Manufacturing pay settlements remain at a historically low level of 2.6%, according to the latest information from EEF, the manufacturers’ organisation.
The average level of settlements for the 3 months to the end of February was 2.6%, the same as the revised figure for the previous 3 month period to the end of January and, the lowest figure reported since March 2004.
This reflects the tough economic environment in which manufacturers are now continuing to operate and the pressure on margins. In addition, as last month, nearly 1 in 10 companies reported that they had frozen pay during this period, the highest figure since August 2005.
However, the number of manufacturers reporting they had deferred their pay settlement fell to under 3%, the lowest figure reported since July 2005.
Settlement level - per cent
Number of settlements
Zero (pay freeze)
41
0.01-2.00
42 ( 112 settlements at 2 per cent exactly)
2.01-3.00
254 ( 39 at 3 per cent exactly)
3.01-4.00
70 ( 16 at 4 per cent exactly)
4.00 or more
12
The March 2006 Pay Bulletin analyses 419 settlements covering 52,380 employees. Of these, the average settlement level was 2.7% in both December 2005 and February 2006 and 2.6% in January 2006 although the figures for both December 2005 and February 2006 were based on very 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.