Manufacturing pay settlements have risen slightly according to the latest information from EEF, the manufacturers' organisation.
The average level of settlements recorded for the three months to the end of June 2006 was 2.8%, slightly higher than the figure for the previous three month period to the end of May of 2.7%. This was the highest figure reported since December 2005.
During the three months to the end of June, the number of companies reporting that they had frozen pay was just over 6%, the same as the revised figure for the previous 3 month period to the end of May, and the lowest level reported since November 2005. The number of companies reporting that they had deferred their pay settlement fell slightly to 2.5% of all settlements from just under 3%.
Commenting on these latest figures, David Yeandle, EEF Deputy Director of Employment Policy, said:-
"Although these latest pay settlement figures are the highest reported during 2006, they are no higher than the figures reported during most of last year. They continue to confirm our view that there are no wage inflationary pressures building up in the manufacturing sector that should cause concern to the MPC."
|
Settlement level - per cent |
Number of settlements |
|
Zero (pay freeze) |
25 |
|
0.01-2.00 |
39 (30 at 2 per cent exactly) |
|
2.01-3.00 |
237 (95 at 3 per cent exactly) |
|
3.01-4.00 |
73 (11 at 4 per cent exactly) |
|
4.00 or more |
19 |
The July Pay Bulletin covers 393 settlements covering 71,373 employees. Of these, the average settlement level was 2.7% in both April and May 2006 and 3.0% in June 2006 although the figures for May and June 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.