Pay settlements in the engineering and manufacturing sector have remained static at 2.5%, according to the latest figures from the UK-based EEF (Engineering Employers Federation).
The average settlement level for the three months to the end of May 2003 was 2.5%, the same as the average figure for the previous two 3-month periods. This includes figures for April 2003, which is the second most important month in the year for pay settlements in engineering and manufacturing.
Over this latest three month period, the number of pay freezes increased slightly to almost 1 in 6 of all reported settlements and was the highest figure that has been reported for nearly 12 months. Those companies reporting that they had deferred settlements also rose slightly to 6.0% from the revised figure for the previous 3 months of 5.4%.
EEF Deputy Director of Employment Policy, David Yeandle, said: ‘These latest figures continue to demonstrate that there is no wage inflationary pressure coming from this sector of the economy. The increasing number of companies that are reporting pay freezes also shows that trading conditions are still difficult for many EEF members.’
The June 2003 Pay Bulletin analyses 298 settlements affecting 55,297 employees. Of these, the average level of settlements was 2.7% in March, 2.3% in April and 2.5% in May with the figures for both March and May based on relatively small samples. The EEF says that the figures may be liable for revision to take into account settlements for this period that have not yet been received.