Likely shape of the new deal

National pay award of 15 per cent over 33 months.

National pay award of 15 per cent over 33 months.

The first 5.5 per cent to apply from April 1st onwards in the private sector. Most employees will receive the increase between June and September, depending on when sectoral agreements expire. Public service employees will get the increase from October 1st.

Second 5.5 per cent increase will apply from April 1st, 2001.

The third increase of 4 per cent will apply from April 1st, 2002. The agreement will expire at the end of that year.

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Public service increases will kick in from October 1st each is year. Public service management seeking a new review system to assess performance and to benchmark pay and practice with the private sector.

The National Minimum Wage will be introduced at £4.40 an hour and rise to £5 by April 2002, at the latest. Minimum flat-rate increase of £32 a week over period of deal.

Social inclusion package worth around £1 billion expected to take "every man, woman and child out of income poverty".