Above average pay awards for craftworkers

Pay awards for craftworkers over the past year are above the whole-economy measure, with the median pay award standing at 3.1% in the 12 months to December 2004, compared with 3% for all employees, according to research issued by IRS Employment Review published by LexisNexis Butterworths.

The term ëcraftworkerí can describe a number of positions, depending on the industry in question. It can include: plumbers, toolmakers, welders, sheet metal workers, electricians, fabricators and vehicle mechanics. Craftworkers fall between routine and professional workers.

The survey, conducted from 1 January to 31 December 2004, analyses craft and technical pay, hours and pay settlement information for 62 employee groups spanning 46 organisations and industry agreements. The research is in the new edition (818) of IRS Employment Review.

Key points
Median pay rates. Analysis of basic wage rates reveals that the median ñ or midpoint within the span of pay rates ñ for craft and technical workers stands at 330.83 per week. If the 25 multi-employer deals rates are excluded from the analysis, the median figures rises to 349.21 a week.

Pay rates vary widely. The IRS research reveals a wide range of pay rates for this group of workers, ranging from 195 to 510.33 per week. The lowest figure is 41% below the median wage figure of 330.83 a week. The interquartile range ñ within which half of all rates fall ñ runs from 244.79 to 390.58 per week.

37.5-hour working week. Working hours are tightly bunched between 37 and 39 hours per week, with the median for craft and technical workers standing at 37.5 hours.

Annual salaries dominate. Of the 62 pay rates recorded, 39% are in the form of an annual salary, while slightly fewer (37%) quote a weekly rate. Employees in the remaining 24% of employee groups are paid an hourly rate.

Pay settlements for craft employees are above with those in the rest of the economy. According to the latest IRS pay databank analysis, the median basic pay settlement in the 12 months to December 2004 stood at 3%, with a lower quartile of 2.6% and an upper quartile of 3.3%. Within our sample of pay rises for craft and technical employee groups, the median pay settlement over 2004 stands slightly above the whole economy measure, at 3.1%.

Long term deals most popular. Among the IRS survey sample, exactly half the organisations have negotiated long-term pay deals.

IRS Employment Review pay and benefits editor, Sheila Attwood said:

îIt is almost three years since IRS looked at pay and conditions for craft and technical workers. Since that time, we have seen a continued move away from ëcraftworkerí as a job title, and an increasing presence of multi-skilled workers in their place. Many employers have replaced the traditional craftworker with someone who has skills across a number of disciplines, to improve the level and mix of skills within the company.

ìAlthough overall this sector seems to be enjoying higher wage increases, it is important to remember that with skills shortages still an issue for many operators in the construction section, several of the multi-employer industry deals agreed rises well above inflation last year. Excluding the industry agreements in our sample, the median basic pay rise drops back to 3%, the same as the whole-economy figure.