Despatches news - Focus on Business

Courier businesses speak up -

Skills for Logistics, our sector skills council, recently produced the findings of an employer survey questionnaire about the current state of sector business entitled ‘Skills to Survive’.

Some of the key findings were:

1. Firms involved in Clothing and Footwear, Construction, Furniture and Furnishing and Third Party logistics supply chains saw the largest decreases in profitability. Firms working in more resilient supply chains such as utilities and pharmaceutical & medical supplies were also affected but to a lesser extent.
2. The top 5 business challenges for firms were; energy/fuel costs, profit margins, the current trading environment, environmental pressures and changes in supply chain operations.
3. 41% of companies that had not participated in training saw a decrease in profitability, compared to 28% of companies that had trained
4. 66% of companies that train are also more likely to have an impact on their wider business efficiency by being proactive in implementing cost saving measures across the business.
5. Companies undertake a variety of training. Mandatory training is accessed by three quarters of the companies that participated in training. Over half 51% undertake discretionary training but at full cost, whilst interestingly only 6% participate in publicly funded training.
6. Nearly nine in ten report that the main reason companies provided training was to ensure staff could do their job or to comply with legislation, one in ten companies trained to ensure staff development/progression options and for 3% of companies, the main reason for providing training are the bottom line benefits

Will it matter?

The Government has announced a department merger that will create the new Department for Business, Innovation and Skills (BIS). It will be created by the merging of the Department for Business, Enterprise and Regulatory Reform (BERR) and the Department for Innovation, Universities and Skills (DIUS). The new department is designed to advocate the needs of UK small businesses but some employment experts have said that the re-organisation is ill-timed during the recession.

Agency Workers Directive proposals.

The Association of Recruitment Consultancies' (ARC) suggestion that the Agency Workers Directive (AWD) should be split into two tiers has been attacked by unions and the Recruitment and Employment Confederation (REC). The ARC has proposed that vulnerable, temporary workers, such as those more likely to be subject to exploitation, have the same rights as permanent workers after 12 weeks, while higher paid workers are exempt from the regulation and do not attain the same rights after this period. However, a spokesperson for the REC told Personnel Today magazine that this proposal reinforced the idea that an agency worker is vulnerable and said the REC is "fighting that stereotype".

Consultation to help companies in distress.

The Government has launched a consultation on proposals to revise insolvency rules to help businesses facing financial difficulties. The main aim is to give absolute priority to new money lent to companies having problems. This would make it more attractive to lend to firms in this situation, allowing them to access the funding they need to get back on their feet and stay in business. For large- and medium-sized companies, the intention would be to give them breathing space while they seek legally binding Company Voluntary Agreements (CVAs) with their creditors, without first having to place their companies into administration.

Small companies facing financial difficulty are currently able to obtain a moratorium on creditor action while seeking agreement with their creditors to deal with their debts. The proposals would also introduce new procedures to allow a court-agreed moratorium of up to three months, where the court is satisfied that creditors’ interests are properly safeguarded

For results of this consultation and others relevant to our industry, check upcoming DA Newsletters, delivered monthly only to the Inbox of DA members