Steel contractors face 20% rate cut by David Craik •
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Up to 17 small hauliers working out of British Steel's plant at Shotton face bleak futures after BS gave its distribution contract to two large hauliers which have offered to take on the existing contractors—with a 20% rates cut.
The three-year contract to distribute steel coils went out to tender last year: it was awarded to Bridgend-based Carline Transport and West Midlands firm Faber Prest Steel Distribution. Three weeks ago hauliers attended a meeting and were told who would become "prime hauliers" at Shotton.
At that meeting British Steel said the existing contractors, many of whom have carried steel for 20 years, could apply to become subcontractors to the "main hauliers". But they have slammed the rates offered by Faber Prest as "potentially threatening to drivers' jobs".
Don Evans, owner of Merseyside-based Springfield Haulage, says that the rates on offer mean he would lose ,E50 on a "normal run".
Barry Lindfield of Merseyside-based L Lindfield describes the offered rates as "ridiculous". "We couldn't make a profit," he says. "We would have to go out of business. The other hauliers feel the same."
Faber Prest defends its position: managing director Roger Boughton says he is unaware of any "disharmony in negotiations" with potential subcontractors. "We are aiming at rates subcontractors are comfortable with," he says.
The hauliers are upset by the way British Steel has managed the reduction in its distribution hauliers, which the company says "is a means to reduce costs". Barry Davey, owner of Stoke-on-Trent-based A&H Davey Roadways, says his company has been distributing for British Steel for 50 years.
At British Steel's insistence it has spent Lim over the past three years on buying specific trailers and staff uniforms, applying British Steel livery and getting connected to British Steel's computers.
"We are upset," says Davey, "especially with the money and loyalty we have given them." He says the money was spent before he heard of the decision to put the contract out to tender.
Paul Bradshaw, transport manager at British Steel Shotton, says: "All hauliers were given the chance to participate in the tender—they can apply to be subcontractors. Rates are between the first and second haulier."