level of pay settlements reported by engineering and manufacturing companies
remains at an historical low, according to new figures from the Engineering
the three months to the end of May 2002, the average settlement level was 2.1
per cent – the same as that for the previous three months.
average level of reported settlements in April and May was even lower at only 2
per cent. The level of pay freezes has fallen slightly but still accounts for
nearly one in four of all reported settlements.
Deputy Director of Employment Policy, David Yeandle said: “The continuing
historically low level of engineering pay settlements confirms that there is no
wage inflation pressure in this sector.
It therefore reinforces our view that it would be premature for the
Monetary Policy Committee to consider raising interest rates."