I agree with disconnected (which is exactly how I feel). We are looking at a deliberate squeeze on terms and conditions as the company finds out how far it can go without affecting recruitment and retention too much. Just look at how well rewarded the people who have been here the longest have been- 0.5% in two years!
Make the most of it, you will never be as well paid (in real terms) in this company as you are now. Every year you will find your salary will buy a little less and you will work a little harder.