Little pay pressure in industry says survey

EMPLOYEES at manufacturing companies are taking a pragmatic and realistic approach to pay demands, according to a new survey.

The data from EEF, the manufacturers’ organisation and Manchester based JAM Recruitment, suggests there will be limited cost pressure from the shop-floor.

According to the EEF/JAM pay survey of over 200 companies the average settlement level for the three months to the end of February was 2.3%, the same figure for the previous three month period to the end of January. and a shade lower than the 2.5% average deal reported a year ago.

Furthermore, almost 90% of settlements were agreed at 3% or less.

EEF North West Region Director, David Ost, said: “The main bargaining period for manufacturing companies is passing with no evidence of pay pressures despite the increase in the cost of living.

“These figures continue to suggest a cautious outlook for many companies who are bearing down on their internal costs, particularly those that continue to operate pay freezes.
 
John Morris, chief executive of Sale-based JAM Recruitment, added: “Manufacturers are naturally cautious on costs at the moment. The sector is emerging from a time of great uncertainty, which is why we are still waiting for the quiet confidence we are hearing from our clients to have an impact on levels of pay.
 
“However, it is a tricky balancing act for many companies, on the one hand seeking to control costs while also ensuring that they are not constrained by an overly cautious approach when it comes to attracting the talented people that will take their businesses forward.”