Hauliers have reacted angrily to claims from truck drivers that their “greed” and refusal to pay higher wages has led to a shortage of suitable jobs.
The response came to a story in MT last week in which a number of HGV drivers claimed hauliers were paying them “peanuts” and accused them of being “greedy” and “selfish”, which in turn was helping to create a jobs shortage.
The drivers were responding to a study carried out by Nationwide Vehicle Contracts that predicted HGV jobs could become extinct by 2029.
The study follows a report from RHA in February this year warning that the UK’s logistics industry will require 40,000 new HGV drivers annually for the next five years – to meet growing demand and to avoid any potential shortages.
Michael Doherty, MD of Doherty Group, near Omagh, dismissed claims that hauliers could pay drivers more and accused them of not understanding the cost pressures firms face. He pointed to the significant increase in costs for his timber haulage business and the paucity of rates.
He told MT: “Rates are not high enough. How are hauliers expected to pay more when the price of a lorry is up between £45,000 and £60,000 compared to four years ago? And a timber crane trailer is up £40,000 more.”
He added: “That’s only one cost I’ve mentioned,” pointing to the rising price of diesel and the impact of the government’s decision to hike employers’ National Insurance conttributions.
Noting the increasing numbers of haulage firms either going bust, closing down or selling to larger companies, Doherty warned that an increasingly consolidated industry will only lead to higher costs for hauliers’ customers.
Justin Hyde, operations manager at Mastermac Haulage, which is based near Chippenham, also refuted HGV drivers’ claims that hauliers are being “greedy”.
He commented: “Have they seen what salaries are being paid and what margins we run on? We are lucky to get 3% with most [hauliers] running at a loss.”
He added: “The funds are simply not there to pay these high salaries.”
Speaking to MT he added: “When you look at our investment costs you have to purchase a lorry at £140,000, a trailer at £30,000, then you have drivers on salaries of around £50,000.
“You’ve got fuel, insurance, tax and all your compliance issues, as well as people wanting to do full loads for £400. It’s ridiculous. It’s not rocket science. It just doesn’t add up.”
He recalled: “We had a full load of whiskey, now that is a very, very high value load and we had the customer trying to batten the hauliers down to £450, and it was a 300-mile trip. It can’t go on like this. It’s as simple as that.”
Craig Foster, director at Rotherham-based CLF Commercials, believes HGV drivers are taking advantage of the ongoing lorry driver shortage to demand higher wages.
He commented: “Some people might not like what I’m going to say but it needs addressing. The price of a new truck is massive these days. The haulier needs to find the payment to put fuel in, insure it and pay its maintenance.”
He said these costs were continuing to rise for hauliers, adding: “It’s getting tighter and tighter, if anything, for a haulier at the minute. But drivers think these days: ‘Oh there is a shortage of us, so him down the road will pay me a pound an hour more. I’m off.’ The reality is the money is not there to be spared for big wages.”
