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rationalization of parcels activities would pose many problems with manpower. The first step was to draw up a plan for the future of these activities which should be the subject of frank discussions with the unions before being finally adopted.
Manpower would need to be considerably reduced; but by planning carefully and fully exploiting opportunities to transfer workers between depots it should be possible for much of the reduction to be achieved through normal wastage.
Collective bargaining arrangements would need to be adapted; negotiating machinery covering the NFC as a whole would probably be necessary. Above all, machinery embracing both the TGWU and the NUR would be required.
The future would make heavy demands on trade union leaders, calling for hard decisions and secure backing for them from their membership. The basic fact facing the unions was that timely rationalization of the NFC's parcels activities offered much the best prospect of providing its employees with secure jobs and a reasonable livelihood.
The Board considered that less severe problems faced the NFC 's general haulage activities. Nevertheless, BRS Ltd's profits were at present low and it could justify its continued existence only if it was able to earn a return comparable with that of its competitors in the private sector.
The basic problem was how to turn its size to good effect and so offset the advantages enjoyed by smaller road haulage firms in terms of inherently greater flexibility and smaller overheads.
The report advocated that the NFC should, as a matter of urgency, put an intensive effort into planning in the immediate future. Plans should be prepared covering all its activities, including warehousing and distribution, for some years ahead.
These should lay down objectives for constituent companies and cover, among other things, the future network of depots and truck routes for parcels carriage, the financial results sought and the manpower implications.
Because of the importance and complexity of the changes required in the case of parcels traffic, such changes could be successfully brought about only if they were fully reflected in the Corporation's planning.
(Costs, Charges and Productivity of the National Freight Corporation. Report No 162 by the National Board for Prices and Incomes, HMSO, 7s)