MANUFACTURING pay settlements have risen to their highest level since October 1998, a survey has found.
The Engineering Employers Federation (EEF) said that in the three months to the end of last month, the average level of pay settlements reported by companies rose to 3.1 per cent, up from 2.9 per cent in the previous three months to the end of September.
But the EEF said the figures could be misleading as they were based on only 112 settlements.
Alan Hall, director of EEF Northern, said: "Although based on a relatively small sample, this higher level of pay settlements reflects better trading conditions and a tight labour market.
"While these figures do not demonstrate any real build-up of wage-inflationary pressures, they are a warning to the Government that future increases in the national minimum wage will need to be modest to avoid them creating an inflationary impact."
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article