Professional Documents
Culture Documents
2 PESTLE-ANALYSIS ON EU ROAD
TRANSPORT LABOUR MARKET 7
2.1 Political factors 7
2.2 Economic factors 12
2.3 Social factors 14
2.4 Technological factors 15
2.5 Legal factors 16
2.6 Environmental factors 22
5 REDUCTION OF DISCREPANCIES EU
ROAD TRANSPORT LABOUR MARKET 55
5.1 General solutions to discrepancies 55
5.2 Specific solutions to discrepancies road transport 55
5.3 Promoting inflow 57
5.4 Preventing outflow/diminishing labour demand 60
6 CONCLUSIONS AND
RECOMMENDATIONS 65
6.1 Sub-sectors and job types 65
6.2 Data and literature 66
6.3 Social dialogue 67
6.4 Road transport undertakings and policies 67
6.5 Demand and supply of labour and skills 69
6.6 Attractiveness of working in the sector 71
6.7 Education, training and certification 72
6.8 Conclusions: bottlenecks and risks 72
6.9 Policy suggestions 73
3
1 EU road transport labour market
1.1 Introduction
This is Annex 11 to the Analysis of the trends and prospects of jobs and working
conditions in transport, commissioned by JRC and conducted by Panteia in
cooperation with PwC Italy. The Annex contains both detailed information and
analyses on the specific transport mode - often distinguishing road transport -
and the transport sector at large which allow the report to be read as a stand -
alone document along the main report.
The Annex does not aim to give a complete new overview of the labour market in
road transport but gives the findings as were anticipated during the execution of
the study. In itself labour market issues and its description are not of static
nature and would require continuous updating.
5
1.3 Analytical framework
The external factors influencing the development of the labour market can be
identified by looking at six specific domains. The six dimensions are the
political, economic, social, technological, legal and environmental dimension,
together PESTLE. These six different dimensions can influence the situation
on the transport labour market to a large extent, though some are obviously
more important than others. The PESTLE-model provides, so to speak, a
common language to describe the challenges faced by the different actors.
The EU transport labour market has a demand side and a supply side.
The demand for labour has a quantitative side (number of jobs) as well as a
qualitative side (requirements on workers) and is being influenced by the
specific (labour market) characteristics of the sector.
Likewise, the supply of labour has a quantitative side (number of potential
workers) as well as a qualitative side (characteristics of workers, e.g.
competences).
An ideal sectoral labour market knows completely balanced demand and
supply. In the real world, however, this is mostly not the case: labour
shortages and redundancies cause problems for market agents. Hence, at the
centre of this analysis of the EU transport labour market is the discrepancies
model: the EU transport labour market is analysed according to the three
characteristics of market functioning: (1) quantitative discrepancies, (2)
qualitative discrepancies and (3) transparency of market functioning.
The chapters in this working document follow this struc ture, first the PESTLE
analysis is carried out. This is followed by description of supply and demand. This
is followed by a description of the discrepancies in the labour market. Thereafter
strategies to reduce discrepancies are discussed. Finally this lea ds to the main
findings within the specific labour sub-market, these are brought forward to the
main report.
6
2 PESTLE-analysis on EU road transport
labour market
This section describes contextual factors influencing the EU road transport labour
market, the so-called PESTLE-factors: political, economic, social, technological,
legal and environmental factors. By differentiating into these elements of the
PESTLE-analysis a better and structured insight is obtained in the contextual
factors.
The following political factors play an important role for the EU transport labour
market as a whole:
EU Enlargement, Single Market and Market liberalisation : Transport
companies increasingly make use of more affordable labour from new
Member States and establish subsidiaries in those countries.
Remaining protectionism: Some Member States show in specific areas a
poor record of transposition and effectuation of EU market liberalisation
policy.
Integration of transport system: The EUs political objective is to
transform the European transport system into an integrated, sustainable and
efficient mobility network.
Central role of social dialogue in EU transport labour market: Social
dialogue figures as a central instrument of governance in the transport labour
market in the European Union and its Member States. At EU-level Sectoral
Social Dialogue Committees play a central role.
Political priority of Life Long Learning (LLL): LLL helps employees to
adapt to the changing circumstances in and requirements of their respective
professions.
Europe 2020 and Flexicurity: Flexicurity consists of ensuring no longer a
job for life ("job security") but of ensuring "employment security" thanks to
active employment policies and an appropriate safety net when one has lost
his/her employment.
Political priority of ecological focus: Emphasis on decarbonisation and
energy security leads to a modal shift and the introduction of alternative
energy and propulsion systems in transport means.
Market liberalisation
Over the last decade road freight transport in the EU-27 has seen considerable
activity growth (and hence employment growth), and an increase in competitive
pressure has been at work, also following the enlargement of the EU. This has
kept profit margins decreasing, despite remarkable increases in the industrys
turnover and productivity (even though load levels are still very low in certain
market segments). Considerable differences are to be seen among EU Member
7
States in both operating costs and investment rates, with new Member States
exhibiting lower average personnel costs than the old Member States, but higher
investment rates.
In their views expressed jointly with the ETF, the International Road Transport
Union (IRU)2 recognises that further liberalisation of road transport would be
very difficult to accept, unless further harmonisation of social and tax regimes
and enforcement on the current set of legislation will be implemented.
Otherwise, it will be counterproductive and only highlight and aggravate
problems in the social conditions. On the other hand, one should not forget the
road haulage is still a business that needs to compete and cost cutting is a
normal aspect of doing business.
UITP is also of the opinion that further liberalisation is not needed. They consider
it strange to reopen the dossier on what local authorities can decide upon.
UITP does not see a link between market liberalisation and working conditions in
urban public transport. UITP promotes quality of service and quality of work. The
main decisive factor for social conditions is the quality of the management.
A general issue that is highly valid for taxi drivers and chauffeurs is the
discussion whether they are (or should be) employees or self -employed. Fake
self-employment is said to be a serious problem. However, there is very little or
no data on this issue.
1
Sitran, A. & E. Pastori (2013). Social and working conditions of road transport hauliers.
Commissioned by the European Parliament, Directorate General for Internal Policies.
2
See social dialogue library entries for joint statements of EU social partners:
http://ec.europa.eu/social/main.jsp?catId=521&langId=en&day=&month=&year=§or
Code=SECT23&themeCode=&typeCode=&recipientCode=&keyword=&mode =searchSubmi
t
8
operate entirely from the old Member States, since most of the road transport
activity is carried out here.
Competition exists, but we dont experience unfair competition. It is actually like a level
playing field.
We do not experience competition on the labour market. We do not expect that to happen in
the near future. We will be able to find competent personnel and train them on the job .
There are reported issues with subcontracting within concessions. There is some
evidence of urban transport companies and taxi companies that subcontract
some of the work that falls within the framework of their concession. These
subcontracts typically require employees to work under worse conditions and at
lower pay than employees that work directly for the holder of the concession.
These lower conditions are typically not easily visible and are usually not
monitored or controlled. This could be an area where chain -responsibility to
avoid social dumping could be explored of as a possible solution.
Social dialogue
European social dialogue in this sector covers passenger and freight transport by
road. The Sectoral Social Dialogue Committee Road Transport comprises the
employers organisation International Road Transport Union (IRU) and the
employees' organisation European Transport Workers' Federation (ETF). IRU has
signed a cooperation agreement with the International Association of Public
Transport (UITP) with regard to its participation in the committee.
9
The Committee is currently (2013-2014) focusing on:
Better rest facilities;
Logistics qualifications;
The driver training directive;
Better enforcement of EU driving and rest time rules;
Driver shortages, image and recruitment in road transport;
The European Skills, Competences and Occupations Project (ESCO);
Illegal employment;
Urban public transport. 1
One must as a general principle be realistic about what social dialogue can
do. Social dialogue is an instrument to gain agreement, but it is not the way for
the Commission to tell partners what to do. Furthermore, because of the
atomised structure of the road transport sector the vast majority of companies
are SMEs. This means that marginal changes (can) have major consequences for
(companies in) the sector. The road transport sector is also characterised by
small companies and social dialogue is limited. There is also a lot of competition.
According to IRU, Sectoral Social Dialogue goes quite well. Though reaching
agreement in the negotiations is always difficult, all-in-all there are no serious
problems. The Sectoral Social Dialogue is showing convergence of views.
Common views have been drafted and policy scenarios have been formulated and
1
Sectoral Social Dialogue Committee Road Transport (2012). Working Programme 2013-
2014.
2
http://ec.europa.eu/social/main.jsp?catId=480&langId=en&intPageId=1850
3
In line with the principles of the Social Dialogue, if they social partners can agree on
these social standards, the Commission then formalises these agreements in legislative
acts. Partners are afraid of certain clashes, they cannot agree and social dialogue grind to
a halt. In the particular case of the 2002 sectoral working time directive this happened.
The Commission had to step in and propose its own minimum social requirements.
10
provided to the Commission. Best practices are projects run together with ETF,
such as TRACE 1 on enforcement and STARTS 2 on skills and training.
In the view of UITP, the process of Sectoral Social Dialogue in urban public
transport which has been going on for ten years - has not been very
satisfactory as it is included in the road transport dialogue. Urban public
transport should have its own dialogue as it represents 1.2 million jobs.
They also indicate that lack of political will can sometimes be a problem at EU
Commission level. In their view the EC disregard the lack of enforcement of key
directives and regulations such as the working time directive and the regulation
on access to occupation. The latter was which was supposed to eradicate the
letter box companies which still exist today, in an even bigger number than a
few years ago. However, in general enforcement is a Member State competence
and the EC follows up on implementation of these pieces of legislation, for
instance by launching infringement procedures against M ember States which
don't apply the Working Time Directive to self-employed personnel which are not
connected to European Register of Road Transport Undertakings (ERRU), or by
asking Member States to carry out targeted checks of companies not complying
with the stable establishment criterion of Regulation 1071/2009.
Regarding enforcement the High Level Group on the Development of the EU Road
Haulage Market3 (2012) indicated that enforcement in road freight transport has
proved to be particularly challenging due to the intrinsic characteristics of the
sector. It is a service sector and less easy to control than other sectors such as
manufacturing, it is also highly mobile in space and time. Cabotage is by its
nature even less predictable in terms of its operations than international
transport, depending as it does on the matching of empty returns and local
demand, and the information linking these two components. The limit of three
1
http://www.traceproject.eu/
2
http://starts.iru.org/en_home
3
An important input for this study are the Report of the High Level Group on the
Development of the EU Road Haulage Market (2012) which was chaired by B T Bayliss .
The High Level Group was mandated to examine the extent to which the necessary
framework conditions for the full opening and integration of the EU market have been
achieved and, if relevant, what remaining obstacles needed to be tackled. The High Level
Group identified and researched four key obstacles to the creation of a Single European
Transport Area, namely driver shortage, enforcement practices, cabotage practices and
lack of innovations and applications of good practice.
11
cabotage operations permissible following an international trip is seen as
particularly difficult to enforce. 1
As discussed in the main text of this report, the following economic factors play
an important role for the EU transport labour market as a whole:
General economic growth and the crisis: The current economic and
financial crisis lowers demand for transport services and leads to the
postponement or halting of investments in transport, infrastructure and
business in general. It also leads to rationalisation and outsourcing.
Furthermore, it creates high unemployment in the economy as a whole in
some countries which puts pressure on labour markets.
Geopolitical changes and globalisation: Geopolitical changes and
globalisation of economies and trade lead to redistribution of transport flows,
increasing transnational recruitment and impact on transport prices and
wages.
Regional differences in economic development & specialisation:
Successful regions specialise in a number of economic areas, leading to
specific development in transport
Congestion hampering and redistributing growth: Congestion of road
transport routes, but also specifically in urban areas, will increase and
seriously affect accessibility.
1
Sitran, A. & E. Pastori (2013). Social and working conditions of road transport hauliers.
Commissioned by the European Parliament, Directorate General for Internal Policies.
2
EESC (2011), TEN/445. Social aspects of EU Transport Policy.
3
Eurofound (2004). EU road freight transport sector: Work and employment conditions.
4
Steer Davies Gleave (2013), Development and implementation of EU road cabotage,
prepared for Directorate General for internal policies policy department B: Structural; and
cohesion policies transport and tourism
12
economic differences between the old and new EU Member States have not
been reduced, unrestricted cabotage will have too much of a negative effect
on the sector in various countries. Infringements of the cabotage rules
(which imply distortion of the competitive level playing field) are an
additional problem which are frequently mentioned although hard evidence is
not publicly available.
Moreover, the sector is also characterised by a particular susceptibility to the
economic climate. The current economic crisis in the EU has had a negative
impact on growth of road freight transport.
To the consequences of the economic crisis, the impact of other external
factors such as high fuel prices has to be added. 1
On the other hand, the transport of persons, a public service in many
Member States, is generally less affected by economic crises. 2
Commission staff notes that road transport activities have actually started to
increase again in recent years following a sharp drop with the economic crisis
(+3% in tkm between 2009 and 2010, with total volumes albeit still below pre-
crisis levels).
In the opinion of IRU, at the moment the impacts of the economic crisis are
paramount. As a result of the economic crisis, demand for transport and thus
demand labour in the sector are lower. As a result, also the labour shortages are
temporarily lower. It remains unsure when the economy will move upward again.
Economy has huge impact especially the cost of fuel. Every year the cost fuel ration increases
in our cost breakdown. Fuel prices together with the demand of EU customers demand for cost
reduction give a mixture of killing transport companies. Most of the people are able to buy an
expensive car, but most of the manufacturers would like to pay minimum for transport. Good
transport service should have the same high value as the transported goods. Our employees
would like to buy luxury goods, too. So our income as company should give them safety of life .
Because of the economic circumstances and the power of the market (multinationals for
example), our drivers experience more pressure. On the other hand, press ure from shippers
who have more logistic requirements will cause longer waiting times. We should do something
about this productivity problem.
1
EESC (2011), TEN/445. Social aspects of EU Transport Policy.
2
Eurofound (2004). EU road freight transport sector: Work and employment conditions.
13
2.3 Social factors
As discussed in the main text of this report, the following social factors play an
important role for the EU transport labour market as a whole:
Demographic development: Growing population (even if slowly, means
more demand for transport of passengers and thus more demand for labour)
and an ageing workforce (less supply of labour)
High level of unemployment in many EU countries: This puts a downward
pressure on wages and working conditions and may make that past training
and formation of the unemployed becomes obsolete or forgotten.
Underrepresentation of women in the workforce: As a result of difficult
working conditions, stereotypical masculine image of the transport sector and
disadvantageous work-life balance not many women are attracted to the
transport sector.
Continuous monitoring of employee performance: Increased control over
employees performance - made possible by IT developments can lead to
perceived pressure and possibly create stress.
Violence in the public domain: Violence has also manifested in the
transport sector and is particularly reported in the passenger transport sector.
Organised crime: The transport sector suffers from crime increasing
organised crime, especially in road freight transport and maritime transport
(piracy).
Development of a liability culture: Transport employees are facing legal
action when incidents occur under their responsibility.
Urbanisation
About half of the worlds population currently lives in urban areas. The worlds
urbanisation rate is growing steadily and it is set to reach 70% in 2050. Cities
are thus becoming evermore crucial for economic development and job creation.
The harmonious development of cities critically relies on efficient mobility and
high quality public transport. UITP has addressed this challenge by setting out
the ambitious objective of doubling the public transport market share worldwide
by 2025 2.
1
Openness of International Road Freight Transport Markets in the UNECE Region, Economic
Commission for Europe Inland Transport Committee Working Party on Road Transport
107th session, Peter Krausz dr. oec. univ., consultant, mandated by the Transport
Division of the United Nations Economic Commission
2
UITP (2013), Observatory of employment in public transport. Report 1 - April 2011.
14
Organised crime
The road transport sector, in particular the road freight transport sector,
increasingly suffers from organised crime. Amongst others, this is due to longer
days on the road and sleeping in trucks on unsecured parking areas. This
increasing organised crime is detrimental for both the job quality and image of
the transport labour market.
As discussed in the main text of this report, the following technological factors
play an important role for the EU transport labour market as a whole:
Increasing use of IT
Technological innovations
Faster and larger transport means
Intermodality: Making use of the advantages of different transport modes
(e.g. between rail and road) that are neatly tuned to each other, thus keeping
transfer time and cost (for passengers and freight) between the different
modes at a minimum.
Commission staff points at the fact that, as intermodal transport has been
embraced by many, logistics training must be adapted to this principal. This is
also discussed in the Sectoral Social Dialogue Committee.
1
Eurofound (2004). EU road freight transport sector: Work and employment conditions.
15
2.5 Legal factors
As discussed in the main text of this report, the following legal factors play an
important role for the EU transport labour market as a whole:
Different social regimes between Member States: In general wages,
working conditions and social security are less favourable in new Member
States compared to the other Member States. As discussed in the main text,
this may lead to social dumping of which little evidence, but a great number
of actual suspicions and cases is available.
Different social legislation between transport modes: Besides horizontal
EU social legislation, transport modes have their own social regulat ions
(especially in the field of (harmonisation of) training and certification and
working times). EU specific regulations on the phenomenon of false self-
employment are still lacking. A problem remains the enforcement of the EU
Directives at national level.
Non-EU workers under lower standard legal regime: The co-existence of
non-EU-workers carrying out intra-EU transport, who may choose as State of
Residence a Member State with less favourable legal and social regimes, has
an impact on average working conditions and remuneration packages.
Although non-EU workers must always be subject for a start to the legislation
of a Member State, they easily fall prey to illegal practices. Their weight on
labour supply reduces the negotiating position of the other workers.
Safety regulations to protect both transport workers and society: As a
result of EU safety regulations the safety conditions for transport workers and
society at large (i.e. passengers and other road users) have increased.
Social legislation
16
standards and certificates are expected to lead to a geographical and intra-
market increase in mobility of workers.
Regulation (EC) No 484/2002 of the European Parliament and of the Council of 1
March 2002 amending Council Regulations (EEC) No 881/92 and (EEC) No
3118/93 for the purposes of establishing a driver attestation (Drive Licence).
This regulation aims to establish a uniform Community attestation permitting the
effective checking of the regularity of the employment status of drivers from
third countries employed by hauliers in the MS and engaged in the internati onal
carriage of goods. This Regulation was repealed by Regulation (EC) No
1072/2009 on access to the international road haulage market. This Regulation
also sets down the conditions for issuing Community licenses. It repeals
Regulations (EEC) No 3118/93 and Directive 2006/64/EC.
Besides improved road safety, the objective of Directive 2003/59/EC is also the
enhancement of the quality of the profession. In the view of the EESC, this is a
good example of a regulatory measure that will have a further positive impact on
the status of the driver ultimately helping to make the profession more
attractive, especially as substantial technological progress in this sector requires
highly skilled professional drivers. However, all now depends on the Membe r
States' implementation of the directive. The challenge consists in establishing
sufficient, high-quality training provision, a quality training curriculum and the
funding of initial and continuous training. With regard to the latter, practices
have emerged whereby costs of the initial and/or continuous training are
imposed on the driver, which will only render, in the mid -term, recruitment
problems in the sector more severe 1.
A specific topic is also the relation between the Rome I Regulation and the
Posted Workers Directive. The Rome I Regulation (Regulation (EC) No 593/2008
of the European Parliament and of the Council of 17 June 2008 on the law
applicable to contractual obligations) is a regulation which governs the choice of
law in the European Union. The EU Posted Workers Directive (96/71/EC) is an EU
directive concerned with the free movement of workers within the European
1
EESC (2011), TEN/445. Social aspects of EU Transport Policy.
17
Union. It makes an exception to the Convention on the Law Applicable to
Contractual Obligations 1980, which ordinarily requires that workers are
protected by the law of the member state in which they work. After a
controversial set of decisions by the European Court of Justice, the Directive has
come under criticism for reducing rights of posted workers and undermining the
rights of workers in a home nation. There have been criticisms that employees
are suffering lower social protection by creative use of the legal framework by
employer, which in some cases is considered abuse by employee representatives.
To protect workers health and safety, minimum rules are needed on working
time in all EU Member States. For all the sectors, the basic Directive is Directive
2003/88/EC of the European Parliament and of the Council of 4 November 2003
concerning certain aspects of the organisation of working time (in short: the
Working Time Directive, see main text). European Community has set specific
regulations on driving time and rest periods in road transport, international
railway transport and air transport. In road transport, the general working time
directive applies to some road transport workers who are not covered by the
provisions of the specific road transport working time directive (see below) such
as small commercial vehicles (less than 3.5 tonnes or less than 10 passengers,
including a driver) or regular passenger transport services whose route is less
than 50 km.
The latest biennial implementation report (2009-2010) shows that the general
effectiveness of enforcement is gradually improving and so is the correctness of
implementation of the legislation. The increasingly widespread use of the digital
tachograph and the package of measures adopted by the Commission in 2009
18
aimed at detecting and preventing abuses of the tachograph system have played
a significant role in such positive developments. 1
Working time
Directive 2002/15/EC of the European Parliament and of the Council of 11 March
2002 on the organisation of the working time of persons perform ing mobile road
transport activities lays down minimum requirements with regard to the
organisation of the working time for all persons performing mobile road transport
activities, including self-employed drivers, in order to improve road safety,
health and safety of drivers, and prevent distortion of competition. It also
supplements the provisions of the abovementioned Regulation (EC) 561/2006
which lays down common rules on drivers' driving time and rest periods. More
particularly, it contains the following general provisions:
Definitions of working time, periods of availability, workstation, mobile
worker, self-employed driver, week, night time and night work;
Maximum working week: 48 hours (this can be extended to 60 hours
provided an average of 48 hours per week is not exceeded in any 4 month
period);
Breaks: not more than 6 hours should be worked consecutively without a
break (at least 30 min when 6 to 9 hours are worked per day);
Rest time: the provisions of Regulation (EC) 561/2006 are maintained;
Night work: not more than 10 hours worked in any 24-hour period when a
night shift is performed.
The rules are applicable to all mobile workers from 23 March 2005, while self -
employed drivers were temporary excluded until 23 March 2009. A proposal for a
Directive by the Commission to make this exclusion permanent while tackling the
problem of false self-employed drivers was rejected by the European Parliament.
An assessment of the impact of the working time directive on collective
bargaining in the road transport sector concluded that the current working time
rules combined with enhanced clarity of the scope of the Directive and
accompanied by clear enforcement rules will reduce distortion of competition and
enable better social protection of workers and assimilated groups. 2 Working time
rules are thus applicable to all drivers, including self-employed ones, as of 23
March 2009.
1
European Commission (2012). Report on the implementation in 2009-2010 of Regulation
(EC) No 561/2006 on the harmonisation of certain social legislation relating to road
transport and of Directive 2002/15/EC on the organisation of the working time of persons
performing mobile road transport activities (26th report from the Commission on the
implementation of the social legislation relating to road transport).
2
Source: Commission staff working document - Impact assessment accompanying the
proposal for a directive of the European Parliament and of the Council amending Directive
2002/15/EC of the European Parliament and of the Council of 11 March 2002 on the
organisation of the working time of persons performing mobile road transport activities
{COM(2008)650} {SEC(2008)2631} /* SEC/2008/2632 */. See also other relevant
(underlying) documents: Eurofound (2007). Impact of the working time directive on
collective bargaining in the road transport sector. Other relevant older documents in
this respect are: COM(2007) 266 final. Report from the Commission to the council and
the European Parliament on the consequences of the exclusion of self employed drivers
from the scope of the Directive 2002/15/EC of the European Parliament and of the
Council of 11 March 2002 on the organisation of the working time of persons performing
mobile road transport activities; TNO (2006). R0622373/018-31364; Road Transport
Working Time Directive Self-employed and Night Time Provisions.
19
Achievements, difficulties and deficiencies in EU social legislation
According to the EESC the road transport sector benefits from its own social
legislation. The chief problem is the failure to enforce working, driving and rest
time regulations, although legislation has been improved and more checks are
carried out. The same is true for the application of the posted workers' directive
for road transport workers engaged in cabotage services 1. In the main report
some examples are provided.
It was mentioned that when the driving times Regulation was being revised the
Commission proposed the enforcement directive (now 2006/22/EC) which would
cover also controls of the working time directive 2002/15 the Council did not
agree to it. Hence the lack of enforcement of the working time is not only due to
the type of the legislative act but rather low attention or lack of control
arrangements in Member States which is linked to the lack of the EU specific
requirements on it.
Also Member States differ in ways and capacity to enforce the rules. The current
situation discourages new drivers as many companies break the rules, set up
disruptive work patterns and set drivers up to unlawful practices (not abiding
with legal framework).
Commission staff also points at (the involvement of the social partners in) the
current review of Regulations (EC) No 1071/2009 and 1072/2009, which state
rules on cabotage services. These regulations have an effect on labour costs and
working conditions. According to IRU, lack of clarity of these regulations
remains. IRU still has to explain to the market what was discussed and agreed
upon in 2009.
1
EESC (2011), TEN/445. Social aspects of EU Transport Policy.
2
The driving time rules are also better enforceable because te chnical measures such as the
tachograph make it much easier to check drivers. Working time rules, however, are much
harder to check as drivers can have other duties than driving, and these times are not
registered.
20
The most pressing deficiencies in the opinion of IRU concern rising demands and
costs associated with the directive on initial qualification and periodic training of
drivers. There are differences between the Member States whether the country,
the companies or the drivers themselves have to pay. There is also a clear lack
of harmonisation in training models, leaving room for manoeuvre. In general,
price is the winner, which means lower quality. There are fake certificates out
there (including ADR certificates for transport of dangerous goods), leadin g to
non- recognition by some Member States. There is a need for revision and
improvement of the supervisions quality. The problems are documented in the
STARTS-project 1 and a comparative study by the Commission.
UITP considers the directive on initial qualification and periodic training of drivers
to be sufficient.
Regarding urban public transport, ETF points at the missing driving/rest times
regulation and the lack of enforcement of the existing regulations.
1
Skills, Training And The Road Transport Sector (STARTS), Pillar 1 Survey on driver
training issues / Implementation of Directive 2003/59/EC prepared by Transport and
Logistics Research Department (DETL) for DG EMPL (2012).
2
The Commission argues that since before the sunset clause of Dir 2002/15 kicked in, self-
employed drivers (like all other self-employed workers) were excluded from the scope of
Dir 2002/15 and could work as long (or little) as they pleased. There was therefore never
an obligation to work an 80 or 86 hour week. They were/are however subject to the
driving time and rest periods of Reg 561/2006 like all other drivers. In any case they are
now subject to the working time restrictions of Dir 2002/15 which makes such a working
week impossible, although it is difficult to see how this can be enforced
3
ETF (2010), The ETF contribution to the future European Commission Road Safety Action
programme for the period 2011-2020.
4
In road transport, still a large number of letterbox companies exists. The have not been
closed down by the Member States. An example of this is Denmark in which the
enforcement of the regulations in this field has been problematic.
5
Member States are obliged to set up national electronic registers of road transport
undertakings and to establish an interconnection between these before 31 December
2012 under Regulation (EC) No 1071/2009, but not all of them are interconnected. The
Commission is taking measures, including infringement procedures and is supporting
Member States in solving technical difficulties related to interconnecting registers.
21
working and rest time directives at EU level and the rules on cabotage. For the first mentioned
category of rules we would like to see that the provisions allow more flexibility fo r drivers to
choose their rest times. For instance, if a driver may choose to rest at home and not a
mandatory stop in e,g. Spain, this may greatly increase his work/life balance. The 2009
regulation on cabotage is often attacked for being hard to enforce. We agree, but it is up to the
member states to take up this challenge. Our position is that cabotage services should be
liberalised, in a step-by-step fashion, especially if we, as Europeans, want a common market.
We would like to see that legislation gives transport companies the possibility and environment
to make business instead of blocking it. We hope we get no new limitations by the European
Commission, so theres a need of further deregulation.
On the other hand, there is a need for more socia l legislation for drivers. The European
Commission should participate in the discussion of, for example, the AETR. In our opinion, it is
important to make more social legislation for (truck) drivers like decreasing hours, and longer
rest times. We should give the drivers the possibility to have a reasonable time for a rest that
allows him to work efficiently. A driver has to wait 45 hours far away from home just to fulfil
the legal regulations.
Source: Enterprise survey by Panteia/PWC
As discussed in the main text of this report, the following environmental factors
play an important role for the EU transport labour market as a whole:
Implementation of (EU and national) sustainability policie s: Emphasis
on sustainability increases and affects job requirements in the transport
sector.
Modal shift and clean power transport: There is shift towards cleaner
modes of transport and cleaner technologies within each mode with an
increasing demand for public transport and electro-mobility.
Eco-driving, consolidation of flows and smarter logistics: These
developments affect both job requirements and labour demand in the
transport sector
Employment potential of Green transport Europe needs to change to a
green, low carbon and resource efficient-economy. Transforming the economy
in this direction will provide an important source of jobs if the right skills are
provided. The Commission has developed this subject under its "Towards a
job-rich recovery" Communication 1. The Commission also participates in THE
PEP: This UNECE partnership aims at exploring new options for job creation
and economic development, and maximising at the same time the potential
gains for environment and health through innovative transport policies.
1
http://ec.europa.eu/social/BlobServlet?docId=7619&langId=en
22
2.6.2 Specific con text EU road tran sport labour market
1
UITP (2013), Observatory of employment in public transport. Report 1 - April 2011.
23
3 EU road transport labour market trends
This section describes trends in demand for and supply of labour on the EU road
trasport labour market.
As discussed in the main text of this report, the following trends hold for the EU
transport labour market as a whole:
Employment (number of jobs): Following upon a long period of
employment growth, in 2009 and 2010 in the EU 27 the transportation and
storage sector showed a decrease in employment. In 2010, the total number
of occupied persons in the transportation and storage sector (excluding
postal and courier activities) amounted to 9,344,700 (against 9,433,500 in
2009 and 9,571,00 in 2008). In 2010, more than half of the occupied persons
(56.4%) worked in road transport and nearly a third in logistics (29.0%).
Labour mobility: As concerns labour mobility, people can move from job to
job within the same transport company, from company to company within the
same transport (sub)mode, between different (sub)sectors and/or between
different regions or countries (geographical mobility).
Number of vacancies: Compared to employment figures, vacancies are
much more vulnerable to cyclical factors and economic conditions and must
be interpreted as such. For the EU-27 the figures point towards a decline of
labour demand in transport for the period 2008-2011. No recent figures on
vacancies are available. Expectations are that after the economic crisis
labour demand will rise again.
Job requirements/ job types: In the transport sector, there is a general
trend towards job polarisation (employers mainly look for highly or lowly
qualified workers, not for medium qualified workers). Furthermore, demand
for IT personnel and multi-skill jobs increases. At all skill levels, most jobs in
demand will be more and more characterised by non-routine tasks which are
not easily replaced by technology or organisational change.
Prognoses labour demand 2020: Future employment trends in transport
depend on a number of factors such as the development of trade and
economic activities, an ageing population and people's mobility patterns,
technological developments, energy availability and prices, measures towards
sustainable transport, alternative transport modes etc.
In the period 2010-2020 total employment in the transport and storage
sector in the EU-27 is expected to decrease with annually 0.1%; the
decrease being concentrated in non-transport related labour. Significant
employment losses are expected in warehousing and support activities. Land
transport is on average, whereas employment increases in water transport
and air transport.
Overall, employment of transport-related occupations is expected to remain
constant over the next decade. Results per occupation are closely related to
the employment results for individual sectors of industry. Results per
occupation are closely related to the employment results for individual
25
sectors of industry. For instance, the significant increases for air controllers,
air traffic safety technicians, aircraft pilots, conductors (to some extent) and
travel attendants are closely related to the employment increase in air
transport. Similar reasoning applies to ships personnel. Conversely,
employment of land transport related occupations is expected to decrease.
3,00
2,50
2,00
1,50
1,00
0,50
0,00
-0,50 2003 2004 2005 2006 2007 2008 2009 2010
-1,00
-1,50
-2,00
26
Table 3.1 Employment (occupied persons, in 1000s) in road transport and
transportation and storage (excl. postal and courier activities) as a whole,
EU 27, 2008, 2009 and 2010
Land transport and transport via pipelines 6020,7 6036,3 5977,3 -59,0
Freight transport by road and removal services 3124,1 3132,8 3101,3 -31,5
In 2010, road transport (including urban public transport) accounted for 56,4%
of the employment in the sector transportation and storage (excl. postal and
courier activities) as a whole in the EU 27. 5,269,000 persons were occupied in
road transport (against 5,321,900 in 2009 and 5,307,500 in 2008). A majo rity
(3,101,300) of the employment in road transport in 2001 is in fr eight transport
by road and removal services and a minority (2,167,600) in passenger land
transport other than interurban rail transportation.
Looking at land transport and transport via pipelines as a whole, figure 3.1
shows that, in general, employment development is less favourable than in the
sector transportation and storage (excl. postal and courier activities) as a whole.
However, in this respect the year 2009 is a-typical.
The road freight transport sector positions itself as the dominant freight mode
covering three quarters of the total market. Over the last decade road freight
transport in the EU-27 has seen considerable activity growth. The accession of
the twelve new Member States has extensively contributed to this. The gradual
opening of the internal market, the stronger economic growth of the new
Member States and the increase in the specialisation of the production
processes, inducing larger flows of goods, have led to an increased demand for
freight transport in general. It has also led to greater differences in labour costs
across the Member States, with the risk of downward pressure on wages, and to
stronger competition.
The road freight transport sector is a major employer in the EU. Employment in
this sector has been increasing at a faster rate than total employment, but is
markedly differentiated across EU Member States, being particularly significant
in the New Member States and in those countries where the initial employment
was lower.
27
Employment in road freight transport is further characterised by amongst others:
Considerable geographic concentration of the activity (more than the half of
total goods transport in tkm is accounted for by Germany, Spain, France and
Italy)
High degree of market fragmentation (from 65% to over 95% of companies
have less than ten employees), where a few big players tend to dominate the
market, working in close cooperation with freight consolidators such as
shippers and freight forwarders, and subcontract various activities to
medium-size and small companies.
A large share of self-employment (19.6% on average in the EU-27)1;
A limited variety of occupations: drivers account for a very high share of
employment (reaching almost 70% of total employment in some EU
countries). 2
In the EU-27 about 1,2 million workers are employed in urban public transport.
The majority (55%) of them are drivers. The number of employees of public
transport operators in the EU-27 decreased by just under 4% between 2000 and
2010, which corresponds to a loss of about 45,000 jobs. However, a closer look
at this development reveals that the number of employees started increasing
again in 2007, rising by about 3% between 2007 and 2010. The overall decrease
in employment in the period 2000-2010 is largely due to labour productivity
gains during the decade. It is plausible that part of the decrease in the number
of employees of operators is due to an increase in volumes of subcontracting 3.
Within land transport (rail, road) and transport via pipelines , the share of young
workers (15-24 years of age) is less than the EU overall average (see figure
3.2). The share of workers aged 24-49 equals approximately the EU overall share
of workers aged 25-49 and the share of workers aged 50 years or older exceeds
the EU overall share. Ageing seems to be an issue.
1
The proportion of self-employed drivers in the road transport sector varies significantly
between countries, ranging from as high as almost 100% in Malta to as low as 1% in
Luxembourg. See: Eurofound (2007). Impact of the working time directive on collective
bargaining in the road transport sector.
2
European Parliament (2009), Shortage of qualified personnel in road freight transport.
3
UITP (2013), Observatory of employment in public transport. Report 1 - April 2011.
4
EESC (2011), TEN/445. Social aspects of EU Transport Policy; European Parliament
(2009), Shortage of qualified personnel in road freight transport.
28
Figure 3.2 Age of employees in land transport 1 (2010)
In land transport (rail, road) and transport via pipelines the share of male
workers largely exceeds the share of female workers. More t han 80% of all
employees in water transport are male (see figure 3.3).
Labour mobility
In urban public transport, labour turnover of drivers (i.e. the sum of drivers
entering and leaving the organisation during one year divided by the total
number of drivers at the beginning of the year) is about 12%. This relatively low
figure denotes the stability of the drivers job 3.
1
subsector land transport (rail, road) and transport via pipelines
2
Ibid
3
UITP (2013), Observatory of employment in public transport. Report 1 - April 2011.
29
UITP points at language problems as a hindrance for international job mobility in
urban public transport.
These changes in job content have entailed new schemes in the organisation of
work, which are far more codified and standardised than ever. Therefore, drivers
must be better trained to perform the increasingly specialist and segmented
tasks in road freight transport 2.
According to ETF, the modernised lorry requires higher level of proficiency. Also
the dignity of the driver has to be preserved. A professional driver is a highly
qualified individual who acts to defend the safety of both transport operations
and European citizens alike more dignified consideration. However, in some
Member States such as Hungary being a professional truck driver still is not
considered as a skilled job.
1
Eurofound (2004). EU road freight transport sector: Work and employment conditions.
2
European Parliament (2009), Shortage of qualified personnel in road freight transport .
30
from expected production which is exogenous and relative factor prices
assuming profit maximising behaviour by enterprises.
Table 3.2 gives a summary of the results of the forecast for production, labour
productivity and employment in EU10 for the transport sector as a whole and the
subsector land transport (rail, road) and transport via pipelines.
table 3.2 Summary results employment scenario 2010-2020 for EU10, transport
sector as a whole and subsector land transport and transport via pipelines
transportation and storage excl. postal and courier activities; NACE Rev. 2 49 -52
2010/'15 2015/'20 2010/'20
average annual change in %
real gross value added (f.c.) 1.2 1.3 1.2
labour productivity 1.4 1.3 1.3
total employment -0.1 -0.0 -0.1
Source: Panteia
The expected decrease in employment in the subsector land transport (rail, road)
and transport via pipelines is comparable to the expected decrease in
employment in the transport sector as whole (in 2010-2020 annually -0.1%).
The 10 countries under review make up 73% of total employment in the EUR27
transport sector. Considering this, employment results for EU10 have been
inflated to EUR27 by applying EU10 occupational-specific growth rates to 2010
employment levels for EUR27 (see table 4.1 in section 4.1).
1
Besides these categories a.o. also freight handlers, motorcycle drivers and transport
conductors are of relevance for road transport.
31
3.2 Trends in supply
As discussed in the main text of this report, the following trends hold for the EU
transport labour market as a whole:
Workforce EU transport: Total labour supply in transport-related
occupations amounts to 11.2 million persons in EU27 in 2010. On average,
two third has a job in the transport sector, others are working in other
sectors of industry or are unemployed.
Ageing and the gender issue: Ageing: The demographic pattern in
transport is worrying: within ten to fifteen years a substantial part of the
labour force will move into retirement. The gender issue: The transport
sector is largely male-dominated. Besides this male working culture, also the
less favourable job quality (employment and work quality) is a hindrance for
women to work in the sector.
Labour market reserves: Labour market reserves comprise amongst others
the following categories: unemployed, returners, potential employees
currently working in other sectors (horizontal inflow) and labour migrants. As
concerns labour migrants, apart from Eastern EU nationals working in
Western Europe, an important development is the increasing deployment of
3 rd country nationals in the EU transport sector.
Prognoses labour supply 2020: To forecast the labour supply for
transport-related occupations in the period 2010-2020, two scenarios have
been used. Scenario 1 keeps the current rates by age and occupation
category constant. Scenario 2 assumes that for the 2010 cohorts
participation rates do not change except for the oldest group. In scenario 1,
total supply for transport-related labour decreases from 11.6 million persons
in 2010, to 11.5 million persons in 2020, this is an average decrease of 0.1%
annually. In scenario 2 the labour supply for transport-related occupations
increases from 11.5 million persons in 2010, to 13.2 million persons in 2020,
i.e. by 1.3% annually.
1
European Parliament (2009), Shortage of qualified personnel in road freight transport.
32
Ageing and the gender issue
Gender issue
The demographic development affects many European economies so that the
recruitment and binding of a decreasing number of young potential personnel
becomes more and more important. It is common opinion that future needs of
personnel can be met better by increasing the number of female employees 3.
The lack of corporate initiatives for work-life balance of employees is one of the
main barriers to women employment as well as cultural aspects such as a male
working culture 4
and existing gender stereotypes. Also missing political stra-
tegies to augment the share of female staff members has to be taken into
account as a reason. In a survey amongst women employed in urban public
transport, the topics corporate culture and working culture turned out to be
of high importance when addressing women employment. Diversity of and
tolerance towards different people and their individual background are often
assumed to have a positive impact on the companys attra ctiveness for women 5.
1
European Parliament (2009), Shortage of qualified personnel in road freight transport.
2
EESC (2011), TEN/445. Social aspects of EU Transport Policy.
3
ETF (2012), Project report: Women employment in urban transport sector.
4
A so called male working culture is often described as a corporate culture oriented on
male attributes and focused on men as a target group so that female employees feel that
they have to show more masculine than feminine characteristics, also in order to succeed
in their careers. It is generally said that women perceive the necessity to perform better
than men in order to be accepted in their job; this is also the case in the (public)
transport sector.
5
In addition, more practical barriers may exist. In the survey, the state of sanitary
facilities has been named as a huge problem in many cities and companies, the same
goes for the number and state of break rooms, dress rooms, lockers and canteens. These
facilities are often not existing or viewed as not satisfactory though highly demanded.
Regarding the working clothes, companies have made good experiences with providing
them to both genders. Availability of uniforms for both genders is important; uniforms are
important for an employees identification with a company. See: ETF (2012), Project
report: Women employment in urban transport sector.
33
return to their Member State of origin after a few years. Although legislation
exists which limits social policy regime competition, this development is causing
some concern in the EU15 countries in relation to potential effects on pay and
working conditions in the sector. However, as many of the EU15 countries are
experiencing labour shortages in the road transport sector, migrant workers are
filling these gaps. Conversely, some of the NMS are now experiencing their own
labour shortages due to their workers migrating to other countri es to find work.
As a result, a small number of migrants from third countries are moving to the
NMS to find work in the sector 1.
The most frequent complaints recently heard at DG MOVE concern the influx of
workers from third country drivers, although it is understood that the extent of
such cases is limited, and accusations that the current legislative framework
allows cases of social dumping. The Commission explicitly does not agree with
this term in itself, but agrees that issues may exist related to working conditions
in the road haulage sector. This is the most important topic a t the moment.
IRU also points at the trend of job mobility from outside the EU, although there
is no quantitative evidence. Some IRU members are employing people from
Pakistan for instance. Within the EU, there is a problem with new business
models in which companies in old Member States establish daughter companies
in new Member States and employ their drivers. The problems related to social
conditions stem from arrangements that are usually perfectly legal (although
some may be not so legal). According to IRU, there is a need to address this to
restore the attractiveness of the road transport sector.
According to ETF, drivers from the Eastern EU Member States (such as Hungary)
often temporarily come to Western Europe (usually for up to six months).
Eastern EU truck drivers - working outside of their own country - are more
vulnerable basically due to the fact that they are employed via complicated
schemes including via fictitious (letter box) companies. These complex
employment practices allow companies to easily go in breach with the law and
with the drivers social and labour rights. Eastern EU truck drivers do not look at
c.q. dont care about the long term implications of accepting work under these
1
Eurofound (2007). Impact of the working time directive on collective bargaining in the
road transport sector.
2
Nieuwsbladtransport.nl, (2013). Article Duits wegvervoer klaagt over Filippijnse
chauffeurs.
34
conditions. Since 2008, ETF has interviewed 1,000 Eastern EU drivers working in
Western Europe at parking areas of trucks. Some results:
The pressure for the truck drivers is very high. The employers have the
advantage that they can dispatch drivers to other Member States where they
practically work on-call. In effect, the drivers may end up waiting for days in
parking areas for work and they are only paid for the driving time. Weak
enforcement of the EU and national legal frames, as well as gaps in the
existing laws allow companies to circumvent the law while using these
practices
Moreover, the truck drivers can be paid in different ways. They receive a low
average basic wage from the company in their home country combined with
benefits calculated on basis of the distance driven (EUR 7 to EUR 10 for 100
km) or goods delivered. 1 Another way of additional payment is with per-
diems.
The truck drivers spend at the parking areas much time waiting for a call to
work. This time is not paid. Loading and unloading the trucks is also not
covered by the wages despite the fact that by law loading / unloading is part
of the working time and must be remunerated.
Besides Eastern EU truck drivers, also 3 rd country nationals (for instance from
the Philippines) are recruited to fill the gap. Companies try to find loopholes in
the law to arrange residence permits for this (cheaper) supply of labour. 2
Our company has 16 drivers and 5 logistics specialists out of the EU. They are from Russia,
Belarussia and Ukraine. They work at the same zones as our Polish employees. We estimate to
have 3% non-EU workers in our company
At the moment, we have no non-EU workers active within our company but this will probably
change in the future. For example, at this moment we have Polish and Romanian employees.
However, attractiveness of our Dutch transport sector is depending on a countrys prosperity.
Maybe our country is becoming less attractive for those EU -workers and more attractive for
non-EU workers.
1
Such allowances may be illegal under Regulation (EC) No 561/2006 if they ar e of a nature
to endanger road safety.
2
For example, a German company that hired over 100 drivers from the Philippines granted
to them Latvian residence permits since in Latvia it is easier to get a residence permit
than in Germany. According to Commission staff the number would be around 100 as the
figures heard are closer to a few hundred for all companies using this scheme. Another
example were Turkish drivers waiting in the port of Trieste (Italy) to get trailers from the
ferries (not sure whether the trailers were registered in Turkey or in Italy) and drive
them throughout the EU.
35
Prognoses labour supply 2020
In both scenarios the picture for road transport related occupations is diffuse. In
scenario 1, in the period 2010-2020 the average growth rate is annually -0.1%.
The percentages for the three most important road transport related occupations
- bus and tram drivers, car, taxi and van drivers and heavy truck and lorry
drivers are +0.1%, 0.0% and -0.1%. In scenario 2, the average growth rate is
-0.8% and the percentages for bus and tram drivers, car, taxi and van drivers
and heavy truck and lorry drivers respectively -1.9%, -1.4% and -1.0% (see
table 4.1 in section 4.1).
36
4 Discrepancies EU road transport labour
market
One can speak of quantitative discrepancies where there are not enough
sufficiently qualified school leavers or job seekers in (a subsector of) the
transport sector as a whole (labour shortage) or where there are not enough
vacancies to make use of the supply (labour surplus).
As discussed in the main text of this report, the following trends seem to hold for
the EU transport labour market as a whole:
Current labour shortages/surpluses: Many transport branches already
report serious structural labour shortages, in particular for mobile jobs. As a
result of the economic crisis, these shortages are temporarily mitigated.
Prognoses labour shortages/surpluses 2020: In view of the ageing
population in Europe and competition among transport branches and
companies to attract (young) workers, labour shortages will cause serious
problems for the transport sector in the future. Whereas the employment of
transport-related occupations is expected to remain constant over the next
decade, labour supply falls in both scenarios. The largest discrepancies are
expected for aircraft staff, ships deck officers and pilots, and travel
attendants and stewards. This is in particular cumbersome for the transport
sectors development because most of these specific occupations
employment is found in the transport sector itself (by way of comparison:
many drivers do not actually work in the transport sector).
A number of studies have sought to quantify the driver shortage problem, thus
further attesting to the fact that in recent years the European heavy truck
transport industry has been suffering from a serious structural shortage of skilled
professional drivers. According to Eurobarometer, over 70,000 professional
37
drivers were needed in 2008 in Europe, more or less in line with the results of
other studies.
At present the driver shortage problem is mitigated, due to the current economic
downturn and reduction in transport flows with a resulting overcapacity in the
sector, leading to a scenario where the problem of driver shortage no longer
ranks among the top priorities. However, stakeholders confirm that the shortage
of qualified drivers remains a problem even during the economic downturn 1. In
addition, the imbalance in supply and demand of drivers may be expected to
increase again as soon as the economy starts recovering 2.
Especially in the EU12, the road transport is allegedly suffering from a constant
shortage of professional drivers, particularly truck drivers. Partly due to the
stronger growth in the EU12 countries, it is estimated that there will be a
shortage of drivers. This situation is being exacerbated by the fact that some
Eastern European drivers are moving to the Western Europe or other countries to
work. Moreover Eastern European companies compete with Western European
transport companies in international transport.
The implementation of the Working Time Directive has, in some cases, fuelled a
debate on the problem of the limited number of professional drivers. In general
the employers believe that the new working time limits will result in a severe
shortage of drivers and exacerbate existing workforce shortages in the sector.
According to the EESC, recruiting drivers is the biggest challenge the road
transport sector is facing. Partly, these difficulties are the result of the conditions
within which drivers and industry have to operate. On the other hand, operators
must cope in an environment dominated by fierce intra -sector competition and
influenced by external factors such as the economic crisis and high fuel prices 3.
The scope of the labour shortages in professional road transport (truck and
coach) at EU-level is not known in great detail, according to IRU, There are
estimates from individual markets, such as Germany, which lacks about 15,000
truck drivers and will lose around 250,000 drivers in the next 10 to 15 year s due
to retirement and lack of new entrants 4. The figures are lower in other countries,
but still in the thousands. It is quite likely that the figures are temporarily lower
due to the crisis.
Also according to ETF, the poor working conditions and working schedules and
hours lead to a shortage in the number of the truck drivers. On the other hand,
companies would look for drivers who are ready to accept the gradually lowering
working conditions and pay in the sector. This situation led to drivers from
Philippines being brought to work the EU.
1
See the Report of the High Level Group on the Development of the EU Road Haulage
Market (2012), which is amongst others based on stakeholder consultations. The ETF and
IRU confirmed that shortage of qualified drivers is a problem, and that the general
shortage will be more acute as economic recovery takes place.
2
European Parliament (2009), Shortage of qualified personnel in road freight transport.
3
EESC (2011). TEN/445. Social aspects of EU Transport Policy.
4
Institut fr Nachhaltigkeit in Verkehr und Logistik (2012). ZF-Zukunftsstudie Fernfahrer.
Der Mensch im Transport- und Logistikmarkt,
38
Urban public transport is also facing recruitment problems. 1 Figures on labour
shortages are not available however, said UITP.
According to ETF, urban public transport especially knows shortages for technical
jobs. Young people do not normally prefer technical education. Moreover, people
with technical education background prefer to work in other sectors (e.g.
telecommunications). Also, shortages are expected for operational staff. There
are no shortages (expected) for employees on managerial and HR positions.
At the moment, we have no problems to fulfil jobs. We dont see any future problems of labour
shortages in our company; we expect that labour supply will be sufficient .
There is a difference in level between the eastern and the western part of the EU. We would like
to achieve the level of the western part of the EU. In order to achieve that, we have introduced
educational possibilities within the company; we give on the job training .
At the moment we have difficulties with finding good employees. It is not easy to find people
within our sector. In the future, we also expect a shortage of good employees. However, at the
moment we are looking for short-term solutions. Because of the crisis, it is not possible to
invest in long-term solutions.
To address the problem of shortages, our company provides an appropriate training for new,
Romanian drivers. We are an international oriented company and we have accordingly a lot of
drivers from different nationalities.
1
EESC (2011). TEN/445. Social aspects of EU Transport Policy.
39
Prognoses labour shortages/surpluses 2020
The table below compares the employment scenario for transport -related
occupations in the transport sector with the supply of transport -related
occupations in the whole economy. The results for the most relevant road
transport related occupations are as follows:
Bus and tram drivers: decreasing employment in the period 2010 -2020
annually -0.1%), increasing labour supply in scenario 1 (+0.1%) and
particularly in scenario 2 (+2.1)
Car, taxi and van drivers: increasing employment (+0.1%), stable supply in
scenario 1 (0.0%), but in scenario 2 increasing labour supply (1.3%)
Heavy truck and lorry drivers: decreasing employment (-0.3%), decreasing
labour supply in scenario 1 (-0.1%) but increasing supply in scenario 2
(1.1%).
occupational category employment transport-related supply of transport-related occupations, whole economy, EU27
occupations in transport, EU27 scenario 1[1] scenario 2 [2]
levels (1,000s) annual change levels (1,000s) annual change levels (1,000s) annual change
2010 2020 2010/'20 (% p.a.) 2010 2020 2010/'20 (% p.a.) 2010 2020 2010/'20 (% p.a.)
supply, distribution and related managers 386 385 0.0 406 403 -0.1 406 455 1.1
air traffic controllers 27 31 1.3 28 28 -0.1 28 32 1.1
air traffic safety electronics technicians 13 15 1.7 40 39 -0.1 40 44 1.1
aircraft pilots and related associate professionals 39 46 1.7 50 50 -0.1 50 56 1.1
bus and tram drivers 968 961 -0.1 1,326 1,341 0.1 1,326 1,625 2.1
car, taxi and van drivers 1,180 1,193 0.1 2,155 2,158 0.0 2,155 2,448 1.3
crane, hoist and related plant operators 24 23 -0.1 441 438 -0.1 441 494 1.1
freight handlers 295 290 -0.2 1,657 1,610 -0.3 1,657 1,894 1.3
heavy truck and lorry drivers 1,942 1,882 -0.3 3,314 3,284 -0.1 3,314 3,679 1.1
lifting truck operators 175 174 -0.1 684 672 -0.2 684 793 1.5
locomotive engine drivers 272 292 0.7 687 683 -0.1 687 770 1.1
motorcycle drivers 58 57 -0.2 123 122 -0.1 123 138 1.1
railway brake, signal and switch operators 66 70 0.6 185 183 -0.1 185 207 1.1
ships' deck crews and related workers 43 45 0.4 50 50 -0.1 50 56 1.1
ships' deck officers and pilots 24 27 1.0 25 25 -0.1 25 29 1.1
ships' engineers 25 27 0.8 69 69 -0.1 69 78 1.1
transport conductors 174 186 0.7 183 182 -0.1 183 205 1.1
travel attendants and travel stewards 168 196 1.5 177 176 -0.1 177 198 1.1
total 5,879 5,899 0.0 11,601 11,514 -0.1 11,601 13,202 1.3
[1] constant age-specific participation rates
[2] maximum age-specific/constant cohort-specific rates
Source: Panteia
As discussed in the main text of this report, the following trends hold for the EU
transport labour market as a whole:
40
distinction can be made between employment and work quality. Employment
quality: Pay is relatively low in most transport professions and occupations.
Delocalisation of transport jobs and social dumping practices occur. To cut
costs, pension and early retirement schemes are being restructured. Working
times are often irregular and in particular mobile workers have to cope with
regular and (very) long absences from home. Possibilities for part-time work
are less than in other sectors. Work quality: Work autonomy in transport is
nowadays relatively low. Problems caused by heavy physical work have been
replaced by stress derived from time-pressures and efficiency improvements,
thereby shifting from physical to social or psychological problems. Transport
is with reason considered a dangerous activity (occurrence of accidents,
public violence, organised crime/piracy). Work intensity has increased (due
amongst others to increased traffic congestion and the use of lean
strategies or increasingly tight scheduled transport services).
Job attractiveness: The satisfaction of transport workers with working
conditions (2.88 on a 4-point scale) and their motivation to perform (3.42 on
a 5-point scale) are higher than their satisfaction with wage (2.97 on a 5 -
point scale).
The three variables influencing satisfaction with working conditions the most
are: 1) job giving the feeling of work well done; 2) working hours fitting in
with family or social commitments; 3) feeling of possibly losing job.
The three variables influencing satisfaction with wage the most are: 1)
satisfaction with working conditions (another main indicator); 2) wage; 3)
job giving the feeling of work well done.
The three variables influencing motivation to perform the most are: 1) having
good friends at work; 2) satisfaction with working conditions (another main
indicator); 3) feeling of doing useful work.
Quality of life: In general, a strong relationship exists between job quality
and life satisfaction of workers.
Skill shortages
Workers in road transport are generally not highly educated, although drivers of
dangerous substances have additional vocational training 1. However,
technological innovation, globalisation, increased complexity of regulations and
additional tasks have implied a substantial transformation of jobs in the
transport sector, entailing new and more complex skills and training needs, and
thus producing a shortage of qualified personnel. The sector no longer allow s for
the social advancement of a poorly skilled workforce. The sector has historically
developed by recruiting poorly educated people, but increasingly demanding
skills are requiring more and more task specialisation and segmentation. Thus,
1
Eurofound (2004). EU road freight transport sector: Work and employment conditions.
41
the observed shortage of drivers is not only a matter of scarcity of labour supply,
but, above all, of scarcity of a qualified, skilled and reliable workforce. Hence,
the shortage problem assumes the form of labour mismatch, where the
competences and skills required by firms do not tally (in general being higher)
with those offered by the workers 1.
According to IRU, the skill shortages in road transport seem to stem also from
EU-legislation and technological advances. Together with enforcement picking
up, drivers are experiencing more complex professional demands.
In urban public transport by rail ETF notes a tendency of de -skilling, i.e. the
process by which highly skilled labour is eliminated by the introduction of
technologies operated by lower skilled workers. For instance, experienced
locomotive drivers consider themselves very highly skilled while mainly as a
result of automation - the current training standards of their jobs are lower than
in the past. This deskilling process asks for redefining jobs.
Also in urban public transport well qualified employees are the key for
entrepreneurial success. In this context, qualification needs to be updated for
example towards a need to know the changing customers att itudes in order to
react correspondingly. From the employees view, it is important to be able to
maintain employability and to be fit in the job they are doing. In most cases,
1
European Parliament (2009), Shortage of qualified personnel in road freight transport.
2
European Parliament (2009), Shortage of qualified personnel in road freight transport.
42
the employers finance the training; sometimes the drivers themselves have to
co-finance it. Only in a few cases, there is financial support by state or regional
authorities. Concerning driving staff, initial and other trainings are offered in
cooperation with an external training and development institute. In most
companies there is no distinction in training and vocational education between
men and women 1.
ETF points at some bottlenecks in the training and career opportunities in the
urban public transport sector:
Firstly, the transposition of Directive 2012/36/EU, which sets the
requirements for bus drivers, is under question.
Secondly, there is a tendency to reduce the costs of urban public t ransport
by cutting the personnel costs. On way of cutting personnel costs is cutting
training costs. The costs of training in urban public transport are higher than
in railway transport.
Thirdly, there are differences between countries in who is required to pay for
the training. In Eastern EU for instance, bus drivers are required to pay the
training themselves.
We offer two types of training: external led by the specialists in different matters and internal
by our own managers. Innovation is part of our training. Our training programmes are sufficient
to acquire the desired skills necessary to function within the job: we provide a very intensive
training for everyone in the company. There is no need to improve or change our training
programmes, however it is important to repeat the training systematically .
Our training is sufficient to acquire the desired skills necessary to function within the job.
There are plenty of technical innovations possible, but because of the economic crisis, it is not
the right time to apply them in (the training in) our company and sector.
1
ETF (2012), Project report: Women employment in urban transport sector.
43
Job quality (excluding training and career opportunities)
General
The profession of driver is principally suffering from a steady decline in
attractiveness, due to both the physical environment and the social conditio ns in
which drivers work; this has a direct impact on new entries and on the retention
of current workers. 1
According to the EESC, one can not ignore the fact that the difficulties in
recruiting drivers are partly the result of the conditions within which drivers and
industry have to operate. From the drivers' perspective, high work pressure,
unfriendly working hours and below-average remuneration make road transport a
sector with a poor social record 3.
If the living and working conditions of international drivers remain as they are, it
will be difficult for the industry to attract the numbers of professional drivers
needed in order to keep pace with the growing demand for trade via road
transport. Without an influx of young men and women into the industry, the
sustainability of the sector is in question 4.
According to ETF, payment and working conditions in urban public transport are
less favourable.
Work-life balance expectations are becoming more important. Nowadays, our people want to
spend more time with their families. Therefore they mainly want to drive limited distances. The
driving times legislation will help our employees, but also creates different kind of problems.
Partly due to the long rest times, our jobs are becoming unattractive for good employees.
1
European Parliament (2009), Shortage of qualified personnel in road freight transport.
2
Eurofound (2004), EU road freight transport sector: work and employment conditions.
3
EESC (2011), TEN/445. Social aspects of EU Transport Policy.
4
ILO (2006), Labour and social issues arising from problems of cross-border mobility of
international drivers in the road transport sector, p.87.
44
Payment and benefits are seen as a key factor for the a ttraction of high quality
employees to the road (freight) transport sector. Although fair employment
practices, equal opportunities and linking rewards to quality improvements are
still necessary as well 1.
Table 4.2 shows the average wage per employee in 2009, for four broader
transport sectors compared to the total business economy (excl. financial and
insurance activities) in the EU 27 (based on EUROSTATs Structural Business
Statistics SBS).
Table 4.2 Average wage per employee by broader transport sector in the EU 27,
2009 (in Euro's)
Compared to the total business economy (excl. financial and insurance activities)
average wage per employee in the sector land transport and transport via
pipelines is lower (23.666 against 21.351).
Even though remuneration is not within the remit of the EU, the Commission can
establish minimum rules for working conditions, which in the view of commission
staff has its impact indirectly on remuneration and leads to more comparable
wages.
1
European Commission (2000), WORKFRET.
45
facilities guaranteeing the protection of drivers, passengers and goods 1.
According to commission staff, the principal discussion in the social dialogue in
this respect is whether employers must provide for such safe rest facilities. The
workers side has achieved some marked success, but ongoing discussion
remains on who (employers or employees) must pay for the use of these
facilities. Several EU-funded projects (LABEL 2, SETPOS 3) have been carried out to
support the setting up of such facilities whereas a new legislative proposal aims
at facilitating access to information regarding safe and secure parking spaces for
heavy duty vehicles 4.
Equal pay?
Concerning the concept of equal pay, it was said that, within the urban public
transport sector at least within the same tariff payment groups the principle
same wage for same work is valid. However, there is little information on the
growth opportunities for women in transport companies 7.
Working times
The distinct shortage of drivers in Western Europe is mainly caused by the long
hours away from home, the unpredictable schedules, and the reduced
possibilities to work extra hours. The complexity of tasks and responsibilities, as
well are not compensated sufficiently by the pay. There is thus a migration of
1
IRU (2010), IRU response to the EC Transport White Paper.
2
Creating a Label for (Secured) Truck Parking Areas along the Trans -European Road
Network and Defining a Certification Process. Including Online Information Facility
(LABEL), Co-funded by DG MOVE.
3
Secure European Truck Parking Operational Services (SETPOS), co-funded by DG TREN.
4
C(2013) 2549 final. COMMISSION DELEGATED REGULATION (EU) No /.. of 15.5.2013
supplementing ITS Directive 2010/40/EU of the European Parliament and of the Council
with regard to the provision of information services for safe and secure parking places for
trucks and commercial vehicles.
5
ILO (2006), Labour and social issues arising from problems of cross-border mobility of
international drivers in the road transport sector, p.53.
6
ILO (2006), Labour and social issues arising from problems of cross-border mobility of
international drivers in the road transport sector.
7
ETF (2012), Project report: women employment in urban transport sector.
46
Eastern workers to the West, willing to do the same jobs for less money than
their Western counterparts 1.
In addition to harmonising procedures, working time legislation and enforcement
need to be synchronised. Directive 2006/22/EC sets down minimum enforcement
requirements for Member States, the implementation of which are documented
by the Commission in biannual reports. Although many countries have adequate
laws concerning working time and periods of rest, their enforcement is relatively
weak although it is improving. This is a very serious issue as regulations on
drivers hours, including periods of rest, are often ignored. It is acknowledged
that better enforcement can help to reduce accidents. The competitive edge for
transport companies should not be gained by poor working standards, but by the
skill and efficiency of their service.
In the view of ETF, the many shifts at night and/or during weekends make the
sector unattractive for (young) people.
Time flexibility
For an increase in female employment, more working time flexibility appears to
be crucial. Working life balances are becoming more important issues for
workers, also on the EU agenda. From an employers point of view, flexibility of
working hours has a number of benefits such as bindin g employees to the
company to increase job tenure. There are also desirable implications:
improvement of employees morale and attitude, leading to reduced absenteeism
and staff turnover, which leads to increased effectiveness of recruitment and
productivity. Individual duty schedules have been discussed as one aspect of
working time flexibility for increasing employees work-life balance, thus job
motivation and satisfaction 2.
Transport relies on a workforce that employers can deploy flexibly and with the
necessary skills - acquired through a new training culture to manage increasingly
complex legal, operational and safety-related requirements. This is only possible
with a well-balanced regulatory framework, sufficient to protect employees but
not so inflexible as to make the industry less attractive to drivers or companies
less able to offer jobs.
The whole regulatory and non-regulatory framework must deal effectively with
illegal employment and offer fair competition for all within a single European
Transport Area 3.
1
CNT (2008), Les transportes: des metirs attractifs?
2
ETF (2012), Project report: Women employment in urban transport sector.
3
IRU (2010), IRU response to the EC Transport White Paper.
47
Concerns have been raised about the road transport sectors informal economy in
some countries, along with worries regarding illegal working. For example, in
Austria, concerns have increased in this respect following enlargement of the EU.
Similar concerns have arisen in Bulgaria, where a considerable number of self -
employed drivers are reportedly operating, some of whom work in the informal
economy, thus creating unfair competition in the sector1. According to
commission staff, illegal employment also negatively influences the (working)
image of the sector.
Work quality: Physical working conditions, health variables and risks of accidents
Taxi drivers and chauffeurs are exposed to a number of different types of work -
related risks:
1
Eurofound (2007). Impact of the working time directive on collective bargaining in the
road transport sector.
2
Eurofound (2004). EU road freight transport sector: Work and employment conditions.
3
EU-OSHA (2010), A review of accidents and injuries to road transport drivers.
4
ETF (2012), Project report: Women employment in urban transport sector.
48
Physical risks: vibrations, manual handling of loads, risks linked with a long
sitting position, risks linked with being on the road.
Chemical and biological risks: exhaust fumes and other pollutants.
Psychosocial risks: stress and violence.
Individual behaviour: smoking, consumption of stimulants (coffee and
alcohol), lack of physical exercise (sedentary jobs) and low seatbelt usage.
Confrontation with public violence/aggression
There is an image of the public transport sector (including taxi) as an unsafe
workplace because of violence against employees. Violence cases have a
negative influence on the companies image and on the image of the entire
sector. This issue increases when cases are reported and widely spread in media.
Companies take the topic indeed very seriously: activities to increase both
workplace safety and security have high priority. As a consequence,
counteractive measures have been taken such as self-defence classes for women
or de-escalation training for employees.
Furthermore, technical solutions to prevent violence against drivers are
introduced such as emergency buttons or closed cabins in vehicles and private or
business mobile phones for employees 1.
Organised crime
As mentioned earlier, drivers in road transport are increasingly confronted with
organised crime.
Few contacts
Social interaction and social support also play an important role in work quality.
A high percentage of drivers in freight and passenger transport by road work in
isolation. They have few contacts with their colleagues and supervisors.
Job attractiveness
The attractiveness of jobs in the road transport sector depends strongly on the
quality of the jobs in this sector. As described above, job quality is a
multidimensional concept that covers many different aspects, varying from
wages, formal training and (flexibility in) working hours to health implications of
work, work autonomy and the meaningfulness of work.
1
ETF (2012), Project report: Women employment in urban transport sector.
49
Table 4.3 Employees experience/perception of aspects of job quality/attractiveness by
broader transport mode, compared to the total of all sectors (2010, EU27)
The (EWCS) also contains the following indicators of overall job quality/job
attractiveness:
Satisfaction with working conditions (how satisfied respondents are with
working conditions in their main paid job; measured on a 4 -point scale).
Satisfaction with wage (the extent to which respondents find they are wel l
paid for the work they do; measured on a 5-point scale).
Motivation to perform (the extent to which respondents feel motivated by
their organisation to give their best job performance; measured on a 5 -point
scale).
50
Table 4.4 Indicators of overall job quality/job satisfaction by broader transport sector
(2010, EU27)
In the case of labour market information asymmetries, the demand and supply
should actually be balanced, but employers and job seekers are unable to find to
one another due to job search and recruitment strategies that do not respond to
each other. This may also be induced by flawed images of the (sub)sector or of
(groups of) job seekers (or groups thereof) which prevent a better match of
supply and demand.
As discussed in the main text of this report, the following trends hold for the EU
transport labour market as a whole:
Working image: In general, the working image of the transport sector is
relatively low, mostly related to job quality (employment- and work quality).
The sector is also seen as male-dominated and old-fashioned and
conservative. It is argued by some that the negative image is a matter of
perception and/or lack of knowledge.
Recruitment: Many modes still use traditional types of recruitment. In
general, in recruitment the transport sector does not focus on specific target
groups, such as women.
51
4.3.2 Specific in formati on asymmetries road tran sport
Working image
The profession of driver is suffering from poor public (working) image. The
driving profession remains associated with poor working conditions, low wages
and a problematic work-life balance, particularly for international drivers 1. The
road transport sector also has the image of being rather old-fashioned and
conservative. Therefore, companies are often not present in the applicants
minds as potential employer. Moreover, many of the sectors existing professions
are unknown to young people 2. This less positive image has a direct negative
impact on attracting new entries (and on the retention of current workers)3.
Commission staff points at the current discussion of the social partners on the
image of the sector in relation to illegal employment. Illegal employment has
negative effects on how the sector is perceived and affects overall working
conditions.
ETF also points at the negative image of the profession of driver. The road
transport sector is not considered attractive for the young people. Generally,
truck driver is not considered as a dignified job.
Also according to ETF, the working image of the urban public transport sector is
poor.
We recognise the negative image of our sector presented by public media. The sector used to
have an adventurous image with a lot of freedom, but nowadays we are dealing with an image
of sleeping drivers, hard work and less freedom. In addition, trade unions are fighting hard for
specific rights. Not always to the benefit of the transport sector.
1
Eurofound (2004). EU road freight transport sector: Work and employment conditions.
2
ETF (2012), Project report: Women employment in urban transport sector.
3
European Parliament (2009), Shortage of qualified personnel in road freight transport.
52
Comparability/compatibility
As the labour market is becoming more and more international, it becomes a
problem if qualifications used in various countries are difficult to compare.
Recruitment
Shift to recruitment of higher educated workers
The new manner in which drivers in road transport are to be recruited is at odds
with how the sector used to recruit workers, namely by employing poorly skilled
workers. Drivers are required to be better educated and skilled in the newest
logistics operations 1. This also asks for other ways of recruitment.
1
European Parliament (2009), Shortage of qualified personnel in road freight transport .
2
ETF (2012), Project report: Women employment in urban transport sector.
53
5 Reduction of discrepancies EU road
transport labour market
As discussed in the main text of this report, solutions in all of th ese categories
are relevant for the EU transport labour market as a whole.
55
Recommendations of the EESC concerning EU legislation are amongst others:
EU road transport legislation is to be applied without exceptions throughout
the sector, ensuring a level playing field for fair competition, road safety and
occupational health and safety.
A better capacity in Member States is needed to enforce EU road transport
legislation 1.
The High Level Group on the Development of the EU Road Haulage Market (2012)
recommended that the Commission continues to promote a uniform
interpretation of rules in relation to the most serious infringements and
sanctions. This will assist greatly in breaking down differential practices which
are frequently perceived as discrimination. The High Level Group considers it
important, therefore, that the Commission extend its current target of achieving
common definitions of infringements and penalties in the areas of working and
driving time to other areas of regulation.
Although opening up of cabotage is seen as one of the means through which the
vision of a Single European Transport Area will eventually be achieved it is not
regarded by the High Level Group as suitable for this purpose in its pres ent form.
It is currently tied to international transport operations on the basis that it is a
means by which a reduction in empty running can be achieved, but this is done
in such a manner as to limit its efficiency both with respect to reducing empty
running in relation to international operations and as a vehicle to open up
markets. The High Level Group therefore proposes that these twin aims be
separated and that a distinction be made between linked (i.e. linked to
international movements) and non-linked cabotage.
In the view of UITP, the EU could play a role in the development of an integrated
mobility master plan with a key role for urban public transport. Labour and social
issues should however be dealt with on local level. Quality of work could be
encouraged through the calls for tender and contracts with the transport service
providers. Also, according to UITP it would be an option to give public transport
access to Structural Funds.
Social dialogue
At the time of writing, the Social Dialogue in the road transport sector at
European level had not concluded any binding agreements. In the future it could
therefore further contribute to strengthening the social dimension of the EU
transport policy, with respect to improving working conditions and the working
environment to protect workers' health and safety.
1
EESC (2011), TEN/445. Social aspects of EU Transport Policy.
56
Technological and environmental
According the EESC, EU policy makers should undertake measures that lead to
true sustainability in the sector by offering incentives for operators to invest in
new fleets and technology 1.
Other
According to commission staff, it is important to exchange good practices. In
practice, in urban public transport such exchanges already take place, for
instance on security and insecurity issues (secure cabins in trains or open space
for interactions). Committees facilitate the exchange.
In the view of UITP, the EU could play a role in providing adequate information
on the labour market (shortages) in urban public transport. At the moment, no
figures on shortages are available.
1
EESC (2011), TEN/445. Social aspects of EU Transport Policy.
2
See for instance: Skills for Logistics (2012). A Looming Driver Shortage? the evidence
behind the concerns.
3
European Parliament (2009), Shortage of qualified personnel in road freight transport.
57
Especially relevant in this respect, is the project Women Employment in Urban
Public Transport Sector (WISE, see box below)
The EESC recommends measures to make the profession of driver highly skille d,
which will automatically lead to improving the image of the profession 4.
1
http://www.wise-project.net
2
Project WISE (2012). Women Employment in Urban Public Transport Sector. Project
Report.
3
European Parliament (2009), Shortage of qualified personnel in road freight transport;
ETF (2012), Project report: Women employment in urban transport sector .
4
EESC (2011), TEN/445. Social aspects of EU Transport Policy.
58
Regarding the driver shortage the High Level Group on the Development of the
EU Road Haulage Market (2012) is of the opinion that access to the position of
driver should be made easier. The current cost of qualifications is a substantial
entry barrier and there must be adequate support, of the side of both industry
and public bodies, in both financial terms and training opportunities for those
intent on entering the profession. 1
In the view of UITP, the main challenge of urban public transport is to position
itself as the key to truly sustainable cities and green growth, which also means
social inclusion. UITPs ambition is to double it market share in cities world -wide
by 2025. The ambition to double the market share requires a significant
recruitment imperative, which needs to be facilitated by an improved image of
the sector. The EU could facilitate this by creating an appetite for public
transport instead of encouraging electric cars.
1
High Level Group on the Development of the EU Road Haulage Market (2012). Report of
the High Level Group on the Development of the EU Road Haulage Market .
2
European Parliament (2009), Shortage of qualified personnel in road freight transport.
3
European Parliament (2009), Shortage of qualified personnel in road freight transport.
59
5.4 Preventing outflow/diminishing labour demand
General
The attractiveness of the profession and working conditions should be improved
by increasing the number of, and enhancing the comfort and security of, truck
parking areas, harmonising regulations and penalties across EU countries, and
increasing the integration between employers and employees needs and
objectives 1.
1
European Parliament (2009), Shortage of qualified personnel in road freight transport.
2
EESC (2011), TEN/445. Social aspects of EU Transport Policy.
60
STARTS
IRU has teamed up with the ETF on the "Skills, Training And the Road Transport Sector
STARTS" project on training in the commercial road transport sector, covering both mobile and
non mobile employees of road transport companies. The purpose of this project is to correctly
identify the most important challenges and the most efficacious solutions for improving the
provision of training to drivers and workers performing certain non mobile, logistics related
tasks. In December 2010 STARTS Project has received European Commission funding which will
cover up to 80% of the total expenses.
In order to reflect the very distinct competencies, skills and legal frameworks for the different
categories of workers, the project will be split into two distinct pillars:
First Pillar- Mobile Workers: The most significant challenges to be addressed under this
pillar are the new requirements arising from the EU Driver Training Directive no
2003/59/EC. The project will produce a detailed overview of national arrangements related
to the Directives implementation, analyse related problem s and record how employers and
drivers are responding to meet its obligations in different EU Member States. It will also
make an early assessment of the Directives broader impact on the development of skills
within the sector and on how it affects access to employment as a road transport driver.
Where possible, recommendations will be established at the end of the project.
Second Pillar- Non Mobile Workers: This second pillar will focus on non -mobile blue collar
workers employed by road transport companie s performing warehouse functions, such as
goods in checking, forklift truck operation, order picking / packing, goods out checking and
stock system coordination. It will seek a better understanding of the competencies and
skills required by these workers and how they are reflected through the training practices
and systems in place at EU Member States level. It is hoped that this exercise will lead to
the identification where appropriate of skills and training solutions that can be used more
widely to boost the competences and safety of these workers 1.
IRU Academy
The IRU Academy is a professional road transport training organisation with a global reach. By
developing top-quality training programmes and ensuring quality control of training delivery,
the IRU Academy is active in enhancing the development of professional competence in the road
transport sector. The IRU Academy offers its portfolio of training programmes to road transport
professionals through its global network of Accredited Training Institut es (ATIs). The IRU
Academy uses a multi-lingual content management system to ensure its programme materials
are available to its members and instructors instantly. The IRU Academy is also involved in a
number of other training initiatives, from Road Safety to HIV/AIDS to ECO-Driving which tackle
important issues in the sector and propose solutions 2.
In particular, the job of driver is an occupation which often can not be continued
until retirement age because of occupational health problems. The EESC
recommends that the public transport sector should make greater efforts to offer
career opportunities for bus drivers, such as team leader positions and traffic
planning positions 3.
1
http://www.starts.iru.org/en_about
2
http://www.iru.org/en_about_academy
3
EESC (2011), TEN/445. Social aspects of EU Transport Policy.
61
The High Level Group on the Development of the EU Road Haulage Market comes
in its report to the same conclusion: career progression should be encouraged
through measures such as those facilitating access to vocational training and
internal mobility towards office and management positions. 1
Work quality
1
High Level Group on the Development of the EU Road Haulage Market (2012). Report of
the High Level Group on the Development of the EU Road Haulage Market .
2
Self-employed workers and sub-contracting situations are not covered. There are cases
where the contract can be missing (word of mouth contracts).
3
See: http://www.tagliacarne.it/P42A361C348S42/TRANSPO---Road-TRANSport-sector-
and-POsting-of-workers---English-version.htm
4
EESC (2011), TEN/445. Social aspects of EU Transport Policy.
5
EU-OSHA (2010), A review of accidents and injuries to road transport drivers.
62
sector technical safety measures in cabs to occupation health measures such
as DocStop rest stop access to medical services)(part 2.3.8, pages 36 -39).
TRACE
TRACE stands for Transport Regulators Align Control Enforcement. The project concerns EU
rules in the field of Road Transport: on driving time, break and rest periods applying to drivers
engaged in commercial road transport at international and national level. These rules are
defined by Regulation (EC)n561/2006 and are directly applicable througout the Europ ean
Union. The Regulation is commonly known as the "Drivers' Hours' Rules Regulation".
TRACE supports the development of a European harmonised training format for enforcers
controlling the respect of the Drivers' Hours' Rules Regulation. This goal will be achieved
through the creation of harmonised training modules for control officers. This will assist in
reaching the project overall objective of common professional standard for control officers in the
field of Regulation (EC)n561/2006.
TRACE is a 300,514 Euros project partly funded by the European Commission (DG MOVE). The
project started in August 2010 for a period of 24 months. 1 A call for proposals for a TRACE 2
project with a broader scope was launched in 2013. 2
In the view of ETF, making the working conditions better would make the urban
public sector more attractive to work in. Competition between the employers for
making the working conditions better, would also contribute to this.
1
http://www.traceproject.eu.
2
http://ec.europa.eu/transport/facts-fundings/grants/2013-08-30-trace_en.htm
3
EESC (2011), TEN/445. Social aspects of EU Transport Policy.
4
ETF (2012), Project report: Women employment in urban transport sector.
63
b. Improving the operational management/ labour
productivity
1
European Parliament (2009), Shortage of qualified personnel in road freight transport.
64
6 Conclusions and recommendations
This Chapter presents the main conclusions drawn from this study with regards
to the road transport labour market. In is based on the information in this Annex
11 and on information presented in the main report. The last section presents a
set of recommendations.
The relevant job types considered in this study in road transport are:
Heavy truck and lorry drivers;
Bus and tram drivers;
Car, taxi and van drivers;
Attendants (passengers only);
Management;
Back-office;
Maintenance staff.
In 2010, road transport (including urban public transport) accounted for 56,4%
of the employment in the sector transportation and storage (excl. postal and
courier activities) as a whole in the EU27. The number of persons occupied in
road transport was 5,269,000 (in comparison to 5,321,900 in 2009 and
5,307,500 in 2008). A majority (3,101,300) of the employment in road transport
in 2001 was in freight transport by road and removal services and a minority
(2,167,600) in passenger land transport, other than interurban rail
transportation. 1
1
All figures: EUROSTAT.
65
Table 6.1 Overlap between transport occupations and transport sectors, for EU (number of
observations in EWCS 2010)
Sector
Occupation Transport sector Other sector Total
Transport occupation 948 742 1,690
Other occupation 592 33,090 33,682
Total 1,540 33,832 35,372
In the EU27 roughly 1.2 million workers were employed in urban public transport
in 2010. The majority (55%) of them were drivers. The number of employees of
public transport operators in the EU27 decreased by just under 4% between
2000 and 2010, which corresponds to a loss of roughly 45,000 jobs. However, a
closer look at this development reveals that the number of employees started
increasing again in 2007, rising by about 3% between 2007 and 2010. The
overall decrease in employment in the period 2000-2010 was largely due to
labour productivity gains during the decade. It is plausible that part of the
decrease in the number of employees of operators was due to an increase in
volumes of subcontracting 1.
The share of young workers (15-24 years of age) in land transport 2 is less than
the EU overall average in 2010 (see figure 3.1). The share of land transport
workers aged 25-49 (65%) is approximately equal to the EU overall share of
workers aged 25-49 (64%). Consequently, the share of workers aged 50 or older
(31%) is above EU overall average. The ageing problem is therefore, more
imminent in land transport than in the EU labour market in general.
Land transport is an extreme case of male predominance. No less than 81% of
the land transport workforce is male (see fig. 6.2)
1
UITP (2013), Observatory of employment in public transport. Report 1 - April 2011.
2
data concerns land transport and transport through pipelines, dominated in terms of
averages by road freight transport.
66
6.3 Social dialogue
Social dialogue in this sector covers passenger and freight transport by road. The
Sectoral Social Dialogue Committee Road Transport comprises the Employers
organisation International Road Transport Union (IRU) and the employees'
organisation European Transport Workers' Federation (ETF). The Internatio nal
Association of Public Transport (UITP) is represented through a cooperation
agreement with the IRU.
The road freight transport sector positions itself as the dominant freight mode
covering three quarters of the total market. Over the last decade road freight
transport in the EU27 has seen considerable activity growth. The accession of the
twelve new Member States has extensively contributed to this. The gradual
opening of the internal market, the stronger economic growth of the new
Member States and the increase in the specialisation of the production
processes, inducing larger flows of goods, have led to an increased demand for
freight transport in general and an increase of road transport employment, in
particular. Competition and differences in labour costs across the Member States
lead to a strong focus on costs, including downward pressure on wages in MS
with relatively high wages. This has kept profit margins decreasing, despite
remarkable increases in the sectors turnover and productivity.
1
The proportion of self-employed drivers in the road transport sector varies significantly
between countries, ranging from as high as almost 100% in Malta to as low as 1% in
Luxembourg. See: Eurofound (2007). Impact of the working time directive on collective
bargaining in the road transport sector.
2
European Parliament (2009), Shortage of qualified personnel in road freight transport.
67
made within these sub-sectors. For instance, various types of taxi drivers
and chauffeurs exist: licensed cab drivers, unregulated minicabs,
minibuses used for collective transport of specific passenger categories
(e.g. elderly or disabled passengers), limousine drivers and company
chauffeurs.
Since the liberalisation process started, the road freight transport market has not
evolved in convergence between increased competition and a parallel process of
social harmonisation across the EU Member States. Differences remain
significantly wide. This may lead to unfair transport companies adopting disloyal
competition and social dumping practices. Following the liberalisation efforts and
enlargement of the EU, an increase in competitive pressure has been at work in
road and urban public transport which is aggravated by a number of deficits in
the enforcements of elements of the acquis communautaire and national labour
laws leading to cases of dubious social practices, unfair competition and/or
detrimental working conditions. The extent to which remains unclear proof is
anecdotal, however, substantial. Some examples:
According to ETF, companies would look for drivers who are ready to accept
the gradually lowering working conditions and pay in the sector, which led to
drivers from the Philippines being brought to work in the EU.
Social and fiscal constructions are set up that appear to have the specific aim
of circumventing regulations:
o False self-employment (avoiding social premiums and circumventing
minimum wage agreements and other relevant labour provisions. In
addition, the self/employed take over part of the risk of doing busines s)
o Payments per delivery (payments dropping below minimum requirements
(where relevant))
o PO Box firms (business operations in country A, hiring people through PO
Box firm, a subsidiary, under legislation in country B, where no operation
is in order to profit from less expensive arrangements in country B).
o Subcontracting (Subcontracting is used to avoid taking on older
employees when contracts have been won (urban))
o Violations of working time regulations exist, partly spurred on by the
pressure created by "just-in-time" deliveries required from
subcontractors, as well as training rules violations, a trade in (fake and
real) accreditations, cabotage, etc.
An issue that appears specific for regional and local tendering procedures and
therefore, in the transport sector on urban transport, is social return on
investment as a requirement in new contracts of concessions. Frequently local
governments require a percentage (e.g. 10%) of staff to be recruited from the
pool of unemployed. This results frequently in job losses of long-term
experienced employees that often dont have qualifications that will allow them
to easily find another job and in particular, in the case of older employees. This
requirement is called social return on investment. In the transport secto r this is
common for mini-busses and collective transport of specific client types,
although most cases are currently based on circumstantial and/or anecdotal
evidence. In some cases this means that these experienced former employees
will need to receive unemployment benefits.
68
In general, compliance appears to be an issue. Non-compliance of some firms
presses others to do the same in order to be competitive. This may gradually
lead to a culture of non-compliance, a process that is different to halt or turn
around. Several examples have been mentioned above. Other publications show
examples of working time and training rules violations, a trade in (fake and real)
certificates, etc. Both employer and employee associations stress the need for
better control and enforcement of the existing rules and legislative pause.
At present the driver shortage problem is mitigated, due to the current economic
downturn and reduction in transport flows with a resulting overcapacity in the
sector, leading to a situation where the problem of driver shortage no longer
ranks amongst the top priorities. However, stakeholders confirm that the
shortage of qualified drivers remains a problem even during the economic
downturn 1. The results of the targeted stakeholder consultation indicate that, in
the road sector, labour shortages are common. Close to half of the ente rprises
indicate they are currently experiencing skill or labour shortages. On the other
hand, 27% is experiencing and expecting redundancies.
1
See the Report of the High Level Group on the Development of the EU Road Haulage
Market (2012), which is amongst others based on stakeholder consultations. The ETF and
IRU confirmed that shortage of qualified drivers is a problem, and that the general
shortage will be more acute as economic recovery takes place.
69
Low attractiveness of working in the sector.
Considering the still relatively low-skilled nature of road transport sector
jobs, the potential labour reserves are large. The low perceived
attractiveness of the profession of truck or bus driver is a barrier to attract
potential employees. Increasing female employment is a possibility,
particularly in regional and national transport. Personal safety issues pose a
barrier for female employment in long-distance transport.
Urban public transport is also facing recruitment problems. Figures are not
available.
Shortages are particularly mentioned by experts for technical jobs which is an
economy-wide problem as insufficient young people enter technical education.
A model was built to be able to compare the future demand for transport-related
occupations in the transport sector with the supply of transport -related
occupations in the economy as a whole. For labour supply, two projection
scenarios were built: a general trends scenario (Scenario 1) and an increasing
age-specific participation scenario (Scenario 2).
The results for the most relevant road transport related occupations are as
follows:
Heavy truck and lorry drivers: decreasing employment (-0,3% annually), and
decreasing labour supply in scenario 1 (-0,1% annually). Scenario 2 sees an
increasing supply of 1,1% annually.
Bus and tram drivers: decreasing employment in the period 2010-2020 -0,1%
annually), increasing labour supply in scenario 1 (+0,1% annually) and
scenario 2 (2,1% annually)
Car, taxi and van drivers: increasing employment (+0,1% annually), stable
supply in scenario 1 (0,0%), but in scenario 2 increasing labour supply (1,3%
annually)
The results of the forecasting do not give reason to expect increasing shortages
in road transport. This is a contra-intuitive result, given expert opinions and
recent publications in the media. One of the reasons for the discrepancy may be
the relevance of the demand for labour from own-account transporters 3. Another
may be the redundancies due to qualitative mismatch (higher level or
1
European Parliament (2009), Shortage of qualified personnel in road freight transport.
2
Institut fr Nachhaltigkeit in Verkehr und Logistik (2012). ZF-Zukunftsstudie Fernfahrer.
Der Mensch im Transport- und Logistikmarkt,
3
These are not included in employment figures and thus influence trends.
70
competences required) which would result in increased demand and reduced
supply.
In land transport and pipelines 472 fatal accidents occurred in 2011. This was
77% of all fatal accidents in transport in the EU27 1. The fatal incidence rate in
land transport was 8,39. This means that on average, more than 8 out of
100,000 workers in land transport died in a job-related accident. This largely
exceeds the fatal incidence rate of all EU27 transport in 2011 (5,75).
Driver incomes have been negatively influenced by the working time regulations
as the hours worked per week were reduced. This is somewhat of a paradox, as
changes (forbidding performance-based remuneration, forbidding spending
weekly rest in the truck, etc) have the purpose to improve working conditions. In
comparison to the total business economy (excl. financial and insurance
activities), the average wage per employee is lower. There is an ongoing
discussion on who (employers or employees) must pay for the (obligatory) use of
safe rest facilities, for trainings, for border/traffic delays, etc. In brief, the
downward pressure on wages has been discussed above.
1
Non-fatal and fatal incidence rates of individual transport modes in 2008-2010 are not
available. Source: EUROSTAT.
71
Work-related risks:
o Physical risks: vibrations, manual handling of loads, risks linked with a
long sitting position, risks linked with being on the road.
o Chemical and biological risks: exhaust fumes and other pollutants.
o Psychosocial risks: stress, aggression, uncertainty resulting from periodic
tendering in bus and taxi.
o Individual behaviour: smoking, consumption of stimulants (coffee and
alcohol), lack of physical exercise (sedentary jobs) and low seatbelt
usage.
Violence and criminality.
Overall road transport qualifications are fairly easy to be granted with: it takes
little time to be trained and no particularly high ISCED 1 levels are required, even
if a certain variety seem to be present across Member States and in particular,
concerning heavy truck and lorry driving qualifications.
If qualifications granted are considered, the general trend reported by the data
analysed delineates an increase in quantity during the last few years, which is
nevertheless, not supported by long-term demand. The gap may nonetheless, be
related to adaptation to demand flexibility, as little requirements and training
open the possibility to a wide share of population to be potentially qualified for
the profession, whenever the demand increases.
It has been reported that there are many differences between countries in who is
required to pay the training (employer or employee). However, the current cost
of qualifications are deemed a substantial entry barrier. In countries where
employers are charged for this, there is a tendency to reduce costs by cutting
personnel costs, including training costs.
The main issues in the road sector labour market(s) identified in the study are:
Many drivers are employed by employers outside of the road sector, or even
transport. This hampers insight in the sector and the effectiveness of
solutions.
A progressive shortage of professional drivers is foreseen by experts and
employers. Currently, many employers already report shortages and the
sector employs many older employees. However, the study forecasts do not
indicate increasing shortages.
1
International Standard Classification of Education.
72
Employers also report current redundancies, mainly due to new and more
complex skills and training needs.
In urban public transport, predominantly shortages for technical jobs are
expected.
In general, job attractiveness is low (payment, away from home, road safety,
crime/abuse/violence, non-standard working hours, autonomy, work in
isolation, time pressure, work intensity).
A strong focus on cost leads to rather dubious social practices (self-employed,
payment per delivery, subcontracting). Little hard evidence is available,
however, much anecdotal evidence is. Lack of compliance with regulations
appears to be a serious issue.
This hampers insight in the sector and the effectiveness of solutions. Given the
expected shortages, a common approach with other sectors (predominantly) in
need of drivers is recommendable to make the job more attractive and better
prepare drivers for the future. Insight in, for instance, labour mobility within and
outside the road transport sector would facilitate this.
Considering the relatively low-skilled nature of road transport sector jobs the
potential labour reserves are large. It is clear that making the sector more
attractive to work in is the most important challenge in this context (see below).
Although, changing the image of the work will take time, the measures would
likely help in the short run by retaining currently employed drivers longer.
The job of (bus) driver is an occupation which often cannot be continued until
retirement age because of occupational health problems. As discussed, 31% of
the employees is currently 50 or older. The road transport sector could make
1
http://starts.iru.org/index/en_home
73
greater efforts to offer career opportunities for (bus) drivers, such as team
leader positions and traffic planning positions. Career progression should be
encouraged through measures such as those facilitating access to vocational
training and internal mobility towards office and management positions.
The battle of the Twenties? This will be an extremely important i ssue on the EU
labour market in the coming years. Already, a general shortage of technicians
exists and this shortage is widely expected to increase. Substantial efforts are
being made to interest children and students in technical professions. However,
the study provides little material to add to the existing general knowledge and
activities on this issue.
Obviously, we are discussing a very sensitive topic here, whereas a factual basis
for such a discussion is missing for the most part. Still, it is safe to say there is a
problem with social practices in the sector. At the very least, the stream of
stories is harming the image of working in the sector even further. Different
parties point to each other as being responsible for solving the issues. As a
result, not a lot of progress is being made. Parties should focus on finding
solutions and cooperate together on this.
Budgetary cuts also affect the enforcement capacity of MS. Moreover, for many
of the issues mentioned, an increase of capacity would only help to a certain
degree. Innovative monitoring is required. Making more use of big data is one
such option. Given the rapid increase of IT in the sector, other innovative
approaches should be possible without an unduly increase of administrative
burden for enterprises and workers. The EC can play an important role in good
74
practice exchange and perhaps also in co-financing initiatives. According to the
transport ministers of six MS, the EC could also clarify the directive concerning
cabotage; notably the part with regards to monitoring 1. Enterprises should be
involved in the process: what is important to monitor and what is effective in
terms of results and administrative burden?
Rather than just expand the capacity in Member States, it would be better to
also improve enforcement. Higher professional standards of control officers in
charge of enforcing the rules are expected to result in improvements. In this
respect, we can point at two EU funded projects: TRACE (aiming at the
development of a European harmonised training format for enforcers controlling
the respect of the Drivers' Hours' Rules Regulation) and the follow-up CLOSER
(Combined Learning Objectives for safer European Roads).
In their study for the European Parliament, Sitran and Pastor support a number
of recommendations concerning enforcement:
Strengthening enforcement mechanisms in the Member States. This would
require increasing existing controls and enforcement mechanisms and making
them more effective, and might include drafting an ad hoc enforcement
directive to support the application of Regulations (EC) No 1071/2009 and
1072/2009. Furthermore, enforcement measures might target labour and
social laws in the road freight transport sector, such as Regulation (EC) No
593/2008 (Rome I Regulation), for example via joint controls by road
enforcement and labour authorities.
Introducing enforcement impact assessments. These could be introduced with
the purpose of significantly strengthening the enforcement side of EU
legislation, while encouraging Member States to assume their responsibilities
in this area. These should accompany each legislative proposal in order to
evaluate and estimate the impact that the measures applied would have on
the enforceability of the proposal after the EC legislation enters into force.
Introducing reporting mechanisms on the application of Directive 96/71/EC
on the posting of workers. Enforcement can be made more effective if it is
supported by constantly updated data and information about the status of
the implementation of the various norms. This might be the case for Directive
96/71/EC on the posting of workers by including a provision for a reporting
mechanism in Regulation (EC) 1072/2009 that requires each Member State to
inform the Commission about the application of Directive 96/71/EC and for
the prospective posting of workers enforcement directive - for which a
proposal4 is currently being debated in 1st reading at the EP.
Enhancing co-operation between Member States and between different
authorities of the same Member State. This might be achieved by facilitating
exchanges of information and best practices, promoting training of
enforcement officers and supporting concerted training programmes.
Furthermore, it might also include extending the competences of the
intracommunity liaison body established by Directive 2006/22/EC.
Extending the application of the cabotage rules to Directive 96/71/106. This
might require amending Regulation (EC) 1072/2009 with the purpose of
eliminating exceptions and making cabotage rules easier to be enforced.
1
Commission staff is of a view that little can be done in that area by the EC.
75
Creation of a European register of transport companies. This regis ter would
include a black list of those companies that have been found responsible for
illegal or disloyal practices. It might be embedded into the risk rating system
that Member States are required to introduce with respect to undertakings
infringing EU rules on driving times and rest periods. 1
The High Level Group proposes that the twin aims of cabotage rules, reducing
empty running in relation to international operations and opening up markets,
are to be separated and that a distinction is to be made between linked (i.e. to
international movements) and non-linked cabotage.
Much of the actions above would have a positive effect on job attractiveness.
Notwithstanding those, measures can be distinguished in measures aimed at
improving conditions and measures improving the image of working within the
sector.
1
Sitran, A. & E. Pastori (2013). Social and working conditions of road transport hauliers.
Commissioned by the European Parliament, Directorate General for Internal Policies.
76
More attention to improved health and safety management and the promotion
of a safety culture throughout the sector will reduce the accident and ill
health rate amongst drivers. The possibility to set standards to lower work-
related risks could be explored.
Further development of good practice guidelines to tackle risks. All parties
involved should prioritise safer conditions to reduce accidents.
Alternatively, offering higher salaries would make up for less favourable
(other) working conditions.
A policy based on zero tolerance against violence would protect passengers
and workers and help to make public transport more attractive.
77