Somebody posted this in response to a tweet from Andrea Jenkyns MP about the driver shortage being due to Covid
I thought the response was pretty accurate and deserved to be shared so here you go:
Ok, I’ll do my best to explain the current serious issues in the UK haulage industry. A few years ago as the borders of Europe expanded, there was an influx of newly christened Eastern Europeans a coming our shores. These characters had a licence for a tractor and trailer back home, however, the EU translated it to a HGV licence. As wages back home were very poor, these characters were very happy to work, driving a HGV, for the minimum wage (in some cases on a day rate that with the long hours equated to less), obviously the haulage industry loved this cheap labour, the workers living in the truck all week, and 6 to a 2 bed house in run down areas on their days off. UK drivers were dismayed by this, as these foreign drivers made up the workforce as drivers retired, and in the last 12 or so years have ended up as around 30% of the UK HGV drivers! UK drivers tried to find a way to make better their income, so, as hauliers wouldn’t increase wages, they looked at other methods. Hey presto, form a 1 man LTD company, subcontract to the haulier, the LTD bills the company a little more than the ‘wage’
, the haulier escaped holiday, pension, sick pay and employers contribution, then draw a minimal wage under the tax threshold, pay no income tax, minimal NI, and then take a tax free dividend after paying corporation tax, basically, earn 25k, pay less than 1k in tax. The drivers are happy exploiting a loophole, increasing their take home pay, the hauliers were overjoyed, and there was nowt HMRC could do. The foreign drivers cottoned on to this, and around 50% of UK drivers utilised this route.
Last year HMRC passed a new ruling, commencing April this
year, IR35 came into force. Basically this rules that no company that employs more than 50 employees can use the services of a LTD driver, the big hauliers had 50% of their workforce on this scheme, oh dear, time for a pay rise, £9/10 per hour isn’t enough.
Whilst this was happening, Brexit agreements ruled that to work in the UK you need a working Visa if your not a UK citizen (70% of the foreign drivers weren’t citizens, but the rest had gained it through marriage or other means), for this you need a professional qualification, a HGV licence doesn’t fall into this category, so it’s time for them to depart our shores, but not before their LTD companies claimed the £20k bounce back loan from the government, then promptly the company goes bust as it can’t trade, and they wave Britain goodbye.
The government realise they ballsed up and brush it under the carpet.
The result? 65000 drivers lost, Britain coming out of Covid, the economy restarting, bigger demand on road haulage, and a massive driver shortage. Initially haulage companies wouldn’t increase wages, but when
they realised how severe the issue is, they increased wages, as they will loose contracts and fold without the drivers, (stobart have lost some Tesco and surrendered others as they can’t recruit on their low wage), DHL step in, and offer a lot more money, PAYE only, and poach a
those who have still can’t get full teams of drivers, they poach some, some won’t move for £2 extra per hour, so now wages are £14-30 an hour, supply chain must keep supplying, they’re hands are tied. Tesco have agreed to foot the extra wage bill, they will pass it on to the
consumer, they need stock in the stores! They are binning fresh produce a RDCs as it expires before it gets in the trucks! Notice gaps in the supermarkets? That’s why!
Sadly some hauliers won’t recognise this issue, I work for one of them unfortunately, and due to drivers
leaving, we are 20% down in drivers, agencies can’t supply as DHL and the like are outbidding and getting the drivers, we have got together to try for a resolve, they come up with 40p an hour, so £10.40, or £540 for my salaried 4 on 4 off, we said £12 minimum, they’ve turned
hostile, the following day 2 more handed their notice in, then myself and others have lost our short runs, so we do more hours, I like my job, but I won’t be taken for a mug, I’ve applied to DHL Tesco at Goole today, 4 on 4 off shunting, 38 miles a day less commuting, and £200 a week more, and it’s 6 till 6, alternate days and night blocks, so it’s easier hours. In reality, there’s never been a better time to be a lorry driver, but the shortage will ■■■■■■■ the industry.
Ps, Our boss arrived to the meeting in a brand new Porsche, then said she can’t
afford a decent pay rise, sorry, I’m not wearing it!!
I hope this gives you a better understanding of this situation."
Words of a friend.
