EEF’s latest figures for the 3 months to the end of June 2008 show that the average level of pay settlements was 3.1%, the same level as the revised figure for the previous 3 months to the end of May.
However, the number of companies reporting that they had deferred their pay settlement rose to just over 7% of all settlements, the highest level reported since December 2002. In the same period, the number of companies reporting pay freezes fell slightly to 6.5% of all settlements. ..
Commenting on these latest figures, David Yeandle, EEF Head of Employment Policy, said:-
"The relatively low level of pay settlements, together with the rise in the number of companies deferring their agreements, confirms the tougher economic climate. In this more difficult business environment, manufacturers are using their experience of managing previous downturns to do all they can to contain costs."
|
Settlement level - per cent |
Number of settlements |
|
Zero (pay freeze) |
18 |
|
0.01-2.00 |
13 ( 8 at 2 per cent exactly) |
|
2.01-3.00 |
117 (78 at 3 per cent exactly) |
|
3.01-4.00 |
93 (21 at 4 per cent exactly) |
|
4.01 or more |
38 |
|
|
|
|
The July 2008 Pay Bulletin contains information on 279 settlements covering 53,038 employees. Of these, the average settlement was 3.1% in April 2008, 2.7% in May 2008 and 3.3% in June 2008 although the figures for both May and June are based on very small samples. These figures may be subject to revision to take into account settlements for this period that have not yet been received.
ENDS