4 in 5 manufacturers freezing pay
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More than four out of five manufacturers are now freezing pay, highlighting the extent to which tough economic conditions continue to impact on companies in the sector.
According to the latest pay data for the three months to the end of October from EEF, the manufacturers' organization, the number of manufacturing firms that have frozen pay rose slightly to just over 80%, the highest level since the survey began in 1987. The number of manufacturers reporting that they had deferred their pay settlement also rose slightly to just under 15% of all settlements.
The exceptionally high number of pay freezes meant that the average pay settlement reported by manufacturers for this period has remained at the historically low level of 0.3% for the third consecutive three-month period.
EEF head of employment policy, David Yeandle, said: "These figures highlight the fact that for many companies life remains extremely tough. The need to take all measures necessary to control costs and retain skilled staff remains a priority."
