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REPORT WARNS OF CHALLENGE TO PAY RESTRAINT

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A survey by Incomes Data Services predicts that the government's pay policy for the public sector will come under s...
A survey by Incomes Data Services predicts that the government's pay policy for the public sector will come under severe pressure as private sector wages increase, reports The Independent (p2).

The analysis found average industrial pay settlements have been ahead of public sector rises this year. 'A further strong divergence would be likely to create a great deal of catch-up pressure in the public sector in 1995,' says the report.

Recent weeks have shown private sector pay increases running at between 2 to 3 per cent, says the report. About one in eight is worth more than 3 per cent and the same proportion below 2 per cent. The number of companies deferring rises or implementing freezes has dropped sharply over the summer.
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