Engineering pay settlements have fallen to their lowest level since 1984.
Engineering Employers’ Federation (EEF) figures show that the level of pay
settlements reported by engineering and manufacturing companies has fallen to 2
per cent.
For the three months to the end of May 2002, the average settlement level
was 2 per cent, compared to 2.2 per cent for the previous three-month period to
the end of April. Pay freezes accounted for just over one in four of all
reported settlements and 7 per cent of companies reported they had deferred
their pay settlement.
David Yeandle, EEF deputy director of employment policy, commented:
"The fact engineering pay settlements have fallen demonstrates there are
currently no wage inflationary pressures coming from this sector of the
economy. It confirms that it is far too early for the Monetary Policy Committee
to be considering increasing interest rates."
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