Wincanton has become the latest logistics operator to propose a pay freeze for its employees this year - with some drivers even seeing hourly rates slashed by 10% - as it attempts to cope with the recession.
In a letter to employees leaked to MT, the company states: "The downturn in the economy has affected everybody; this includes Wincanton and our customers. Given the tough economic situation, we have made the difficult decision to freeze pay for all our employees in 2009."
However, it says it will re-examine the situation in January in the hope of seeing an upturn to justify an interim pay review for drivers.
There is worse news for drivers working on the BP LPG contract: faced with volumes some 30% lower than predicted, Wincanton says it has "more drivers currently employed than we have work available for". Even if it redeploys some staff, "there is great strain being 
placed on the company's resources".
The company is taking the drastic step of cutting hourly rates by 10% for the next six months. The letter adds: "In order to protect jobs during this time, and to secure all employees' long-term employment, from the 1 July 2009, the company is intending to reduce all drivers' hourly rates of pay by 10%."
The letter says the decision is a "last resort" and stresses that it has "not been taken lightly".
The firm promises that after six months salaries will return to their previous level and, should economic conditions permit, drivers will be considered for a "one-off performance-related payment".
Wincanton tells MT that no decision has been made on the salary freeze or cut for BP LPG drivers and adds that it is currently in consultation with its staff.
The wage freeze is sure to infuriate drivers given the firm's continued profitability: last week it unveiled 
underlying pre-tax profit of £41.3m in the year to 31 March 2009.
Its rival DHL has already implemented a pay freeze for staff this year (MT 24 April).