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Three firms given notice of revocation
Page 22
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Transport manager on £4 an hour represents -unfair competition".
THREE ASSOCIATED companies have had their licences revoked after a director admitted his accounts were a "mess", drivers were paid from petty cash and the transport manager had no contract and earned only £.4 an hour.
However, North-Western Traffic Commissioner Beverley Bell delayed the revocation of the Greater Manchester-based companies' licences until the end of April to allow time for them to put their house in order. She said she was uncertain which vehicles were operated on which licence and who was paying the drivers. Worsley-based OS Communications, with a two-vehicle licence: RTK Grab Hire. with a two-vehicle licence: and John Bottomley, trading as RTK Grab Hire, with a five-vehicle licence had been called before the TC. Bottomley said the three entities traded as one, but were separate so he could monitor their profitability. There was £120,000 available to the three concerns from the holding company, RTK Grab & Skip Hire, which did not have an 0-licence. The vehicle operated by OS had been purchased by Skip Hire, which also paid the insurance, The driver was paid out of petty cash.
He agreed with the TC that the accounts were a mess and admitted that two other drivers were also paid out of petty cash.
Lisa Kay, transport manager of all three and sole director of RTK Grab, said she was not paid as a director and she left the running of that company to her domestic partner, Bottomley.
After Kay had said she was paid for 25 hours a week but actually worked 50, the TC pointed out that this meant she was being paid between £2 and £4 an hour. 0-licensing was not just about road safety. It was unfair competition when the transport manager was not paid the going rate, as getting a transport manager on the cheap enabled Bottomley to purchase another vehicle. He was gaining an unfair commercial advantage.
Bottomley said they had ploughed all the money back into what was a family business, which now had assets of around £1.5m.
Revoking the licences, the TC said there were no proper accounts before her and there was nothing to show that OS or RTK Grab were trading companies at all. By delaying the revocations she was giving Bottomley an opportunity to carry out a root and branch review and decide which entity was to have responsibility for operating the vehicles.
He had a number of hurdles to get over, including a proper employment contract for his transport manager and paying him or her the going rate. If he could put his house in order, he could have a licence for seven vehicles.