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EEF Pay Bulletin – December 2011

EEF Pay Bulletin

EEF’s Pay Bulletin in partnership with JAM Recruitment is a comprehensive survey of pay settlements in over 400 of EEF’s member companies from the manufacturing sector.

December’s Pay Bulletin found the following key points:

  • Three month average settlement at 2.5%
  • Pay freezes account for 16% of settlements
  • Proportion of pay deferrals 5%
  • CPI inflation falls 4.8% and RPI inflation falls to 5.2%

JAM’s Chief Executive, John Morris, made the following comment on these figures:

“The low number of pay settlements this month is a seasonal trend, rather than indicative of any delays in pay deliberations across the sector. However, the elevated proportion of freezes within this settlement, again last month, seems to suggest sustained caution among manufacturers.

In 2012, the challenge for manufacturers will be how to grow with continued uncertainty in global markets and the threat of slowdown looming. The range of government interventions targeted at manufacturing is clearly welcome, but more may be needed to over-ride deteriorating confidence brought about by a downturn in European markets. There are, however, still some signs of confidence brought about by a downturn in European markets. There are, however, still some signs of confidence in the medium term with many companies still looking to fill vacancies for skilled engineers and technicians. The good news is that Britain has an excellent reputation around the world for high-precision manufacturing and as long as we have the capacity to create the goods, in the long-run we have a market.”

The EEF Pay Bulletin, sponsored by JAM Recruitment, is published around 19th of every month.

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