Manufacturing pay settlements have remained stable at 2.6% throughout the first three months of this year, according to the latest information from EEF, the manufacturers' organisation.
The average level of settlements for the three months to the end of March was 2.6%, the same as the figures for the three month periods to the end of both January and February respectively.
In addition, the number of companies reporting that they had frozen pay during this latest three month period fell slightly to 1 in 12 although, in contrast, the number reporting that they had deferred their pay settlement rose slightly to just under 3% of all settlements.
Commenting on these latest figures, David Yeandle, EEF Deputy Director of Employment Policy, said:-
"The fact that manufacturing pay settlements have been stable at an historically low level of 2.6% during the first quarter of this year reflects the tough economic conditions that companies are facing and the downward pressures on margins with which they are having to cope."
Settlement level - per cent
Number of settlements
Zero (pay freeze)
45
0.01-2.00
51 ( 42 settlements at 2 per cent exactly)
2.01-3.00
327 ( 142 at 3 per cent exactly)
3.01-4.00
85 ( 19 at 4 per cent exactly)
4.00 or more
19
< 0
2
The April 2006 Pay Bulletin covers 529 settlements covering 69,586 employees. Of these, the average settlement level was 2.6% in January 2006 and 2.7% in both February and March 2006 although these latter 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.