Several years ago the General Council instituted a policy to ensure minimum salaries kept up with inflation. The policy means that each year minimum salaries increase by the same rate as inflation two year prior . (eg. the increase for 2009 is based on the inflation rate as of Dec 31, 2007). IT may seem fairly basic to build in a cost-of-living-adjustment to salaries but this was a fairly big change.
HOwever, what happens if we have a deflationary year? If the year ends with prices having gone down over the last 12 months what then? Will minimum salaries go down???? I wonder if the powers that be even conceived of such a possibility?