Manufacturing pay increases remain flat
THE start of 2013 has seen little evidence of pay pressures emerging in manufacturing ahead of the key bargaining period, a new survey has concluded.
According to the latest survey on pay data from EEF and JAM Recruitment, average pay settlements in the three months to the end of December 2012 were 2.4%, the same as the three month period to the end of November.
Additionally, as a sign of the continued economic uncertainty at the end of last year the number of pay agreements which were deferred crept up to almost 11% of all settlements, a rise of more than 8% on the previous three month period. Pay freezes also edged up slightly to just over 7% of settlements though remained well below the level of freezes seen in recent years.
On a positive note, it said that despite continued skill shortages and difficulty recruiting the survey showed that no company foresaw pay pressures as a risk to growth in 2013. Poor labour relations were also viewed as little risk to manufacturers.
Commenting on the latest figures, Lee Hopley, EEF’s chief economist, said: “As we enter the key negotiating period for manufacturers there is little if any evidence of pay pressures. Continued economic uncertainty, together with other indicators suggesting growth is likely to remain weak for the rest of this year mean there is little to concern policymakers who fear upward pressure on pay.”
John Morris, chief executive of JAM Recruitment, added: “The absence of any uplift in settlements and the high level of deferrals shows that businesses are maintaining the same cautious approach to pay that we have seen over the past two years.
“While this is understandable after a 2012 that has been turbulent across the board and particularly challenging in some areas, it is vital for manufacturers to focus on retaining their core talent so they are able to capitalise on opportunities in the year ahead.”
The January 2013 Pay Bulletin contains information on 83 settlements covering 9,859 employees. The results showed 19% of pay settlements were in the 0.01-2% range, with 47% in the 2.01-3% bracket. Only one settlement was recorded above 4.01%.
