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Transport sector pay deals are 'much higher' than 2009

13th May 2010, Page 14
13th May 2010
Page 14
Page 14, 13th May 2010 — Transport sector pay deals are 'much higher' than 2009
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chris.tindattfarbi.co.uk PAY DEALS IN THE road transport sector are running at "much higher levels" this year compared with 2009, according to the findings of a new report analysing pay and conditions The Incomes Data Services' (IDS') latest Pay in Road Transport and Distribution survey says there has been a 1.5% increase in median pay levels so far during 2010, up 0.5% from 2009. The proportion of pay freezes is also coming down, now making up 44% of reviews compared with 48% last year.

The report says: "While pay freezes were still being applied in January 2010, these only made up half of pay reviews, down from some three-quarters of settlements in January 2009."

Pay freezes within the whole UK economy accounted for a quarter of deals monitored by IDS last January, showing that road transport and distribution was hit harder by the downturn.

The report also found 35% of transport firms reduced the size of their workforce during the past 12 months, with compulsory redundancies at 19 participating sites and voluntary redundancies at 14 sites "In particular, smaller companies were more likely to have implemented compulsory redundancies among their permanent workforce, with 38% making compulsory cuts compared with 18% of the sites of larger firms." the reports adds. Norfolkline Logistics froze pay for its employees last year, but introduced a 2% rise this April. MD Eddie Green says: "Our international work has picked up in the last month or so and we see signs of a pick up in the economy as well."

However, the John Lewis Partnership disagrees.

It carries out pay research for each of its distribution sites to ensure competitiveness and a spokeswoman says: "We have found very little need to increase our pay ranges for any of our distribution roles over the past couple of years, so from our perspective we have not seen a rise g in the rate of drivers' pay." F?

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