Manufacturing pay settlements stable

Pay settlements in manufacturing have remained broadly stable ahead of the biggest period for wage negotiations this month, according to the latest figures from the EEF manufacturers’ organisation.

EEF’s pay data for the three months to the end of December 2010 shows that the average pay settlement has increased to 2.2%, up from 2.1% for the three months to the end of November.

There were eight settlements for over 4.0% with 18 worth between 3.01% and 4.0%. However, the largest number of settlements — 45 — were for between 2.01% and 3%.

The number of pay freezes has fallen slightly but still remains at one in five settlements, according to the EEF.

EEF chief economist Lee Hopley 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.”

www.eef.org.uk/policy-media/releases/uk/2011/Manufacturing-pay-settlements-remain-broadly-stable-.htm