News

More managers in the haulage industry are being made redundant, but those who keep their jobs are likely to earn more, according to research from the Chartered Management Institute. The annual managerial redundancy rate in transport and logistics was 2.1% in the year to 31 January, up from 1.2% the year before.

Redundancies were highest among executives in East Anglia (12.1%) and lowest in Ireland (0.8%). Pay deals were best for junior  executives, who had basic pay increases of 5%, whereas managers got 4.4%. However, once bonuses and benefits are factored in the average increase across the transport and logistics sector was 10%.

Despite the increases junior executives in transport and logistics still have low basic pay compared to their colleagues in other industries. The £18,419 average in transport compares with £27,168 in pharmaceuticals. Haulage managers are increasingly willing to resign, says the research, with 3.8% resigning last year, against 2.4% the year before.

Employers blame competition from other companies, headhunting and frustrations with the working environment as some of the reasons for the resignations. Many employers also recognised that they don't provide adequate career or development opportunities. Jo Causon, director of marketing and corporate affairs at at the Institute, says: "Increased levels of pay are clearly not enough to retain employee loyalty despite the uncertain economic  climate. Given the skills crisis, it is worrying to see so many executives voting with their feet."