The wage increases measured in the quarterly sample taken in July were due mainly to higher wage rounds
agreed in the chemicals and metals industries, the office said.
"However, given recent rising inflation expectations, we suspect the MPC may prefer to wait until February to make sure that pay moderation is continuing in the early 2008 wage rounds
"Nevertheless significant price risks persist and inflation still seems set to rise further in the coming months, so much will depend on to what extent economic activity appears to be slowing, whether pay moderation continues in the early 2008 wage rounds
and whether companies' pricing power appears to be waning."
We recognise sect members especially during wage rounds
. You will recognise these sectists when they express their surprise that Nurses may actually want a little more money.
The late 2004-early 2005 wage rounds
suggest likely real wage growth of nearly 2% in 2005, including the effects of particularly generous awards in the public sector.
The two most recent central wage rounds
served the Finnish economy well as their outcomes kept cost pressures low and competitiveness strong.
Although the LO managed to coordinate negotiations in some subsequent wage rounds
, the drive to decentralize bargaining has continued, and leading export firms such as ABB and Volvo favor a full decentralization of wage bargaining to the plant level.(12)
Reflecting rising unemployment and profit squeeze, a consensus is building for lower wage settlements in 1993 than in the previous few wage rounds
. As under the Budget a very small increase in the basic salaries of government and public sector employees is planned, wage settlements in the private sector may decline to about 5 1/2 per cent, down by almost 2 percentage points from 1992.(39) In addition, social security contributions have been raised and firms have assumed a larger share of the costs of sick leave payments, so that the growth in total compensation per employee may reach some 6 3/4 per cent.
The empirical implementation in such studies, however, tends to be ad hoc, especially in identification of aggregate wage rounds
and key bargains: Eckstein and Wilson (1962) defined the key group to be durable manufacturing, Vroman (1984) used the steel and auto settlements, and Christofides, Swidinsky, and Wilton (1980) tried a variety of specifications.
David Waller, Midlands' chairman of Pricewater-houseCoopers, said: "While the MPC will have been concerned by the inflationary pressure caused by the recent wage rounds
, this was not the time to be making a further increase.
Howard Archer, chief European economist at Global Insight, said, 'We expect pay settlements to be higher in the 2007 wage rounds
, but only modestly and not enough to alarm the Bank of England.'