DHL Exel Supply Chain has confirmed to Roadtransport.com that there will be no pay rises for employees across its whole business this year – and industry experts believe other operators will follow suit.
In a letter to its staff, DHL refers to a posting by CEO Frank Appel on the company's intranet, in which he states: "With no clear signs of economic recovery in sight, our group will continue to take proactive measures to counter the downturn, focusing on cash management to help us through the tough times ahead. Within this context, I must advise there will be no annual salary increase in 2009."
Elsewhere, MD of Saints Transport, Martin Carroll, tells Roadtransport.com: "I would think we won't be giving any wage increases this year, but if business picks up dramatically it would be a case of considering wages as we go along."
Meanwhile, Road Haulage Association (RHA) head of communications Kate Gibbs says companies are trying to save whatever they can on costs, so "pay freezes are applicable across all industries at the moment". She adds: "If it's a case of losing your job or not having a pay rise, I suspect many will accept [the latter]."
According to the United Road Transport Union (URTU), there have been a number of companies claiming they do not have the means and money available to offer pay rises during the current tough trading conditions. URTU's northern regional officer Mike Billingham says: "Even if we do fight for rises, we know it's not going to be a big one. Redundancies have begun to slow down recently, so while we are opposed to pay cuts, we are not surprised at pay freezes."
He says the union will prioritise other package deals, such as pensions and healthcare, over pay rises during the recession.
A DHL spokeswoman comments: "The decision not to increase salaries this year is one which has been embraced by the entire board and senior management team at DP DHL, and is considered standard best practice under the circumstances; however, any pre-agreed union or customer arrangements will be honoured."