Manufacturers showing pay restraint in face of tougher economic climate - EEF

Submitted by Jenny Russell on Fri, 20.06.08

Tougher economic conditions have resulted in manufacturing pay settlements falling for the third consecutive month to their lowest level for more than 18 months, according to the latest figures from EEF, the manufacturers' organisation.

EEF's latest figures for the 3 months to the end of May 2008 show that the average level of pay settlements fell to 3%. This is slightly lower than the previous 3 month figure of 3.1% and is the lowest level reported since October 2006.

In the same period, the number of companies reporting pay freezes rose quite sharply to just over 7% of all settlements, the highest figure reported since March 2006. The number of companies reporting that they had deferred their settlement also rose to just over 6% of all settlements, the highest level reported since December 2002. 

Commenting on these latest figures, Tony Sarginson, EEF Regional Manager, said: "This gradual decline in pay settlements coupled with the quite sharp increase in pay freezes and deferments clearly indicates the tougher economic climate now facing manufacturers. Despite the increased cost of living, in such difficult conditions it would appear that this is not being translated into pay pressures in this sector."

Author: Jenny Russell (jenniferrussell@eefnorthern.org.uk)

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