Wage inflationary pressures in manufacturing are still benign despite a slight increase in pay settlements, according to the latest information from EEF, the manufacturers' organisation.
The average level of settlements recorded for the three months to the end of July 2006 was 2.8% This was slightly higher than the revised figure for the previous three month period to the end of June of 2.7% and was the highest figure reported by manufacturing companies during 2006.
During the three months to the end of July, the number of companies reporting that they had frozen pay fell to just over 4% of all settlements, the lowest figure reported since October 2004. However, the number of companies reporting that they had deferred their pay settlement remained at just under 2.5% of all settlements.
Commenting on these latest figures, David Yeandle, EEF Deputy Director of Employment Policy, said:-
"Whilst these latest pay figures are marginally higher than those reported in the first half of this year, they continue to remain broadly in line with the average level seen so far in 2006. "
Settlement level - per cent
Number of settlements
Zero (pay freeze)
7
0.01-2.00
15 ( 15 at 2 per cent exactly)
2.01-3.00
114 ( 47 at 3 per cent exactly)
3.01-4.00
27 ( 6 at 4 per cent exactly)
4.00 or more
9
The August Pay Bulletin contains information on 172 settlements covering 26,095 employees. Of these, the average settlement level was 2.7% in May 2006, 2.8% in June 2006 and 2.9% in July 2006 although all of these monthly figures were based on relatively small samples of settlements. These figures may be subject to revision to take into account settlements for this period that have not yet been received.