New data shows that manufacturing pay is outstripping that of the rest of the economy.
According to the figures from the manufacturers’ organisation – EEF – the average pay settlement in the six months from February to July 2014 was a ‘healthy’ 2.6%. (The survey covers 331 companies and 68,000 employees.)
Importantly, this included April, one of the year’s major pay rounds, which was seen as a good indicator for pay this year.
At 2.6% the figure is an increase on last year where pay settlements averaged out at 2.4%. Pay deferments and freezes have continued to fall with the 3 month average freezes in July this year running at just 6.4% compared with 14.6% in July 2013. The data came on the back of figures that showed that earnings were struggling to recover across the wider economy.
In contrast, EEF’s data suggests that manufacturers are rewarding their employees after a very difficult economic period of substantial numbers of deferments and freezes. Employers are also countering the effects of skills shortages by paying above inflation awards to retain and attract key staff.
EEF’s figures also come at a time when the industrial relations landscape is changing post-recession and, ahead of the two main negotiating periods before the General Election next year.
“After many challenging years, manufacturers are now literally paying their employees back for their support to keep jobs and businesses going,” stated Jeff Neild, National Head of Employment & Industrial Relations, EEF. “Business across the sector has clearly been on the up but this new post-recession landscape is, however, presenting employers with a new set of challenges in managing relationships with their employees. Employers need to take practical steps to ensure they are fully up to speed with managing trade union dynamics in an effective way.”
To help employers gain an insight into this changing aspect and manage effective relationships with their employees, EEF’s team of employment relations advisers is running a conference entitled Managing Employee Relations at five locations across the UK.
For further information, visit the website: www.eef.org.uk
Caption “After many challenging years, manufacturers are now literally paying their employees back for their support to keep jobs and businesses going” –Jeff Neild, National Head of Employment & Industrial Relations, EEF.