Caution outweighs manufacturing wage demands
1 min read
Manufacturing sector pay settlements over the last three months showed a slight increase but continued to be held down by caution due to economic uncertainty.
According to the latest figures published today (31 March) for the three months to the end of February – the busiest wage negotiating period for manufacturing companies – the average pay settlement rose slightly to 2.4%, up from 2.2% for the three months to the end of December.
Commenting on these latest figures, EEF chief economist Lee Hopley said that fears of an escalation in manufacturing pay settlements continued to be unfounded despite the cost pressures being faced by businesses and their employees. "It is clear that continued uncertainty about economic prospects is weighing down on wage negotiations and maintaining a realistic approach," she added. "With little sign that this uncertainty will ease in the near future, Bank of England policy makers will undoubtedly be keeping a close eye on how pay deals evolve across the economy in the coming months."
