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Pay freezes for 75% of NE Employees

75 percent of employees in the North East have received pay freezes, in comparison with the national average of 58 percent.

Commenting on the fugures from the CIPD survey, Jonathan Walker, head of member relations at the NECC expressed the view that pay freezes are a short-term issue, which will eventually result in a healthier workforce.

He said: “Undoubtedly many firms in the North East have experienced a tough environment over the past few years, and many businesses have made efforts to retain staff at the expense of increasing wages.

“I’ve spoken to employers of all sizes, and anecdotal evidence shows that many of them have struggled to put wages up and the most important thing seems to be keeping people in employment.”

Nationally only 28 percent of employees have received a pay rise, while in the region this figure drops to only 17 percent.

CIPD’s performance and reward adviser Charles Cotton said: “Even those who are lucky enough to get an increase in their pay will find it below the current cost of living, compounding consumer belt tightening.

“Inflation figures later this month will highlight growing pricing pressures, which is likely to continue for some time.”

Public sector workers have been hit hardest, with 77 percent receiving a pay freeze, 4 percent a pay cut and 13 percent a pay increase.

However, private sector workers are set to see some changes in the future.

Charles added: “We will see some increase in the number of private sector workers receiving a pay award in the second half of 2011, especially in the retail, catering and hotel sectors, as the increase to the national minimum wage comes into effect in October.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .