Does Swedish Derogation work for the HGV temp market?

Earlier this month AWR was brought back into the spotlight with the news that agencies were bypassing legislation by issuing Swedish Derogation contracts.

This is issue reignited following recent reports by the Sunday Telegraph that 400 Tesco agency drivers will lose out by £150 a week. This figure is the difference between what they would have received in their wage packets had their pay been equalised with Tesco’s own permanently employed drivers after the 12 week qualifying period, as required under AWR.

Under the Derogation, where agencies employ workers on a permanent contract of employment, companies can legitimately avoid having to equalise the pay of their agency workers with those of permanent employees.

A Tesco’s spokesperson did not deny that drivers will lose out financially, but questioned the amount.

The press coverage has also raised the question of the overall take-up of the Swedish Derogation in sectors such as transport, logistics and food manufacturing and whether there are any- other solutions available for this market place.

One of the issues that’s becoming increasingly evident is that the really big clients with all the buying power, they will attempt to push the costs onto the agencies. Leaving small to medium size agencies with the dilemma of trying to keep their clients happy and thus retaining them but jeopardizing the commercial input to their businesses.

The question, of course, is whether, when dealing with major and important clients, agencies actually have a choice at all.

Lots of agencies, albeit reluctantly, are having to use the Swedish Derogation but it certainly not going to be their operating model of choice!

To find out more about MSL Forza’s solution for drivers call one of our team or enter into a live chat on our website.