 2002. The overall private sector median for the period was 2.5%, compared with 3.1% in the 2000/01 wage round.
Pay and benefits editor for IRS Employment Review, David Carr said: "The downturn in publishing and broadcasting pay settlements in the 2001/02 bargaining year has been the steepest of all in the private sector. From a median award of 3% in 2000/01, the slide to 2.2% this year is the inevitable result of an industry hit by the decline in advertising revenue and falling corporate profitability."
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