In the first 2 weeks of February, BFM surveyed members on their wage intention for 2021 and what if any impediments there may be to making an award.

COVID-19, material prices and lack of orders lessen likelihood of wage awards

In the first 2 weeks of February, BFM surveyed members on their wage intention for 2021 and what if any impediments there may be to making an award.

Key findings showed that the majority of employers did not award a wage increase in 2020 and this is in line with most private sector employers. This year, the most common factors that would limit the ability to increase wages were reported as COVID-19, material prices and lack of orders.

BFM’s Managing Director Nick Garratt commented “In terms of pay awards, 2020 was severely impacted by lockdowns and high levels of uncertainty. This has translated into lower pay increases and in many cases, pay freezes. The start of 2021 is hitting the industry hard with businesses locked down and our survey shows that pay freezes and pay awards well below the rate of inflation are likely to continue this year.”

The latest Office for National Statistics figures for the Consumer Prices Index including owner occupiers’ housing costs (CPIH) was 0.8% in the year to December 2020, up from 0.6% in November. The Retail Price Index (RPI), the inflation measure, often referred to in pay negotiations, grew to 1.2% in the 12 months to December, up from 0.9% in November.

The full wages survey with details of employers plans for 2021 is available in the members area of the BFM website.

For more information contact Mike Dimond on This email address is being protected from spambots. You need JavaScript enabled to view it..