Distribution industry salaries for 2009 revealed

Most people working in the distribution sector took home pay rises of 2.6% or more in the past year despite the deepening recession, according to new pay data from salary survey specialists CELRE.

The finding comes from the Distribution Staff Salary Survey 2009/10 conducted by CELRE and published exclusively on XpertHR Job Pricing.

The increases take basic hourly rates for qualified drivers to a headline rate of £8.51 an hour, with higher rates for weekends and bank holidays. Regional distribution centre managers, meanwhile, can typically expect to take home an annual salary plus bonus of around £75,000.

The survey is based on pay data supplied by some of the UK's largest retailers and third-party logistics companies on drivers, warehouse operatives, clerical staff and managers.

It shows 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.

The median, or middle-of-the-range, pay settlement during the year stood at 2.6% - down slightly on the 3% recorded in the previous year.

The lowest recorded pay settlement in the survey was set at 0.9%, but fewer than one in four employers settled at less than 2%, while at the top end of the spectrum one in four awarded pay rises of 3% of more.

Commenting on the findings, XpertHR head of benchmarking and data services Mark Crail said: "I am sure that many distribution companies 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.

"All the evidence is that this has been a very patchy recession, with some industries much harder hit than others. But 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."

The survey reveals wide variations in the salaries paid to senior managers depending on where they work.
While a regional distribution centre manager in London may typically earn £78,866 in basic salary plus bonus, their counterpart in the North West of England could expect just £66,462.

Management salaries also depend on the size of the company, with those in bigger firms usually earning more, the number of staff managed and the site revenues.
Rates for drivers and warehouse staff also vary depending on location.

The report is based on payroll data on 70,771 employees provided by 28 large employers. Among the participants were DHL, Royal Mail, Parcelforce, Fedex Express Europe and Norbert Dentressangle Transport Services. Major retailers taking part included Amazon, Asda, J Sainsbury and Wm Morrisons.