MANUFACTURING pay settlements are continuing to remain at normal levels as the key bargaining period begins, according to the latest data from EEF, the manufacturers’ organisation.

The study, carried out in conjunction with JAM Recruitment, claimed few companies saw pay pressure or a deterioration in workplace relations as their most significant risk to growth.

The survey of more than 200 companies said that while 30% regarded significant upward pressure on pay as a risk to growth, only 5% of companies regarded it as their most significant risk.

EEF said the issue ranked fourth behind shortage of raw materials, the financial crisis and access to external finance. And hardly any of the companies surveyed reported a deterioration in workplace relations to be their biggest risk to growth this year.

Separately, EEF’s pay data for the three months to the end of December 2011, albeit from a smaller sample of companies, showed the average pay settlement for the period was 2.4%, a figure below the long term settlement average.

The data also shows that pay freezes have remained in around one in six settlements while the majority of settlements are below 3%.
EEF cautioned, however, that the survey was based on a smaller sample and that next month’s data will be key as it will include settlements for January, the main bargaining month for manufacturing pay settlements.

David Ost, EEF North West region director, said: “Despite increases in the cost of living, pay settlements are continuing to hover around normal levels with a sense of economic realism prevailing.

“Attention will now turn towards this month’s bargaining round, where negotiations will again take place again a very cloudy outlook for the sector in the year ahead.”