Public sector pay rise

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Sunnysoutheast

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Unions are starting to negotiate with the government regarding pay rises. When realistically could an increase in salary for a public servant be expected?
 
I wouldn’t be expecting an increase to match inflation. At a guess I would 2 % rise in October instead of 1%. With maybe the same to follow next year.
 
Sunnysoutheast said:
Yes, thanks, was wondering about a pay rise closer to the rate of inflation...
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That would cause additional inflation.
I heard some crazy lady on the wireless from one of the teachers conferences saying that pay rises should match the rate of inflation and should really be at the level where teachers could afford to buy a house. I feel sorry for the kids she's teaching.
 
Sunnysoutheast said:
Interesting article, thanks.
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Interesting article? Reading it from abroad, 2 hrs ahead of Ireland and it's like a Met Éireann weather forecast. A little bit of everything for everyone, but nothing for anyone. Then again it's British so what can one expect?
By the way, the sun is just rising, expect 24/25 deg in a few hours with a gentle warming breeze. Have a nice day. Now, where's me Nescafe? :cool:
 
A "pay rise" less than the rate of inflation is a pay cut surely? Prices are rising at an alarming rate. Interest rate rises from ECB will def be needed soon which will impact those on tracker and variable rate mortgages. Worrying scenario for low and middle income workers across public and private sector.
 
noproblem said:
Interesting article? Reading it from abroad, 2 hrs ahead of Ireland and it's like a Met Éireann weather forecast. A little bit of everything for everyone, but nothing for anyone. Then again it's British so what can one expect?
By the way, the sun is just rising, expect 24/25 deg in a few hours with a gentle warming breeze. Have a nice day. Now, where's me Nescafe? :cool:
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#everydayxenophobia?
 
Threadser said:
A "pay rise" less than the rate of inflation is a pay cut surely? Prices are rising at an alarming rate. Interest rate rises from ECB will def be needed soon which will impact those on tracker and variable rate mortgages. Worrying scenario for low and middle income workers across public and private sector.
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The only solution to runaway inflation is unfortunately a decline in demand, ie living standards.
 
Most of the inflation comes from supply side causes, rather than rampant demand. That is to say, the supply of essential items has been curtailed, or reduced and the price is, therefore, increasing. Maybe, that means the prices will fall when supply is restored, but with war in Ukraine and China's Zero Covid policy, linked with a myriad of supply chain issues, that is unlikely in the near term.
Most of the tools used by Central Banks to deal with inflation are designed to deal with the demand side causes. If you increase interest rates, when supply is the issue, it won't make a damn difference to inflation. All it will do is reduce the amount of money in most people's pockets and cause even more businesses to increase prices to cover their loans.
It's a tricky one, but pay rises, in line with inflation, might be the lesser of two evils. If you do nothing, demand will certainly reduce, as people scramble to cover the essentials, but it won't, necessarily, reduce inflation, because most of the inflation is coming from essentials like energy, food and housing. The economy will be in that rare , but terrifying, zone of rising inflation and falling demand, or Stagflation as it is known.
 
Purple said:
That would cause additional inflation.
I heard some crazy lady on the wireless from one of the teachers conferences saying that pay rises should match the rate of inflation and should really be at the level where teachers could afford to buy a house. I feel sorry for the kids she's teaching.
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Yes obviously a society where teachers cannot afford to buy a house is preferable to one where they can.
 
Will there be increases in productivity in the public sector to match the pay rise sought? (Because I haven’t seen much of that around lately!)
 
No pay rises above 1%.
Anything else would cause a wage price spiral.
Get used to the real world of higher cost of living.
 
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