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cropper's column

31st December 1971
Page 36
Page 36, 31st December 1971 — cropper's column
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Which of the following most accurately describes the problem?

Competition and owner drivers

• In the economic struggle between large firms and the very small, the owner-driver undoubtedly enjoy a number of advantages. I chief point is his flexibility. Knowing so we that his earnings have such a direc relationship with the extent of his work, ho obviously desires to obtain the greatest worl output. It constitutes the most effective forn of productivity scheme which can be evolve( in road transport. Thus customers, whi always want the most for the cheapest cost turn to the owner-driver to obtain the bigges returns of work for the lowest price.

The flexibility of the owner-driver arises firs from his willingness to do his utmost to adap to the customer's requirements. He then take! the fullest .advantage of the latitude: permitted under drivers hours, which largo firms are precluded from doing by reason o trade union agreements and employment Practices. There may be some extension: beyond the legal limits of drivers' hours — there are black sheep in most folds. But in rrr view this is much less wide-spread than i often alleged and the majority o owner-drivers adhere closely to the lege requirements. After all, they have the most tc lose, proportionately, if they are found out.

It is rarely appreciated how much thi change in the wages structure in the industr, over the past 25 years has assisted thi owner-driver in his competition with large firms. Wages have always accounted fo around half of total costs of road transport The changes adopted by the Wages Counci over the years have reduced the extent ti which this cost can be varied with changim volumes of work. There is no room to expani the detail of this argument, but onl' to illustrate by saying that a full day's pa, has to be paid every day Monday to Friday whether there is work or not.

In the case of the owner-driver, no wor available may mean a loss of personE income, but it does not create a direc outgoing which has to be found in money. I he cannot sell his time with his vehicle on an particular day, he is still free to try to use it some other direction and this is what happen on a number of occasions.

These are only a few of the advantage enjoyed by the owner-driver. Against thi competition, the larger firm has to , sell it services. It has to search out the kind c service which it can sell to customers at price to cover its costs. It does enjoy som advantages. It may be able to offe replacement vehicles for breakdowns; c alternative sizes and shapes of vehicles; or constant answering service at the office; c various ancillary services. In any case I should enjoy a much better know how an technique on the wide gamut of managerii topics.

Ralph Croppe