ARC brings down rates
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• Aggregates company ARC Southern is cutting its rates to drivers in Gloucestershire, Avon and Somerset by 6% because of the recession.
About 120 drivers are affected by the cuts, which took effect from 30 November. They include contract hauliers and those hired in daily. But 280 drivers in the rest of the ARC Southern region will not be hit as their rates are already below those in the West Country.
"We regret the cuts," says distribution manager Chris Roberts, "but we were forced into it. We cannot compete in the current market. Either there is a surplus of hauliers or a large number of them are prepared to work at incredibly low rates.
We have been staving off the evil day for well over a year.
"We raised our rates to drivers by 5% in April 1991 when others did not," says Roberts. "In fact the companies in our business are operating rate schedules that are two years out of date."
One of the ARC drivers affected says they accept the reasons for the cut: "We have not got a lot of argument with ARC. They increased rates last year when others did not and the competition is very heavy here at the moment."
The new rates apply per tonne/mile, up to a maximum of 140 miles.
El ARC Southern's move echoes Tarmac's decision in September to cut rates by 3% at five plants in the south of England because of adverse trading conditions (CM 17-23 Sept). At the time Tarmac claimed that the full force of the cuts would be softened by reassigning drivers to other sites.