Member Article

No plans for North East wage increases in 2012

Almost 50% of businesses in the region have no plans to increase staff wages in the coming months, in an attempt to make economies for the future.

According to a survey conduced by the North East Chamber of Commerce (NECC), over 48% of companies have made no plays to change pay settlements agreed with employees. However, around 35% said they had plans to increase staff wages.

NECC Director of Membership and Policy, Andrew Sugden, said: “We need to create more wealth in the North East and for this to happen we must focus on delivering strong business growth that will positively impact household incomes.

“By taking a pragmatic approach to wage increase, businesses are future-proofing themselves against potential economic fluctuations and will be healthier for it in the long run.”

The NECC believes that this trend indicates that the problem of inflation is not just a issue for the UK, and the Government should avoid any increases in 2012.

“In the current economic climate pay freezes represent a sensible course of action to help companies insulate themselves against global economic conditions and are in-line with the public sector wage freezes we have seen across the UK.” He added.

This was posted in Bdaily's Members' News section by Ruth Mitchell .