Pay freezes fall and salaries rise as industry shows recovery signs; ‘exceptional hardship’ pleas cause headaches and shocking figures for uninsured driving to save costs. It’s all about the money in this week’s news round-up…
Welcome once again to our news round-up of what’s hot in the world of fleet news. This week shows that money is on the minds of many, while for others safety remains the key issue. So let’s start with some rather good industry news..
IDSPay.co.uk, a Thomson Reuters company, is reporting that not only are pay increases within the industry being seen again, but at 3.4% they are above the national average growth rate of 2.5%. reflecting a growing confidence for an industry that was left badly floundering during the recession.
“With inflation running at relatively high levels, and improved company profitability, employee expectations have been raised. Some increases are linked to improvements in productivity, as some firms have shed jobs over the year, though others have hired staff,” commented Ken Mulkearn, Editor of IDS Pay Report.
The Society of Motor Manufactures and Traders (SMMT) reported that March 2011 was an eighth consecutive month for rising car manufacture, again showing a renewed strength and a continued return to previous performance.
However, IDSP.co.uk’s Ken Mulkearn adds that some companies remain cautious: “Some companies are still holding pay rises at subdued levels, and choosing to make up the balance for employees with one-off payments, aimed at keeping their fixed costs as low as possible whilst ensuring that employees feel adequately rewarded.”
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An area that has long been a headache for many a fleet manager could well be turned into a migraine without some basic forward planning warns CFC Solutions.
When a company driver reaches 12 points on their licence this is normally followed by an automatic driving ban being handed down from the courts, and subsequently their position as a driver. However, a recent case in Blackburn, Lancashire saw a driver leave court with his licence intact despite racking up a shocking 30 points as he pleaded that the loss of his job would lead to “exceptional hardship”.
Whilst this is a rare occurrence it does happen and Neville Briggs, managing director at CFC, warns that the legal and moral issues of employing someone with in excess of 12 points on their licence can cause managerial headaches:
“Certainly, if you continued to employ a driver who racked up, for example, 15-20 points and that person then caused a serious accident, you would probably be on shaky ground from a duty of care point of view. That person is a known high risk.”
His advice is to explore all possible measures of protecting a company, such as a ‘12 points and over’ dismissal option written into all employees contracts.
Rare or not, what are your views concerning drivers in possession of 12 points and more being allowed to continue using the roads? If loss of earnings are no longer going to be used as a punishment in some cases, surely it can no longer be an effective deterrent? As to the cost of insuring such a driver, the mind boggles, which leads us neatly to our next story…
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A recent study by a road safety organisation has found that a staggering 1 in 3 drivers are aware of someone who has, is or is considering driving without insurance in the future.
It is a measure taken by many in the hope of saving money, but David Williams, CEO of GEM Motoring Assist, who carried out the study comments: “The truth is that if you find yourself in an accident without insurance you will end up forking out a whole lot more money, not forgetting the penalties if you are caught driving your vehicle without insurance”.
Harsh penalties include fines of up to £5,000, a maximum of 8 points, revocation of your driving licence or the disposal of your vehicle.
In some cases however, the driver is unaware that they do have adequate insurance and to help clarify those grey areas GEM have produced a list of Myths and Truths:
Myth: You’re automatically insured to drive other cars if you have a comprehensive policy.
Truth: This is not always the case, as it can depend on your age or occupation. It is always best to check your policy beforehand.
Myth: You’re fully covered with a comprehensive policy if you have an accident whilst driving another person’s car.
Truth: A comprehensive policy will often only cover the damage to the car or object you hit, not the damage to the car you are driving. Always check the level of insurance your policy provides.
Myth: Third-party cover is cheaper than comprehensive.
Truth: Not true. Some insurers have raised rates for third-party because of the number of high-risk drivers who apply.
Myth: Non-fault claims won’t affect your insurance premium.
Truth: Even if you didn’t cause the accident, your premium can still rise.
Myth: You don’t need to inform your insurance company if you have less than six points on your licence.
Truth: All points have to be declared, even for previous offences, regardless of how long ago.
Myth: You’re always guaranteed a courtesy car if you have an accident
Truth: Not true. These are normally subject to availability, and in most cases only offered if your car is repairable and taken to the insurer’s approved repairer
David Williams concludes, “Safety is our top priority for UK drivers and we hope that motorists will listen to our advice and realise the importance of taking out adequate insurance, especially when it comes to being covered to drive other people’s cars”.
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On to matters of safety and our first stop is TyreSafe, whose campaign is gathering no moss as it continues to gain momentum with two further car manufacturers recently being added to its already impressive roll call.
Stepping up to the tyre safety mark are Peugeot and Citroën who join the likes of Mercedes-Benz, Jeep and Volkswagen.
Welcoming them to the fold, Stuart Jackson, chairman, TyreSafe pointed out both companies had confirmed their dedication to the cause already with their tyre pressure monitoring systems, customer education programmes and free tyre safety checks.
“We look forward to working with them in the future, ultimately to the benefit of all road users. Tyre safety is a message that cannot be ignored, so it’s great news to have such influential industry players joining our ever-expanding team” he said.
David Higgins, Peugeot Parts and Service Director commented “We are delighted to join TyreSafe and help spread the tyre safety message to our customers and staff alike. By combining our commitment to developing technological safety innovations and this key education platform, we hope we can make a positive contribution and reduce the number of road casualties that occur each year.”
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Staying with matters of safety we turn now to Brake’s ‘Too Young To Die’ campaign which is calling for secondary schools to register for Road Safety Week 2011 (21-27 November) at www.roadsafetyweek.org.uk and are offering ideas for schools to raise awareness (click on ‘educators’) and a free action pack including posters and factsheets.
This is a major annual national event and it is expected to attract thousands of schools, colleges, organisations and communities to take part. This year’s theme of ‘Too Young to Die’ will highlight the suddenness and violence of road accidents that all too often involve young people, whilst highlighting how they can be prevented.
Julie Townsend, Brake campaigns director, says: “Secondary schools and colleges can play such a crucial role in helping young people to stay safe on roads, and tackling the needless waste of young lives in crashes. We’re encouraging educators to use Road Safety Week to engage young people in road safety through creative activities, with young people taking the lead, and to consider how they can promote road safety more widely among parents and the local community.”
All of us here at FleetDirectory.co.uk wish them every success with the campaign.
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And finally…
The Highways Agency are politely but firmly telling us to ‘Bag It, Bin It’ as the North West agency branch removed 6,700 sacks of rubbish in the month of April 2011 alone!
Roads Minister Mike Penning said: "We have a simple ‘Bag it, Bin it!’ message: an easy way to help us reduce litter is for drivers to keep a bag in their vehicle to store rubbish, and dispose of it safely. If we all took this simple step, it would be a really positive move in tackling roadside litter."
The problem of roadside litter in not one simply of aesthetics, but one of pollution to the surrounding environment and wildlife.
Environment Minister Lord Henley said: “Throwing rubbish out of a car window is completely antisocial and unnecessary. It damages the environment, spoils other people’s enjoyment of the countryside and costs taxpayers millions of pounds each year to clear up.”
Keep Britain Tidy chief executive Phil Barton said: "It is not a problem that should be difficult to solve. Doing the right thing is easy and costs nothing. Everyone needs to simply take responsibility for their rubbish. Even when driving, it’s not difficult to put it aside and to bin it when you arrive.” He added: "It is time for us all to take some pride in our country – to love where we live."
Well said! So that’s it for this week, but we’d love to hear your comments and suggestions on any of the featured topics by using our comments section below. So until next week, keep safe – and tidy!
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