Engineering pay settlements have fallen sharply, to the lowest level for nearly 12 months, according to the latest figures from the EEF (Engineering Employers' Federation). This reduction is believed to reflect the deteriorating trading conditions that much of manufacturing is now facing.
The average settlement for the 3 months to May 2001 was 2.6%, compared to the revised figure for the previous 3 months of 2.9%. In addition, the average figure for the 50 settlements that have so far been reported for May 2001 was only 2.0%, the lowest monthly figure for more than 2 years.
During the last 3 months, the number of pay freezes has increased significantly to nearly 1 in 6 of all reported settlements. In May 2001 alone, more than a third of the reported settlements were pay freezes.
EEF Deputy Director of Employment Policy, David Yeandle, said: "This sharp fall in pay settlements is a clear indicator of how rapidly manufacturing conditions are now deteriorating.
