that's assuming AUG RPI will be that poor. also you are looking at RPI over a one year period. i.e. Aug 08 to aug 09. This deal is for 2 years and will also encompass the RPI for Aug 10 which will be positive
sorry I wrote it in a rush. What I meant to say was that the latter part of the pay deal (period post-aug 2009* to dec2010) will fall in a period covered by the AUG10 RPI insofar as prices going up (inflation) NOTHING TO DO with the pay offer. i.e We will be tied into a one off 2-3% "deal" for 2 years, during which the average inflation (including aug08 rpi of 4.8%) will markedly higher than the 3% (aroung 1.5% per year) maxiumum offered, especially toward the latter part of the time period. In effect a pay cut in real terms.
(*AUG09 RPI figure will be the historical price data upto that date. subsequent shifts in RPI will be reflected in subsequent RPI data)
Jonny B Good, thank you for the explanation but I am quite happy and familiar with the terms of the pay deal. My post was to simply illustrate that prices will rise sooner and higher than the figures given tend to portray.
There are NO forecasts predicting it to be 'better' than this.
At the moment.
Economist were surpised today by the £50bn injection by the BoE/Govt. into the money supply which WILL have an inflationary effect. None of the forcasters predicted the current climate so I wouldn't gamble my future payrise on their assumptions. The situation is changing on a day to day basis.
The 2% underpinned is a red herring as NATS will renegotiate if RPI is worse that -3.5%: whilst they may not take money back from us (in the very unlikely event of it being that low) any subsequent deals (2011 onwards) will have some clawback (i.e. a smaller increase n pay or additional duties/days)
I for one believe that the deal is a poor one and that we shall be feeling the ramifications of for a long time. NATS will walk away with paying staff 3% over two years and splash the rest out on shareholders, directors etc. whilst inflation climbs and income/charges increase comensurately
I am more than happy to wait until AUG09 RPI figures are out before we vote on the deal - heck we've waited this long! And if it's a neagtive RPI in AUG09 so be it - at least it would be an informed decision.
Vote what you like - but i will
VOTE NO!