Business
Manufacturing pay stays level – new survey
12th December 2011
Manufacturing pay settlements are continuing to remain at normal levels as signs point to another key bargaining round emerging at the start of next year according to the latest data from EEF, the manufacturers’ organisation, and JAM Recruitment.
EEF’s pay data for the three months to the end of October, albeit from a smaller sample of companies than normal, showed the average pay settlement for the period was 2.4 per cent, down slightly from the 2.5 per cent figure for the three months to the end of September.
The data also shows that pay freezes have begun to creep up towards one in five settlements.
Commenting on the latest figures, Jim Davison, the region director in the south and east for EEF, said: “Attention is now turning towards the January bargaining round, where negotiations will again take place against a very cloudy outlook for the sector in the year ahead.”
John Morris, the chief executive of JAM Recruitment, said: "The current data seems to reflect an uncertainty among manufacturers. Yet with many British companies competing on quality not cost, access to the most skilled and highly educated employees is one of the most important factors to staying fleet of foot.
“The schism caused by the demand for skills and, sometimes, the unrealistic pay expectations of employers who don’t realise the depth of the shortage, means that the companies that can adapt to the demands of the current market are the ones with the competitive edge.”
EEF’s pay data for the three months to the end of October, albeit from a smaller sample of companies than normal, showed the average pay settlement for the period was 2.4 per cent, down slightly from the 2.5 per cent figure for the three months to the end of September.
The data also shows that pay freezes have begun to creep up towards one in five settlements.
Commenting on the latest figures, Jim Davison, the region director in the south and east for EEF, said: “Attention is now turning towards the January bargaining round, where negotiations will again take place against a very cloudy outlook for the sector in the year ahead.”
John Morris, the chief executive of JAM Recruitment, said: "The current data seems to reflect an uncertainty among manufacturers. Yet with many British companies competing on quality not cost, access to the most skilled and highly educated employees is one of the most important factors to staying fleet of foot.
“The schism caused by the demand for skills and, sometimes, the unrealistic pay expectations of employers who don’t realise the depth of the shortage, means that the companies that can adapt to the demands of the current market are the ones with the competitive edge.”
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