Manufacturing pay settlement levels fell once again to an historic low in the three months to the end of May, according to research by EEF, the manufacturers’ organisation.
Average manufacturing pay settlements for the quarterly period fell to 0.8%, down from 1.0% for the previous 3 months to the end of April. EEF pointed out that this is a true measure of just how far the manufacturing industry has suffered since the start of the downturn, with a 3.1% average pay settlement recorded just last September.
EEF’s findings saw settlements for May register an average of just 0.4%, though it said this figure could be revised upward when more data is received.
Two-thirds of all reported settlements in the three month period were frozen, the highest level reported since EEF’s survey began in 1987. The number of companies reporting that they had deferred their pay settlement in this period also increased to just under 13% of all reported settlements.
“These latest figures demonstrate not just the severity of the downturn since last autumn but the serious efforts that companies have taken to control their costs, said David Yeandle, head of employment policy at EEF. “Compared to previous recessions this period has also been marked by employees and their representatives working positively with employers to manage pay as a way of helping maintain employment levels.”
EEF’s findings saw settlements for May register an average of just 0.4%, though it said this figure could be revised upward when more data is received.
Source: EEF
