More pressure on steel
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by Karen Miles • The shadow over the steel haulage industry darkened this week as it emerged that operators working for a major Yorkshire producer are the latest to come under pressure to cut rates.
Some of the hauliers working for United Engineering Steels are negotiating over the size of the company's transport bill; a move which some say will result in a 100. cut in rates.
The next few weeks will be crucial—the discussions between the part owned British Steel manufacturer and the hauliers are said to be at a "delicate stage".
Major hauliers working for LIES, which has sites at Rotherham and Stocksbridge„ include Ernest Thorpe and John Truswell & Sons.
The talks follow pressure by British Steel to reorganise transport and cut costs at a number of North-East sites, including Scunthorpe and Teesside. UES says it is about to meet its hauliers as part of a review brought on by its poor order book and rising energy and raw material costs.
But it is believed to have asked some to look for efficiency improvements, such as reduced waiting times, that could be passed on as a rate reduction.
The cost pressure at LTES mirrors moves at British Steel's Teesside works. In January management at the plant asked six of the 17 hauliers to re-tender for the work to see if it was theoretically possible to cut costs.
And at Scunthorpe the United Road Transport Union blames British Steel for drivers' wage freezes (CM 3-9 June). British Steel haulier Thompson Freight Services last week settled some redudancies but no earnings reductions with its workforce.
E Ernest Thorpe says it does not work for British Steel at Scunthorpe, contrary to the report in last ‘veek's CM.