CAWIE kick-off session: UK

1. CAWIE kick-off session: UK • Earnings: Data published by the UK Office for National Statistics (ONS). • Average Weekly Earnings: Monthly Wages and Salaries Survey uses a sample of approximately 8,400 GB firms: Gross wages and salaries paid to employees (total wage bill) divided by number of employees. Replaced the Average Earnings Index (AEI) as preferred measure of earnings growth in January 2010. • Annual increase statistics for total and “regular” pay based on average weekly earnings across participating companies and organisations, rather than collective agreements. This is the main monthly measure of earnings trends. • Annual Survey of Hours and Earnings (ASHE): Earnings by gender, full-time/part-time status, region, occupation, industry, and age-group for a large sample of individual workers (1% of individual income tax records, PAYE, supplemented by a survey of companies registered for Value Added Tax but not PAYE). • Means, medians and annual increases for gross weekly pay, weekly pay excluding overtime, basic pay including other pay, overtime pay, gross hourly pay, hourly pay excluding overtime, gross annual pay, annual incentive pay, total paid hours, basic paid hours and paid overtime hours (& collective agreement, but not published).

2. CAWIE kick-off session: UK • Settlements: Data on pay settlements used by negotiators to describe the ‘going rate’ but also by official bodies (like the Low Pay Commission which advises government on the National Minimum Wage) to help show what is happening in the labour market and economy. • Collective agreements: Exist at all levels of the UK economy, from the local government National Joint Council covering over one million in England, Wales and Northern Ireland to local agreements covering small numbers. • Settlements not exclusively collectively-agreed, also includes formalised pay awards by employers who do not recognise unions, imposed deals etc • Company-level settlements (either company-wide or site by site) the norm where collective bargaining exists. • Multi-employer agreements play a big role in the public sector, construction and a few other areas (often supplemented or interpreted by local agreements). • Other ‘settlements’: The Agricultural Wages Boards, Pay Review Body-based awards in the public sector and the Police Negotiating Board are examples of other awards that would be counted as pay settlements or ‘agreements’.

3. CAWIE kick-off session: UK • Collective bargaining: In 2010 just over 30% of UK employees said pay and conditions were affected by a collective agreement: 16.8% of private sector employees, 64.5% of public sector employees. 46.1% of workers were in a workplace where a trade union was present • Membership: Actual union membership levels were lower, 26.6% of workforce (6.5 million in an employed workforce of almost Employment 29.1 million, down from 13.2 million in 1979) • Sector: There were 2.5 million private sector members and 4.1 million public sector members (education and public administration had the highest union density at 52.0% while accommodation and food services had the lowest at 3.8% • Most likely to be members: Women more than men (although male proportion higher in private sector); professions most likely/sales occupations least likely; UK nationals 27.2%/non-UK nationals 21.3%

4. CAWIE kick-off session: UK • Sources: Data has been collected by government bodies in the past (eg settlement data collected by the Office for Manpower Economics) but this is done today mainly by ‘private’ or commercial bodies. • Summary statistics on pay settlements published regularly by Labour Research Department (LRD), Incomes Data Services (IDS), the EEF manufacturing employers’ organisation, and XpertHR. Access to more detailed information is typically limited to paying subscribers/member companies/unions. • Not all collective: These main sources do not limit themselves to collective agreements although LRD figures are based mainly on union sources and represent collectively-agreed wages in most cases. • Other organisations gather information on pay settlements (eg pay consultants, specialist publishing companies) or indivdiual salaries which may be un-published; be specific to a particular sector or interest; or provide data on salary levels but not on increases or trends.

5. CAWIE kick-off session: UK • LRD: Set up to co-operate with Labour/socialist/co-operative movements, now works with and is mainly funded by the trade unions • IDS: A long-standing independent publisher (now part of Thomson Reuters) • XpertHR: Another long-standing independent publisher now providing legal/good practice/benchmarking on-line (part of Reed Elsevier plc) • EEF: Manufacturing employers' organisation (formerly the Engineering Employers federation) • Collection: Continuous • Release calendar: LRD monthly/11 times per year)/as and when needed from Payline website; IDS fortnightly IDS Pay Report/online resource centre for subscribers; XpertHR and EEF monthly

6. CAWIE kick-off session: UK • LRD (Workplace Report magazine and Payline on-line database): Source for median percentage pay increase (successive three-month periods ie monthly). • LRD produces medians for private/public sectors, manual/non-manual, industry (manufacturing)/services; and 12-monthly/weighted medians (workers covered). Quartiles, industry sector and agreement-type medians are published annually but can also be generated on-line. • IDS: Pay Report magazine - median (whole economy), average, inter-quartile range (whole economy), manufacturing & production & private services. Percentage rise, number/type of employees covered; and instant analysis on-line (medians/upper & lower quartiles) • XpertHR: Online only, through IRS Employment Review web pages; also Salary Surveys (participation based). Headline figures published in the Pay Intelligence blog. • EEF: Pay Bulletin

7. CAWIE kick-off session: UK Source: Low Pay Commission report 2011 (page 8)

8. CAWIE kick-off session: UK • LRD data: No sample;changing database covering around 2,300 ‘bargaining units’ of all sizes in all sectors. Some are subsidiary to a nationally negotiated pay settlement; in other cases the current settlement may not be available; statistics are typically based on a pool of around 800 settlements over the course of each year. • IDS data: Information on up to 1200 awards annually covering over ten million employees/more than a thousand employee groups a year, reporting on changes in named organisations and the pattern of pay awards. • XpertHR data: Voluntary basis - representative sample (sectors, size) cannot be guaranteed/effort made to get good spread. IRS collects/analyses more than 1,400 pay settlements each year. Second source of data (salary survey CELRE Job Pricing tool). • EEF: Survey of pay settlements in over 400 member companies

9. CAWIE kick-off session: UK Data collection • Data collection: Typically information made available by employers or unions on a voluntary basis. Supplemented by ‘freedom of information’ requests to public sector employers and data now published on government employees’ salaries • LRD: Trade union reps at all levels, some employers (eg McDonalds) • IDS: Organisations including subscribers to IDS Pay Report • XpertHR: Organisations (direct contact); specific surveys; annual review/forecasting • EEF: Survey of pay settlements in member companies Classification/Sector coverage • LRD: Public/private (LRD definition); industries based on SIC; occupations based on SOC (Standard Occupational Classification) • IDS: Sector, industry and bargaining unit; data covers the private, public and not-for-profit sectors across a wide range of industries. • XpertHR: Classification involves the SIC industrial classification and broad occupational groups (manual and non-manual); Monthly pay increases figures are broken down into public, private, manufacturing and services • EEF: Unknown; mainly manufacturing companies

10. CAWIE kick-off session: UK Wage concepts and definitions • LRD: Percentage increase on lowest basic rate (usually excludes age-related or probationary rates). ‘Standard’ and 'paybill' figures also available. Movement in regular basic wage or salary, whether paid hourly, weekly, monthly or annually. Bonus, shift and overtime payments usually excluded (performance-related settlements difficult to put a value on). • IDS: Percentage increase to basic pay. Bonuses or lump sums not included in aggregate data (where known, info published by IDS). Where percentage varies (eg individual performance): use average increase where known, or increase received by most employees, or paybill rise. • XpertHR: Percentage increase on the lowest adult grade, excluding performance-related pay rises, bonus and allowances (eg a 'paybill” figure would not be included). Purposely described as "the basic pay increase" to ensure a consistent measure of pay settlements comparable across organisations. Separate analysis of performance-related data is done, as cannot be directly compared to basic pay increase data. • EEF: Unknown

11. CAWIE kick-off session: UK Time coverage • LRD: Data collected since the early 1980s (only current data for most recent settlement used in published statistics). • IDS: Includes historical data on settlement levels going back to1995 • XpertHR: IRS (now XpertHR) publishing since approximately 1971 includ0vin an electronic database for the past 25 years. • EEF: Current year (12 months) available on web site for members or purchasers. Data believed to have been collected since the 1980s • CIPD: The Chartered Institute for Personnel and Development also produces relevant data including the Annual Employee Attitudes to Pay surveys (representative sample of employees); Reward Management survey (detailed responses provided by CIPD members); and quarterly Labour Market Outlook (predictions). Concepts used include ‘base pay'; proportion of employers awarding a pay increase/delaying the pay rise/having a pay freeze or a pay cut; performance-related rewards, pensions, benefits and reward priorities.