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Deferred manufacturing pay settlements hit six year high
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16/07/2008
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Manufacturers are deferring more pay settlements as a tougher economic climate faces the industry.
The combination of relatively low pay settlements and a rising number of deferred agreements illustrates the tougher economic conditions currently facing manufacturers according to the latest figures from EEF, the manufacturers’ organisation.
EEF’s latest figures for the three months to the end of June 2008 show that the average level of pay settlements was 3.1%, the same level as the revised figure for the previous three months to the end of May.
However, the number of companies reporting that they had deferred their pay settlement rose to just over 7% of all settlements, the highest level reported since December 2002. In the same period, the number of companies reporting pay freezes fell slightly to 6.5% of all settlements. ..
Commenting on these latest figures EEF Head of Employment Policy David Yeandle said: “The relatively low level of pay settlements, together with the rise in the number of companies deferring their agreements, confirms the tougher economic climate. In this more difficult business environment, manufacturers are using their experience of managing previous downturns to do all they can to contain costs."
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Author
Ken Hurst
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