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Drivers' pay is a complex issue. The man behind the wheel might want more cash—but this could be impossible for the hard-pressed haulier battling to make a meagre profit from his business. So is the industry approaching meltdown? Tim Maughan spoke to the T&G, the drivers and the FTA and found that, ultimately, factors out of the hauliers' hands dictate what the driver takes home...
Ron Webb is the national secretary for transport at the T&G, which has 8o,000 HGV members. Webb finds pay a complex subject. "This is a standards issue," he says. "I feel that our members are not properly rewarded for their skills as professional drivers. We endeavour to negotiate the best possible terms for our members and truck drivers are working in a very different trading environment."
By "different", Webb means that HGV drivers have a special duty of care—road safety— in addition to the day-to-day duties in the workplace which all T&G members have. He says: "You could be a clerical worker or a worker in manufacturing, and earn more money than a driver. This is a life-and-death issue. How many people other than transport drivers have responsibility for other people's lives?"
Webb believes the duties of the truck driver have increased dramatically in recent years. "The job is fundamentally different from what it was in the 196os and 1970s," he says. As the decades have rolled on the job of the HGV driver has got harder, he adds. "The pressures have got worse since the mid-eighties. The employers have been looking for more for less, and this has resulted in an overdependence on drivers working longer hours so they can earn a reasonable living. There are still truck drivers who get paid less than L4 per hour. It is absolutely crazy and borders on slave labour."
Overhaul
Low hourly rates are an incentive for drivers to put in extra time. But under the Working Time Directive, if it is extended to cover the transport industry as expected, they will work an average of 48 hours per week maximum over 17 weeks. The effect of this legislation cannot be overstated. For the driver it could mean a double blow: a limit on working hours, but no wage increase to compensate.
Webb says: "It is unrealistic for any employer to think they can implement the Working Time Directive and have their cost base remain the same; it will quite naturally inc-ur an element of cost."
He believes a pay overhaul is on the cards: "We are coming to the end of payment structures that increase productivity but also encourage drivers to drive faster and work longer hours. The industry must current structures."
At the BP truckstop at South Mimms, just off the Mzs, drivers were prepared to give their opinions about their pay.
John works for a North-East-based firm with about so trucks. "1 used to work for a big fleet operator. In T98o I was getting Lrso a week basic. Today I get paid L4 per hour. This is low pay, but I cannot moan because I will be out of a job. If I moved down to the South-East the pay would be more like k, f8 or even L9 an hour. I work between 6o and 70 hours a week, and I am usually away for five nights a week, so it is tiring.'
Does he think he could get more pay from his boss? "No, it is like getting blood out of a stone," he remarks.
John from west London, working for a large national haulier, is at the other end of the pay scale, earning a salary of Lz6,000 a yeas. "It is the best-paid job I have done, and I have been driving for zo years," he says. For this he typically works nine or to hours a day, four days on, four off "I get p30 for an extra day's work," he says.
North London-based Terry works for a national blue-chip company, and is paid136o D
for a 37.5-hour week. "Experienced HGV drivers are in demand, and hauliers have to pay a salary to attract them," he says. You can dictate your earnings to a certain extent." Terry gets time-and-a-half for all overtime. Is he content with his lot? "Yes," he says.
Michael is also from north London, and drives for a fleet operator. "I get is an hour, which is not bad. This is more than other firms [have worked for." He gets paid hourly—but would he prefer a salary? "No. It is better to be paid on an hourly rate. I am paid by the hour, so what is the point in rushing?"
When he puts extra time in, Michael does not get paid overtime. Bank holidays mean an hourly wage of Do. In general, he believes that even with healthy overtime rates drivers more and more want to spend quality time out of the cab. Even days off in lieu will not compensate: "People don't want to work extra time, such as Saturdays. They want to be with family and friends. I have kids, so what's the point in having two days off during the week when they are at school?"
Incentives
Time, both at work and for rest, is important, but the crucial thing is the money going into the driver's pocket. Pay varies greatly: PTA economist Simon Chapman describes the variation in what drivers earn as "massive". According to the FTA, in 1999 an artic driver in Britain earned a minimum of L23o a week before tax. At the other end of the scale, other drivers were earning a maximum of L528.43. "If a driver is ADR-trained, for example, that would push the wages up. However, if he is doing a basic driving job this would be determined in [low] pay rates," says Chapman.
The stark fact is that low pay effects many drivers. But under the remaining seven Joint Industrial Council Agreements (PCs), as formulated by the RHA and T&G, RHA members are obliged to pay their drivers a minimum rate. In Devon and Cornwall the driver of a 7.5-tonner should receive a minimum of £4.20 an hour; the same job in the West Midlands attracts a rate of £5.25. Further up the scale, a driver in the 38 to44-tonne category can expect to earn at least £4.0 an hour in Devon and Cornwall and £6 in the West Midlands. Importantly, JICs are not binding on the industry at large, although they provide a useful benchmark.
There are three main methods of paying drivers: basic plus overtime; flat rate; and salary. From the operators' point of view, Chapman believes that paying drivers overtime can be counterproductive. "My prime concern would be getting my vehicle back. Overtime can be bad news because it is not encouraging drivers to get back to base."
How does Chapman view wages as low as L4 an hour? -From my experience this is quite a low wage. These guys carry a lot of responsibility; hauliers who insist on paying /4 per hour will simply not be able to attract the drivers," he says.
Will the Working Time Directive mean hauliers will have to increase hourly rates? Chapman says: "You can argue this will put the haulier under more pressure. I think the 48-hour working week is going to force hauliers to revisit the way they pay their drivers. It might be a trigger for flat rates going up."
Margins
Conversely, can the beleaguered operator hope to afford such increases? Chapman's predictions are bleak. "I think the haulier is in for a rough ride, because his profit margins are not likely to improve. At the same time, there will be more pressure for basic pay rates to rise."
In Chapman's estimation, the typical haulier is making a pre-tax profit of just 5%. Hauliers recognise the pivotal role of their drivers, but many do not have the available cash, he says. "So to an extent the UK hauliers' hands are tied, even though they are acutely aware of how important the driver is to the operation."
In the long run can the driver really expect to see significant pay increases? Only the haulier actually pays the driver. But, as Chapman explains, economic factors are at work far above him. "Hauliers are caught between a rock and a hard place. At the end of the day it is all down to margins," he says.