Deferred pay settlements increase as tougher economic climate faces manufacturing - EEF

Release date: 16/07/2008

The combination of relatively low pay settlements and a rising number of deferred agreements illustrates the tougher economic conditions currently facing manufacturers according to the latest figures from EEF, the manufacturers’ organisation.

EEF’s latest figures for the 3 months to the end of June 2008 show that the average level of pay settlements was 3.1%, the same level as the revised figure for the previous 3 months to the end of May.

However, the number of companies reporting that they had deferred their pay settlement rose to just over 7% of all settlements, the highest level reported since December 2002. In the same period, the number of companies reporting pay freezes fell slightly to 6.5% of all settlements. ..

Commenting on these latest figures, Tony Sarginson, EEF Regional Manager, said:-

“The relatively low level of pay settlements, together with the rise in the number of companies deferring their agreements, confirms the tougher economic climate. In this more difficult business environment, manufacturers are using their experience of managing previous downturns to do all they can to contain costs."

Settlement level - per cent

Number of settlements

Zero (pay freeze)

18

0.01-2.00

13 ( 8 at 2 per cent exactly)

2.01-3.00

117 (78 at 3 per cent exactly)

3.01-4.00

93 (21 at 4 per cent exactly)

4.01 or more

38

The July 2008 Pay Bulletin contains information on 279 settlements covering 53,038 employees. Of these, the average settlement was 3.1% in April 2008, 2.7% in May 2008 and 3.3% in June 2008 although the figures for both May and June are based on very small 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 has more than 500 member companies in the North East of England and provides the most cost effective legal, employment law, employee relations and HS&E advice and training in the UK.

EEF 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 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

 

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