Engineering pay deals fall as pressure to cut costs mounts

Pay deals in the engineering sector have sunk to their
lowest level for 18 months and are set to fall even further, according to the
Engineering Employers Federation.

Figures from the EEF reveal that the average pay settlement
for the three months to September fell to 2.5 per cent.

Pay deals in September averaged just 2 per cent, settlements
in the quarter to August averaged 2.3 per cent and the average deal in July was
2.6 per cent.

The fall marks the lowest three-month figure recorded by the
EEF since March last year.

The EEF’s deputy director of employment policy, David
Yeandle, said the figures show the huge pressure on firms to cut costs in the
current climate.

"These figures continue to demonstrate the adverse
impact that the global economic slowdown is having on engineering and
manufacturing companies.

"All the indications are that the level of pay
settlements is likely to fall still further in the coming months," said
Yeandle.

The number of pay freezes in the quarter increased to just
under 15 per cent of all settlements.

The figures cover 184 reported pay settlements affecting
18,664 staff.

 

By Ben Willmott

 

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