Select Committee on Environment, Transport and Regional Affairs Appendices to the Minutes of Evidence


Supplementary memorandum by the Freight Transport Association (RH 26B)

THE ROAD HAULAGE INDUSTRY

  Further to my letter of 29 March 2000, I promised to let you have any information regarding pay rates for east European Drivers. FTA has approached the following trade associations for information:

Country
Trade Association
Bulgaria
AEBTRI
Czech Republic
CESMED BOHEMIA
Hungary
ATRH
Poland
ZMPD
Romania
UNTRR
Slovakia
ATIS

  So far we have only received data back from Hungary. The following table compares wage costs in Hungary for an HGV driver engaged on international operations with typical wage costs for UK articulated vehicle drivers on domestic operations.

  
Rate per hour (£)
(excl employer
social contributions)
Rate per hour (£)
(excl employer
social contributions)
Daily
Subsistence
Cost (£)
Hungary
£0.93
£1.16
£16.85
UK
£6.59
£7.25
£17.66

Assumed exchange rate1 Euro = 260.4 HUF
1 Euro = £0.601 Sterling
1 USD = £1.484 Sterling

  HGV driver wage cost data is taken from FTA's Manager's Guide to Distribution Costs and covers wage levels as at 1 January 2000.

  Despite the limited data that we have been able to obtain this, accompanied by anecdotal evidence reported to us, suggests that there are large numbers of drivers, frequently working double-manned, and receiving these low levels of wages. This, added to the benefits of low VED rates and fuel prices on the Continent at least half of UK levels provide clear commercial operating benefits when vehicles driven by east European drivers find themselves in the UK.

  As soon as we receive data from other east European states surveyed I will let you have these.

Geoff Dossetter
Head of External Affairs

24th May 2000


 
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