Shortage of Long Haul Drivers, Logistics Industry in Australia - Coursework Example

SHORTAGE OF LONG HAUL DRIVERS Transportation & Freight Logistic Abstract Presently, Australia is experiencing effects due to the shortage of long haul drivers in logistics and transportation industry. Different government policies and regulations will pose some considerable solutions to this problem. Lacking of trained and experienced drivers is problematic and negatively affects the development of industry. The stakeholders also need to recruit and train more drivers to fill up and compensate the old who are departing the industry. The aim of this paper is twofold: discussing the potential causing and outlining probable solutions to shortage of long haul drivers. Shortage of Long Haul Drivers 1.0 Introduction There is increase in demand of Freight logistics due to globalisation and economic growth in Australia. It attributed to this trend that shortage of long haul drivers is becoming freight transportation challenge in Australia (Cronin 2013). The long haul freight, over the past years has continuously become competitive thus well earning reputation in the context of freight and logistics. Growth of transport and logistics industry and Australia’s national economy reaching levels of near full employment, employers in freight transportation are experiencing shortage of long haul drivers. Employers are notably struggling in finding, recruiting and retaining long haul drivers and this challenge is further exacerbated by the ageing workforce. Moreover, there has been an outcry among most long haul drivers on the despicable working conditions in most of the freight and transportation companies It is also notable that shortage of long haul drivers has resulted into shortage of skills and labour in Australia’s freight and transportation thus affecting the overall logistics industry in the country. Shortage of long haul drivers as a freight transportation has been triggered by poor working conditions, old-age profiles, tight labour markets, and forecast growth of freight tasks not guaranteeing foreseeable future (Bookbinder 2012). These characteristics are expected to further heighten shortage of long haul drivers as they cause the problem of attracting and maintaining them. 2.0 Effects of shortage of long haul drivers to logistics industry in Australia 2.1 Effects of Poor Working conditions With an employee turnover approximating 2,000, the trends in this industry are worrying. A research by the Ministry of transport reveals that a large majority of drivers who quit working for these corporations cited poor working conditions characterized by long working hours and low wages. So high has this number sky-rocketed that it has led to massive delays in delivering cargo to their destination on time. Moreover, the Transport Workers Union of Australia has vehemently been agitating for better pay for drivers as well as more flexible working patterns. According to James (2006), long haul drivers require not only social but also legal protection. This lack of legal and social representation of long haul drivers has been a major challenge in the industry. In addition to this, there have been rampant cases of drivers working with poorly services vehicles, a factor that has culminated in the increased number of road accidents. Poorly serviced cars account for close to 15 percent of the total road accidents on Australian roads. Moreover, with the great reduction in long haul drivers, some companies have resulted to hiring drivers with little experience. Unfortunately, this has had the ripple effect of high accident rates as some of these drivers do not follow the Highway Code (Folinas, 2012). Another major cause of poor working conditions in this industry has been the unethical competition among key players. As more companies join this lucrative business, the workers bare the blunt of unreasonable working hours as well as unreasonably low wages. Further, to keep up with the rising demand of delivering cargo to clients, some unscrupulous companies engage in overloading, a practise that compromises the welfare of drivers as they risk getting arrested (Roger, 2013). It is such misconduct and challenges that have led some drivers to giving up on long haul driving to safe guard their security as well as look for alternative employment. 2.2 Effects of an Ageing Workforce The shortage of long haul drivers in addition will affect the distribution of truck and train drivers and this will hinder the continued growth of Transport and Logistics industry. It is expected that the existing long haul drivers are likely to reside in only freight-intensive areas and only key major regional cities thus T&L industry will experience slow growth in other areas and cities in the country with less freight activities and industrial development (Roger McLeod Harris 2013). This will also result into reduction of skilled and experienced long haul drivers within the working population in the Transport and Logistics industry. Additionally, the more enthusiastic young adults willing to join the industry are barred due to the stern legislation requiring that long haul drivers need to have held their license for at least 24 months (Roger, 2013, p.58). Moreover, it is expected that the higher the average age of long haul drivers has negative implications for the future of the underlying workforce. With the workforce only comprising of the old and only few young drivers becomes a matter of concern to the future sustainability of transportation and logistics industry According to Amanda Evans (2008) the country analysis in regard to employment and demographic data indicates that the shortage of long haul drivers and more reliance of the older workforce in transportation and logistics industry need to be addressed to ensure for the efficiency and sustainability of its underlying industry (Peter Hock, 2008). 3.0 Recommendations. 3.1 Recommendation for Poor Working Conditions With the shortage of long haul drivers, freight transportation management needs to adopt some mitigating measures and approaches to solve the aforementioned issues. These guidelines will enable them compete successfully in the current Australia’s labour market. In addition it will also enable them attract new workforce as well as retaining the existing workforce. One critical measure to address the poor working conditions of long haul drivers, is for Transport Workers Union of Australia to enact laws and require that every transport and logistics company to be a signatory member (Cronin, 2013). The essence of this move is to develop cohesion between union members and T & L companies. This will serve the long-term goal of raising grievances through the union. Further, the union will act as a voice to the drivers through which they can air their opinions without fear of victimization. Overall, long haul drivers should be allowed convenient resting intervals and commensurate pay for the arduous and high risk work that they are engaged in on a daily basis. Further, freight transportation management should establish frameworks in the industry that will influence the attractiveness to prospective employees. The frameworks underlying this could be improving the overall image of the industry as lucrative and well paying. In this regard, there should be a well stated regulations and guidelines governing the long haul drivers’ remunerations as per the freight tasks they have undertaken. The government should support favourable and appropriate regulations, promoting appropriate educational programs and coordination of information for the benefit of long haul drivers’ welfare (Amanda, 2008, p.43). Finally introducing hygienic working conditions which will make employees feel motivated. This will create an efficient and smooth approach with regards to knowledge transfer through mentoring and training workforce. 3.2 Recommendations for Ageing Population It is notable that the Australian Logistics and Transport industry has a narrow workforce demographic dominated by male because few females are interested with the industry characterised with ageing workforce. Therefore Freight transportation management should adopt approaches in which it will attempt to broaden the employment base in the industry. This involves introduction of freight industry to the indigenous people who can be able to enter into the industry thus addressing the problem of shortage of long haul drivers (BTRE, 2003, p. 76). Licence regulation in Australia should be reviewed to enable drivers with articulated licence be employed as long haul driver without necessarily having held a car licence for at least 24 months (Bookbinder, 2012, p.32). This will eventually in the long run enable young individuals be recruited in the freight sector. This barriers prevented young individuals from taking a career of long haul driver due to the time needed as compared to other careers. Therefore Freight transportation management should remove barriers attributed to the competence based approach which limits or prevents young individuals get recruited. Focus should also be put on the opportunities and the benefits of retaining ageing workforce. Incorporation of alternative ways of handling freight apart from manual means, introducing incentives to the workforce to enhance retentions of employees. 4.0 Conclusion The shortage of long haul driver can evidently and negatively affect the economical growth of Australia. Industry and government should improve the lifestyle of long haul drivers by increasing salaries, superannuation. The improvements of training and working conditions also efficiently solve the problem. Alternatively, the Industry and government should lower the barriers to attract younger drivers, proved better regulations and policies for ageing drivers. Moreover, they should incorporate drivers in trade unions, sign permanent working contracts for drivers, and regulate minimum wages for drivers. In conclusion, industry and government should play important roles and they are responsible to improve this situation of shortage of long haul driver. References ALC, 2007, Contribution of transport and logistics to the economy: Dispelling the myths, Australian Logistics Council: Robina, Queensland. Amanda Evans, J. M, 2008, Transport and Logistics, Sydney: Careers FAQ. Bookbinder, J. H, 2012, Handbook of Global Logistics: Transportation in International Supply Chains, New York: Springer Science & Business Media. BTRE, 2003, An overview of the Australian road freight transport industry, Working Paper No. 60. Bureau of Transport and Regional Economics, Department of Transport and Regional Services: Canberra. Cronin, C. B, 2013, Building a Sustainable Workforce in the Public Transportation Industry— A Systems Approach, Sydney: Transportation Research Board. DfT, 2008, Young Drivers Scheme. Department for Transport: London, UK. Folinas, D, 2012, Outsourcing Management for Supply Chain Operations and Logistics Service, Hershey: IGI Global. James P 2006, Health and Safety at Work and its Relevance to Employment Relations Research. Bradford, England, Emerald Group Publishing. Peter Hock, Q. R, 2008, Moving Business Forward: Australian Expertise in Transport and Logistics, Paris: Focus Publishing Interactive. Philip G. Laird, M. B, 2001, Back on Track: Rethinking Transport Policy in Australia and New Zealand, Washington: UNSW Press. Roger McLeod Harris, T. W, 2013, Workforce Development: Perspectives and Issues. New York: Springer Science & Business Media. Read More