Manufacturing workers ‘realistic on pay’
WORKERS in industry have adopted a realistic approach to pay demand, according to a survey by manufacturers’ organisation EEF and Sale-based JAM Recruitment.
According to a survey of more than 300 companies for the three months to the end of March, the average pay settlement for the period was 2.6%, up a fraction on the previous three month figure of 2.5% but still below the long term settlement average.
The data also shows that pay freezes have fallen to just under 1 in 10 settlements whilst deferred settlements are hovering around 5% of the total. Three quarters of settlements are at or below 3% – a figures which will not concern the Bank of England as it looks for signs of inflation rising further.
David Ost, North West Region Director for EEF said: “The main pay bargaining round for manufacturing has passed with little or no pay pressures evident.
“It is clear that the cocktail of competitive pressures and continued economic uncertainty is leading to a sense of realism on both sides.”
John Morris, chief executive of JAM Recruitment, whichs specialises in industrial recruitment added: “The fact that pay increases seem to have settled slightly below the historical average is good news for manufacturing businesses, which are not seeing margins depleted by excessive upwards pressure on wages.
“Despite this, there is a significant disparity between the salaries that manufacturing businesses are prepared to offer, and how much candidates think they’re worth. This tension could well nudge pay settlements back up to average levels and beyond in the near future.”
