–EEF Sees Return Of More Normal Pay Bargaining In Manufacturing
–But Deals Remain Below Historical Average As Firms Monitor Recovery
LONDON (MNI) – UK manufacturing pay deals began to show a small
increase in the three months through November following a long period of
stability, according to the latest figures from EEF, the manufacturers’
organisation.
EEF’s pay data for the 3 months to the end of November 2010 shows
that the average pay settlement has crept up slightly to 2%, up from
1.8% for the three months to the end of October. This figure also
compares to the half yearly average settlement figure in June 2010 of
1.5%.
However, the figures also show that pay freezes are still running
at almost 1 in 4 settlements, indicating that there still remains
considerable downward pressure on companies to control their internal
costs.
Commenting on these latest figures, Lee Hopley, EEF Chief
Economist, 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.”
–London newsroom: 4420 7634 1624; email: ukeditorial@marketnews.com
[TOPICS: M$B$$$,M$$BE$,MABPR$,MT$$$$]