Manufacturing pay settlements on the up
1 min read
Survey data shows that after a long period of stability, the level of pay settlements in UK manufacturing has begun to show a small increase.
Pay data for the three months to the end of November shows that the average pay settlement was up slightly to 2%, from 1.8% for the three months to the end of October. The half yearly average settlement figure in June was 1.5%.
Commenting on the latest figures, EEF chief economist Lee Hopley said: "This upward trend clearly reflects a return to more normal pay bargaining conditions and the end of a long period during the recession when reductions, freezes and deferments were the norm.
"They also reflect a strong year of growth for manufacturing and the need to reward employees who have also begun to face significant increases in the cost of living. However, settlements currently remain below historic average levels and have yet to show signs of accelerating as companies keep a close eye on the progress of the recovery."
