Own-account operators turning to hire firms
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THE recent road haulage wages agreement giving drivers £40 for 40 hours is already having an effect in the own-account sector. Own-account operators, many of whom raised their drivers' wages at the same time as the hire and reward agreements were made, are now facing claims from their production employees for similar inrreases.
Traditionally, drivers and production-line men have been on a similar wage structure and now that drivers' wages have been increased, shop floor employees are claiming parity and in some cases the re-establishment of the differential.
The effect of all this will inevitably mean that ownaccount operators will be forced to look at their transport costs, and signs are appearing already that they are considering contract hire or truck rental rather than maintain their own fleets throughout the peaks and troughs of the year.
The chairman of one of the country's leading road haulage organizations said this week' that the drivers' El an hour agreement would have a tremendous effect on distribution costs and would upset the balance between industry and commerce.
The prospects for hauliers who engage in contract hire work seem set fair for 1975. For example, whereas 60 per cent of the traffic carried by the BRS group of companies three years ago was general haulage, it is anticipated that this figure will fall to 30 per cent next year, and the balance is likely to be the more assured contract work.