Chilly outlook for pay
NEW data has shown that almost four out of five manufacturing firms are freezing pay.
The research by manufacturers’ organisation EEF also showed that average settlements remained at 0.3% in the three months to September - the lowest since the survey began in 1987. The news comes after an Industrial Relations Services (IRS) survey said almost half of settlements in the quarter to July involved a pay freeze.
In the EEF survey, none of the 237 respondents reported pay rises of more than 4%, while only 12 (5%) were awarding rises of more than 2%. In July 2008, the average pay rise was 3.2%.
The number of manufacturers reporting that they had deferred pay settlements also rose slightly to just over 12% during the period.
EEF said there was little sign that pay settlements would increase in the coming months.
Tony Sarginson, external affairs adviser at EEF’s North-east office, said: “It will be like this throughout 2010. People are resigned to the fact that there’s no money and nobody wants to rock the boat.”
He said low inflation, which has driven down living costs such as mortgage repayments, had reduced the likelihood of staff challenging their bosses for more pay.
