Industry pay rates heading in the right direction

FIncreased driver pay rates must be matched by a similar increase in freight rates.

IRSTLY, I WANT TO FURTHER REFLECT on the nationwide operator survey we undertook back in June and the encouraging signs of our industry’s increasing competitiveness in the labour market.

Eighty per cent of the 400 operators who responded had increased pay for their drivers over the last year with more than half having increased wages by at least 6%. The median hourly wage for our industry has moved from around $26 per hour from in March 2020 to over $31 per hour in 2022. There has also been a threefold increase in professional drivers being paid between $33 and $40 per hour.

Transporting New Zealand has shared our survey results publicly because we see it as an important vehicle to help change the public perception of the industry. Truck driving has traditionally been seen as a low paid, low skilled occupation, which is not a true reflection of the modern industry. If we want to attract more people to the industry, we need the public to understand what contemporary pay and conditions are like for truck drivers.

This rise in pay rates will ultimately serve the industry well in an ultra-competitive labour market, but must be sustained as the cost of living continues to bite for households right around New Zealand.

We also need our customers to understand what it costs to fairly and profitably transport their goods around the country. That means we need to be more transparent about where our cost pressures are and how they impact our businesses. The recent survey sought to do this by highlighting fuel and input cost increases as well as the considerable financial strain that operators are currently under.

Workshop to address livestock transport issues

The first Livestock Supply Chain Rōpū Charter Workshop was held in early August. Established to help address health and safety and animal welfare issues across the livestock supply chain, the workshop was hosted by Waka Kotahi and started positively with broad agreement across the various stakeholders on the key issues and suggested solutions. Following the two-day Waka Kotahi meeting, the National Livestock Transport and Safety Group developed a strategy in response to findings of the workshop.

For a long time, transport operators have the borne the brunt of scrutiny when it comes to the chain of responsibility around livestock transport. This has been unfair considering how much of the process is outside a transport operator’s control. Last year the National Livestock Transport & Safety Group developed a proposal to spread the load more fairly across the whole supply chain and address some of the key challenges faced by operators.

What we are seeking is for each business to recognise that what they ask their customers to do, the rates they pay, and the conditions they set, have a direct impact on the safety and performance of other parts of the chain.

After initial scepticism it is now obvious to all that these reforms are needed and that’s what we are now collectively working towards. While this is good news, I am frustrated that so much time has been lost getting to this point.

I will keep the industry updated as these discussions continue.

The Driving Change Diversity Champions participating in the workshop.

Driving Change Diversity Champions

Finally, I want to acknowledge and congratulate the recentlyannounced inaugural group of diversity champions nominated under the Road to success Driving Change Diversity Programme.

The 11 champions come from different backgrounds in the industry with some being professional drivers and others involved in management and business ownership roles. The inaugural Driving Change Diversity Champions are:

• Brianna Wilson (Class 5 driver, Philip Wareing Ltd) • Sheana Martin (Vehicle Recovery Operator, Parks Garage) • Mickayla Kerr (CEO, Heagney Bros)

• Jodi Mcnamara (Driver Trainer, H.W. Richardson Group) • Chelly Balasbas (HR Manager, Allied Concrete)

• Joshua Hart (Class 5 driver, Hart Haulage)

• Marthe Lute (Health and Safety Advisor, Alexander Group)

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Hayley Alexander (CEO, Alexander Group)

Jacqueline Smith (Managing Director/co-owner, Renwick Transport)

Lisa Gibson (Customer Operation and HSSE lead, Z Transport).

The programme and its champions are engaging in a package of professional development opportunities, including a recently-held workshop in Wellington, to build their skills and promote diversity stories to the transport industry and wider community. This, we hope, will encourage a positive perception of the industry and further help attract new and diverse people towards a career in transport.

The Driving Change Diversity Programme is an initiative sponsored by Teletrac Navman and supported by our friends at the Australian Transport Association.

T&D

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