No wage inflationary pressures coming from manufacturing - EEF Northern

EEF's latest figures for the three months to the end of February show that the average level of pay settlements was 3.2%, slightly higher than the figure of 3.1% for the previous three months. However, they still remain in the very narrow band of 3.1% to 3.3% within which manufacturing pay settlements have been for the last 15 months.

During this latest period, the number of pay freezes reported fell slightly to just under 6% of all settlements. However, the number of companies reporting that they had deferred their pay settlement rose slightly to just under 5% of all settlements, the highest figure for more than 2 years.

Commenting on these latest figures, EEF Northern Director, Alan Hall, said:-

“These figures cover one of the busiest periods for wage negotiations in manufacturing and confirm that there are no wage inflationary pressures building up in the sector. Negotiators continue to react responsibly to the current tougher economic environment."

Settlement level - per cent Number of settlements
Zero (pay freeze)      20
0.01-2.00                12 ( 8 at 2 per cent exactly)
2.01-3.00                154 (112 at 3 per cent exactly)
3.01-4.00                107 (23 at 4 per cent exactly)
4.01 or more           47


The March Pay Bulletin contains information on 340 settlements covering 48,338 employees. Of these, the average settlement was 3.1% in December 2007 and 3.2% in both January 2008 and February 2008 although the figures for both December 2007 and February 2008 were based on relatively low samples. These figures may be subject to revision to take into account settlements for this period that have not yet been received.

Notes for editors

For more information contact Jenny Russell 0191 4165656 jenniferrussell@eefnorthern.org.uk

EEF Northern has more than 500 member companies in the North of England and provides the most cost effective legal, employment law, employee relations and HS&E advice and training in the UK.

EEF Northern employs teams of HR and employment specialists and has access to more than 60 lawyers and barristers to help its members understand the issues associated with the ever increasing introduction of legislation and regulation.

Membership of EEF Northern gives immediate unlimited access to the team of specialists - including the largest specialist employment law team in the UK, which provides professional no-nonsense advice and guidance either by telephone or in person.

In addition, EEF represents the interests of its members at UK Government, European and international level, and can provide advice and support on issues and legislation that can affect almost every aspect of business.

Visit www.eef.org.uk/northern for further information.