MANUFACTURING pay settlements are continuing to remain at normal levels though there are small signs of pay freezes beginning to increase, new research suggests.
According to the latest data from EEF, the manufacturers’ organisation, and JAM Recruitment, pay data for the three months to the end of September, showed the average pay settlement for the period was 2.5%.
This is the same as the figure for the three months to the end of August.
The data also shows pay freezes have increased to around one in six settlements, compared to one in 10 settlements in the three months to the end of August, EEF says.
The organisation cautions that the survey was based on a smaller sample than usual and the trend would need to be maintained to be a concrete sign of a response to deteriorating business conditions.
Midlands regional director Richard Halstead said: “Whilst overall settlements are continuing to hover around normal levels, signs of pay freezes increasing could be a first sign of companies responding to the growing economic uncertainty we have seen over the summer months.
“We will be looking to see if this is a developing indicator of a firmer trend.”
