Confusion reigns...
There are many problems with a two year pay deal, not least Contact London's point re. traffic increasing above and beyond pay.
I am sure that every one in NATS can understand the financial pressures which the company, through no fault of its own (New Labour must bear the brunt of the blame) now finds itself with.
However, put aside all beautiful feelings of loyalty for one second and consider this:
2.2% this year, with inflation already at 2.3% equals a 0.1% pay cut in real terms.
Next year, government forcasts are for inflation to be around 2.4%, if not a little higher. That reduces a seemingly favourable pay rise from 3.7% to 1.3%. Knock off 1% for your increased Income Tax, sorry National Insurance (because they are oh so different aren't they President Blair?!) and you are left with a 0.3% pay rise in 2003.
Not so attractive. Consider also that whilst inflation may be 2.3%, some goods such as petrol, utility bills and Council Tax all have a habit of increasing faster than the base rate of inflation.
Oh! and any increase in interest rates, or any activity on the anti-terrorist missions being brokered by Presidents Bush and Blair could see inflation rocketing.
Yes, the deal is far, far better than we were ever led to believe that we might be given; a good bit of spin doctoring by someone, perhaps?
Just the thoughts of a typical ATCO...
