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Background

2.

On 24th January 1978, the Senior Civil Service Council agreed that the PIU should carry out a survey to establish pay trends in the private sector in the 12 month period April 1977 to April 1978. The only change to previous procedure was that this year the PIU sought information on the actual number of company employees relevant to a particular increase so that the results could be adequately weighted. The results more accurately reflect actual pay movements in the private sector during 1977-78.

3.

On 17th April 1977, the PIU produced its report, which was then analysed by a Steering Committee of the Senior Civil Service Council. Copies of the PIU Pay Trend Survey Report and the Steering Committee Report are available to Members on request.

4.

On 9th May 1978, the Staff Side of the Senior Civil Service Council submitted a pay claim for "an upward adjustment throughout the Master Pay Scale ranging from 9.93% at the lowest Encl. point to 7.46% at the top point, to be effective from the 1st

April 1978′′. A copy of the Staff Side's letter is at Enclosure 1.

Pay Trend Survey Report

1

5.

The analysis agreed by the Steering Committee of the 1977-78 Pay Trend Survey Report indicated that private sector salaries had, in relation to the bottom band (less than $2,000) mid band ($2,000 $5,999) and top band ($6,000 $9,500) of the Master Pay Scale, moved upwards as follows

Master Pay Scale

1977-78 increase as a % of 1976-77 (weighted mean)

Bottom band

Mid band

Top band

+8.39%

+7.71%

+6.83%

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6.

The Survey also showed that seven companies had given increases effective in 1976-77 but which were not recorded in the 1976-77 Survey. This was because the decision to increase pay had been taken after completion of the PIU Survey but back- dated to fall within the survey period. The effect of including these belated increases in the results of the 1976-77 Survey, and of re-calculating the increases (weighted means) for that period indicated the following understatement for 1976-77

Master Pay Scale

Minimum

Mid-point

Maximum

1976-77

+0.40%

+0.34%

+0.33%

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