Manufacturing pay settlements have fallen to historically low levels in response to the economic squeeze, according to the latest figures from EEF, the manufacturers’ organisation.
EEF‘s pay data for the three months to the end of March shows that the average level of pay settlements has fallen to 1.6%, down from 1.7% for the previous three months to the end of February. This is the lowest figure reported since EEF’s survey began in 1987.
The number of companies freezing pay rose to nearly 45% of all reported settlements in the same three month period, again the highest level since the survey began. However, the number of companies reporting that they had deferred their pay settlement in this three month period fell very slightly to just under 20% of all reported settlements.
Commenting on the latest figures, Clive Turner, EEF’s south west region external affairs Advisor said: “This continued squeeze on pay demonstrates very starkly not just the severe impact that the economic downturn is having on manufacturers, but the efforts companies, employees and their representatives are making to avoid redundancies.”