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North firm ups wages and offers relocation packages amid national shortage of HGV drivers

Northwards has seen fuel costs soar.
Northwards has seen fuel costs soar.

A pay rise and relocation packages are among steps taken by one haulage company serving the north and north-east as the industry struggles to keep vital goods on the move because of a shortage of lorry drivers across the UK.

Michael Porter, managing director of Northwards, said he upped basic wages after it became increasingly difficult to recruit staff to replace experienced truckers lost to rivals and other sectors.

And the Shetland-based company, which has bases in Aberdeen, Inverness, Orkney, Scrabster and central Scotland, is offering assistance to drivers to move to the Highlands and Islands from other parts of the country.

New trucks and trailers in short supply

Mr Porter also said that, with demand rising significantly for his firm’s services following the easing of Covid restrictions, a shortage of new trucks and trailers was limiting its ability to expand its fleet.

Recruitment problems across the industry, along with high numbers of supply chain workers self-isolating, have led to delays in deliveries of many goods, widening gaps on supermarket shelves and restaurant closures.

Earlier this week shoppers in the Western Isles were asked to “only buy what you need” as the islands were hit by milk shortages.

And restaurant chain Nandos had to temporarily close 50 restaurants after running low of its staple dish, peri chicken.

Michael Porter, managing director of Northwards.

Mr Porter said: “Demand for what we do is up by 23% on last year. The shortage of HGV drivers is a nationwide issue, which is attributable, in part to testing delays during Covid restrictions and, in part, to losing Eastern European drivers as a result of Brexit.

“There is also a shortage of new trucks and trailers, which is restricting our ability to increase the size of our fleet, making us more reliant on sub-contractors than we would choose.”

He continued: “Northwards currently employs 70 drivers across six depots and has several vacancies at the present time, which is not a significant issue in itself.

We have, however, had a slightly higher than normal turnover of drivers in the current year. We have lost some to other haulage companies and some to other types of job, such as construction projects and opportunities in the oil and gas sector.

“The loss of any knowledgeable and experienced driver disrupts the momentum that we are building within the business.

“It was becoming increasingly difficult to recruit experienced replacements and, following consultation with our drivers, we have increased the basic wage to ensure that pay remains in line with our competitors.”

Mr Porter said a “limited pool” of drivers available within a reasonable distance from the firm’s depots was a particular challenge in the Highlands and Islands.

He added: “To address this, we offer incentives such as offering a progression programme for new and existing employees to work towards a Class 1 license and providing relocation packages for those moving into the area from another part of the country.”

‘Critical challenge’ for supply chain

A spokesman for trade body the Road Haulage Association (RHA) in Scotland said the driver shortage was a “critical challenge” for the supply chain.

He continued: “It’s not a new problem, but a Brexit exodus and the lockdown suspension of HGV driving tests has turned it into a crisis as demand for goods has increased.

We’re starting to see this play out with supermarket and hospitality shortages reported across Scotland and the rest of the UK.

“This is why the UK Government needs to act now. Firms must be allowed to employ drivers from overseas in the short term to plug some gaps whilst we recruit and train a UK-based workforce in the longer term to bolster the ranks.”

Northwards recently announced a £1.5million investment in new vehicles to service Northern Isles ferry connections in Aberdeen.