Pay negotiators in engineering and manufacturing companies are continuing to heed the Chancellor's recent call for responsible pay settlements according to the latest information from EEF, the manufacturers' organisation. These show that the average level of pay settlement for the 3 months to the end of March 2004 was 2.5%, the same level as the revised figure for the 3 months to the end of both January and February 2004.
During the 3 months to the end of March 2004, the number of pay freezes reported by engineering and manufacturing companies fell slightly to just over 9%, the lowest figure since March 2001. In contrast, over this period the number of engineering and manufacturing companies reporting that they had deferred their pay settlement rose slightly to just over 4%, the highest figure since September 2003.
Commenting on these latest figures, David Yeandle, EEF Deputy Director of Employment Policy, said:
"The average level of pay settlements being reported by manufacturing companies shows they are continuing to heed the Chancellor's call for a responsible approach to be adopted by pay negotiators, despite pressures that are being exerted by the tightening labour market."
Settlement level - per cent
Number of settlements
Zero (pay freeze)
47
0.01-2.00
60 (36 at 2 per cent exactly)
2.01 - 3.00
327 (159 at 3 per cent exactly)
3.01-4.00
71 (20 at 4 per cent exactly)
4.00 or more
12
The April 2004 Pay Bulletin analyses 517 settlements in the 3 months to the end of March 2004 affecting 59,670 employees. Of these, the average settlement was 2.5% in January 2004 and, based on relatively small samples, 2.6% and 2.7% in, respectively, February and March 2004. These figures may be liable for revision to take into account settlements for this period that have not yet been received.