According to EEF’s latest monthly survey, the average level of settlement reached in the 3 months to the end of January 2007 was 2.9%, down from the revised figure for the previous 3 month period to the end of December of 3.2%.
These figures are significant as they include over 250 settlements for the month of January alone, the main bargaining period for manufacturing.
EEF’s view that fears about increased pay pressure have been overblown was also backed by the fact that the number of companies reporting that they had frozen pay rose sharply in the same period to around 1 in 12 of all settlements, the highest figure since August 2005.
The number of companies reporting that they had deferred their pay settlement also rose slightly to just under 4% of all settlements, the highest figure since December 2005.
Commenting on these latest figures, David Yeandle, EEF Deputy Director of Employment Policy, said:-
"This significant fall in the key month for manufacturing pay settlements demonstrates that the MPC should not be concerned about wage inflationary pressures building up in manufacturing."
Settlement level - per cent
Number of settlements
Zero (pay freeze)
26
0.01-2.00
20 (19 at 2 per cent exactly)
2.01-3.00
167 (105 at 3 per cent exactly)
3.01-4.00
83 (16 at 4 per cent exactly)
4.00 or more
16
The February 2007 Pay Bulletin contains information on 312 settlements covering 41,369 employees. Of these, the average settlement was 3.0% in November 2006, 2.8% in December 2006 and 2.9% in January 2007 although the figures for both November and December 2006 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.
ENDS