The rise, if it goes through, means that the new national minimum grade rates for class I employees would be 248.78, while class II and III would get 224.81 and 211.71 respectively. The new rates are expected to come into place from 24 April and equate to a 2.7% increase on the class I minimum grade rate.

The BPIFs national council and the GPMUs executive council will consider the agreement next week. Once ratified it will be voted on by GPMU members, which could take four weeks.

GPMU deputy general secretary Tony Burke said: It was a tough set of negotiations. Ill report back to the executive council to outline the position in detail, and then inform our members.

The chairman of the BPIF negotiating team, George van Sant, said that in light of continuing tough trading conditions the settlement would provide the stability that the industry requires.

The 2.7% increase is slightly above Januarys Retail Price Index (RPI) inflation figure of 2.6%. Last years National Agreement saw a 2.8% increase.

However, reactions have been mixed from print bosses. The managing director of a large B1 commercial print firm questioned the idea of a blanket rise and said he preferred arrangements based on individual merit.

Last year and the year before we gave more than it [National Agreement] and we will do this year. We look at anything up to 5% depending on how people are performing, he said.

He added that some companies would be hard pushed to meet the 2.7% increase.

The GPMU and BPIF are currently working on an alternative to the National Agreement through the Partnership at Work initiative. The Advisory, Conciliation and Arbitration Service (Acas) is helping with research, which could be completed by next spring.

Industry reactions to decision
Managing director of a B1 commercial print company: Im more in favour of company rather than national agreements. Some companies can give more, but for ones not doing that well it could be difficult if its imposed upon them. Last year, and the year before, we gave more than it [national agreement] and we will do this year. We look at anything up to 5% depending on how people are performing.

Fulmar chief executive Mike Taylor: I think that the National Agreements a very sensible idea. I am happy with this years and think that its fair under the circumstances, although some companies will struggle to pay it.

Managing director of a magazine printing specialist: If youre an employee and you look at inflation then its just about acceptable. But if you look from the employers perspective then its just another cost that cant be recovered. They [the GPMU] always say that its recoverable but I dont know any company that has changed its in-house agreement for 6 a week. If I were able to say to clients that they would have to accept a similar increase in labour costs then fair enough, but theres absolutely no way I can recover this.

Cooper Clegg chairman Ian Cooper: It's anachronistic and has no relevance to the real world anymore.

Pensord Press chief executive Tony JonesOur view as a business is that people should not be any worse off than last year, but the reality is there are not a lot of printers, given the current climate, who will be able to pay this amount. I understand the cost recovery clause is to remain and thats a good thing. I think it is at the top end of what it should be. A lot of companies will feel they cant afford to do it. If any printers are able to apply an inflationary increase this year then they will have done very well.

Story by John Davies