The proposed settlement, which has been earmarked for implementation on 24 April, would translate to a 4.99 increase per week for a Class 1 worker and would take the national minimum to 235.43.

BPIF director of Southern region and negotiator at the talks Chris Patefield said: "Its a realistic settlement and reflects the difficult circumstances that the industry is in. It will be put forward and ratified by our national council next week."

Class 2 and class 3 three employees would be paid 212.79 and 200.77 respectively.

GPMU general secretary Tony Burke said that the proposal would be put forward to the unions executive council in the next two weeks and then balloted on.

However, Burke would not comment further on the level of award being proposed to members.

The agreement also provides for the establishment of a working party to explore issues related to "work-life balance".

Patefield said: "It will look at how employers and employees can get the right balance and most efficiencies for both parties. It will involve issues like flexible working hours and early retirement."

The latest statistics on pay awards from the CBI suggested that the gap between the service and manufacturing sectors had increased.

The CBI said that manufacturing pay increases were 2.3% in the three months to January, the lowest since 1980, while the service sectors averaged 3.8%.

Mike Marriott, production director of Nottinghams Hawthornes Printers, who sat on the BPIFs industrial relations advisory board, said that the agreement was fair.

"Its realistic, and what we asked for. But having said that there will still be a lot of companies who simply wont be able to afford it," said Marriott.

Proposed national minimum rates of pay
ClassApril 2001April 2002 (proposed)Change
1230.44 235.432.16%
2208.30 212.792.16%
3196.68 200.772.08%

Story by John Davies