§ Mr. Barry JonesTo ask the Secretary of State for Wales if he will make a statement on the use of local pay bargaining in Wales to determine pay awards. [11671]
§ Mr. Gwilym JonesWe believe that pay, in Wales as in the rest of the United Kingdom, is best determined freely by employers and their employees in the light of their particular local circumstances. This better enables pay settlements to reflect the needs of the local labour market as well as company and employee performance. Businesses are best able to judge what they can afford to pay in order to recruit, retain and motivate suitable staff. Pay increases not justified by improved performance will simply lead to the loss of competitiveness.