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LONDON - British pay deals rose at their fastest pace in more than eight years in January as workers demanded wages keep pace with a rising cost of living, according to a survey by Industrial Relations Services.
The findings may worry policymakers who are keen to avoid a wage-price spiral after retail price inflation, the basis for most pay deals, hit a 15-year high in December.
The survey showed median wage settlements rose to 3.5 per cent in the three months to the end of January, the highest since November 1998.
British Airways has offered employees a 4.6 per cent pay rise and car-makers Ford and BMW have offered wage rises above 4 per cent.
- REUTERS
