Manufacturing pay freeze record

The manufacturers' organisation EEF, which compiles the data said the percentage of manufacturing firms holding pay down to existing levels was the highest since its survey began in 1987. In addition, over the three months to the end of June, nearly 16% of manufacturing companies reported they had deferred their pay settlement. In the same period, the average pay settlement level fell to 0.7%, down from the revised figure of 0.9% for the previous three months to the end of May. As the monthly settlement levels for both May and June were both below 0.5%, it is likely that average settlement levels in manufacturing will continue to fall further in the near future. Commenting on the latest figures, EEF head of employment policy David Yeandle said: "This unprecedented high percentage of manufacturers freezing pay and the resultant historically low level of average pay settlements are clear signs of the adverse impact that the economic downturn is continuing to have on the manufacturing sector. The figures also show that, working with employees and their representatives, manufacturers are trying to manage pay far more flexibly that they have done in previous recessions."