Manufacturing sector wage settlements have crept up but only towards average historical levels, according to EEF. The manufacturer’s organisation compiled the statistics with JAM Recruitment.
EEF’s pay data for the 3 months to the end of April 2011 shows that the average pay settlement for the period crept 2.5%, up from 2.4% for the three months to the end of March 2011. However, despite the small increase approximately 80% of settlements were below 3%, whilst just fewer than 14% of companies were still operating pay freezes.
Ms Lee Hopley, EEF chief economist, commented: “We have now been through the two single busiest months for wage negotiations and there remains little evidence of significant upward pressure on pay. Despite the small increase we are only returning to the level of settlements we would expect to see by historical standards.”
Economic uncertainty and the need for companies to control their costs in the face of global pressures continue to be the main driver of agreements.
John Morris, Chief Executive of JAM Recruitment, said: “Assertions that this month’s average pay settlement, the highest since January 2009, is an indication of sustained wage inflation in the manufacturing sector may well be premature, but it is heartening that after two years of fluctuation, the majority of pay increases appear to have settled around modest levels.”