For the three months to the end of January 2005, the average level of pay settlements reported by manufacturing companies was 2.7%, down from the revised figure of 2.9% for the three months to the end of December. The figures are significant as they include just over 250 settlements from January, the year’s key negotiating period when the average settlement level was 2.8%.
In addition, during the three months to the end of January, the number of companies reporting that they had frozen pay fell slightly to 9% from last month’s revised figure of just under 11%. In contrast, the number of companies deferring pay settlements rose slightly to just over 5% from last month’s revised figure of just under 5%.
EEF Deputy Director of Employment Policy, David Yeandle, said:
“The pattern of settlements has fallen since the peak of last summer. These figures in particular indicate that companies are anticipating a more difficult year and are adapting a cautious approach to managing costs within their control.”
|
Settlement level - per cent |
Number of settlements |
|
Zero (pay freeze) |
30 |
|
0.01-2.00 |
22 ( 18 settlements at 2 per cent exactly) |
|
2.01-3.00 |
197 ( 109 at 3 per cent exactly) |
|
3.01-4.00 |
71 ( 10 at 4 per cent exactly) |
|
4.00 or more |
13 |
The February 2005 Pay Bulletin analyses 333 settlements affecting 42,559 employees in the 3 months to the end of January 2005. Of these, the average settlement in both November and December 2004 was 2.6% and 2.8% in January 2005. These figures may be liable for revision to take into account settlements for this period that have not yet been received.