Pay goes up slightly

Posted on 19 Jan 2011 by The Manufacturer

Pay settlements for employees at UK manufacturing companies rose slightly in the three months to the end of 2010, data from EEF suggests.

The Manufacturers’ Organisation’s latest pay survey shows settlements increased to 2.2% in the three months to the year end from 2.1% in the three months to the end of November.

Pay freezes fell slightly but remained at one in five of all settlements.

Ms Lee Hopley, EEF Chief Economist, said: “Historically these figures are at normal levels and continue to reflect a return to more normal patterns of wage negotiation. The key now is whether the recent upsurge in inflation and costs faced by employees results in significant upward pressure on settlements in the forthcoming bargaining round.”

January is traditionally the main month of the year for pay settlements in the manufacturing industry.

December’s data incorporates 118 settlements, covering 15,662 employees, and is subject to revision.

EEF pay data for the three months to the end of December 2010