Source · Select Committees · Transport Committee

Recommendation 16

16 Paragraph: 56

The fragmented nature of the road haulage sector makes it difficult for logistics operators to...

Conclusion
The fragmented nature of the road haulage sector makes it difficult for logistics operators to act in a concerted fashion to improve the conditions for HGV drivers. The actions of a few large companies, such as the major supermarket chains, exacerbates this. These companies use their market power to drive down costs but take no responsibility for the consequences. What is needed is a sector-wide solution, but, so far, despite a lot of warm words, the sector has failed to deliver this. Radical action is required to end this cycle of failure.
Paragraph Reference: 56
Government Response Acknowledged
HM Government Acknowledged
The Government notes this recommendation and the need for improved standards and safety for HGV drivers. All employers and businesses must ensure that they comply with employment law at all times, including any requirements specific to the sector for example in respect of HGV drivers’ hours and rest periods. We recognise that improving the working practices of HGV drivers will help in encouraging retention rates. Industry must lead the implementation of working practices and improving facilities for drivers that will make the sector attractive to new employees and help retain the existing workforce. The Government notes recent increases to remuneration in some logistics occupations including HGV drivers, and the steps some companies are taking to modernise working practices for example by increasing flexibility in shift patterns. Government supports these changes, but they will need to be industry led. Access to good facilities whilst on the road is a key factor in improving working conditions for drivers. That is why we are investing a total of £52.5M in improvements to roadside facilities and are working with the sector on proposals for standards for HGV Parking and facilities used by HGV drivers. The Logistics sector is committed to working with Government to respond to and address the current workforce challenges facing the sector. This is evidenced through the recent launch of the ‘Generation Logistics’ campaign. The campaign is a 12-month programme of promotional activities which will be run by Logistics UK and the Chartered Institute of Logistics and Transport (CILT) in partnership with wider industry and Government which aims to: • bring the freight and logistics industry together; • shift perceptions of the industry; and • encourage the next generation of logistics workers to engage with the opportunities available and keep the nation’s supply chain protected. Generation Logistics will shine a light on the sector, bringing unprecedented visibility to companies in the sector and addressing their recruitment gaps. Activity will target the next generation of logistics workers, ensuring commercial longevity and the ongoing integrity of the supply chain, whilst aiming to improve diversity across the sector. The campaign aims to increase the number of people considering logistics as a career, and positive sentiment about logistics, with target groups including 16–24-year-olds, career switchers, and minority groups. The campaign is being funded through industry sponsorship, with DfT also providing £345,000 of funding to support the campaign. The campaign aims are: • Reach: over the next 12 months we will create 600 million opportunities to see the campaign. • Engagement: from all of the people we reach with the campaign, we want to attract at least 600,000 visits to the central hub. • Perception: we want our target groups to think differently about logistics. Therefore, we want to increase awareness by 25%, and positive sentiment by 40% in the first 12 months.