Pay and Conditions in Engineering 2007/08

Contents

Executive summary

Introduction

Review and prospects

• Pay settlements in engineering
• Long-term pay deals
• Inflation forecasts
• Table: Pay rises due under long-term deals
• Table: Settlements in engineering August 2006 to July 2007

Manual workers’ pay and progression

• Pay for semi-skilled manual workers, craft grades and team leaders
• Directory of pay rates for manual workers

Full and comprehensive directory of pay rates for manual workers for each of the jobs in the survey.

White-collar pay and progression

• Pay for technical, supervisory and managerial staff
• Directory of salaries for white-collar engineering staff

Directory of salaries for white-collar engineering grades from staff technicians to team leaders.

Recruitment, training and skills

• UK efforts to overcome skills shortage
• Skills
• Apprentice pay

Working Time

• Hours and holidays
• Shiftworking and premium payments in engineering
• Overtime premiums

Variable pay

• Bonus schemes

Examples of bonus schemes at a number of leading firms, including Sellafield and MBW Hams Hall.

Family-friendly policies

• Maternity and paternity provisions at key firms in light of April 2006 legislative changes

Analysis of the survey findings on changes to maternity and paternity provisions over the last year and detailed examples of updated provisions at leading engineering firms.

Age Discrimination

• Key changes to employment policies

Absence rates and policies

• Levels of absenteeism in engineering
• Policies to tackle absenteeism

Pensions

• Survey findings

The trend away from final salary schemes continues and the distinction between schemes for long serving employees and new recruits remains clear.

• Pension issues

Key regulatory changes over the next 12 months.

Case Studies

• Engineering Construction Industry

The National Agreement for the Engineering Construction Industry, known as the NAECI ‘blue book’, has undergone a major restructure which aims to increase workforce productivity and flexibility, provide solutions to short-term labour resourcing issues and aid recruitment and retention in light of changes in the structure of the industry and in employment trends.

• Cummins Engines, Darlington

A job evaluation exercise was undertaken in 2005 with a view to revising an outdated pay structure and attracting new employees. The focus of the exercise has been to provide an equal pay compliant, single status pay structure and a process for employees to have current and future job content measured and paid fairly. A ‘market rate’ principle has been applied when realigning pay at the plant.

Directory of pay structures and latest collective agreements at 100 leading engineering companies.