Manufacturing pay settlements have edged up slightly to 2.8%, according to the latest information from EEF, the manufacturers’ organisation.
The average level of pay settlements for the 3 months to the end of April 2005 rose slightly to 2.8% from the reported figure for the previous 3 month period of 2.7%. However, some additional settlements for this latter period that have just been reported meant that this figure has now been revised upwards to 2.8%.
In addition, during the 3 month period to the end of April 2005, the number of companies reporting that they had frozen pay rose slightly to just over 6% of all settlements and the number reporting that they had deferred their pay settlement also rose to just under 4% of all settlements.
Commenting on these latest figures, David Yeandle, EEF Deputy Director of Employment Policy, said:-
"As anticipated, the level of manufacturing pay settlements has edged up very slightly this month. However, in general there continues to be no sign that wage inflationary pressures are building up in this sector of the economy."
Settlement level - per cent
Number of settlements
Zero (pay freeze)
19
0.01-2.00
24 ( 17 settlements at 2 per cent exactly)
2.01-3.00
170 ( 71 at 3 per cent exactly)
3.01-4.00
79 ( 16 at 4 per cent exactly)
4.00 or more
13
The May 2005 Pay Bulletin analyses 305 settlements in the 3 months to the end of April 2005 affecting 54,247 employees. Of these, the average settlement was 2.7% in February 2005, 2.9% in March 2005 and 2.8% in April 2005 although the figures for both February and March 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.