A Scunthorpe haulier has this week given his 38 drivers an 8% annual wage increase on the basis that the government's 3% inflation figure is a wild underestimate. John Burgin, who runs the steel haulier Intake Transport with his brother Richard, nevertheless admits that the company - like most hauliers - is struggling with the increasing price of fuel.
This has meant that the annual pay rise, which normally comes into effect on April 1, was delayed while Burgin waited to examine the company's two monthly accounts. He says: "I wanted to wait to see that the latest fuel surcharge we put on had filtered through to our accounts. It had and so the pay rise can now go ahead."
Burgin admits that the delayed pay rise may be one reason there were rumours that Intake had gone into receivership, something he asserts has never been on the cards. Burgin says: "Drivers always gossip like old women I wish they'd just get on with their jobs. It's actually been boom time for steel haulage for the last three years, so business has been going well - it's just the fuel price which has been a challenge."
Burgin says that most of his customers have accepted fuel price surcharges and that he has stopped working for those that have not. He adds: "This is what hauliers need to do. If people don't accept fuel price charges, we have to tell them we won't work for them."
Intake has been trading for 14 years and now operates 35 vehicles Burgin says that this year's pay rise follows on from an 8% increase for drivers last year. The weekly starting wage at the company for drivers is now £600, with an automatic rise after 12 months' service and an annual rise. Burgin adds: "Let's face it, nobody believes the government inflation figures."