Based on a relatively small sample, the average level of pay settlements recorded in the three months to the end of December 2006 was 3.1%, the same as the figure for the previous three month period to the end of November 2006.
During the same period, the number of companies reporting that they had frozen pay rose slightly to 4.5% of all settlements. The number of companies reporting that they had deferred their pay settlement also rose slightly to 2.3% of all settlements.
Commenting on these latest figures, David Yeandle, EEF Deputy Director of Employment Policy, said:
"The final quarter of the year is always a relatively quiet period for pay settlements in manufacturing. However, the next month will be key in determining whether upward inflationary pressures have translated into stronger wage demands.”
Settlement level - per cent
Number of settlements
Zero (pay freeze)
6
0.01-2.00
4 (2 at 2 per cent exactly)
2.01-3.00
79 (49 at 3 per cent exactly)
3.01-4.00
31 (5 at 4 per cent exactly)
4.00 or more
12
The January 2007 Pay Bulletin contains information on 132 settlements covering 26,130 employees. Of these, the average settlement level was 3.2% in October 2006, 3.0% in November 2006 and 2.4% in December 2006 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