Manufacturing pay settlements have remained stable at 2.8% for an unprecedented 6 month period, according to the latest information from EEF, the manufacturers’ organisation.
The average level of pay settlements for the 3 months to the end of May 2005 was 2.8%, the same level as the revised 3 monthly figures have been since the 3 months to the end of December 2004.
During the 3 month period to the end of May 2005, the number of companies reporting that they had frozen pay remained at just over 6% of all settlements and the number reporting that they had deferred their pay settlement fell very slightly to 3.5% of all settlements.
Commenting on these latest figures, David Yeandle, EEF Deputy Director of Employment Policy, said:-
"This six month period of stability in the low level of pay settlements reported by manufacturing companies is unprecedented over recent years. This continuing period of low settlement levels demonstrates that the MPC should not be concerned about any upside risks to inflation coming from manufacturing."
Settlement level - per cent
Number of settlements
Zero (pay freeze)
23
0.01-2.00
35 ( 22 settlements at 2 per cent exactly)
2.01-3.00
200 ( 99 at 3 per cent exactly)
3.01-4.00
92 ( 15 at 4 per cent exactly)
4.00 or more
17
The June 2005 Pay Bulletin analyses 367 settlements in the 3 months to the end of May 2005 affecting 61,222 employees. Of these, the average settlement was 3.0% in March 2005, 2.8% in April 2005 and 2.5% in May 2005 although the figures for both March and May 2005 were based on a relatively small sample of settlements. These figures may be liable for revision to take into account settlements for this period that have not yet been received.