Problem

Pay freeze

Other Names:
Frozen wages
Incidence:
In the UK in the second quarter of 1990, wage deals were averaging at 9%, but by the third quarter of 1992 they had decreased to 3.9%. Manufacturing sector awards were running at 2.8%, the lowest since the figures began to be compiled in 1981; 23% of manufacturing firms had imposed pay freezes for more than six months. Only 1% reported pay deals of more than 7.5%, and there were none above 8.5%.
Counter Claim:
The advantage of pay freezes is that the unit labour cost in the UK has now decreased to below the levels in Germany and Japan, making the country more competitive in manufacturing.
Aggravates:
Wage discontent
Problem Type:
E: Emanations of other problems
Related UN Sustainable Development Goals:
GOAL 8: Decent Work and Economic Growth
Date of last update
01.01.2000 – 00:00 CET