Despite my rantings on this site and I have told others not to do it, I have found myself in a bit of qaundry!!
My brother has been asked by his present company to put a wagon on for them, he has been an owner driver twice before, failed 1st time cos he got ripped off, failed 2nd time thru over spending (outgoings more than incomings)
He has managed to settle his tax and vat bill but cannot afford to pay his other creditors. He has not been declared bankrupt. He works full time as a driver for a firm. They have asked him to put a wagon on for them.They have do not have wagons of their own and all the work is subbed out to a major logistics carrier.
He has asked me for my advice and I staretd the usual well you know what happened last time and what happened to me etc et c etc but this time hes saying its different.
He reckons he will be paid weekly, no penalty, fixed rates and that they are will ing to offer him x amount yrs contract . Theres no distance work and what he tells me the money seems good, but me being cynical it all sounds good on paper.
With the benefit of hindsight I would start again but I would do a lot of things differently.
With regards to your particular situation then it seems an ideal oppertunity.
Low risk - already got links with the company so know how reliable they are
contract for x years - Able to plan for future (even if they dont renew you can price it to pay off vehicle over contract duration so at the end you’ve at least a free truck).
If you are gonna do it this sounds about the safest route you can use
routier:
Despite my rantings on this site and I have told others not to do it, I have found myself in a bit of qaundry!!
My brother has been asked by his present company to put a wagon on for them, he has been an owner driver twice before, failed 1st time cos he got ripped off, failed 2nd time thru over spending (outgoings more than incomings)
He has managed to settle his tax and vat bill but cannot afford to pay his other creditors. He has not been declared bankrupt. He works full time as a driver for a firm. They have asked him to put a wagon on for them.They have do not have wagons of their own and all the work is subbed out to a major logistics carrier.
He has asked me for my advice and I staretd the usual well you know what happened last time and what happened to me etc et c etc but this time hes saying its different.
He reckons he will be paid weekly, no penalty, fixed rates and that they are will ing to offer him x amount yrs contract . Theres no distance work and what he tells me the money seems good, but me being cynical it all sounds good on paper.
Wud do it all over again ?
NO. And if you do I think you’re off your head, especially as you’ve been down the road before and are still paying the price iirc. Who’s gonna bail you out this time if the company you’re pulling for goes ■■■■ up?
IF, and thats a big IF. If he can get it all in writing, and checked out by a lawyer. Then what is stoping him going for it. Provided the contract is water tight, but allows room to bail out if it all goes horribly wrong, but guarantee’s that providing the company does not go bust that he gets paid weekly, and at a pre-defined rate, with no penalties, then you are laughing.
Any business would give their right arm, and sell there granny to geta contract like that. So if it is on offer, why not take it.
Whats the worst that can happen ? If it is in writing, then at least if they go back on it, then you can sue the arse off of them !!
how’s he going to have another go if he’s bankrupt, he’s not a prayer of getting an o’license and even less of getting a fuel card/account or finance on a wagon! as much as i hate to see someone not given a chance, i’m affraid his wagon running days are gone, at least for the next few years.
routier:
He has managed to settle his tax and vat bill but cannot afford to pay his other creditors. He has not been declared bankrupt. He works full time as a driver for a firm. They have asked him to put a wagon on for them.They have do not have wagons of their own and all the work is subbed out to a major logistics carrier.
“cannot afford to pay other creditors” will this not put the anchors on it as he’s bound to be on some sort of credit blacklist even though he’s not bankrupt?
Routier,
Are you sure your not giving us the “I knew this fella one time and” story and its yourself who’s having the rethink about going O/D again
Big Truck:
Routier,
Are you sure your not giving us the “I knew this fella one time and” story and its yourself who’s having the rethink about going O/D again
just a thought, any contract that ties both parties into providing haulage for a set amount of time would have to include a surcharge to cover fuel price increases to be worth anything. i don’t know if it’s such a golden oportunity as it might seem, the company are obviousley going to want everything in their favor or why take on someone on a contract? could be a case of the only gaurantee is that your gauranteed not earning much for the next three years.
Guys, thanks for your honest answers and NO ITS NOT ME setting up, its my brother, hes been asking my advice and in turn Ive asked yours!and Hes definitely not Bankrupt, hes done his best not to go down that route because of the consequences.
If I was to start again, then well, the contract would certainly have to be well worth my while for me to give up my normal profession!! But then I would be dreaming!
I was never an O/D, I just ran a haulage business mainly due to passion and ambtion which at the time slowly diminshed after all my worst fears were realised. Had to get out before it finished me off completely.
My brothers case is a bit different , the company has approached him, he really had no intention of starting again.Its strange because what hes being offered is what I was looking for (and more) a couple of years ago!!
Haulage in my view is a real gamble, sometimes it pays off, most times it doesnt! Just need the luck of the draw and I think this time he may have just been blessed!
IMO the jobs knackered at the moment, spiralling fuel costs, WTD, more people with clip boards, than people actually working. They say it’s always a good time to get in when the job’s in recession, so He should maybe go for it
Somewhere around here there is a thread entitled the 6 month plan written about 12 months ago
I did decide to have another look after a few people suggested it, I looked around and gathered some rates and found that fuel was dearer, rates were lower and the chance of a waterproof contract was about zilch, I stayed as I am.
This is not meant to be a downer on anyone who thinks they can do it, but a new start in business of any kind is risky at the moment. Every other thread on this forum is about Poles and Red Indians working for a cup of rice a day, which I strongly disagree with.
I also think that if your “Brother” has some creditors, he will have problems when he advertises his O - Licence
a mate of mine has two units on for wilkos, on a three year contract which has been renewed twice so he’s now in his seventh year on the job, it’s tracion only and wilkos bunker their own fuel which is part of the deal, basically they take two trailers to the same two shops every day. the benefits of such a deal is he’s been able to take the trucks on three year contract hire agreements which wilkos stipulate scania 340’s painted in their livery so he’s knows at the start of each three year period exactly what he’s going to be paying out and exactly what he’s going to earn, a good deal? i don’t know, for me being self employed is a gamble and always has been both in the building game and now in haulage, you’ve always got that dream of making it big, “next year rodney, we’ll be millionaires” type thing. finacially he’ll be better than he was when he worked for wikos as a driver when they ran their own wagons thats for sure, but wether i could get out of bed every morning to drive down the same road knowing what i was earning before i got behind the wheel? i don’t know.
My brother has been asked by his present company to put a wagon on for them, he has been an owner driver twice before, failed 1st time cos he got ripped off, failed 2nd time thru over spending (outgoings more than incomings)
I wonder why a company want a good employee to leave to start their own business,
They may be looking at ways to get around the WTD or Drivers hours regs, Or maybe it is because they cannot make it pay in the current financial climate.
As for 340 Scanias
As an owner driver, I would want some choice of how my business was run, I want to chosse my own truck, I want to set my own rates or decide not to work on the 3rd Friday of every month. I would even prefer to paint the truck in my colours instead of corporate company specced trucks
IF, and thats a big IF. If he can get it all in writing, and checked out by a lawyer. Then what is stoping him going for it. Provided the contract is water tight, but allows room to bail out if it all goes horribly wrong, but guarantee’s that providing the company does not go bust that he gets paid weekly, and at a pre-defined rate, with no penalties, then you are laughing.
Any business would give their right arm, and sell there granny to geta contract like that. So if it is on offer, why not take it.
Whats the worst that can happen ? If it is in writing, then at least if they go back on it, then you can sue the arse off of them !!
I can see a few holes in your argument!
Most owner drivers will be working on at least 90 days payment terms unless they have agreed to be paid less more often, Contracts are won and lost over pennies nowadays, and watertight contracts mean nothing if the company changes its direction
why would a company want an employee to leave and run for them as an o/d?
well for one thing they’d no longer need an o’license, a tm or the greif of running a wagon plus the greif of employing someone on the cards. when you weigh it all up it’s no wonder that small and some large firms that run one or two wagons decide to go down this road, it’s probably more cost effective in the long run.
Have to admit, I was thinking the same 
.
Just need the luck of the draw and I think this time he may have just been blessed!
written about 12 months ago 