The average level of pay settlements that was reported by engineering and manufacturing companies for the 3 months to the end of July 2004 was 2.5%, down from the figure for the two previous 3 month periods to the end of May and June respectively of 2.7%.
During the 3 months to the end of July 2004, the number of pay freezes reported by engineering and manufacturing companies rose significantly to 11.5% of all reported settlements and was the highest reported figure since the beginning of the year. In contrast, the number of companies reporting that they had deferred their pay settlement fell to nearly 2.5% and was the lowest figure that had been reported since June 2001.
Commenting on these latest figures, David Yeandle, EEF Deputy Director of Employment Policy, said:
"This lower level of pay settlements, combined with the highest level of pay freezes reported in 2004, confirms our view that there are no wage inflationary pressures coming from this sector of the economy. They also reflect the fact that the economic environment remains tough for many manufacturing companies."
|
Settlement level - per cent |
Number of settlements |
|
Zero (pay freeze) |
19 |
|
0.01-2.00 |
21 ( 8 settlements at 2 per cent exactly) |
|
2.01-3.00 |
91 ( 42 at 3 per cent exactly) |
|
3.01-4.00 |
26 ( 2 at 4 per cent exactly) |
|
4.00 or more |
8 |
The August 2004 Pay Bulletin analyses 165 settlements in the 3 months to the end of July 2004 affecting 23,324 employees. Of these, the average settlement was 2.4% in April 2004, 2.6% in May 2004 and 2.5% in June 2004. These figures may be liable for revision to take into account settlements for this period that have not yet been received.