Manufacturers are still giving low pay rises to staff as they continue to feel the pressure from the rise in the cost of energy and raw materials, new figures show.
Manufacturing pay settlements have remained steady at 2.7%, according to the latest information from EEF, the manufacturers’ organisation.
The average level of settlements for the three months to the end of May 2006 was 2.7%, the same as the figure for the previous three-month period.
During this period, the number of companies reporting that they had frozen pay was just over 6%, slightly lower than the revised figure for the previous three-month period, and the number of companies reporting that they had deferred their pay settlement rose slightly to just over 3% of all settlements.
David Yeandle, EEF deputy director of employment policy, said companies were only willing to offer moderate wage increases in the face of higher costs of energy, raw materials and other inputs to minimise the squeeze on their profit margins.