The Bureau of Labor Statistics released the latest employment cost index data for the fourth quarter of 2011. Overall, wages and salaries in the private sector rose 0.4 percent in the quarter, matching their growth from the third quarter. Private sector benefit costs were up 0.7 percent in the quarter. On an annual basis, total compensation increased 2.2 percent from the fourth quarter of 2010, with benefits 3.6 percent higher.

Looking specifically at manufacturing, wages and salaries were up 1.8 percent in 2011, with total compensation rising 2.8 percent. The index breaks this data down by manufacturing occupations, and the annual increases in total compensation were as follows:

• Management, professional and related – up  3.1 percent in 2011
• Sales and office – up 2.6 percent
• Natural resources, construction and maintenance – up 3.0 percent
• Production, transportation and material moving – up 2.6 percent

The largest increase in compensation for manufacturers stemmed from benefits, which rose 4.7 percent year-over-year. It is important to note that much of this increase was due to higher health insurance premiums. A Kaiser Family Foundation survey released last year, for instance, estimated that family premiums for health insurance rose 9 percent in 2011 for family coverage, significantly higher than the 3 percent increase in 2010.

Chad Moutray is chief economist, National Association of Manufacturers.

And good for them.

From The Washington Post, “Union leaders step up fight against excise tax“:

Federal employee union leaders threw the second of a one-two punch at a Senate plan to tax health insurance premiums on Tuesday, saying it would mean significant benefit cuts and higher health costs for workers.

The presidents of the American Federation of Government Employees, the American Postal Workers Union and the National Association of Letter Carriers joined with the Communications Workers of America, which is leading organized labor’s effort to defeat the proposed excise tax on premiums.

Here’s the news release, “Federal Unions Release Two Reports on the Detrimental Impact of the Senate Excise Tax on FEHBP Health Plans“:

WASHINGTON – Two reports released today by federal unions found that the so-called “Cadillac” tax on higher-cost health plans contained in the U.S. Senate health care bill would actually affect average plans like those under the Federal Employees Health Benefits Program (FEHBP). The reports suggest that the excise tax would result in significant health benefit cuts and shifting of costs to employees, as plans try to avoid the tax.

Many manufacturing companies would also be affected.