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I We know the effect the recession has had on the
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full-time workforce in road transport, but how has it affected agency drivers?
CM delves deep to find out.
Words: David Harris
Brutal as it
._ has been for the haulage industry, you might have expected the recession to have affected agency drivers less violently than most parts of the road transport sector. After all, temporary drivers provide that precious quality flexibility so prized in a downturn. Hauliers can use agency drivers when they have contracts to fulfil, but when the work dries up, they don't have to call them in. The agency driver is the human epitome of market supply and demand.
Yet, in truth, the recession has had a mixed effect on agency drivers. True. it is arguably to their benefit that some companies use them more as they look for flexibility. One example is stationery company Office Depot, which, this summer, increased its use of agency drivers after saving £134,000 between January and June in a pilot scheme with Driver Hire. The downside is that its decision to expand its partnership with Driver Hire follows a series of redundancies at 10 of its 12 depots last year.
There are other firms in a similar position to Office Depot, but that is about as far as the good news goes.
Weighing up the facts
Although sonic companies might be relying more on agency workers, the fact that there is less work overall outweighs that. What's more, the ranks of agency staff have been swelled by redundant staff drivers looking for work. More drivers looking for less work means lower rates of pay. Ruth Pott, head of employment affairs at the Road Haulage Association (RHA), says: "It's true that redundant drivers often turn to agency work, but the fact that so many have been made redundant means it follows that there is less work.
"I don't think agencies have been faring any better than anybody else," she adds.
The effect of the recession on agency drivers' rates of pay has been equally depressing. Mike McIntyre, managing director of Contact Industrial Recruitment, which has offices in Manchester and Leeds, says that rates in his area have plummeted. Whereas HGV drivers might have been paid £11 per hour two years ago, some agencies are now offering their services for as little as £6.50. McIntyre says that his company pays about £8 per hour, relying on "service and reliability" to preserve its relationship with customers.
The drop in rates has important consequences for drivers. One of the reasons some drivers opt for agency work in the first place is because the hourly rate has traditionally been a little higher, so a fall is not going to please them.
However, McIntyre, who is vice-chairman of the Drivers' Sector Group of the Recruitment and Employment Federation (REC), says that one of the fundamental problems in recent months has been that hauliers have not only laid off drivers, but also laid up trucks.
He says: "One of our customers has stood down 120 trucks, which gives you some idea of the scale of things."
Distinct features
The way that hauliers use agencies has also developed some distinct features, with drivers increasingly in demand on Thursdays and Fridays more than any other day of the week.This is partly because of traditional delivery patterns, but also because staff drivers taking long weekends need replacing, explains McIntyre.
A further difficulty is that not only are there more drivers registering with agencies, but drivers tend to register with more than one agency to maximise their chances of work. McIntyre says: "A lot of drivers are registering with four or five agencies rather than just one or two to give themselves more chance of getting a week's work."
This means that when agency drivers are most in demand —Thursday and Friday — there can be a shortage, because drivers take a job from the first agency that offers them one.
McIntyre says: "We often find we have to be on the phone early on a Thursday or Friday morning to ensure that we have booked the drivers we need.
The overall negative effect of the recession on agencies is difficult to quantify, but McIntyre believes that most agencies have seen a reduction in turnover of between 20% and 25%, although he believes others have seen 60% downturns and been forced to close offices and make staff redundant.
Similar to a lot of industries, the best and the toughest are surviving, but McIntyre advises that now is a good time for driver agencies to retrain key workers to ensure they are well placed to battle through tough times.
"It's the lighters and hard workers that will see you through," he says. •