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Warehousing Labour costs set to rise
Page 46
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A SHARP INCREASE in warehousing labour costs may be one consequence of the new Agency Workers Directive.
The directive, which is expected to come
into force in spring 2010, will grant agency Of temporary workers the same terms and conditions as permanent staff after 12 weeks employment.
Matthew Wiggetts, commercial director at logistics agency Driving Edge, told a logistics strategy group recently: "Where labour costs represent 50% of total operational costs, big users of agency workers are looking at 3.5-4.5% increase in total costs."
He says this is a particular problem in warehousing, where fluctuating volumes make labour utilisation difficult to optimise.
Driver rates are less likely to be affected. Driver Hire spokesman Dave Robbins says: 'While we are very keen that agency workers are properly looked after, most agency drivers are taken on for short terms and so are not affected by this legislation. We do not anticipate a major impact on costs for operators