Agency salaries falling

AGENCY salaries are falling as many employers fail to give staff an annual wage rise and some offer below-inflation pay increases.

A poll by Amadeus UK has found 30% of agency employers do not pay yearly increases, and a survey by recruitment agency AA Appointments has revealed salaries at some retailers are falling.

The AA Appointments Salary Survey 2006 reveals agents in some parts of the country are on as little as £8,500 a year.

Managing director John Tolmie said: “Retail salaries are stagnating and in some cases going backwards. It’s unsurprising as many agencies are closing down, creating an employer-driven market.”

The Amadeus poll of 178 agencies found 30% do not give staff an annual pay rise. Of those that do, 27% offer a rise below the rate of inflation – amounting to a pay cut.

Transport Salaried Staff’s Association travel industry negotiator Rick Justham described the findings as scandalous.

“It’s outrageous that staff do not get an annual pay rise,” he said. “In real terms, any increase under inflation is a pay decrease and a way for employers to cut costs.”

The Amadeus poll also found that more than 25% of agents who expect to receive an annual pay increase have not had one for more than 12 months.

Some 66% of respondents cited low pay as the main reason they would consider leaving the sector. Justham said: “A lot of young people are seduced by the glamour of travel. However, they quickly find this is just a veneer and the pay rates are dreadful.”

Thomas Cook has bucked the trend by awarding its staff a 3% annual pay rise from April 1. The performance-related increase means established agents will earn at least £10,000.