Transport Logistics

5.3. Effects of changes in the logistics industry on human resources

The many developments in logistics have important consequences on employment and labour.

For example, in Europe, two models of logistics organisation exist, in which the status of manpower is

the crucial issue. One relies on high skills, information technologies, and the contemporary standards

that advanced logistics require. The other relies on low product price and competition, resulting in

downward pressure on salaries and working conditions.

Both models can be implemented simultaneously inside the same organisation, even in a

seemingly contradictory way, with modern organisation ruling the core logistics system while

ancillary services are delegated to outside providers or produced in-house by casual workers.

Therefore, driving and warehousing activities that are subject to price pressures are often the

domain of poorly trained and low paid employees, particularly in Eastern European countries.

However, new technologies will require a higher level of training to operate tracking, tracing and other

ICT devices now essential to transport and logistics services. In Australia, the National Road

Transport Commission has reviewed several approaches to assessing the skills levels of young drivers

in order to fast-track training to address the problem of skills shortage in the industry (NRTC, 1999).

The conclusion of the NRTC was that the fast-tracking concept could be criticised on road safety

grounds as even careful selection of fast-track candidates may be insufficient to fully compensate for

the higher crash risk carried by younger, less experienced drivers of heavy vehicles.  The fast-track

provisions would increase exposure to risk among younger drivers.

The associated problem of engaging sub-contract drivers operating under tight financial

constraints relates to the chain of responsibility in road transport.  In Australia, the challenge of

effective compliance and enforcement is being addressed by extending the chain of responsibility to

anyone in the transport chain who contributes to unsafe on-road outcomes — including consignors and

receivers. Comprehensive national compliance and enforcement provisions are being finalised by the

National Road Transport Commission, in conjunction with the road transport industry, road transport

authorities and enforcement agencies. Occupational Health and Safety (OH&S) agencies are also

involved in the process (NRTC, 2001).

Furthermore, logistics developments lead to changes in the demands for skills and require more

highly educated employees. To provide their customers with complete, tailor-made integrated

distribution services, distributors must employ logistics specialists who have the necessary skills to

examine the complex distribution needs of their customers, devise for them the best transportation

option, and design the necessary distribution and information systems. A key factor in this process is

obtaining people who have such specialised abilities.

Many developing countries suffer from lack of logistic knowledge and policies and therefore

need assistance in human resources education and training. Developed countries are dispatching

logistics experts to establish and develop training courses in logistics in these developing countries,

which can also provide benefits to the donor countries’ supply chains. For example, several Japanese

companies are actively promoting the education and training of human resources, in compliance with

the Standards of Training, Certification and Watchkeeping for Seafarers (STCW), in developing Asian

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countries. The enactment of standard international laws and regulations in the shipping industry has

also encouraged private sector involvement in education and training of human resources in

developing countries.