No Sign of Manufacturing Pay Escalation
Pay settlements in manufacturing have remained stable, amid widespread concerns about salary inflation.
According to figures from the North East manufacturer’s organisation EEF, pay settlements have remained at an average of 2.2% in January, the same as in December. The number of pay freezes has fallen slightly, but at 1 in 6 settlements pay freezes continue to reflect continued pressure to keep costs down.
Commenting on these latest figures, Ms Lee Hopley, EEF Chief Economist, said: “Fears of an escalation in manufacturing pay settlements appear to be largely unfounded as economic uncertainty continues to outweigh demands for higher wages.
“Firms remain under intense pressure to control their internal costs in the face of global competition and these figures would suggest as yet the Bank of England has little to fear from inflationary agreements in manufacturing.”