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Driver shortage impacts post EU-Exit and COVID-19 recovery
A look at why there is a shortage of HGV drivers across Europe, and at what can be done to improve the situation in both the short and medium terms
For months, the trade press have been leading with comments such as “UK retail giants urge government to relax rules on EU lorry drivers”. Many of these articles highlight that large supermarket chains and retailers offer bonuses and ever- increasing salary scales to encourage workers to join and remain with them. The crucial point is that the companies mentioned are retailers, not hauliers and/or freight forwarders. The first mentioned group, bolstered by the profits derived when goods carried by their drivers are sold to the end-consumer, are in a better position to offer these higher wages than the latter group who have to rely solely on any profits derived from carrying the same goods. Two recent events, EU-Exit and COVID-19, have exacerbated what was an already deteriorating situation, but the present driver shortage has been a long time developing with reasons varying between countries. For instance, the Army no longer provides driver training to all ranks as it did previously and, coupled with its diminished size, this is often quoted as a significant reason for a lack of HGV drivers in the UK. Two factors stand out: the average HGV driver is 55 years old in the UK and there is a global shortage of such personnel. In Europe, it is estimated that the total shortfall of drivers now exceeds 400,000 and, much to many people’s surprise, Poland is the most heavily impacted with a shortage of 124,000 drivers. The UK, dependent upon sources, is lacking between 76,000 and 100,000 drivers, and Germany 45,000 to 60,000 drivers. The UK, dealing with the twin problems of EU-exit and COVID-19, has seen many overseas personnel leave the sector, returning to their EU homes where they can enjoy
similar pay and conditions; consequently it is thought that they are unlikely to return. From a government perspective, the DVSA, due to COVID-19 restrictions, has been unable to provide sufficient test capacity for trainees and this bottleneck has reduced the number of new drivers who can replace those who are leaving the sector. Ultimately the UK has to find its own solution to this problem. Opening the borders to EU employees may provide a short-term solution but it is not the long-term answer. Already some Eastern European countries are seeking to recruit drivers in Central Asian countries and the Caucasus. In certain cases, the search extends to Bangladesh, India, the Philippines and Vietnam. The process can easily take three to six months. Wage issues The first and most significant problem is how to make the sector more appealing. There is some anecdotal evidence that higher wages are making it easier to recruit and retain drivers – but this wage inflation, if it does not feed into higher transport rates, will create financial issues for the employer. However, it is also re-establishing the pay differential between salaries paid to HGV drivers and local van drivers. Many have commented that the latter, fulfilling a predominantly local role, have not until now had a sufficient financial incentive to qualify to drive larger vehicles. But more needs to be done to improve conditions and the overall working environment for all drivers. There has been an increase in actual and reported violent attacks on drivers by criminal gangs; rectifying the lack of safe parking must be a priority. For too long, UK governments have been over-reliant on the private sector to deliver their policies. Providing sufficient safe parking should be regarded as part of the UK’s strategic
The first and most significant problem is how to make the sector more appealing
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October 2021
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