Slight rise in pay

Posted on 15 Dec 2010 by The Manufacturer

Pay settlements have begun to increase in the manufacturing sector, according to a survey by EEF, the manufacturers’ organisation.

EEF’s data for the three months to the end of November 2010 shows that the average pay settlement is at a 2% increase, up from 1.8% for the three months to the end of October. The half yearly average settlement figure in June 2010 was 1.5%.

However, one in four settlements are still resulting in a pay freeze.

EEF chief economist Lee Hopley said: “This upward trend clearly reflects a return to more normal pay bargaining conditions and the end of a long period during the recession when reductions, freezes and deferments were the norm.

“They also reflect a strong year of growth for manufacturing and the need to reward employees who have also begun to face significant increases in the cost of living. However, settlements currently remain below historic average levels and have yet to show signs of accelerating as companies keep a close eye on the progress of the recovery.”

The survey contains information on 116 settlements covering 15,694 employees.