Manufacturing employees see 2.6% pay rise

Executive pay

Pay rises in the manufacturing industry are rising faster than any other industry sector, according to research by engineering and manufacturing employers’ association EEF.

Its survey, which covered 331 organisations and 68,000 employees, found that pay rose by 2.6% in the six months from February to July, an increase from 2.4% in 2013.

Pay freezes have also continued to fall in the manufacturing industry, with the three month average pay freeze in July at just 6.4% compared to 14.6% in July 2013.

The research compares favourably with the latest official figures from the Office for National Statistics, which showed wages for UK employees was 0.2% lower than it was a year ago.

Jeff Neild, national head of employment and industrial relations at EEF, said: “After many challenging years, manufacturers are now literally paying their employees back for their support to keep jobs and businesses going.

“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.”