IDS Pay Report 988, November 2007

Pay in food, drink and tobacco manufacturing 2007

Higher basic pay settlements as restructuring continues

Pay settlement levels in the food, drink and tobacco sector have risen this year under the impact of high inflation and stronger economic performance. The median increase is 3.5 per cent – mirroring that for the economy as a whole – and the proportion of higher-end deals has significantly increased. At the same time, restructuring and factory closures continue and average earnings growth for the sector is subdued. A number of external factors, such as adverse weather conditions and infectious disease outbreaks, have affected employment and earnings levels in the sector during the past year.