EEF's latest figures for the three months to the end of April 2008 show that the average level of pay settlements fell slightly to 3.1%, the lowest figure reported since March 2007.
In the same period, the number of pay freezes reported rose to 6.4 % of all settlements, the highest figure reported since March 2007. The number of companies reporting that they had deferred their pay settlement also rose sharply to nearly 6% of all settlements and was the highest figure reported for more than 2 years.
Commenting on the figures, EEF Deputy Director of Employment Policy, David Yeandle, said:
"Despite increases in the cost of living, the Bank of England can take some comfort that these are not feeding through into wage inflationary pressures in manufacturing."
|
Settlement level – per cent |
Number of settlements |
|
Zero (pay freeze) |
13 |
|
0.01-2.00 |
6 (1 at 2 per cent exactly) |
|
2.01-3.00 |
89 (52 at 3 per cent exactly) |
|
3.01-4.00 |
71 (11 at 4 per cent exactly) |
|
4.01 or more |
3 |
|
|
|
|
The May 2008 Pay Bulletin contains information on 202 settlements covering 39,292 employees. Of these, the average settlement was 3.1% in February 2008, 3.2% in March 2008 and 3.0% in April 2008 although the figures for both February and March 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