Davey Driver:
orys:
I think Phil meant the jobs in UK, not in Bulgaria 
Did he? why did he bring cabbotage into it if they are Eastern Europeans working in the UK?
Cabbotage is one thing, but as far as I am concerned he said “in places I worked, foreign drivers were paid the same as I was” - so that should stay true even if he worked in Bulgaria. I bet that no Bulgarian haulier would pay him more than his Bulgarian collegues. I just understanded that as "in the same company, all drivers are paid the same, no matter of their nationality.
Eastern European Companies have lower overheads and running costs, so they are in a position to knock that bit extra off the going rate, maybe a poor rate to the UK but a better rate going back to Eastern Europe despite being lower than what a UK Haulier would need ?
Yet relatively (and often not only relatively, as you can read below!) speaking they have higher costs. If I am looking on my pay slip, NI and taxes are getting some part of what I cost my employer, tax is 19% I think and there is NI on the top of that. In Poland, for example, if you employ someone, taxes and NI costs you MORE than you pay him to his pocket… So if the Polish trucker earns his 300 pounds per month, he costs his employer about 650. Believe or not, this is true. To compare that I took my pay slip and of 975 gross amount I took home nearly 700. (it’s complicated why my wage on that one is so high on this one, but it’s irrelevant for our purpose - you can see the pattern).
So driver’s wages aren’t so higher in Poland.
As they told me on the recent chat in the train, Walter Koops driver gets 6000-8000 PLN per month, this is about 280-360 pounds per week. But Walter Koops pays over 600 quids for that.
G&S Belshill driver takes home about 420 quids per week, but it costs his scottish company less then 600 if my calculations are right.
Diesel in Poland is no longer significantly cheaper than in the rest of the Europe. I checked it and it’s about 4.40 PLN per liter, sometimes cheaper, sometimes deerer. Euro is about 3.90 just now… Do your math.
As much as with the employers salary, the Polish companies are paying huge taxes. This is hard to compare with Britain, as the taxation structure is different, but this article I linked below says that while Poland pays one of the lowest direct taxes in Europe (nearly 20% compared to 42% in Britains), the indirect taxes are amongst the highest in Europe. Vat is now 23%, and you have to pay lot of duty. In Poland, if you buy a road vehicle, you have pay duty, as it’s considered luxury goods!
mojafirma.infor.pl/wiadomosci/63 … ow-UE.html
Other article says that taxes are abou 30% of workforce costs. From my gross tax to date field on my pay slip I can see that my tax is less than 1/7 of everything I earned so far…
Believe or not, but being an Eastern European haulier is not a milk and honey.
It’s true that Polish hauliers had much cheaper live, but this is no longer the case (at least in case of Poland). Believe or not, but even Polish hauliers are using now cheaper subcontractors from Romania or Baltic states.
I dare to tell that what brings the costs down for them is a workers attitude and that makes significant difference for them. Not many British drivers I know would agree to spend several weeks in the row away from home then come back for only few days - this is still common pattern in Polish companies. Also double manning is very popular. Also I work in UK for five years now, as an agency driver I’ve seen hundreds of companies and believe me amount of waste of time, money and resources here is unbelieveable (to be fair, as the big international companies coming to Poland, this also becomes a standard there). We should also consider how much “it’s not my job” attitude compared to “can do no problem” I know from Poland and ridiculous Helth and safety rules costs the economy.
House prices? Well, my friends bought a small terraced house on the outskirts of WrocÅ‚aw (not far from the Coffeholic’s favourite truck stop in KÄ…ty WrocÅ‚awskie). They are really happy as it was discounted from 700 000 to 560 000 PLN.
This is still over 100 000 pounds, I can buy a house in Glasgow for that…
Every time I come back to Poland I am amazed how expensive everything is. Just to give you an example. When I first drove back to Poland, for each liter of petrol in Glasgow (which was about 99 p at the time and the pound was nearly 6 PLN) I was able to buy nearly two litres of Petrol in Poland (as they were costing 3.30 PLN at the time). Today, liter of petrol in Glasgow is 1.20, liter of petrol in Poland is 4.60 and this is more than one pound as for todays rates.
But I think this is a good news for you: the Eastern European countries build their wealth quiclky on that “cutting you” and soon the differences will be no longer so significant. If the British haulage survived allowing 10 new countries 6 years ago, and as you can see from my example they are no longer such a big threat to you, they will survive another few years with Romanians and Bulgarians. And after some time all costs and wages will be about equal, so it will be back to as it should be.