For the 3 months to the end of February 2005, the average level of pay settlements reported by manufacturing companies was 2.7%, the same as the figure for the previous 3 month period to the end of January. These latest figures include more than 350 settlements for January alone, the key settlement month in the year for manufacturers, which also averaged 2.7%.
During this period, the number of manufacturers reporting that they had frozen pay fell slightly to 6% from last month’s revised figure of 7%. However, the number of manufacturing companies reporting that they had deferred their pay settlement remained constant at around 4.5%.
Commenting on these latest figures, EEF Deputy Director of Employment Policy, David Yeandle, said:
“The continuing low level of settlements during a key period of the year for pay negotiations in manufacturing demonstrates that there are no wage inflationary pressures coming from this sector.”
Settlement level - per cent
Number of settlements
Zero (pay freeze)
26
0.01-2.00
55 ( 27 settlements at 2 per cent exactly)
2.01-3.00
238 ( 122 at 3 per cent exactly)
3.01-4.00
98 ( 14 at 4 per cent exactly)
4.00 or more
17
The March 2005 Pay Bulletin analyses 434 settlements affecting 56,875 employees in the 3 months to the end of February 2005. Of these, the average settlement was 2.4% in December 2004, 2.7% in January 2005 and 2.6% in February 2005 although the figures for both December and February were based on a relatively small sample of settlements. These figures may be liable for revision to take into account settlements for this period that have not yet been received.