Engineering pay settlements slump

Engineering
pay settlements have fallen to their lowest level since 1984.

The
Engineering Employers’ Federation (EEF) said the latest figures show that the
level of pay settlements reported by engineering and manufacturing companies
has fallen to 2 per cent.

This
is the lowest figure reported by EEF member companies since settlement levels
were first reported in this format in 1984.

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 3-month period to the end of
February.


In April, the average for the 168 reported settlements was only 1.8 per cent.
● Over a third of companies either froze or deferred pay.
● Pay freezes accounted for just over 25 per cent of all reported settlements.
● 7 per cent of companies reported that they had deferred pay
settlements.

EEF
deputy director of employment policy, David Yeandle said:

"The
fact that engineering pay settlements have fallen to their lowest level since
the EEF started to keep records in this format demonstrates very graphically
that there are currently no wage inflationary pressures coming from this sector
of the economy. It confirms our view that it is therefore far too early to be
considering increasing interest rates."

By Quentin Reade

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