Manufacturing pay settlements have continued to fall to a historically low level in response to the economic squeeze, according to the latest figures from EEF, the manufacturers' organisation
EEF’s pay data for the 3 months to the end of March shows that the average level of pay settlements has fallen to 1.6%, down from 1.7% for the previous 3 months to the end of February. This is the lowest figure reported since EEF’s survey began in 1987.
The number of companies freezing pay continued to rise to nearly 45% of all reported settlements in the same 3 month period, again the highest level since the survey began. However, the number of companies reporting that they had deferred their pay settlement in this 3 month period fell very slightly to just under 20% of all reported settlements
Commenting on the latest figures, David Yeandle, EEF Head of Employment Policy, said:-
“This continued squeeze on pay demonstrates very starkly not just the severe impact that the economic downturn is having on manufacturers, but the efforts companies, employees and their representatives are making to avoid redundancies.”
The April 2009 Pay Bulletin contains information on 407 settlements covering 68,457 employees. Of these, the average settlement was 1.7% in January 2009, 1.9% in February 2009 and 0.7% in March 2007 although the figures for both February and March 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.