Factory pay settlements edge up

Despite the boom in manufacturing seen last year, wage growth remained stable in the three months to December, it was announced yesterday. Pay settlements increased to 2.2 per cent from 2.1 per cent in the three months to November, manufacturers body EEF reported. One in five settlements are still ending in a pay freeze, reflecting the ongoing downward pressure on wages, EEF said. “The key now is whether the recent upsurge in inflation results in significant upward pressure on settlements,” said Lee Hopley, chief economist at the EEF.