It’s down to ‘carrot and stick’

The government must hammer home the message that pay restraint is crucial, but will workers accept this argument in the face of rising inflation?

6th September, 2008

The government must hammer home the message that pay restraint is crucial, but will workers accept this argument in the face of rising inflation?

‘Round two’ of the national pay talks begins this week, against a backdrop of a rapid deterioration in the public finances and warnings of a hairshirt budget on the way.

When the talks at Government Buildings collapsed at the start of August, the smart money was on exchequer revenues...

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