With an estimated shortage of 100,000 HGV drivers in the UK alone, the shortage is impacting industry supply chains which is evident by the empty shelves we are now witnessing in supermarkets.
WHY ARE WE EXPERIENCING A SHORTAGE?
Many people are quick to place blame on Brexit and overseas drivers returning home for the UK’s lack of HGV drivers, but in reality the issue runs much deeper. Pre-pandemic it was reported that the UK had a shortfall of circa 76,000 drivers, increasing only 30% in 2021 owing to many factors including:
- Career change
As with many of us, we have re-assessed our work-life balance and many drivers left the industry in preference for jobs that allow them to spend more time with their families.
- Lack of testing in 2020
Driving tests were postponed temporarily and now they are facing a backlog of drivers awaiting their tests, as a direct result of this fewer apprentice placements were available to potential drivers mid pandemic.
- Cost
With a HGV license costing £3,000 smaller scale operations simply do not have the revenue to train and cover the costs associated, especially with the ever increasing costs of HGV salaries.
- Early retirement
Like the career changers, many nearing retirement age have opted for early retirement so that they can spend more time with loved ones. With an ageing workforce this equates to an additional 10,000 drivers lost in 2020 alone.
- IR35
IR35 is the anti-avoidance tax legislation introduced in 1999 preventing the self-employed solely working for a single company (much like any other employee), originally it was up to individuals to assess whether or not they fell under IR35, however from April 2021 it became the responsibility of the employer. This led to many freelance HGV drivers being offered salaried positions with haulage companies, but effectively this meant that they would pay more in taxes and have less flexibility in their working hours, leading many drivers to opt for a career change.
WHEN IS THIS LIKELY TO IMPROVE?
How long is a piece of string? Unfortunately this is impossible to predict, however as there was already a shortage pre-Brexit & COVID-19 we’re hopeful things will return to “normal” early 2022, however as this was an existing problem and with an aging workforce, it is up to haulage companies to attract, train and retain the future workforce.
In recent weeks we have seen the UK government offer 5,000 temporary visas to non-UK HGV drivers, however sources suggest that there has not been a fast uptake which we believe is most likely down to pay being on-par with what they could receive at home, and the risk of being jobless after their visas run out in 6 months time.
Another temporary saving Grace is the possibility of the Cabotage legislation being temporarily updated to allow non-UK drivers to carry out unlimited sub-contracted jobs within two weeks of their return journey (increasing from two jobs; seven days before their return journey). However this is damaging to UK hauliers as often overseas companies will undercut UK prices, it will however help fill empty supermarket shelves and restore some normality in the supply chain temporarily.
IS IT JUST THE UK OR ARE OTHER COUNTRIES AFFECTED?
Over the past year, there have also been reports of shortages of lorry drivers across mainland Europe too. In total, Europe has an estimated shortage of 400,000 HGV drivers, much like in the UK, the pandemic put a delay on new HGV drivers getting their licences. What’s more, many EU employees returned to their home countries after Brexit, and with similar issues to do with pay and poor working conditions, many EU countries are facing similar HGV driver shortages.
HOW HAVE SUBZERO BEEN AFFECTED?
Obviously, this has a direct impact on our business and we have had to turn down or postpone deliveries. Exacerbated by the recent fuel shortage, it has been a struggle but we are extremely fortunate to have a flexible and valued workforce.
HOW CAN WE ENCOURAGE DRIVERS BACK?
With unsociable hours and poor facilities such as safe, secure rest places, you can see why many drivers have decided to move on to pastures new despite all the recent hikes in pay rates, bonuses and training schemes.
We must look to find ways to give drivers greater flexibility (where permitting) and ensure their mental health as well as their work-life balance are considered.
At SUBZERO we are dedicating an area in our new office for visiting drivers to; relax, make use of our complimentary hot and soft drinks, purchase a snack or take a shower. We believe this is key for drivers visiting the facility as they can go days without companionship or access to clean facilities.
