LONDON (MNI) – Pay deals in manufacturing showed a slight increase
in the three months through February, but continued economic uncertainty
is weighing on demands for significant pay hikes, the Engineering
Employers’ Federation said today.
The EEF said that deals in the three months to February rose to
2.4% from 2.2% in the three months to January. It said that this marked
a return to a more normal level of pay bargaining, following the
recession when settlements hit record lows.
The number of pay freezes has fallen slightly but still remains at
just over 1 in 7 settlements, whilst just over 4 in 5 settlements are at
3% or less, the EEF say.
Commenting on these latest figures, Ms Lee Hopley, EEF Chief
Economist, said:
“Fears of an escalation in manufacturing pay settlements continue
to be unfounded so far. Despite the cost pressures being faced by both
business and their employees, it is clear that continued uncertainty
about economic prospects is weighing down on wage negotiations and
maintaining a realistic approach.
“With little sign that this uncertainty will ease in the near
future, Bank of England policy makers will undoubtedly be keeping a
close eye on how pay deals evolve across the economy in the coming
months.”
–London newsroom: 4420 7634 1624; email: ukeditorial@marketnews.com
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