Saturday, March 28, 2009

Public sector wages still playing catch up!

British pay falls first time in eight years.

Weekly pay for those working in the private sector declined by 3.4 per cent to £448, though public sector staff saw their wage increase by 3.4 per cent to £441 a week.

Posted by cheekie charlie @ 08:28 PM (774 views)
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4 thoughts on “Public sector wages still playing catch up!

  • My view is the public sector should be on substantially less than the private sector as they get a guaranteed gold plated pension. And it’s probably the extortionate wages of the directors of companies that bring up the average private sector wage anyway. So i think the average private sector worker is probably way behind the average public sector worker, especially since the ongoing government smash and grab raids on private sector pensions. So this just shows that the private sector just keeps falling back, while the public sector pay and perks move up.

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  • QUOTE: “… the public sector should be on substantially less than the private sector as they get a guaranteed gold plated pension.” UNQUOTE

    Really? I used to work in the public sector (for 4.5 years) and I certainly wasn’t on any sort of “gold plated pension” arrangement. Many are not on a final salary scheme, I was. The deal was one-third final salary if I paid all the contributions and worked for 40 years full-time (0.825% per year) without a break. But very few actually managed 40 years because of so much part-time working, temporary contracts and the fact that moving jobs could be very costly pension-wise (the move can cost many lost years). A lot of the final salary schemes have now been scrapped or are very likely to be scrapped in the coming years. I wouldn’t recommend to either of my children working in the public sector, it’s a very frustrating place to work and the chances of a half decent pension in 2049 are about zero.

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  • Enough Already says:

    I work in the Public Sector and I’ve just had a re-grading – upwards! I will also have a payrise this April and my job is safe.
    The private sector, by contrast are being made to work for peanuts to pay public sector wages/pensions. It rather reminds me of the ‘horses’ in Orwell’s ‘Animal Farm’ after the ‘pigs’ took over. When are the private sector collectively going to do something about this discrimination? No one seems to be saying or doing anything! Odd.

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  • Watch those averages! They’re clearly using the mean, not the median: median wages are around £300pw, not £400. Income distributions are skewed largely toward the top end. The mean – adding up everyone’s pay and dividing by the number of people – is a crap measure because, actually, less than 40% of people earn this much. The median is where 50% of people earn at least this much. (The other 50% earn less than this.)

    Firing a few poorly-paid workers at the bottom end could skew public sector wages upward, while firing or cutting pay of a lot of well-paid workers at the top could skew private sector pay downward (and good riddance to them if that were the case). CPI was about 4% (which was what I got in my private sector job, 80th percentile), so it’s most likely that public sector workers got slightly sub-inflationary pay rises, while well-paid directors had to take cuts or lost their jobs.

    Unfortunately ONS website is down at the moment, so I can’t check the percentiles to show where the shift actually took place.

    As for public sector workers losing their jobs, largely the public sector is not overstaffed. Cuts in staff would mean cuts in services.

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