Engineering pay settlements have fallen for the third month and are now lower than the rate of inflation, according to figures from the Engineering Employers’ Federation.
The average settlement level for the three months to the end of June fell to 3.5%, down from 3.6% for the previous three months to the end of May. The May figure was in turn 0.1% lower than the figure for the three months to the end of April.
An EEF spokesman said the figures proved companies, employees and unions were still showing a responsible attitude in difficult economic conditions.
‘It shows the great pressure we are still under from the strength of the pound,’ he added. ‘Industry is clearly not paying itself too much.’
Skills shortages in some sectors, including aerospace, have pushed up pay, but this has been offset by meagre pay rises elsewhere.