25 November 2008

For immediate release

Franchised dealers freeze pay as recession bites

Franchised car dealers across the UK have responded to the downturn in the economy by freezing pay scales, according to the rts Auto Retail Industry Salary Survey 2009, published today - 25 November.

The survey reports that 25% of franchised dealers responding to the survey did not increase basic pay for their staff between 2007 and 2008. More than that, it seems that dealers have been taking advantage of the industry's high staff turnover rates to actually reduce pay rates for new recruits.

Comparing the results of the 2008 and 2009 Salary Surveys on a weighted basis across all jobs, the average increase in basic pay worked out at just 1.4% and total pay - including overtime, bonuses and commission - was up 1.6% year-on-year. To put these increases into context, the government's 2008 Annual Survey of Hours and Earnings reports that average total pay for all employees (including full-time and part-time) increased by 3.3% between 2007 and 2008. Therefore franchised dealer employees have probably fared worse than average.

However the increases in basic and total pay were by no means evenly distributed. The two biggest 'winners' amongst full-time staff were Dealer Principals and Bodyshop Managers with basic pay up 4.4% and 3.7% respectively. Vehicle Technicians, whilst seeing basic pay rise, experienced a fall in total pay probably due to a fall in overtime and bonus. Bodyshop Painters/Panel Beaters saw a similar fall in total pay - more than likely for the same reason.

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