Manufacturing pay rises stay low

Manufacturing News, Source : TheManufacturer.com
Published : 21 Oct 2002 9:04

Pay awards in manufacturing firms have stayed low amid fears of a faltering economy, according to a CBI survey released today.

The latest Pay Databank survey shows pay awards among manufacturing firms averaged 2.6 per cent in the three months to September, compared to 2.7 per cent in the previous quarter and 2.8 per cent a year earlier.

Manufacturing firms said their inability to put up prices (43 per cent) is the key factor keeping pay down, followed by low profits (40 per cent). The main pressure pushing pay up is the high cost of living and the need to recruit and retain staff (21 per cent).

Commenting on the survey, Ian McCafferty, CBI Chief Economic Adviser, said: "Manufacturing firms are under pressure. The expected pick-up in the economy has not materialised and pay rises are reflecting real fears that the downturn could get worse. Prices have been cut to the bone and firms are still shedding staff."

Comments on this story

click here to add a comment