IRU wants European unity

The recession is hitting hard all over Europe. And the International Road Transport Union (IRU) is doing all in its power to pave the way for some sort of recovery. If swift action is taken in accordance with the IRU’s recommendations, it should have benefits to the sector throughout the EU zone, including Ireland.

The International Road Transport Union (IRU) and the European Transport Workers Federation (ETF) are demanding action from the EU in formulating an effective road transport recovery plan. The two EU social partners for road transport have agreed a joint-statement, including six measures (Restore Credit: Retain Employment; Increase Training; Retain Quality; Reduce Costs; Reinvest in Infrastructure) which both organisations insist upon as a minimum requirement for an urgently-needed road transport recovery plan. This must be coordinated and realised by the European Commission together with EU member states.

Heralding the rolling out of this six-point recover plan, the IRU’s general delegate to the EU Michael Nielsen stated: “This is a landmark joint message from workers and employers in road transport. The road transport sector has been hit hard by the recession and we need concerted action to get through this time of crisis. In recent months, falls of up to 50% in road freight transport activity have been observed, while a 10% drop in world tourism is now severely impacting coach transport.

“Bankruptcies have doubled and at least 140,000 jobs in the EU road transport sector have gone. The social partners, recognising road transport’s pivotal role in the economy and as a massive supplier of European jobs, call on national and EU authorities to cease talking and start putting in place some urgently needed and concerted actions to mitigate the impact the crisis has had on the road transport sector”.
Nielsen called on EU transport attachés to act NOW to minimise the impact the economic crisis is having on the road transport sector. The primary measures identified by the IRU include:
- encouraging financial institutions to reopen credit lines to road transport companies;
- adopting employment schemes enabling skilled labour to stay in road transport rather than losing their jobs;
- reducing fuel costs and to stop adding other external charges;

- ensuring through the provision of incentives that the crisis does not stop company investments in training
- ensuring through the provision of incentives that the crisis does not stop company investments in newer, cleaner and safer vehicles
- reinvesting more than ever in infrastructure - including safe parking facilities – to stem the flow of unnecessary costs incurred from congestion and crime.
“We need to see the European Commission assume the leadership role that it claims,” Nielsen added. “Now is the time for the EC to match aspirations with actions and to demonstrate an ability to act when it counts. Together with national governments, it must implement a recovery plan without delay, fulfilling all the points outlined by the road transport social partners as well as the actions called for previously by the IRU in its resolution on the economic crisis.”

The IRU and the ETF maintain that an EU road transport recovery strategy is a prerequisite for a general economic recovery because every citizen needs mobility and every company needs road transport services to connect their businesses to world markets. The social partners for road transport are united behind one message: that any penalty on road transport is an even greater penalty on the economy as a whole, and that further facilitating road transport will stimulate a faster economic recovery.
The IRU / ETF joint-statement on the economic crisis points out that, in a globalised economy, professional road transport is a vital tool that interconnects every business to world markets and provides safe, environmentally-friendly and affordable mobility for all. Road transport is a massive provider of European jobs, directly employing 5 million in Europe as well as indirect employment to a further 2.2 million.

The social partners for road transport recognise the pivotal role played by road transport in the economic and social life of Europe. They share a common desire to see its interests defended, its jobs safeguarded, and its healthy growth continued. They recognise that road transport is an essential pillar of the economy and call on national and EU authorities to take all actions needed to aid road transport during the economic crisis and to foster its future sustainable growth.
The sector has been hit very hard by the global recession and the problems accelerated during the first four months of 2009. The demand for transport has softened and rates have fallen. A large part of the transport sector is made up of small- and medium-sized businesses and these are particularly vulnerable in the hostile environment of the recession, due to their size, the competitive nature of the market, and the correlation between economic growth and transport demand.

Haulage tariffs were in decline for the first three months of 2009 and the forecast for the remainder of the year is bleak. The passenger transport market is also in decline, with the taxi industry recording a 20% decrease in airport pick-up services. Relevant authorities are being asked to ensure open markets, eliminate neo-protective barriers, reassess and reduce taxes and other discriminatory road user charges as well as other restrictive legislation, strengthen the rights of transport companies by changing insolvency legislation, induce financial institutions to provide adequate credit lines, provide incentives to operators and deploy economic stimulus packages and reduce waiting times at borders.

Meanwhile, operators are called upon to transport goods only if a profit can be made and if costs can be passed on and empty trips avoided, as well as to stabilise market prices by reducing transport capacities and placing skilled personnel temporarily on inactive status without losing them (as they will be needed again when the crisis has ended).
All in all, these are challenging times internationally for operators, governments, businesses and legislators alike. Only if everybody works together can the international haulage community be protected from the devastating effects of this sharp economic downturn.