The pay rise each year for many many years has been less than CPI & RPI, this has equated to an annual decrease in buying power, effectively a pay cut. The company has done very well out of this. Now is the time to restore purchasing power, the company is doing well, profits are up. This is why the percentage looks askew, but it is justified.
The managers have shown no restraint in their awards to themselves for salary and performance. If anyone in this scenario is to be labelled dinosaurs it is the management who have shown little flexibility nor imagination and have imposed draconian conditions to each pay round.