'Watch rate claims' warns FTA
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MEMBERS of the Freight Transport Association have been told to view circumspectly rates increases being demanded by road hauliers; it feels that in many cases 5 per cent will preserve the haulier's previous profit level. The Association says that not every haulier will have to pay an extra £12 in wages, as some were already paying more than £30 basic before the £40 Scottish settlement.
The FTA advise members to ask for itemized claims, to consider when the last rates increase was imposed and to decline to make across-the-board increases.
An FTA spokesman quoted, as a guide, the case of a 32-tonner, allowing for a notional 20 per cent wage rise. The annual wage cost rises from £2,800 to £3,360, maintenance costs go up by £240 to £2,640 but other costs remain unchanged, giving a total cost of £13,600 p.a. compared with £12,800. Overheads of 15 per cent rise from £1,900 to £2,040 and, allowing for a 15 per cent profit margin, the total operating cost becomes £17,840, compared with £16,900. (CM's Cost Tables allow for 20 per cent overheads, and 20 per cent gross profit, not 15.) Hauliers in the North West have compiled their own figures for cost increases since May I which have not yet been passed to customers. The wage element accounts for 20 per cent, vehicles, fuel, tyres and other items for 8!/2 per cent. The RHA area secretary, Mr W. M. Farnorth, told CM that as a labour-intensive industry road haulage could pass on 90 per cent of a wage increase, so calculations were based on this figure.
Teesside RHA hauliers jointly published their rates in a local newspaper last week, causing the Prices Commission to advise local RI-IA secretary Mr D. H. le Conte tha blanket rises were illega He told CM: 1 pointe out to the Commissio that the increases wer being applied by individw operators in Teesside an were unconnected with th RHA.' Individual men hers were meeting wit some success on rat( but others were askin area office to compile them