“How Will Brexit Affect European Transport Recruitment?”

Andrew Preston, CEO of de Poel, considers the impact Brexit may have on the transport and logistics sector – and the potential rippling effect on Europe as a whole:

It would be an understatement to say Brexit is a major source of concern for not just businesses and individuals in the UK, but across Europe. How this will affect the ever-changing transport and logistics industry is still up for debate – with much uncertainty around the potential ramifications on personnel, warehouses and distributions centres. Just what could be on the cards?

EU legislation

An exit from the EU could lead to a reduction in legislative burden for UK hauliers and level the playing field against foreign hauliers. When the UK formally leaves the EU, the UK Government may have the freedom to implement stricter rules regarding the use of UK roads by EU hauliers. For example, the Government could increase the HGV road user levy charge for EU hauliers (first introduced in 2014) – or it could remove the charge for UK Hauliers. This could,Ho in turn, see EU countries set a reciprocal charge for UK hauliers operating abroad.

Interestingly, in the context of Driver CPC, renowned transport law firm, Pellys, does not believe there will be significant change in legislation: “It is unlikely that Britain leaving the EU would provoke a mass overhaul of our transport laws.. Brexit may trigger some legislative changes, but the fundamentals of safe and compliant operation are not going to change.”

Free movement of labour and goods

One of the biggest impacts for the industry following Brexit could be on recruitment. Whilst Europe is concerned about rising costs, the UK is concerned about costs and people, given the current skills shortage and ageing workforce.

Against this backdrop, a sudden fall in the number of available workers may result in fewer drivers from the EU available to work for UK-based haulage businesses. If there were any significant curbs on the free movement of people and European countries decided to follow suit, this would mean less talent flowing between countries, with less trade and less prosperity.

Free movement of goods and free movement of labour are likely to prove themselves intrinsically linked in any negotiations with the potential to cause, in the worst case scenario, double trouble for transport firms. Any resultant rise in costs will squeeze already tight margins, with the added knock-on effect of reducing the pool of cash available to train and retain new and existing talent.

The dawn of a new distribution nexus?

Following the Brexit vote, transport and logistics companies Europe-wide have been assessing the nature of their own supply bases. How the European economy will settle is still conjecture, however an outcome could be that UK-based suppliers and manufacturers search for alternative locations closer to buyers and end markets, which would have a significant impact on European-based suppliers as a result.

With this, it is likely that transport and logistics companies will open up additional distribution facilities, to offset any logistical disadvantages arising from Brexit. However unlikely it may seem, there could even be something of a return to country-specific distribution.

Scenario planning

The ultimate goal for every employer is to attract and maintain an agile, diverse and skilled workforce to ensure services continue running smoothly. Although no-one knows how Brexit negotiations will pan out, we’ve been advising transport and logistics companies on a range of future-proof solutions, regarding their non-permanent workforce, including:

– Talking with supplying recruitment agencies about ways in which they can broaden and develop their candidate pools, so alternative talent pipelines are already in place should there be significant curbs on the free movement of people.

– Workforce modeling (the process by which demand is matched directly with the availability and preference of skilled workers), coupled with temp-to-perm conversion programmes such as the ‘Warehouse-to-Wheel’ scheme. The latter can positively impact attrition rates for workers who have moved along this route, ensuring employers retain quality-long-term workers and achieve cost savings as a result.

So what next?

Although any changes as a result of Brexit will take a long time to take effect as the UK rebuilds their trade relationships, they could nonetheless be game-changing for Europe as a whole. The reality is, transport and logistics companies are already rethinking distribution channels to match with the new potential trade map and pausing their acquisition activities.

Whilst the rate of permanent hiring is expected to decrease slightly as employers become more risk-averse, people will always remain the most important asset for any business. With this in mind, it is likely that talent hired on a temporary basis will be called upon to plug the gaps. In these politically turbulent times, it is critical that transport and logistics companies continue to access a workforce able to expand and contract with the ebb and flow of the market, their own unique requirements and ultimately, fill the jobs available.

Tweet