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Prepare for the Big Bang Over the next three weeks
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Page 37
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Pat Hagan is talking to operators about the challenge of the Working Time Directive which becomes law next
March. We begin with operators running fewer than 10 vehicles... On 23 March 2005, the major part of the operator. But Hookham stresses planning now Working Time Directive will finally be could ease the headaches later on. delivered — and for the road transport So what, if anything, are small operators On 23 March 2005, the major part of the operator. But Hookham stresses planning now Working Time Directive will finally be could ease the headaches later on. delivered — and for the road transport So what, if anything, are small operators
industry it promises to be a painful birth. doing to get ready for the 48 hour week?
Operators of small fleets may think they still have plenty of time to prepare for this momentous change. But James Hookham, executive director for policy at the Freight Transport Association, says they should be planning now: "They need to be pinpointing exactly who in the company will be affected and working out why they might have a problem." Above all, operators must consider the impact the WTD will have on their costs. As Hookham says, if you need extra drivers or vehicles the only feasible way to pay for them is by securing an increase in rates
"Talk to your customers about the new rules and explain to them that the new 48hour regulations apply to total working time," he adds. "If you can get their staff to offload vehicles instead of your drivers, for example, that time the driver is waiting will not contribute to the 48 hours.
"It's difficult to get anything out of customers these days that's above the rate of inflation, but explain that this is an EU-driven change and we are stuck with it." Crucial details still need to be finalised, including what counts as "periods of availability" and whether calculating agency drivers' hours is the responsibility of the agency itself or the On 23 March 2005, the major part of the operator. But Hookham stresses planning now Working Time Directive will finally be could ease the headaches later on. delivered — and for the road transport So what, if anything, are small operators
industry it promises to be a painful birth. doing to get ready for the 48 hour week? Al Baker and Son, Hastings Fleet: One Scania eight-wheeler
Phil Baker is an owner-driver. On paper that should mean he is excluded from the working time regulations until March 2009 — by which time a decision will have been made on whether self-employed drivers will be covered or not. But Baker works almost exclusively for one customer, RDL Distribution, hauling bricks
and blocks from its depot in Bexhill.
As such,this makes him an "employee" in the context of the working time rules so he must comply with the directive like everyone else.
"I work for RDL nearly all of the time so I am preparing myself for the worst and assuming that I will not be excluded," says Baker. "But I've been looking at what effect it might have and I don't think it's going to hit me too hard because I don't work much longer than 48 hours a week anyway."
Joan Williams, policy manager at the Freight Transport Association says the directive states that a self-employed owner-operator is someone who has the freedom to work for more than one customer.
Joan Williams, policy manager at the Freight Transport Association says the directive states that a self-employed owner-operator is someone who has the freedom to work for more than one customer.
"If you do not have that freedom then you would not meet the definition of selfemployed," she adds. "That means you would have to keep records just the same as an employer would, although administrative work such as accounts would not count towards the limits."
"The majority of ownerdrivers will only work for one company and many even work in the livery of that company," she points out. Supreme Haulage, Glastonbury Fleet: Six tractor units
MD David Taylor is already looking at what impact the Directive will have on his business. With six vehicles and five drivers, the firm focuses mainly on animal feed deliveries but has one vehicle specialising in moving fish feed to local trout farms.
"I've been hinting to my customers about a 15 to 20% rate rise," says Taylor. "Otherwise, if I have to pay my drivers the same but can't get the same work done — or I have to employ an additional driver — then I will definitely be out of pocket."
His drivers have been keen to establish that their pay will not be affected by the new rules.
Taylor hopes that by starting to specialise more in niche types of haulage including more bulk blowers he can justify charging higher rates. But he is concerned about the future: "The contract purchase arrangements on my entire fleet comes to an end in February 2008. If things have not improved by then I may well get out of the game."
David Burns, Penicuik, near Edinburgh Fleet: Four 44-tonners/two eight-wheelers Speaking as a road haulage veteran, David Burns believes the Working Time Directive is one of the biggest obstacles ever put in the way of running a successful transport business.
This Scottish firm specialises in moving asphalt, sand and gravel and Burns fears the Directive is so impractical it will "bring plant to a standstill".
"It's OK saying this is a great idea but in practical terms it cannot work," says 59-yearold Burns, who started in the industry with his father back in 1967. The family firm is already reassessing its plans to buy another eight-wheel tipper in the
autumn, given the uncertainty over the effects the working time rules will have on profits.
"It's going to have a big effect on our business," says Burns. "Most of us are working an average of 60 to 62 hours a week."