Manufacturing pay rises to 18-month high

Average manufacturing pay settlements has risen above 2% for the first time since November 2015

Three-month average pay settlements in the manufacturing sector have risen above 2% for the first time since November 2015, according to a survey by EEF, the manufacturers’ organisation, following a surge in inflation.

The average pay settlement was reported at 2.1% in the three months to April 2017. Less than 10% of settlements were deferred or decreased in April alone – the second most important bargaining month for manufacturers, EEF said.

EEF senior economist Hela Mrabet said: “The second major bargaining round of the year confirms the upward trend in pay settlement levels across manufacturing in response to the continued rise in inflation. As business conditions continue to surprise on the upside, the sector enjoys tailwinds from a stronger global economy and, with the pressure from past surges in input costs somewhat easing, manufacturers are also offering higher pay increases than they did earlier this year.

‘Few and far between’

“Caution is not completely shrugged off, however, as most settlements are still running below consumer price inflation, while deals above 3% remain few and far between.”

EEF’s survey – which included 77 settlements from 17,900 workers – found the number of pay freezes over the three months fell to 9% of settlements, while deferrals accounted for about 2% of settlements. It came after 26% of settlements in August 2016 ended in pay freezes.

Average weekly earnings

The settlement figures from EEF were also reflected in official statistics from the Office for National Statistics, revealed today. The three-month average weekly earnings in manufacturing increased to 2.5% in March, from 1.7% in December.

Mrabet said: “The strong momentum in wages within manufacturing also contrasts with the pace seen in the economy as a whole, where growth in earnings fell to 2.1% in the first quarter from 2.3% in the final quarter of 2016.

Meanwhile, the latest pay settlements rise came after the average pay settlement in January was up to 2%.

FoodManufactureJobs Set up a Job Alert

Related News

Three-month average pay settlements in manufacturing rose to 2.3%

Manufacturing pay hits two-and-a-half-year high

Meat input prices increased 17% since June 2016

Food ingredients cost ‘may rise after Brexit’

Pay deals were up and pay freezes were down in January, says the EEF

Manufacturing pay starts to rise, as inflation increases

Workers at Tunnock's recieved an 8.7% pay rise over two years (Flickr/Meaning Conference)

Tunnock’s workers ‘given 8.7% pay rise’

Beckett’s Foods Ltd was ordered to pay nearly £380,000

Meat firm to pay nearly £380k for crushed hand

A Gloucestershire butcher was told to pay £54,000 for food hygiene offences, and unauthorised sales

Maggoty meat butcher to pay £54,000

Government urged staff to check their pay before new wage rates

Low-paid staff urged to check pay ahead of wage changes

Morrisons is reducing the time it takes small-scale suppliers to 14 days (Flickr/Mike Brocklebank)

Morrisons cuts time to pay small suppliers to 14 days

Groceries Code Adjudicator Christine Tacon has welcomed an increase in contact from suppliers

Supermarket forecasting errors and ‘pay to stay’ hurt suppliers

Related Products

See more related products

Submit a comment

Your comment has been saved

Post a comment

Please note that any information that you supply is protected by our Privacy and Cookie Policy. Access to all documents and request for further information are available to all users at no costs, In order to provide you with this free service, William Reed Business Media SAS does share your information with companies that have content on this site. When you access a document or request further information from this site, your information maybe shared with the owners of that document or information.