LONDON (MNI) – Pay pressures in the UK manufacturing sector remain
subdued, with pay deals only nudging up in the first quarter, according
to the latest figures from the EEF, the UK manufacturing organisation
and JAM recruitment.
According to a survey of over 300 companies for the three months to
the end of March, the average pay settlement for the period was 2.6%, a
very small increase on the previous three month figure of 2.5% but still
below the long term settlement average.
The EEF/JAM average manufacturing pay deal is in line with the
average whole economy private sector pay deal.
The April minutes of the Bank of England Monetary Policy Committee
stated “private sector wage settlements seemed to be running at an
annual growth rate of around 2.5%.”
With productivity growth weak at present, the level of pay deals
compatible with the MPC’s 2.0% inflation target may, however, not be
far above it.
The EEF data also show that pay freezes have fallen to just under 1
in 10 settlements whilst deferred settlements are hovering around 5% of
the total. Three quarters of settlements are at or below 3 per cent, the
figures show.
Commenting on the latest figures, Lee Hopley, EEF Chief Economist,
said that the main pay bargaining round for manufacturing has passed
with little or no pay pressures evident.
“It is clear that the cocktail of competitive pressures and
continued economic uncertainty is leading to a sense of realism on both
sides of the negotiating table,” she added.
–London newsroom: 4420 7862 7491; email: ukeditorial@marketnews.com
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