For the three months to the end of September 2003, the number of pay freezes rose sharply from just under 12% to nearly 18% of all reported settlements, the highest level since June 2002.
During this 3 month period, the level of pay settlements reported in engineering and manufacturing fell slightly to 2.4% from the previous 3 month figure of 2.5% although this latest figure is based on a relatively small number of settlements.
The number of engineering and manufacturing companies reporting that they have deferred their pay settlement remained relatively low at just under 5% of all settlements, the same figure as the revised figure for the previous 3 month period.
Commenting on these latest figures, EEF Deputy Director of Employment Policy, David Yeandle, said:
"Whilst this is a relatively quiet time of the year for pay settlements in engineering and manufacturing, these latest figures and, in particular, the high level of pay freezes demonstrates the difficult economic environment that many companies in this sector are still facing."
Settlement level - per cent
Number of settlements
Zero (pay freeze)
22
0.01-2.00
17 ( 14 settlements at 2 per cent exactly)
2.01-3.00
67 ( 35 settlements at 3 per cent exactly)
3.01-4.00
13 ( 3 settlements at 4 per cent exactly)
4.01 or more
5