No signs of pay escalation in manufacturing
Pay settlements in the manufacturing sector have continued to remain broadly stable through the busiest negotiation period of the year amidst continued caution amongst employers and employees, according to the latest figures from a North East manufacturers’ organisation.
EEF’s pay data for the 3 months to the end of January 2010 shows that the average pay settlement remained at 2.2%, the same figure as the three months to the end of December.
The number of pay freezes has fallen slightly but still remains at just over 1 in 6 settlements, reflecting continued downward pressure to contain internal costs.
Commenting on these latest figures, Ms Lee Hopley, EEF Chief Economist, said: “Fears of an escalation in manufacturing pay settlements appear to be largely unfounded as economic uncertainty continues to outweigh demands for higher wages.
“Firms remain under intense pressure to control their internal costs in the face of global competition and these figures would suggest as yet the Bank of England has little to fear from inflationary agreements in manufacturing.”