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Hauliers hit hard
Page 19
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by inflation index INFLATION has hit hard at Haulage Association reports a last year.
Inevitably, after last year's strike and substantial wage awards, labour costs suffered the biggest jump — of nine per cent — and were followed closely by DERV, which went up by seven per cent.
There was a 2.7 per cent increase in establishment, insurance, finance and other costs and vehicle replacement costs rose by two per cent.
Repairs and maintenance charges went up by one per cent, tyres by 0.8 per cent.
A new set of haulage hauliers' costs, and the Road 22.5 per cent increase over the operating indices issued by RHA underlines the point. There has been a 36 per cent overall cost increase over the last two years.
From January 1, 1978, to December 1979, drivers' wages for a 52-hour week rose by 39 per cent, fringe payments increased by 37 per cent, and National Insurance contributions went up by 45 per cent.
There was a 38 per cent rise in labour costs in the management, supervisory, and clerical sector, and fitters' wages rose by 39 per cent for a 52-hour week. The biggest jump was in finance charges. Taking account of the weighted average increase in minimum lending rate, these hve leaped by 58 per cent. Until June last year, they had gone up only by seven per cent.
Most other increases were of around 40 per cent, but replacement tyres and tubes rose only by 22 per cent. Only road tax remained at the same rate.
RHA says it prepared the cost indices to focus attention on changes in operating costs, and says that they demonstrate clearly the effect of inflation upon the road haulage industry.