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Transport firms are missing out on millions of pounds of government funding for staff training, according to Skills for Logistics (SfL). The organisation has launched a campaign to raise awareness about a £720m package - available to a variety of industries, including logistics - for vocational, literacy and numeracy training. SfL says the logistics industry received only 2% of the available Learning and Skills Council funding for work-based learning in 2005/06, compared with 19% for engineering  and manufacturing, and 13% for construction.

Dr Mick Jackson, operations director at SfL, says: "The logistics industry is the fifth largest sector in the UK economy, turning over £75bn a year and employing 2.3 million people, which is 8% of the total UK workforce. "Conservative estimates suggest that some 330,000 logistics employees lack basic reading skills and 450,000 lack basic numeracy skills.

"As the fifth-largest industry sector, we should be getting a greater share of the fund-ing to upskill our workforce and reap the benefits." SfL says firms such as Wincanton, DHL, Stiller Group and Wm Armstrong have all benefited from offering qualifications to staff. It says skills training increases productivity, reduces absenteeism and recruitment costs, improves staff retention and lowers accident rates.

Jackson adds: "If logistics companies don't adopt qualifications, such as NVQs and Skills for Life (literacy and numeracy), the funding will go to other sectors that  do recognise them. "That will put logistics companies even further behind their customers."

Employers interested in finding out more about publicly funded qualifications should contact Skills for Logistics on 0844 561 1905, or visit the Skills Pay website.