More factories 'are freezing pay'

21/07/2009

Around two-thirds of manufacturing firms are freezing pay in light of the recession, the latest figures from manufacturers' organisation EEF have revealed.

The proportion is the highest on record since the EEF began its survey on wages in 1987.

On top of the pay freezes, almost 16 per cent of manufacturing companies told the EEF that they had deferred pay settlements in the second quarter of the year.

Additionally, over the same period, the average pay settlement level dropped to 0.7 per cent, from 0.9 per cent in the three months to May.

"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," said EEF head of employment policy David Yeandle.

Mr Yeandle added that the figures reveal that manufacturers are attempting a more flexible approach to pay than had been seen in previous recessions.

Kevin Still, EuroDebt director, commented: "It is evident that freezing of pay or reducing working hours is becoming more widespread and this is impacting those already experiencing financial difficulties.

"EuroDebt's latest debt reasons analysis measured over the period from May 2009 to July 2009 has shown that 'loss of income' is the top reason why people are starting a Debt Management Plan. The percentage has risen from the last analysis we undertook for the six months to May 2009. We believe that this trend is set to continue."

Tags; Income Worries and Debt,

• Share
• 
• 
• Store
• 
• Follow
•