Logistics Sector AWR Impact

Impact of the Agency Workers Regulations on the Logistics sector

The demand for drivers has vastly increased since 2010, which explains the increase of usage as shown below. Drivers hold the majority of temporary worker usage in the Logistics sector and subsequently if their demand increases then growth in the temporary agency market will also increase.

However, although the logistics sector has increased agency staff in 2011, companies in this industry are still under pressure to reduce costs. Another factor influencing logistics is the many drivers that have left the sector, as younger drivers do not yet have the required experience. As a result, recruitment companies are in fierce competition with each other to source their clients’ requirements from an inadequate pool of drivers.

Organisations need to ensure they are carrying out due diligence in checking driver licences. The Department for Transport states there are roughly 473,000 unlicensed drivers on the roads of the UK and 17,200 of these have been banned through too many points, yet they still continue to drive.

The Logistics sector may be the industry most affected by the Agency Workers Regulations; as the longest assignment was for 181 weeks.  Candidates on average have worked at 3 agencies ranging at up to 16 different locations. The impact of the AWR upon this sector could be severe as temporary labour usage is considerably high in comparison to many other industries.