Manufacturing pay settlements have increased slightly, making a gradual return to the normal long term average last seen before the 2008/9 recession according to the latest data from EEF, the manufacturers’ organisation and JAM Recruitment.
According to a survey of almost 200 companies for the 3 months to the end of April, the average pay settlement for the period was 2.8%, up from 2.6% for the previous 3 months to the end of March. The last time the average settlement was at this level was in November 2008, having touched a three month low of just 0.4% towards the end of 2009.
The data also shows that pay freezes are remaining constant at just under 1 in 10 settlements whilst deferred settlements have fallen to just over 4%% of the total. Four fifths of settlements are at or below 3 per cent.
Commenting on the latest figures, Ms Lee Hopley, EEF Chief Economist, said:-
“The fact it has taken the best part of four years for pay settlements to get back to even the long term average shows the extreme pressure that companies have been under to control their internal costs. There is little doubt that the economic realism amongst both employers and employees during this period has helped in no small measure to maintain employment and skills that might otherwise have been lost.”
John Morris, Chief Executive of JAM Recruitment, said:
“The slight increase in settlements highlights the continued resilience of manufacturing as a sector and, the consistent trends we are seeing in levels and types of recruitment. The market is consistently strong but the fact we’re still seeing skills shortages means employers are continually having to review the attractiveness of the packages they’re offering in order to attract, and keep, the talent they need.”
|Settlement level – per cent||Number of settlements|
|Zero (pay freeze_||18|
|0.01-2.00||36 (1 at 1% exactly and 28 at 2% exactly)|
|2.01-3.00||101 (51 at 3% exactly)|
|3.01-4.00||22 (8 at 4% exactly)|
|4.01 or more||14|
The May 2012 Pay Bulletin contains information on 191 settlements covering 34,090 employees. These figures may be subject to revision to take into account settlements for this period that have not yet been received.