Logistics pay rises average 2.6% despite recession

Despite widespread reports of pay freezes, most people working in the distribution sector took home pay rises of 2.6% or more in the past year, according to salary survey specialists CELRE, part of MT parent Reed Business Information.

The Distribution Staff Salary Survey 2009/10 is based on payroll data of 70,771 employees from 28 large firms. Participants included DHL, Royal Mail, Parcelforce, Amazon, Asda, Norbert Dentressangle, Wm Morrisons and Sainsbury's.

The survey says that while pay freezes have been common in much of the rest of the economy - accounting for more than one in three settlements over the past 12 months - the distribution sector has remained relatively buoyant.

However, the majority of firms MT spoke to said they'd had to introduce pay freezes or pay cuts this year.

Stuart Laight, MD of Aspray Transport, says: "This year we implemented a pay cut in order to avoid further redundancies or reduced hours. I'm very optimistic for next year though - the past three months have seen consistent improvement in volumes."

Matthew Kibble Transport says it experienced such a quiet period earlier in the year that it had to introduce a pay freeze. "I'll have to see how the first few months of 2010 pan out, but I hope to be able to introduce some sort of performance-related pay incentive next year," says MD Matthew Kibble.

TNT, DHL Supply Chain and Archbold Logistics also reported across the board pay freezes this year.

Author of the report, Mark Crail, says: "I am sure many distribution firms are really feeling the pain of the recession, but the data shows that pay in this sector has continued to rise over the past year.

"As the economic upturn begins, employers in the distribution sector will be anxious to try to keep a lid on pay to help control costs and ensure they remain competitive."

To purchase the full survey and sign up as a participant for next year, call CELRE on 020 8652 4653 quoting CM01.