EEF’s latest figures for the 3 months to the end of May 2008 show that the average level of pay settlements fell to 3%. This is slightly lower than the previous 3 month figure of 3.1% and is the lowest level reported since October 2006.
In the same period, the number of companies reporting pay freezes rose quite sharply to just over 7% of all settlements, the highest figure reported since March 2006. The number of companies reporting that they had deferred their settlement also rose to just over 6% of all settlements, the highest level reported since December 2002.
Commenting on these latest figures, David Yeandle, EEF Deputy Director of Employment Policy, said:-
“This gradual decline in pay settlements coupled with the quite sharp increase in pay freezes and deferments clearly indicates the tougher economic climate now facing manufacturers. Despite the increased cost of living, in such difficult conditions it would appear that this is not being translated into pay pressures in this sector.”
|
Settlement level - per cent |
Number of settlements |
|
Zero (pay freeze) |
19 |
|
0.01-2.00 |
10 ( 7 at 2 per cent exactly) |
|
2.01-3.00 |
116 (75 at 3 per cent exactly) |
|
3.01-4.00 |
84 (17 at 4 per cent exactly) |
|
4.01 or more |
31 |
|
|
|
|
|
|
The June 2008 Pay Bulletin contains information on 260 settlements covering 47,384 employees. Of these, the average settlement was 3.3% in March 2008, 3.1% in June 2008 and 2.7% in May 2008 although the figures for both March and May 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.