Manufacturing pay settlements have fallen for the first time since December 2004 and are now at their lowest level since July 2004, according to the latest information from EEF, the manufacturers' organisation.
Following an unprecedented six month period of stability at 2.8%, the average level of pay settlements for the 3 months to the end of June 2005 fell slightly to 2.7% and was the lowest level reported since July 2004.
During the 3 months to the end of June 2005, the number of manufacturing companies reporting that they had frozen pay rose slightly to just under 7% of all reported settlements. In contrast, the number of companies reporting that they had deferred their pay settlement fell slightly to just over 3% of all reported settlements and was the lowest level reported since December 2003.
Settlement level - per cent
Number of settlements
Zero (pay freeze)
26
0.01-2.00
46 ( 30 settlements at 2 per cent exactly)
2.01-3.00
208 ( 103 at 3 per cent exactly)
3.01-4.00
89 ( 14 at 4 per cent exactly)
4.00 or more
19
The July 2005 Pay Bulletin analyses 388 settlements in the 3 months to the end of June 2005 affecting 68,479 employees. Of these, the average settlement level was 2.8% in April 2005, 2.5% in May 2005 and 2.8% in June 2005 although the figures for both May and June 2005 were based on relatively small samples of settlements. These figures may be liable for revision to take into account settlements for this period that have not yet been received.