P SALARY SURVEY 1 6 . Distribution sector
Page 12
If you've noticed an error in this article please click here to report it so we can fix it.
pay rises take a dip
justin.stantonfarbi.co,uk PAY SETTLEMENTS across the distribution industry fell back for the third year in a row during 2010 as the sector continued to struggle with the effects of a weak economy, according to data published this week.
Figures from the XpertHR Distribution Staff Salary Survey show that the average pay rise for workers in the sector during 2010 was 2% -down from 2.6% in 2009 and 3.3% in 2008. when many pay settlements were finalised before the UK economy went into recession.
But the survey also reveals a spread of pay settlements this year. with some groups seeing pay rises of just 0.5%, while others enjoyed increases of up to 4.4%.
The survey is based on the anonymised payroll data of 85,468 staff employed by 50 companies, including some of the UK's largest logistics companies, supermarkets and other retailers.
Participants include retailers such as Amazon, Ikea, John Lewis, Sainsbury's. Tesco and WM Morn sun, while logistics companies involved include DHL, Norbert Dentressangle, Parcelforce. Samworth Brothers and Wincanton. The bulk of the report consists of data tables, showing salary levels for employees of different levels of seniority, in different roles and in different locations. It covers drivers, warehouse workers, clerical and managerial jobs.
The survey sample as a whole reveals that the average basic salary of a regional distribution centre (RDC) manager now stands at 172,625. But there is a wide spread of salaries at this level, with one-infour paid less than £60,900 a year, while a further one-in-four are paid more than £82,438.
Nearly eight out of 10 RUC managers also receive bonuses, with the average figure for basic salary plus bonus hitting £85,643.
Further down the career ladder, the survey details hourly rates, ranging from £747 for the lowest grade warehouse assistants to £12.73 for team leaders Typically, however, such roles attract higher pay for Saturday and Sunday working and bank holidays, as well as shift premiums.
In addition to very low pay increases over the past year, workers in the industry have had to contend with high levels of inflation. Between June 2009 and July 2010, the Retail Price Index inflation measure rose from -1.6% to 4.8% (meaning that at the start of the period prices were falling) effectively outstripping any pay rise enjoyed by most employees.
Forecasts for 2011 and beyond suggest that the gap between rising pay and rising prices will narrow as inflation comes under control and confidence returns to the jobs market. But many people will continue to get worse off in real terms, as inflation runs ahead of pay rises, for some time to come. Commenting on the findings of the survey, XpertHR head of salary surveys Mark Crail says the distribution sector appears to be finding it more difficult than many other parts of the private sector to fund pay rises this year. "Typically in other industries, we saw widespread pay freezes and very low pay awards in 2009, but some easing during 2010 as the economy pulled out of recession," he says "But for workers in the distribution sector, times have been getting harder, not easier."
• For more on the XpertHR Distribution Staff Salary Survey, go to www.xperthr.co.ukisalarysurveys