According to EEF’s latest monthly survey, the average level of settlement for the 3 months to the end of April was 3.2%, slightly higher than the revised figure of 3.1% for the previous 3 month period to the end of March. The survey also shows that, since the turn of the year, including the key months for manufacturers of January and April, the average level of settlement for each three month period has been either 3.1% or 3.2%.
Furthermore, during the 3 months to the end of April, the number of companies reporting that they had frozen pay fell slightly to just under 6% of all settlements. The number of companies reporting that they had deferred their pay agreement also fell to 1.4%, the lowest level since September 2006.
Commenting on these latest figures, David Yeandle, EEF Deputy Director of Employment Policy, said:-
"We have now been through the two key months for pay negotiations in manufacturing. Whilst the overall settlement level has edged up gradually over the last twelve months, fears of an explosion in pay pressures appear to have been overblown."
|
Settlement level - per cent |
Number of settlements |
|
Zero (pay freeze) |
17 |
|
0.01-2.00 |
(21 at 2 per cent exactly) |
|
2.01-3.00 |
(140 at 3 per cent exactly) |
|
3.01-4.00 |
(72 at 4 per cent exactly) |
|
4.00 or more |
38 |
|
|
|
|
The May 2007 Pay Bulletin contains information on 288 settlements covering 58,651 employees. Of these, the average settlement was 3.1% in February and March 2007 and 3.2% in April 2007 although the figures for both February and March 2007 were based on relatively small samples of settlements. These figures may be subject to revision to take into account settlements for this period that have not yet been received.
ENDS