–EEF: UK Mar-May Manufacturing Avg. Pay Deal 2.6%; Feb-Apr 2.5%
LONDON (MNI) – UK manufacturing pay deals edged up in three months
through May, according to the latest EEF/JAM Recruitment data.
The average manufacturing pay deal came in at 2.6% compared to 2.5%
in Feb-Apr, according to data.
The EEF (formerly the Engineering Employers Federation) downplayed
the rise in pay deals.
“Despite the continued upward curve of pay settlements, we are only
continuing a return to levels we would expect to see in relatively
normal economic conditions. Whilst some companies are under pressure to
give higher settlements, it is clear that the vast majority are under
equal competitive pressure to maintain tight control of their internal
costs,” Lee Hopley, EEF Chief Economist, said.
Although pay deals have risen, recent official data have shown
core average weekly earnings growth holding around 2%, which as the BOE
notes is “some way below its pre-recession average.”
Evidence that UK productivity growth has faded away, however,
suggests, on the face of it, pay growth would need to stay below
pre-recession levels to be compatible with the BOE Monetary Policy
Committee’s 2.0% target.
–London newsroom 4420 7862 7491; email: ukeditorial@marketnews.com
[TOPICS: MABDS$,M$B$$$]
