Workplace Report March 2025

Inflation puts pressure on wages

Pay deals reported to Payline were 3% on average in the three months to January 2024. This, in combination with an increase in RPI (3.6%) and CPI (3%), is a turn-around from recent months and wages are under increased pressure.

The largest upward contribution to the monthly change in CPI annual rates came from transport, and food and non-alcoholic beverages.

Yet featured deals this month show many workers are achieving above-inflation rises, despite the overall median dipping below prices for the first time in well over a year. This supports ONS data showing growth in regular earnings was 5.9%. How this develops will have a significant impact on public sector pay.

Our main feature 'An approach to standby and callout rates' throws light on an often ignored aspect of modern employment: the piecemeal nature of how workers are rewarded for giving employers certainty around staffing. The key question for trade unionists is whether staff are adequately compensated and how negotiators can address this.

Our second feature looks at the options reps have when confronted with an employer's refusal to have meaningful consultation over reductions in pay and conditions. We hope reps will find useful the practical suggestions offered here.