News

Redundancies among the industry's senior management executives have almost doubled, but average earnings have increased fourfold, according to an annual survey. The Chartered Management Institute (CMI) says its latest figures appear to reflect the confused nature of the current economic climate. The 2008 National Management Salary Survey shows that the redundancy rate in transport and logistics is 2.1%, up from 1.2% last year.

This  compares with a UK average of 3% across senior management teams, up from 1.4% 12 months ago. The survey shows that redundancies are highest among executives in East Anglia (12.1%) manufacturing is hardest hit, with a reported redundancy rate of 7%. However, the survey also shows that the average movement in earnings within transport and logistics has shot up to 10%, from 2.6% in 2007.

Junior executives appear to be the biggest beneficiaries in the sector, with their basic pay increasing by 5%, compared with 4.4% for managers. Given East Anglia's high redundancy rate it is somewhat surprising to see that largest pay rise (7.9%) was awarded to junior staff in this part of the country. The smallest (2.6%) was awarded to directors in Scotland.

The CMI says that the findings reveal an average basic salary of £18,419 for junior executives in transport and logistics. The resignation rate among executives in the sector was 3.8%, up from 2.4% in 2007. Reasons given were competition  from other companies and headhunting. However, almost half (48%) say they are unable to provide adequate career opportunities.

Salary survey publisher CELRE says remuneration packages must evolve if companies are to meet the needs of the economy and workforce. Mark Crail, managing editor, adds: "This year's study reflects the uncertain economic climate as it shows employers reacting to tougher times, but trying to find ways to retain key personnel, too."