Manufacturing sector pay settlements fall to 1.7%

Pay settlements in the manufacturing sector have dropped to 1.7% according to new data, 0.3% below that agreed for most public sector workers.

As millions of police, teachers and NHS staff got the go ahead to receive pay deals worth 2% or more, pay data for the three months to the end of February in the manufacturing sector, obtained by manufacturers’ body the EEF, shows that the average level of pay settlements has fallen 01.% in a month to 1.7%. This is the lowest figure reported since EEF’s survey began in 1987.

EEF’s head of employment policy, David Yeandle, said: “This further fall in settlement levels and increase in the number of companies either freezing or deferring pay clearly shows the severe impact that the economic downturn is having on manufacturers.

The manufacturing body stepped up its calls for government to help manufacturers retain their skilled workforces by offering financial assistance to those companies having to introduce short-time working.

“The government needs to support the growing number of companies that have introduced short-time working as one way of coping with these difficult times by providing them with some financial assistance.”

Last week the EEF launched a campaign ‘Manufacturing: Your Future’ to help employers deal with the recession.

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