Manufacturing pay settlements stable

Manufacturing News, Source : TheManufacturer.com
Published : 30 Mar 2005 11:05

Manufacturing pay settlements have remained stable at 2.7 per cent, according to the new figures out today.

According to EEF, the manufacturers’ organisation, for the three months to the end of February 2005, the average level of pay settlements reported by manufacturing companies was 2.7 per cent, the same as the figure for the previous three 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 per cent.

During this period, the number of manufacturers reporting that they had frozen pay fell slightly to six per cent from last month’s revised figure of seven per cent. However, the number of manufacturing companies reporting that they had deferred their pay settlement remained constant at around 4.5 per cent.

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

The March 2005 Pay Bulletin analyses 434 settlements affecting 56,875 employees in the three months to the end of February 2005.

A pay freeze was the result of 26 of them, 55 settlements were between 0.01 and two per cent, 238 between 2.01 and three per cent, 98 between 3.01 and four per cent, and 17 were above four per cent.

The average settlement was 2.4 per cent in December 2004, 2.7 per cent in January 2005 and 2.6 per cent in February 2005.

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