Unions expect tougher pay negotiations this year, survey finds

Unions are expecting 2010 to be an even tougher year for pay negotiations than 2009, despite the exit from recession and recent jump in inflation, new figures have revealed.

Pay freezes accounted for a bigger proportion of pay deals in January than at any other time since the recession started, according to the latest quarterly report from the Labour Research Department (LRD). One-third of pay settlements resulted in a freeze on annual pay. This figure rose to 51 per cent once long-term pay deals were excluded.