Record level of manufacturers freezing pay

AN increasing number of manufacturers are now freezing pay, according to the latest figures from manufacturers’ organisation EEF.

EEF’s pay data for the three months to the end of October shows that the number of manufacturers that have frozen pay rose slightly to around four out of five companies – the highest level reported since EEF’s survey began in 1987.

The number of manufacturers reporting that they had deferred their pay settlement also climbed slightly to just under 15% of all settlements.

The exceptionally high number of pay freezes meant that the average pay settlement reported by manufacturers for this period has remained at the historically low level of 0.3% for the third consecutive three month period.

EEF head of employment policy David Yeandle, said: “These figures highlight the fact that for many companies life remains extremely tough. The need to take all measures necessary to control costs and retain skilled staff remains a priority.”

The October Pay Bulletin contains information on 226 settlements covering 33,858 employees.

Of these, the average settlement was 0.3% in July, 0.4% in August and 0.35 in September although the figures for both August and September are based on very small samples.

These figures may be subject to revision to take into account settlements for this period that have not yet been received.