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Public Sector Pay Deals 'at Zero'

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http://www.bbc.co.uk/news/business-13623577

So, there we have it, its coming...........The median pay settlement in the private sector rose to 3% from 2.5%

3%...........watch the base`rate start to go north now

Pay settlements are misleading. They used to underestimate wage growth, as people left jobs to go to higher paying ones.

Now they overestimate wage growth, as people sack more highly paid workers and take on more lowly paid ones.

What wage growth there is in the private sector can be put down to increasing the minimum wage, footballers and top execs and of course bankers. Everyone else aint gettin nuttin, if they are doing well.

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Pay settlements are misleading. They used to underestimate wage growth, as people left jobs to go to higher paying ones.

Now they overestimate wage growth, as people sack more highly paid workers and take on more lowly paid ones.

What wage growth there is in the private sector can be put down to increasing the minimum wage, footballers and top execs and of course bankers. Everyone else aint gettin nuttin, if they are doing well.

When you say nowt do you mean nowt, do you mean zero or do you mean below RPI? Which is also nowt or zero.............Because if they really are getting nowt or zero, they are taking a 5% pay cut year on year, which really does not lend well for our ever increasng housing market...

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When you say nowt do you mean nowt, do you mean zero or do you mean below RPI? Which is also nowt or zero.............Because if they really are getting nowt or zero, they are taking a 5% pay cut year on year, which really does not lend well for our ever increasng housing market...

He means the median was +0% for the quarter for public sector workers

I think its more like -7/8% adjusting for inflation because as well as no inflation linked increase the public servants also have to pay more deductions from their salary for their (lower, career average) pensions

I think we have another series of violent street protests in 2011....

...I just hope a baying mob catch Nick Clegg in the street :D

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When you say nowt do you mean nowt, do you mean zero or do you mean below RPI? Which is also nowt or zero.............Because if they really are getting nowt or zero, they are taking a 5% pay cut year on year, which really does not lend well for our ever increasng housing market...

I was talking in nominal terms, ie they are getting a pay cut.

It would be interesting to know exactly what is going on with pay, sure some ordinary people will be getting raises, some good raises. Others will lose their job and find another on a much lower sum. It would be interesting to see the total pay for the private sector for the month of May 2011, and compare it with the month of May 2010, and see if workers are actually taking home more money than last year after tax. I certainly doubt many will.

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I was talking in nominal terms, ie they are getting a pay cut.

It would be interesting to know exactly what is going on with pay, sure some ordinary people will be getting raises, some good raises. Others will lose their job and find another on a much lower sum. It would be interesting to see the total pay for the private sector for the month of May 2011, and compare it with the month of May 2010, and see if workers are actually taking home more money than last year after tax. I certainly doubt many will.

Call me cynical, but i think the red flag will be a "rise in the base rate". If we see the BoE starting to nudge rates up, and if this picks up some momentum, then you can safely assume, people are seeing there pay packets rise. Now when i say rise, i do not mean in real terms, i mean a rise, but still a fall relative to COST inflation, so still a pay cut, but positive with regards to nowt or zero. I just cannot see 5% pay rises year on year, the GLOBAL economy just could not withstand such REAL inflation, and the domestic economy, well the higher base rates might crush our once SOLID housing market. So heads you win, high wage settlements, heads you lose high base rate falling house values.

Then again, rising wages, rising base rate, falling house values, we then can resume the debt ponzi cycle, with the fallen under water with either their asset class or no asset just the lingering debt over hang?

Edited by Panda

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Really?

Speak to people on the lower rungs of the private sector worker and you'll be lucky to find anyone who's had a 3% pay rise since 2007... let alone 3% in the last 3 months.

Weasel words. It says 'median pay settlement'. Does that include all those pay deals which were zero percent across the board, or only those where there was a pay deal?

And it isnt the pay change for those on median pay levels, but the median of pay settlements. The more you think about it, you realise this is telling us practically nothing.

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Weasel words. It says 'median pay settlement'. Does that include all those pay deals which were zero percent across the board, or only those where there was a pay deal?

And it isnt the pay change for those on median pay levels, but the median of pay settlements. The more you think about it, you realise this is telling us practically nothing.

Anecdotal, just met an old mate, lives in Bournemouth, bought and sold properties for the past ten years, making money, easy peasy until 2008. Just sold up, peak price 2007 £250k, sold for £220k, missed peak, but hey he owns outright, not worked for years, just turned 50, will never work again. Buying back into the market in the Midlands, cash, then use savings to fund till he becomes state reliant. Probably got cash in bank, rough estimate after buying his new place, say £200k.

Anyway.........He states, the market of f00ked, but stagnantly f00ked. It is nigh impossible to get a mortgage unless you are squeaky clean, no bad marks next to your name, the banks just do not want to lend, the terms and conditions all changed. He reckons unless you are prime borrowing material forget it.

I wonder how many cash buyers, outright owners around 40 to 55, will never work again, what a sh!t situation we are in, his kid will never work, has never worked, no future, on benefits, renting private paid for by the state.......................

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I was talking to a friend in a public sector job the other day. No pay rise this year or last year. The year before last the settlement was supposed to be 2.5% but the bosses and the rear echelon ate up so much of it that the operational staff got 1.25%.With inflation as it is just 1.25% nominal rise in three years is a pretty big hit. I asked him if people were angry and he said some were but the wiser heads were thankful to have jobs and relieved that nobody had got a cut.

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Really?

Speak to people on the lower rungs of the private sector worker and you'll be lucky to find anyone who's had a 3% pay rise since 2007... let alone 3% in the last 3 months.

Depends which part of the public sector you mean & which rungs. NHS Consultants (hardly lower rungs) are in the midst of a 3-year pay freeze (2010/11 - 2012/13), whilst junior doctors got 1% extra in 2010/11 & are frozen for the next two years.

On the other hand MPs got a 1.5% increase for the current year.

Plus their expenses.....

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Hmmm... where are all the usual right-wing nutjobs that are usually bleating about public sector wage disparity on this forum? Surprisingly quiet today.

Is the taxpayer funded sector at 30% of GDP yet? No? Then you have a way to go.

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By forcing through pay cuts and seeking to increase pension contributions on top of heavy job losses, the government is making public servants the scapegoat for a financial crisis they played no part in causing," Brendan Barber said.

So there you have it, the huge public sector pay (+ pensions) in no part contributes to our budget deficit.

I think many private sector businesses/workers weren't involved either, but I don't see Brendan Barber sympathising with their cuts/job losses experienced in the last 4yrs

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I think its more like -7/8% adjusting for inflation because as well as no inflation linked increase the public servants also have to pay more deductions from their salary for their (lower, career average) pensions

in the early 2000s private sector workers on final sal penmsions took effective 3% paycuts to cover greater pension shortfalls - no-one called it pay cuts then

since the 90s onwards new entrants to private sector jobs have effectively been paid 3%+ less than the pre-existing workers on final sal pensions, as they went onto lower funded defined contribution pensions - no-one called it pay cuts then

when they require greater pension contributions to cover public sector pensions that's a pay-cut; let's have ariot etc. oooh the tragedy/injustice/humanity etc.

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Depends which part of the public sector you mean & which rungs. NHS Consultants (hardly lower rungs) are in the midst of a 3-year pay freeze (2010/11 - 2012/13), whilst junior doctors got 1% extra in 2010/11 & are frozen for the next two years.

On the other hand MPs got a 1.5% increase for the current year.

Plus their expenses.....

I think sun n sea said private sector.

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Wages rising, @ zirp or nowt or zero for me is the endgame, the plan, control ROOTS, slave labour...............working for the elite to get richer, what happened prior was just the warm up..............................

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