EEF: Two-thirds of manufacturers now freezing pay

In addition, nearly 16% of manufacturing companies have reported that they had deferred their pay settlement in the 3 months to the end of June. In the same period the average pay settlement level fell to 0.7%, down from the revised figure of 0.9% for the previous 3 months to the end of May. As the monthly settlement levels for both May and June were both below 0.5%, it is likely that average settlement levels in manufacturing will continue to fall further in the near future. Commenting on the latest figures, David Yeandle, EEF Head of Employment Policy, said: “This unprecedented high percentage of manufacturers freezing pay and the resultant historically low level of average pay settlements are clear signs of the adverse impact that the economic downturn is continuing to have on the manufacturing sector. “The figures also show that, working with employees and their representatives, manufacturers are trying to manage pay far more flexibly that they have done in previous recessions.”