Pay freezes build ahead of January bargaining

The average industry pay settlement for the period was 2.4%, down slightly from the 2.5% figure for the three months to the end of September, according to pay data for the three months to the end of October, The data, from the manufacturers' organisation EEF and Jam Recruitment, also shows that pay freezes have begun to creep up towards one in five settlements which, despite a smaller sample than usual, may be a sign of deteriorating business conditions. EEF chief economist Lee Hopley said that although settlements were hovering around normal levels, signs of pay freezes increasing could be a first sign of companies responding to the growing economic uncertainty of the last few months. "Attention will now turn towards the January bargaining round, where negotiations will again take place against a very cloudy outlook for the sector in the year ahead," she concluded. At JAM Recruitment chief executive John Morris said the data seemed to reflect an uncertainty among manufacturers.