EEF’s pay data for the 3 months to the end of August shows that the average level of pay settlements has fallen very sharply to 0.3%, down from the revised figure of 0.8% for the previous 3 months to the end of July. This is the lowest level of pay settlements reported by manufacturers since EEF’s survey began in 1987.
In the same period, the number of manufacturers reporting that they had frozen pay rose to just over three-quarters of all reported settlements, the highest figure reported since EEF’s survey began. However, the number of manufacturers reporting that they had deferred their pay settlement fell slightly to just over 13% in this period.
Commenting on these latest figures, David Yeandle, EEF Head of Employment Policy, said:-
“This further sharp fall in manufacturing pay settlements is mainly due to the exceptionally high proportion of companies that are now freezing pay. Given the tough economic conditions there are no signs that this pattern of very low average pay settlements and significant numbers of manufacturers freezing pay will change in the near future.”
Settlement level - per cent
Number of settlements
Pay reduction
3
Zero (pay freeze_
123
0.01-2.00
22 (4 at 1% exactly and 13 at 2% exactly)
2.01-3.00
8 (3 at 3% exactly)
3.01-4.00
2 (1 at 4% exactly)
4.01 or more
0
The August 2009 Pay Bulletin contains information on 158 settlements covering 25,766 employees. Of these, the average settlement was 0.3% in May 2009, 0.2% in June 2009 and 0.3% in July 2009 although the figures for both May and June 2009 are based on very small samples. These figures may be subject to revision to take into account settlements for this period that have not yet been received.
ENDS