No sign of inflationary pay settlements says EEF
One of the busiest periods of wage negotiations for manufacturing companies has passed with no sign as yet of inflationary pay settlements.
According to the latest figures from the manufacturers' organisation EEF, the three months to the end of March 2011 (including the month of January, the busiest for manufacturing companies) saw average pay settlements remaining static at 2.4%, the same as the figure for the three months to the end of February 2011. The number of pay freezes has fallen slightly but still remains at just over 1 in 8 settlements, while almost 4 in 5 settlements are at 3% or less.
The figures will help allay fears that sharp increases in costs to individuals are translating into significant wage demands, reflecting continued uncertainty around prospects for the labour market and wider the economy.
April is the second most common month for concluding pay negotiations in manufacturing so attention will turn to any signs emerging next month.
