Driving Business Autumn 2015

business AS UNUSUAL.

THE MINI 5-DOOR HATCH.

an impressive set of figures.

j From 92g/km CO2 j From 16% BIK j Up to 80.7mpg (combined)

All new turbo-charged three and four-cylinder engines demand less fuel, deliver more power and produce lower CO2 emissions than ever. Supported by cutting-edge technology like Auto Start/Stop and optional Green Driving Mode, all models are among the most tax-efficient vehicles you could choose for your fleet and ensure that BIK repayments are minimised.

BE OPEN TO OPPORTUNITY. Adding more doors to our most advanced MINI yet has opened up its advantages to more businesses than ever.

With 5 doors comes 67 more litres of boot space (compared to the 3-door model) and even more leg room.

Which is just as well, because the MINI 5-door Hatch is no less loaded with extras and fuel-saving technology.

THE MINI 5-DOOR HATCH.

DRIVING

Issue 13 Autumn 2015 ÂŁ4.50

Helping you make better decisions

MOT WARNING Are you racking up huge repair bills at MOT time?

Z-TECH GOES HI-TECH Vehicle tracking, in-cab cameras and training cut crashes and fuel costs

NEW CARS COMING SOON Volkswagen Passat GTE Mercedes-Benz GLC Alfa Romeo Giulia Vauxhall Astra Jaguar XF Lexus RX BMW X1 Audi A4

SAFETY SPECIAL

ARE YOUR DRIVERS PUTTING YOU AT RISK? How to spot and train high-risk drivers - and protect yourself from jail

Contents

ISSUE 13 Autumn 2015

FRONT END

7

MOT warning A quarter of British SMEs with company-owned vehicles have failed an MOT, racking up £350 million in repair bills.

10 Opinion The Government’s new rules on vehicle exise duty will increase complexity and costs for businesses.

12 Opinion If your company uses vehicles, it must have a duty of care process.

BROADER VIEW

14 Z-Tech How the engineering company took a hi-tech, but holistic, approach to cut crash rates and fuel costs.

SAFETY

20 Why driver safety matters

14 Z-Tech

There are legal, financial and moral reasons for companies to ensure their staff are safe on the roads.

25 Should you drug-test your employees?

Without a robust drug policy, a new drug-driving offence may leave your company liable for drivers who break the law while at work.

30 Licence-checking The paper counterpart is no more, so how do you check your employees can legally drive?

32 Driver profiling

19

Safety

 10

Opinion: Gerry Keaney, BVRLA

How to identify and train your business’s high-risk drivers.

CARS

34 Coming soon A look at new model launches.

34

Cars coming soon mydrivingbusiness.co.uk ❚ Autumn 2015 ❚ 3

DRIVING

Helping you make better decisions

Contact us Driving Business, Media House, Lynchwood, Peterborough PE2 6EA. If you or someone you know is aged between 16 and 24 and is interested in work experience opportunities at Bauer Media, visit: gothinkbig.co.uk Editorial Editor-in-chief Stephen Briers 01733 468024 stephen.briers@bauermedia.co.uk Editor Sarah Tooze 01733 468901 sarah.tooze@bauermedia.co.uk News editor Gareth Roberts 01733 468314 gareth.roberts@bauermedia.co.uk Features editor Andrew Ryan 01733 468308 andrew.ryan@bauermedia.co.uk Web producer Christopher Smith 01733 468655 christopher.smith@bauermedia.co.uk Contributors Gerry Keaney, Darren Newton Production Head of publishing Luke Neal 01733 468262 Designer Erika Small 01733 468312 Production editors Richard Davis 01733 468310 Finbarr O’Reilly 01733 468267 Head of project management Leanne Patterson 01733 468332 Project managers Lucy Peacock 01733 468338 Angela Price 01733 468253 Kerry Unwin 01733 468327 Advertising Commercial director Sarah Crown 01733 366466 Group advertisement manager Sheryl Graham 01733 366467 Account managers Wendy Cowell 01733 366472 Lucy Herbert 01733 366469 Lisa Turner 01733 366471 Stuart Wakeling 01733 366470 Marcus Woods 01733 366468 Publishing Managing director Tim Lucas 01733 468340 Group marketing manager Bev Mason 01733 468295 Office manager Vicky Meadows 01733 468319 Group managing director Rob Munro-Hall Chief executive officer Paul Keenan Subscriptions: subscription@mydrivingbusiness.co.uk Printing: Precision Colour Printing, Telford. © 2015 Bauer Media No part of this magazine may be reproduced without the permission of the publisher. You can purchase words or pictures for your own publications.

Phone 01733 465982 or email syndication@bauermedia.co.uk.

Driving Business will not accept responsibility for unsolicited material.

Welcome What would you do if your best salesperson kept having at-fault accidents in their company car? Would you consider disciplinary action? Or would you overlook their crash record because they bring in money for your company?

If you’re tempted to choose the latter option, think again.

That driver is likely to be costing you significantly more cash than they are generating.

It’s not just the expense of repairing the damage to their company car. Accidents have lots of ‘hidden costs’. These could include the time the vehicle is off the road, hire car costs, lost productivity, sick pay, third-party costs, legal costs, damage to business reputation if the vehicle has your company logo on it and higher insurance premiums.

There’s also a much bigger issue to consider. Risk.

That driver is at risk of having a serious – potentially fatal – accident. If that occurs during a work journey, the police will come knocking at your door.

That’s why we have put together a special safety issue (pages 19-33), helping you to understand the legal reasons driver safety matters and how to measure and manage risk.

Sarah Tooze Editor, Driving Business

Complaints: Bauer Consumer Media Limited is a member of the Independent Press Standards Organisation (www.ipso.co.uk) and endeavours to respond to and resolve your concerns quickly. Our Editorial Complaints Policy (including full details of how to contact us about editorial complaints and IPSO’s contact details) can be found at www.bauermediacomplaints.co.uk. Our email address for editorial complaints covered by the Editorial Complaints Policy is complaints@bauermedia.co.uk.

mydrivingbusiness.co.uk ❚ Autumn 2015 ❚ 5

Keep your business moving To meet the demands of your business, you’ll want to make sure your fleet stays on the move. And that means keeping things going whatever problems might crop up. AA Business Services can help with this. Whether it’s a cracked windscreen, misplaced car keys or a tank filled with the wrong fuel, our fleet of specialist services can offer the support you need to keep things running smoothly.

AA Business Breakdown Cover

Fleet Risk Management from AA DriveTech

0800 55 11 88 quoting 0771 theAA.com/business

E-mail: TellMeMore@AAdrivetech.com AAdrivetech.com

AA Fleet Insurance

AA Business Insurance

0800 107 8175 theAA.com/insurance

0800 107 8175 theAA.com/business

AA AutoWindshields 0800 912 1401 OutboundTeam@theAA.com

AA Key Assist Fleet.Enquiries@theAA.com

For AA Business Breakdown Cover call 0800 55 11 88 quoting 0771 Or visit theAA.com/business

AA Fuel Assist FuelAssistEnquiries@theAA.com

AA Accident Management AAAccidentManagement @theAA.com

■ FRONT END

w w w.mydrivingbusiness.co.uk mydrivingbusiness.co.uk

RAC Business Club customers get access to new vehicle leasing service RAC Business and leasing company Lex Autolease have joined forces to offer smallto-medium-sized businesses a new vehicle leasing service.

The arrangement gives RAC’s Business Club customers access to the buying power of Lex Autolease, the UK’s largest vehicle leasing company.

RAC Business Club customers will be able to lease vehicles from Lex Autolease through the RAC’s vehicle management portal and will benefit from regular special offers and more competitive leasing rates.

They will also have access to complementary fleet services provided through the Business Club platform, including RAC Telematics, RAC Fuel Cards, accident management services, van-for-van replacement, and duty of care guidance.

Jenny Powley, sales director corporate at RAC Business, said: “As a business, the RAC leases all its vehicles, cars and patrol vans so it was a natural step to give our Business Club customers access to the level of service and economies of scale that we enjoy with Lex Autolease.

Andrew Goodwin, business development director at Lex Autolease, left, with Richard Spencer, account director at RAC Business “Leasing vehicles, rather than buying outright, can be a much better option for businesses that rely on being on the road.

This is because they have the security of reliability and don’t have to worry about unexpected servicing or breakdown costs, because that is covered.

New advice portal for FSB members The Federation of Small Businesses (FSB) and leasing company Arval have launched FSB Vehicle Services to help members source and manage their business cars and vans.

The FSB’s 200,000 members will benefit from exclusive offers on specific cars and vans and will have access to a web portal, which has been developed to help business managers without expertise in vehicles to start accurately assessing their needs.

It includes simple online calculators to help businesses to analyse their current performance in terms of cost, emissions, tax and other parameters, as well as giving an indication of cost.

The portal is backed up by a dedicated 24/7 telephone helpline, where Arval experts

offer more tailored advice as well as recommending next steps and avenues to explore.

Carol Undy, member services chairman at FSB, said: “Very few SMEs in the UK currently have access to experienced fleet management expertise, and most don’t even consider their vehicles a fleet. As this isn’t a core area for the business, it can be hard to access impartial advice through traditional providers – even if they know who those are.

“Our members tell us they lack the in-house expertise to assess the various choices, and there’s no obvious third party that can readily provide impartial advice.

“We believe the new FSB Vehicle Services will bridge this gap and help our members save thousands of pounds a year.”

“As such, their business will operate more smoothly which puts them in a better position to grow as a result,” she added.

“We are confident that our Business Club customers will see the clear benefits of this arrangement and take advantage of the special promotions open to them.”

Free report offers guidance on vehicle funding and taxation Vehicle leasing provider LeasePlan UK has analysed the impacts of the pre-election budget and the postelection emergency budget in a new guide on company car taxation.

The guide, compiled in association with Deloitte, provides a detailed analysis of this year’s budget announcements, including the accelerated 3% rise in the CO2 thresholds for company car tax announced for 2019/20 tax years and the reduction in the rates of corporation tax from 21% to 20%, to 19% in 2017 and to 18% in 2020.

The report, Company Car Taxation: Your Guide for 2015, also explains related considerations, including the impact of VAT on company cars, the importance of vehicle excise duty and various tax relief calculations.

It includes working examples to demonstrate how the evolution of tax policy can affect overall fleet costs and examines how relevant individual elements of fleet policy are affected by the chancellor’s changes.

The full guide can be downloaded at: easiertoleaseplan.co.uk mydrivingbusiness.co.uk ❚ Autumn 2015 ❚ 7

■ FRONT END

w w w.mydrivingbusiness.co.uk mydrivingbusiness.co.uk

Small businesses are ‘pushing their vans to the limit’, warns LDF Many small businesses are risking vehicle reliability problems by running their vans for 10 years, according to finance provider LDF. One in three vans on UK roads is now at least a decade old, as businesses continue to put off investment in their commercial vehicle fleets.

SMEs are still finding it difficult to commit to significant capital investment in commercial vehicles due to lingering doubts about the strength of the economic recovery, and the difficulty of securing funding from traditional sources, according to LDF. Peter Alderson, managing director at LDF, said: “A lot of small businesses are pushing their vans and other parts of their commercial vehicle fleet to the absolute limit, with many often well beyond their useful economic life.

“It is not just the repair costs and efficiency of these older vans that create problems – there’s also the very substantial negative impact on a business’s brand of using tired, dated vehicles and, additionally, potential environmental factors to consider.

“A lot of businesses have been pushing their commercial vehicle assets through the period of

Failed MOTs cost SMEs £350 million

recession, but many will soon find that the vans they bought in 2006 and 2007 are no longer viable to run, and they will need to invest again.

“A growing number have started to invest in electric vehicles as replacements for ageing vans in their fleets, but many SMEs may still not be confident enough to make large up-front capital investments,” he added.

“SMEs with smaller fleets cannot afford to get to the point where their vehicles let them down but, while they may be unable or reluctant to find the cost of replacements upfront, seeking finance through a specialist provider can be a much simpler solution for a smaller business.”

LDF suggests that finance can be a cost-effective consideration for businesses who rely heavily on business transport, as it provides for immediate use of the vehicles, while the cost can be spread over a typical three-to-five-year period.

Alderson said: “Commercial vehicle finance means that retail businesses can avoid having to make substantial lump-sum investments that impact on cash flow, while still accessing the vehicles their businesses need to grow as the economy recovers.”

3.5

3.0

2.5

MILLIONS

1.09m 2.0

0.97m

0.73m

0.77m

0.88m

0.71m

0.82m

0.69m

2.45m

2.44m

2.4m

2.38m

2.48m

2.43m

2.38m

2.46m

2007

2008

2009

2010

2011

2012

2013

2014

1.5

A quarter (25%) of British SMEs with companyowned vehicles have failed an MOT, racking up £350 million in repair bills, according to new research from Lex Autolease.

The survey of 500 UK SMEs with companyowned cars and vans reveals that – in addition to the cost of failed MOTs – unforeseen trips to the garage and downtime cost them an average of £4,300 and 1.4 lost working days each in the last year.

Despite the risks, 40% of SME managers admit they regularly drive a vehicle that has a fault.

More than half of the companies (51%) surveyed said their most recent trip to the garage was the result of their own poor maintenance and bad driving, with accidents and pot-holes counting for less than a fifth (17%) and just under a tenth (6%) of incidents respectively.

The findings also reveal that many company drivers do not possess the basic knowledge required to detect problems or carry out straightforward checks.

Nearly half (45%) are unable to change a tyre, 44% do not know how to check oil levels, only 51% of drivers know if their tyre treads are legal and 35% do not know how to check their vehicle’s tyre pressures.

The research also shows that the majority of firms are neglecting to solve this problem by failing to educate their staff.

More than half (53%) do not offer employees any training to perform standard safety and maintenance checks, and just under half (48%) of firms said they had no policy in place requiring staff to make checks before driving for workrelated purposes.

Simon Barter, head of SME Direct at Lex Autolease, said: “From making deliveries to driving to sales pitches and meetings, vehicles are essential to the successful day-to-day operations of many UK small businesses. It’s therefore surprising to see that so many fail to protect themselves from avoidable costs.

“Our findings prove that vehicle maintenance isn’t considered a priority by many.

“By taking simple steps to ensure vehicles are routinely checked and that drivers are able to spot the signs of disrepair, businesses could save themselves unnecessary downtime and expense.”

1.0

0.5

0.0

Vehicles 10 years old and over 8 ❚ Autumn 2015 ❚ mydrivingbusiness.co.uk

Vehicles under 10 years old

A quarter of SME vehicles have failed their MOT

Do you know the Total Cost of Ownership?

A ‘one size fits all’ vehicle funding principle is rarely cost efective, efcient or attractive to either the employer or employee. Our vehicle funding experts will help you through the complex maze of financing options and provide you with the tools to implement the optimum solution, whatever your circumstances.

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www.lombardvehiclesolutions.com enquiries@lombardvehiclesolutions.com

Tel.: 0844 600 9012

Lombard Vehicle Solutions is a contract hire and fleet management product provided by ALD Automotive Ltd, trading as Lombard Vehicle Solutions, Oakwood Park, Lodge Causeway, Fishponds, Bristol BS16 3JA. ALD Automotive is registered in England No. 987418.

■ FRO N T EN D

mydrivingbusiness.co.uk

O PINIO N

SUMMER BUD GE T

“

Drastically changing the number of vehicles eligible for VED will create an administrative burden

”

NEW VED RULES WILL CREATE EXTRA COSTS

I ■ G ER RY K E A N E Y, BV R L A

t can take a while for the full impact of a Government budget to become apparent, and this year’s summer edition is no different.

The decision to introduce new vehicle excise duty (VED) bands from 2017 for newly registered cars is a good example of how a seemingly straightforward policy change can have unforeseen consequences.

The chancellor clearly had to act on falling tax revenues, which have receded as new car CO2 emissions tumbled – an inconvenient side effect of the push towards cleaner motoring. And revenues from the new VED scheme will be ringfenced for

10 ❚ Autumn 2015 ❚ mydrivingbusiness.co.uk

investment in the road network from 2020, which is welcome news.

However, the decision to operate two VED bandings from 2017 will create extra complexity and cost for companies. Drastically changing the number of vehicles that are eligible for VED payments will create an administrative burden for rental and leasing companies, the costs from which may have to be passed on to customers.

Furthermore, vehicles costing more than £40,000 will face an extra annual £310 surcharge for the first five years. Many hybrid and electric vehicles fall into this category, making this policy a disincentive to acquiring some low-emission vehicles. The current VED regime has been very successful in getting companies to reduce their CO2 emissions, with the average lease car on BVRLA members’ fleets emitting just 119.5g/km – 3.5% lower than in 2014.

The chancellor may have missed an opportunity by not using the VED regime to have an impact on wider air quality. For example, VED bandings could have been used to reward drivers of cars meeting Euro 6 emission standards that emit less NOx and fewer particulates.

Elsewhere, there is a strong case for the Government to broaden the scope of the planned consultation on MOT testing by considering both time and mileage-based criteria for a car’s first test. Cars are more reliable than ever, but extending the first MOT deadline could pose safety issues.

We’ll continue to work with Government officials to ensure they consider the impacts of these changes.

■ FRO N T EN D

mydrivingbusiness.co.uk

O PINIO N

DRIVER SAFE T Y LEGISL ATION

“

Failure to check documents could be interpreted as causing, or permitting, illegal behaviour

”

EMPLOYERS MUST HAVE A DUTY OF CARE PROCESS

E ■ DA R R EN N E W TO N , S O F T WA R E E U RO P E

very week, around 200 road deaths and serious injuries involve someone at work. The Corporate Manslaughter and Corporate Homicide Act 2007 considers the vehicle to be part of the workplace, and driving any vehicle on company business, regardless of ownership, is subject to this legislation.

As an employer, you have a responsibility to ensure that employee safety is not compromised through negligence and, with business drivers 25-30% more likely to have a collision than private drivers, according to the Occupational Road Safety

12 ❚ Autumn 2015 ❚ mydrivingbusiness.co.uk

Alliance, how well are you managing your duty of care obligations? What is your duty of care?

Companies must be seen to take all reasonable action to minimise exposure to risk, so far as reasonably practicable. Therefore, at the very least, you’ll be expected to consider risks, review policies and procedures and take steps for continual review and improvement.

Failure to check licences, or reimburse expenses payments without adequate licence checks, could be interpreted as causing, or permitting, illegal behavior. So how can you tackle such an onerous task without dedicating some serious administrative time and work?

The best place to start is to identify and understand exactly your legal obligations. Here are five steps to developing and implementing an effective duty of care process: 1. Update and communicate the policy to all employees.

2. Conduct road safety training on an ongoing basis.

3. Keep documented evidence, such as copies of driving licences, MOT certificates and vehicle service histories.

4. Evaluate different technology solutions that can help automate time-intensive tasks.

5. Monitor and audit internal processes and policy on an ongoing basis.

Out of the high number of fatal UK road casualties every year, between 600-750 are work-related crashes. Taking steps to develop and maintain a good duty of care policy ensures not only that you’re adhering to your legal obligations, but that you’re helping to improve the safety of your employees too.

■ For more on duty of care turn to our safety special on pages 19-34

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Our annual awards night attracts more than 1,500 people; the FN50 Dinner sees 950 leasing, manufacturer, rental and supplier companies networking; Congress and Commercial Fleet Summit provide insight into key areas of fleet operation; monthly roundtables enable 10-15 fleets to discuss issues and share solutions.

W H AT W E DO IN YOUR INDUS T RY

Fleet News magazine The leading business publication for the fleet sector, offering insight, analysis, best practice and in-depth profiles of fleets and suppliers every fortnight. But don’t take our word for it: 96% of readers say Fleet News is the most useful fleet publication (Fleet News reader survey). Every issue is packed with information that helps companies to run efficient and effective fleets – and our readership of 16,000 is restricted to named decision-makers, running fleets of 10-plus vehicles.

Commercial Fleet magazine

Commercial Fleet offers insight into the world of light commercial vehicles and trucks to provide operators with detailed analysis on key topics such as operations, safety, remarketing and the environment. Case studies in every issue provide best practice advice to help you to improve your efficiency. The magazine is supported by the commercialfleet.org website and events.

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Bespoke publications

This quarterly magazine is sent to managing directors and finance directors at 25,000 small to medium enterprises (SMEs) that are running fewer than 50 vehicles.

Focusing on the key elements of running cars and vans, Driving Business provides practical advice to reduce cost and improve safety with a minimum of time and effort.

The Fleet News website is an extensive library of best practice advice, fleet case studies, news and tools. Compare car and van running costs, check how much tax employees will pay and find out which models use the least fuel with our easy-to-use tools. We also send Ignition, a monthly newsletter which contains car reviews and interviews not included with our print magazine.

Fleet Leasing provides insight and analysis to board level executives, senior management and regional sales staff at contract hire and leasing companies. Its objective is to inform and educate about fleet trends, new models and technological developments, once a quarter, supported by a website regularly updated with the latest leasing news.

Magazines, supplements, brochures and digital products are produced for commercial partners. These bespoke publications inform fleets about companies and topics relevant to their business. They include manufacturer and supplier reports, in which Fleet News journalists interview key personnel to unearth the developments of interest to fleet operators.

■ BROADER VIE W

Z-TECH

How Z-tech went hi-tech to cut crash rates and fuel costs Vehicle tracking, in-cab cameras and training have cut risk and bills on Z-Tech’s vans, fleet manager Sudhanva Rajashekara tells Sarah Tooze

T

he biggest danger to engineering services provider Z-Tech Control Systems is not the hazardous environments in which its engineers may have to work; it’s the road risk its staff face when they get behind the wheel of a company vehicle.

“We sometimes work in explosive atmospheres and hazardous areas for companies, but the actual risk assessment and method statement we have to go through to get on to those sites are so strict that the chances of anything happening are quite slim,” says Sudhanva Rajashekara, Z-Tech fleet manager.

“Whereas the guy getting to site and coming away from site – that’s where the potential risk is.”

Recognising that risk has led the company to adopt a number of safety measures over the past four years, including fitting cameras, speed limiters and telematics to its vehicles, driver training, a driver of the month incentive programme and regular vehicle audits.

“Putting all those things in place doesn’t mitigate the risk altogether, but it does reduce it considerably,” says Rajashekara.

The results speak for themselves. Last year, Z-Tech’s crash rate fell by about 40%, from 27 to 22 minor incidents.

That reduction was achieved despite an increase in the number of vehicles (from 82 in 2013 to 114 in 2014) due to business growth. The business now has 140 vehicles and is to due to add a further 50 this year.

All vehicles are bought outright and kept for five years.

Switching to contract hire would free up cash, but the company prefers to have the vehicles on its asset list because it has available funds and it prefers to keep money within the business rather than contribute to a leasing company’s profits.

The vast majority of Z-Tech’s vans are Ford, although Z-Tech has downsized from Transits to Fiesta vans where possible, following a review by Energy Saving Trust in 2009.

“Drivers that just carry technical equipment and don’t have a lot of weight in the back of their vans can quite easily use a Fiesta van and save on fuel,” says Rajashekara. Like-for-like, the Fiestas are using about 22% less fuel than the Transits.

Z-Tech also rents vans from Northgate for new employees to make sure it only purchases enough vans to achieve full utilisation. Rajashekara recently completed a benchmarking exercise to confirm Z-Tech is getting the best rental deal.

Rajashekara is new to managing vehicles. He assumed the role at Z-Tech eight months ago when it decided it needed someone full-time to manage its growing number of vehicles.

14 ❚ Autumn 2015 ❚ mydrivingbusiness.co.uk

A graduate with a BA honours degree in mechanical engineering from Visvesvaraya Technological University in India, and a master’s degree in management from Cranfield University, Rajashekara joined the company as an intern in June last year.

“Fleet management is my first formal job,” he says. “It’s been a really good learning curve. Our marketing manager, Luke Stanbridge, has helped me to understand the dynamics of the industry, and our managing director, Michael Swinhoe, has been helpful in introducing me to a lot of the issues surrounding the fleet.”

Swinhoe knows the fleet well, as he managed it when the company was founded in 2000. As the fleet size grew, Z-Tech’s administration team (which is part of its 24/7 helpdesk) took over the day-to-day responsibilities, overseen by Swinhoe.

Rajashekara reports to Swinhoe and he says the MD’s involvement means “when we want to make changes it is easy”.

“Any new initiatives we want to introduce get support,” he says. “He is always open to new ideas.”

One of the latest initiatives is increasing the car allowance for hybrid and electric vehicles (EVs) to incentivise company car drivers to make the switch from diesel.

“It works out about cost-neutral for the company, using wholelife costs,” Rajashekara says.

Swinhoe is one of the drivers currently considering changing to a hybrid car.

He has also proved instrumental in persuading van drivers of the benefits of EVs after the company bought its first electric vans (two Nissan eNV200s) in order to serve its Transport for London (TfL) contract for the maintenance of pumping systems on the London Underground.

Last winter, he and Stanbridge drove 675 miles from the company’s office near Cambridge to Manchester and Newcastle to show range anxiety could be overcome (see panel, right).

Swinhoe has also helped to gain employee buy-in for in-vehicle cameras. He, along with the other company directors and business unit managers (the company is split into four business units: site services, systems, rail and water networks), were the first to trial the technology at the end of 2011.

When the decision was made to introduce cameras on the rest of the business’s vehicles, Stanbridge was able to point out in his communications to drivers that all vehicles, including managers’ vehicles, would have cameras fitted.

“It helped the drivers to accept the technology without thinking that Big Brother was taking over,” says Stanbridge.

Z-Tech introduced cameras because its insurance premium had risen steeply due to a number of incidents where it was not able to prove its drivers were not at fault.

“The cameras reduced the premium almost immediately and paid for themselves within the first three or four months,” says Stanbridge. “A lot of people were driving into the back of our

40% The fall in Z-Tech’s crash rate last year, from 27 minor incidents to 22

6% Z-Tech’s estimated fuel efficiency improvement since telematics was introduced

mydrivingbusiness.co.uk

■ G O IN G EL EC T RI C SAV E S M O R E T H A N £ 1 0,0 0 0 A Y E A R Z-Tech is saving in the region of £10,000 a year by operating two Nissan e-NV200s in London.

Drivers are typically saving £3,600 a year in diesel and £2,000 on the congestion charge.

Z-Tech has charging points at its London and Cambridge offices but drivers take advantage of public charging points.

“By the time the vehicles are five years old they will have paid for themselves,” says fleet manager Sudhanva Rajashekara.

Drivers are typically achieving a range of 100 miles doing stop-start driving in central London in warm conditions, and average 1,500-2,000 miles a month.

When marketing manager Luke Stanbridge and managing director Michael Swinhoe completed a 675-mile challenge in one of the EVs in winter conditions they averaged 50-60 miles and had to stop to recharge 11 times over two days.

“We drank so much coffee I think we were shaking by the end of it,” Stanbridge jokes.

“When we told drivers what we had done it stopped any complaints about range anxiety and not being able to charge up.”

Z-Tech is now adding a further two EVs to serve another London contract with the potential for more to follow.

Sudhanva Rajashekara: ‘Drivers that don’t have a lot of weight in the back of their vans can quite easily use a Fiesta van and save on fuel’

vehicles. Normally they are definitely at fault, but the process can be extended by having conversations with the insurance company.

“There is time and effort involved in doing that. If you can show the SD card with the camera footage showing that our driver was stopped in the road, turning right, and that someone went into the back of them. it makes it a lot simpler.”

Rajashekara regularly reviews the SD cards used in the in-cab cameras.

“Whenever the drivers are at the office we remove the cards, randomly pick a day, and see how their driving was on that day,” he says.

He also reviews the card whenever a serious incident occurs, but he admits that the system is not foolproof as, once a card is full, it automatically starts over-writing.

“If a driver has been involved in a mild incident and is still driving and forgets to give us the data from his card we might lose it as it will get over-written,” Rajashekara says.

As a result, he and Swinhoe are currently considering upgrading to a new system.

“

It’s really been a holistic reduction in our fleet costs

”

Each new van the business buys now comes equipped with Quartix telematics and speed limiters, as well as an in-cab camera.

Telematics is used to identify driver location for call-outs, as well as ensuring the company has accurate mileage records to comply with HMRC requirements. Over the past year, it has helped to reduce average mileage from 29,000 to 23,000 miles.

Rajashekara ensures the telematics data goes to the right managers for the four business units, so they are able to view information such as an employee’s arrival time on site and their driving behaviour (incidents of harsh braking/acceleration and speeding).

“We have just started analysing the telematics data more extensively,” he says. “We are matching it to fuel card data and identifying driver training requirements.”

He estimates that telematics has resulted in a 6% improvement in mpg in the past year.

Z-Tech has an extensive driver training programme, which started with Energy Saving Trust Smarter Driver training a few years ago. The company’s London drivers are now going through on-the-road training to help Z-Tech move from bronze to silver status with the Fleet Operator Recognition Scheme (FORS).

Z-Tech complements external training with its own training days at a local airfield, with drivers receiving skid coaching so they are able to control their vehicle in icy conditions.

They are also given the chance to drive a bus and an HGV, which is designed to help them appreciate blindspots and how difficult it can be to stop a large vehicle.

In addition to behind-the-wheel training, drivers also have to answer a quiz that tests their knowledge on safety-related areas such as tyre pressures.

All company drivers are required to do daily vehicle checks, and every six months each vehicle (including managers’ vehicles) undergoes an audit using Z-Tech’s own app to check vehicle condition. Spot checks are also carried out regularly.

The information is uploaded to Z-Tech’s in-house software, Z-One, and any issues are highlighted for fixing.

Z-One also flags up when vehicles are due for service. Z-Tech has seen its servicing bill reduce by 9% since 2013, which Rajashekara believes is due to a combination of regular audits, fitting technology to the vehicles and driver training.

“It’s really been a holistic reduction in our fleet costs,” he says. mydrivingbusiness.co.uk ❚ Autumn 2015 ❚ 15

■ SE AT

DRIVEN FOR BUSINESS

1

2

3

4

Professionals in the driving business test the SEAT Leon Whether for its fuel efficiency, boot space or styling, the Leon has won over all of our business drivers during their month with the car

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ive business professionals have teamed up with SEAT and Driving Business’ parent title Fleet News to test drive a range of Leon models in a business environment for a month.

SEAT’s Driven for Business promotion will put the award-winning Leon through its paces. We spoke to our five testers to find out what they made of the car.

Gillian Joyce, fleet manager at Post Office, was driving a white SEAT Leon five-door hatchback, in SE Ecomotive trim, powered by a 1.6-litre TDI engine.

Before the test, Joyce said she’d never driven a SEAT before. Two weeks on, and feedback is good.

“When I thought of SEAT, I didn’t necessarily think of a car I would like to drive – but I’ve been quite surprised.”

Joyce’s test model is the Ecomotive edition. Claiming fuel economy of 85.6mpg on the combined cycle, and 87g/km CO2 emissions, the car includes low rolling resistance tyres, an aerodynamic front grille, start/stop, and a tuned 110hp engine.

16 ❚ Autumn 2015 ❚ mydrivingbusiness.co.uk

“I found out when I collected it that the CO2 emissions were 87g/km, which is very low. The emissions make a big difference to our company car drivers.”

Economy isn’t at the expense of performance, however.

“It’s quite nippy, surprisingly – I don’t know why I didn’t think it would be. If you need to move, you can,” Joyce added.

Throughout her time with the car, Joyce has delved into its menus, to explore its technology and functionality.

“The screen that controls everything is good – you can either control from the touchscreen on the dash, or using the steering wheel. I found that really useful."

Despite strong fuel efficiency, every vehicle requires fuel eventually, and Joyce’s Leon seemed keen to offer a helping hand.

“Today I got a message that said ‘you’ll be running out of fuel soon, shall I take you to a petrol station?’.”

“It also gives you a message when you turn the engine off reminding you not to forget your mobile phone, which is a little bit quirky.”

Joyce’s time in the Leon has been positive: “Based on my experience so far, if someone asked me about SEAT, I would say ‘I’ve driven one, and actually, it’s good to drive’.”

Peter Jardine, fleet manager for Countrywide Estate Agents,

87g/km The CO2 emissions on the Ecomotive model of the SEAT Leon five-door hatch

58mpg The best real-world fuel efficiency figure any of our testers have been able to achieve

In association with

5

The five test drivers. From front to back: Ian Leonard, Peter Jardine, Gillian Joyce, Emma Parfitt, Dale Eynon

took delivery of a black Leon ST SE, powered by a 2.0-litre TDI engine.

“My first thought was ‘oh no, they’ve lumbered me with the estate – what am I going to do with that’ – but actually, it has proved quite useful.”

Jardine has been making the most of the 587-litre boot for a variety of household tasks – though it hasn’t all been plain sailing.

“I had a load of old baby stuff to take around to a friend of mine and it filled the boot, and I did a load of gardening at the weekend and was able to take the rubbish down to the amenities site.”

The styling of the car has been well received, said Jardine.

“My wife liked the general look of it. It’s got quite a modern feel to it – clean inside and uncomplicated.

“Trying to work out how to do something with a joystick is tough – none of that, you just press a button,” he added.

Jardine has also taken note of several of the ‘eco tips’ dished out by the Leon’s computer system, which help to increase the fuel efficiency of the car.

“It’s got a nice little eco-tip function on the dash, which will say ‘think about changing gear’. It might grate on me in a couple of weeks, but I like it – I’m intrigued to see if there are any more tips it will give me.”

Ian Leonard, head of group fleet services at Speedy Hire, has been running a SEAT Leon ST 2.0-litre TDI, in FR trim with a DSG automatic gearbox.

“There’s a mode switch to change driving modes. It’s got a

really nice steering rack anyway, but if you select the sports steering it’s even nicer.”

The drive options were also appreciated by Dale Eynon, the Environment Agency’s head of fleet operations. He has been running a nearly identical Leon estate, finished in monsoon grey.

Eynon has been achieving the best economy out of all the five testers and said the car compares well with rivals.

“Considering it’s a DSG gearbox and a reasonable-sized engine, economy has been good. On a long run, it’s been achieving anywhere between 55-58mpg. Round town I can get 40 out of it.

“The only car better than that I’ve driven is a Peugeot 308, but that was a smaller engine – it’s up there with the best on fuel economy.”

While achieving slightly less, Leonard was also impressed.

“At the moment it’s hovering around 51-52, which is extraordinary given the automatic gearbox” he said.

On the outside, their views differed slightly. Eynon said drivers on his fleet often chose estate models, and believed the looks of the ST model stacked up well.

“The Golf’s styling is a bit more conservative and it doesn’t feel quite as modern as the Leon does – the insides are pretty similar, but the outside is where the Leon wins. Although I haven’t checked on pricing, I suspect it’s a bit cheaper.”

Leonard said he felt SEAT could add a bit more flair with the internal appearance of the car.

“Given the fact all the oily bits underneath are all German, and therefore extremely reliable, I think SEAT could probably differentiate themselves a little.

“It could probably push the design a bit more.”

Our final tester is Steve Jones, general manager of asset risk at leasing company LeasePlan, who has been sharing use of the car throughout the test period with his colleague Emma Parfitt, general manager, manufacturer engagement (pictured).

They have been driving a 5dr hatchback, powered by a 150hp 2.0-litre TDI engine, paired with a six-speed manual gearbox.

“People are quite fussy, they want a car that’s modern and attractive – but if you take that too far, and become too radical you risk building something that looks really up to date at the time, but loses its appeal three years down the line when you come to sell it,” said Jones.

The car features little touches that have been impressing all our testers.

Leonard said: “I quite like the lightbar that sits under the nav screen, and acts as gesture control. Menus that are previously hidden appear as soon as your hand breaks the beam. That’s quite neat.”

Clever packaging in the boot pleased Eynon on a recent golfing trip: “We put four sets of golf clubs, four adults and a golf trolley in the car and it all fitted in. We lowered the floor on it [the boot], which is quite a good feature. Four adults were all sat in relative comfort.”

Jones added praise for the optional active cruise control fitted to his test vehicle.

“If the motorway becomes crammed, it takes a lot of the effort out of driving. You almost find yourself looking for opportunities to try it out.

Used to driving larger cars, Jones has also been pleased with the space and layout of his hatchback.

“While larger engines and automatic gearboxes may feel nice, in reality you can get just as much driving pleasure and functionality out of a smaller, cheaper car.”

Eynon concluded: ‘The Leon has been very good so far – more impressive than I thought it would be.”

Leonard added: “Overall, it’s quite a decent car. In terms of value, it delivers a lot for its price.”

THE SPECS 1 Leon ST FR 2.0 TDI Power (hp)/torque (lb-ft) 150/236 CO2 (g/km) 106 Fuel economy (mpg) 68.9 Top speed (mph) 134 0-62mph (sec) 8.6 2 Leon SE 2.0TDI Power (hp)/torque (lb-ft) 150/236 CO2 (g/km) 106 Fuel economy (mpg) 68.9 Top speed (mph) 134 0-62mph (sec) 8.4 3 Leon SE 1.6 TDI Ecomotive Power (hp)/torque (lb-ft) 110/184 CO2 (g/km) 87 Fuel economy (mpg) 85.6 Top speed (mph) 124 0-62mph (sec) 10.5 4 Leon ST SE 2.0 TDI Power (hp)/torque (lb-ft) 150/236 CO2 (g/km) 106 Fuel economy (mpg) 68.9 Top speed (mph) 134 0-62mph (sec) 8.6 5 Leon ST FR 2.0 TDI Power (hp)/torque (lb-ft) 150/236 CO2 (g/km) 106 Fuel economy (mpg) 68.9 Top speed (mph) 134 0-62mph (sec) 8.6

“

Based on my experience so far, if someone asked me about SEAT, I would say ‘I’ve driven one, and actually, it’s good to drive’ Gillian Joyce, Post Office

● The testers have been blogging about their experiences on the Fleet News website. To read their most recent reports, visit www.fleetnews.co.uk/drivenforbusiness mydrivingbusiness.co.uk ❚ Autumn 2015 ❚ 17

Advertisement feature

Unlocking the potential in your business Shifting to Sale and Leaseback could bring business benefits including releasing working capital and eliminating the risks of vehicle ownership

A

s the prospect of storm clouds returns to the UK and global economies, one way small businesses can take cover is to turn to Sale and Leaseback, in order to release tied-up capital for other business uses while removing the risks of depreciation and running costs.

The UK has one of the most competitive and mature car leasing markets in the world – in fact, more than half of UK fleets choose to manage and run their vehicles using contract hire, the most popular form of vehicle funding. Yet, take-up of contract hire is typically lower among SMEs, with managers, who often own and run their business, traditionally preferring to own their assets, including business cars and vans.

In the current economic climate, both interest rates and residual values can be difficult to predict. Even good news, such as the month-on-month growth in vehicle registrations – which has now increased for 40 consecutive months – is casting a shadow over future used car values and it is no secret that interest rates are set to rise.

As such, it would be prudent for small businesses to explore options to release tied-up capital and reduce risk.

Sale and Leaseback in particular can provide a way to move to contract hire smoothly and access the many financial and operational benefits.

Under this mechanism, the business sells its owned vehicles to the contract hire and leasing company at an agreed value then leases them back for an agreed period of time. The leasing company takes on the ownership, as well as the risk surrounding vehicle disposals. Meanwhile, fixed monthly repayments also shield you against future interest rate rises, and this can be further enhanced with a full maintenance package.

As well as eliminating the risks of vehicle ownership, Sale and Leaseback will also bring an immediate cash injection to your business. The fact is that even running a small number of vehicles can tie up a lot of

“In the current economic climate, both interest rates and residual values can be difficult to predict”

cash. As an example, a security company running just 14 vehicles released £130,000 through a simple transaction with Lombard Vehicle Solutions (LVS). Not only did the business benefit from operational efficiencies, but the cash that was released was used to repay other loans.

There are also further economic benefits to using Sale and Leaseback, including improving your key business ratios, such as ROCE (return on capital employed) and financial gearing.

To find out more, contact Lombard Vehicle Solutions on 0844 600 9012* or visit www.lombardvehiclesolutions.co.uk Lombard Vehicle Solutions is the contract hire and fleet management product provided by ALD Automotive.

Registered address: Oakwood Park, Lodge Causeway, Fishponds, Bristol BS16 3JA *Calls cost 3p per minute plus your phone company’s access charge.

Finally, Sale and Leaseback can bring the benefits of flexible contracts to meet a business’s changing needs, as well as reduced vehicle administration and enhanced road risk management.

Transacting a Sale and Leaseback is probably easier than you think – at LVS we make the process simple to follow and you will be joining hundreds of other businesses who have released capital this way, remaining in day-to-day control of their vehicles with no disruption for their drivers.

n special rep ort

saFe t y

are your drivers putting your business at risk? one in four deaths and serious injuries on uk roads involve company drivers. are you sure your employees are not driving under the influence, illegally or just plain recklessly?

■ SAFE T Y

WHY DRIVER SAFE T Y MAT TERS

£180k£540k Fine if business with a turnover of less than £2m is found guilty of corporate manslaughter

Are you doing enough to keep your drivers safe?

There are legal, financial and moral reasons why companies need to ensure their staff are safe on the roads. Sarah Tooze explores the steps your business needs to take

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20 ❚ Autumn 2015 ❚ mydrivingbusiness.co.uk

their work-related driving activities.

If one of your employees is killed while driving for work, and there is evidence that serious management failures resulted in a ‘gross breach of a relevant duty of care’, your company could be at risk of being prosecuted under the Corporate Manslaughter Act. Businesses that are found guilty of corporate manslaughter, and have a turnover of less than £2 million, could face a fine of £180,000 to £540,000. Larger organisations (turnover of more than £50m) face fines of up to £20m.

Meanwhile, SMES found guilty under health and safety legislation, where a flagrant disregard for the law or deliberate breach is proven, could face a fine with a starting point of £250,000. The fines extend up to £4m for a large company Recently, Baldwins Crane Hire became the first company to be charged with corporate manslaughter where a company driver was killed.

▲

he chances of one of your drivers being involved in an accident while driving on business are higher than you may think.

At least 24% of deaths and serious injuries on UK roads involve company drivers, according to Department for Transport figures.

Worse still, if it turns out your driver was at fault in a serious accident you could find yourself in hot water too, especially if you haven’t taken the necessary steps to keep your drivers safe on the roads.

The Health and Safety at Work Act 1974 and the Corporate Manslaughter and Corporate Homicide Act 2007 mean businesses have a legal obligation and duty of care to their company car and van drivers. The workplace extends to company vehicles and the Health and Safety at Work Act states that companies “must ensure, so far as reasonably practicable, the health and safety of all employees while at work”.

Companies must also ensure others are not put at risk by

mydrivingbusiness.co.uk

■ W H AT SH O U L D I IN CLU D E IN M Y D RI V ER H A N D B O O K ?

24%

of deaths and serious injuries involve company drivers

A driver handbook or driving-at-work policy should outline the responsibilities of the driver and the fleet manager. It should include: Driving licence requirements: State that those driving on business require a full driving licence, and how long they should have held it for. Licence-checking and frequency should be included.

Risk assessments and training: Explain what risk assessment and subsequent training the driver may undergo, and the frequency of the assessment/training.

Eyesight: Drivers should be reminded of the minimum eyesight levels and details of the company eye testing policy, if available, should be given.

Health concerns/medication: Make sure drivers know not to take any medication that may impair their judgement while driving and to report any health concerns. They must also inform the DVLA if they develop a ‘notifiable’ medical condition or disability.

Vehicle checks: State how often drivers should inspect their vehicle (including fluid levels, lights, glass, tyre pressure and tread, and general vehicle condition). Most companies advise a weekly check. Remind them that the vehicle must be serviced in accordance with manufacturer service schedules.

Journeys: Advise drivers to plan their journeys well in advance and to take a 15-minute break every two hours. Also outline the company’s policy for driving in adverse weather.

Seatbelts: Remind drivers of the legal requirement for wearing seatbelts (driver and passengers).

Smoking in company vehicles: Remind drivers that smoking isn’t allowed in any work vehicle.

Speed limits: Remind drivers of the speed limits and what happens if they incur a speeding fine.

Mobile phone use: The policy should state that drivers must not use a hand-held mobile phone while driving, including using their phone to text, check email or any other associated tasks while in control of a vehicle. State the company’s policy on hands-free use.

£250k

Fine if found guilty under the health and safety legislation

Alcohol and drugs: Staff must not drive for work if their ability to do so safely is impaired by alcohol, drugs or medicines. The recommended policy for both alcohol and drugs is zero tolerance. It is also worth mentioning ‘morning-after’ drink-driving in your policy, so that drivers are aware of the possible effects of this while on company business. If you plan to do drug or alcohol testing in suspected cases of drink or drug-driving, you should mention this in your policy.

Accident/vehicle breakdown/theft: Outline the procedures that drivers must follow in the event of an accident, breakdown or vehicle theft. This should include any damage charges the driver is expected to pay and details about vehicle insurance.

“

The Health and Safety at Work Act states that companies ‘must ensure, so far as reasonably practicable, the health and safety of all employees while at work’

”

Fines/charges/tolls: Explain whether drivers are responsible for paying the London congestion charge and the Dartford Crossing toll or whether the company has an account, and the rules for payment. Similarly, whether they are responsible for paying penalty charge notices/fines and any admin fees.

Towing: Remind drivers that they must be qualified for the combined weight of the vehicle and trailer. Higher weights may take the vehicle within the scope of O-licensing, tachographs and drivers’ hours rules. Speed limits are lower.

Overloading: Remind drivers that they must ensure their vehicle is not overloaded and that loads are properly packed, secured and distributed across axles.

Overseas travel: State whether the driver is allowed to take their vehicle abroad and, if they are, how to obtain the necessary paperwork.

Fuel: Explain the company’s policy for paying for fuel (whether through fuel cards or pay and reclaim) and remind drivers about using the correct fuel.

Hire/pool vehicles: Outline in what circumstance a hire or pool vehicle can be used and how these can be booked, as well as rules around fuel levels and vehicle condition/damage reporting.

Use of private vehicles: State whether private vehicles can be used for business journeys. If they can, explain the documents that the driver must provide for checking (driving licence, current MOT certificate, business insurance certificate and a disclaimer about using their own vehicle).

mydrivingbusiness.co.uk ❚ Autumn 2015 ❚ 21

Advertisement feature

Why EVs make sense for SMEs Lower whole life costs make a solid business case for electric cars and vans

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mall businesses are leading the charge as registrations for plug-in cars and vans surged in the first six months of 2015.

Demand is likely to accelerate, as manufacturers add more zero-emission 100% electric and plug-in hybrid vehicles – from city runarounds and family hatchbacks to 4x4s and sports cars – and more businesses switch on to the moneysaving benefits of these low-CO2 vehicles.

Currently, 35 vehicles are available; with 26 cars that qualify for the Government’s plug-in car grant of up to £5,000, and nine vans that qualify for the plug-in van grant of up to £8,000.

Ultra-low emission vehicles (ULEVs) are defined as emitting 75g/km CO2 or less and have a plug-in element. Plug-in petrol hybrids account for the majority of registrations, with the Mitsubishi Outlander PHEV the best-seller. Pure electric sales account for the bulk of the remainder of ULEV sales, with the Nissan Leaf and BMW i3 leading the way.

ULEVs are available from the seven

manufacturers – Audi, BMW, Mitsubishi, Nissan, Renault, Toyota and Volkswagen – that joined the Government’s Go Ultra Low campaign to help motorists understand the benefits and capabilities of electric vehicles – especially the cost savings they can offer.

Those savings are clearest when companies choose vehicles based on whole life costs. These reflect all the projected costs associated with operating a model over its fleet life irrespective of whether it is owned or leased, including: acquisition/depreciation or, if leasing, the effective lease rental; capital allowances; any VAT recovery; corporation tax relief; the cost of borrowing money; fuel; employer Class 1A national insurance contributions; service, maintenance and repair (SMR); VED and insurance.

For EVs, the savings include: fuel – about 8p a mile less than petrol and diesel models; SMR – an estimated 20-30% saving; and VED and Class 1A National Insurance benefits as well as 100% capital allowances.

Experts advise businesses to adopt a

THE THREE TYPES OF ULEV TECHNOLOGY There are three types of technology powering ULEVs: ■ Pure electric: powered by a battery charged from mains electricity with a range of about 100 miles. Models include the BMW i3, Nissan Leaf and e-NV200, Renault Zoe and Kangoo Van ZE, Volkswagen e-Golf and e-Up. ■ Plug-in hybrid: uses a battery for trips of 10-35 miles with a petrol or diesel engine for longer journeys. Models include the Audi A3 Sportback e-tron, BMW i8, Mitsubishi Outlander PHEV, Toyota Prius Plug-in and Volkswagen Golf GTE. ■ Range extender: battery-powered, but an internal combustion generator charges the battery when it gets below 3%, boosting range from 100 miles to about 180 miles. The BMW i3 Range Extender is the only model currently available.

policy based on whole life costs, and Chris Chandler, principal consultant at Lex Autolease, said: “Plug-in vehicle list prices are higher than for those powered by internal combustion engines, but when considering whole life costs, there is a real benefit to the electric option.”

ULEVs deliver major fuel savings and the absence of official tax-free Advisory Fuel Rates (AFRs) for company cars should not stop businesses operating 100% electric vehicles, say experts.

HM Revenue and Customs (HMRC) publishes AFRs quarterly, but does not recognise electricity as a fuel, hence the lack of a figure for 100% electric cars, which is sometimes cited as a barrier to EV selection.

However, employers can calculate their own reimbursement mileage rate using manufacturers’ data for miles per kWh and Energy Saving Trust electricity cost data.

Jon Burdekin, head of consultancy services at business mobility specialist Alphabet, said: “We’ve helped customers calculate the charging cost for their vehicles, which is typically 2.5p-3.5p per mile. They’ve gone to HMRC with the figures behind the proposal and been given the go-ahead.”

Similar calculations can be reflected in mileage rates – Approved Mileage Allowance Payments (AMAPs) – paid to employees who receive a cash allowance in lieu of a car and elect to drive a 100% electric vehicle.

■ SAFE T Y

WHY DRIVER SAFE T Y MAT TERS

■ B EN EF I T S O F M A N AG IN G D RI V ER RISK ■ Reduced claims rate leads to improved insurance terms, such as reduced excess and slower premium rises.

■ Trained drivers use less fuel. Your annual fuel bill could shrink by 7-10% following training.

■ Defensive driver training reduces wear and tear on vehicles, resulting in lower maintenance costs and improved residual values.

■ Fewer staff absences associated with vehicle collisions, increased productivity and avoiding lost business momentum.

■ Thousands of man hours are lost annually by staff bogged

■ D RI V IN G FO R WO R K down by the administration associated with vehicle incidents and collisions.

■ Vehicles driven in a responsible way stand less chance of adversely affecting your brand’s reputation and reduce environmental impact, thus demonstrating a commitment to true corporate social responsibility.

■ Online driver assessments will flag up any high-risk individuals before they become a problem for you.

■ Licence-checking will show if any employees are driving illegally or concealing driver behaviour traits that could lead to problems in the future.

Health and Safety Executive

Driving at work Managing work-related road safety

Introduction More than a quarter of all road traffic incidents may involve somebody who is driving as part of their work at the time (Department for Transport figures).1 Health and safety law applies to work activities on the road in the same way as it does to all work activities and you need to manage the risks to drivers as part of your health and safety arrangements. This leaflet suggests ways you can do this.

Effective management of work-related road safety helps reduce risk, no matter what size your organisation is. It could also result in, for example:

INDG382(rev1), published 04/14

■ fewer injuries to drivers; ■ reduced risk of work-related ill health; ■ reduced stress and improved morale.

Health and safety law does not apply to people commuting (ie travelling between their home and their usual place of work), unless they are travelling from their home to somewhere which is not their usual place of work.

Who should read this leaflet?

The leaflet applies to any employer with employees who drive, or ride a motorcycle or bicycle at work, as well as self-employed people. It also applies to those using their own vehicle for a work-related journey. It will be particularly valuable to those responsible for fleet management. Employees and their safety representatives will also find it helpful.

Employers with large goods vehicles (LGVs) or passenger carrying vehicles (PCVs) may also be subject to specific legal requirements that take priority over the general advice given here.

The law Employers have duties under health and safety law for on-the-road work activities.

The Health and Safety at Work etc Act 1974 (HSW Act)2 states you must ensure, so far as reasonably practicable, the health and safety of all employees while at work. You must also ensure that others are not put at risk by your work-related driving activities. The self-employed have similar responsibilities.

‘So far as reasonably practicable’ means balancing the level of risk against the measures needed to control the real risk in terms of money, time or trouble.

However, you do not need to take action if it would be grossly disproportionate to the level of risk.

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Page 1 of 10

Lindsay Easton was driving a heavy crane down a steep road away from a wind farm at Scout Moor, Lancashire, when the vehicle crashed into an earth bank and fell from the road. It is alleged that the brakes failed.

After reviewing the evidence gathered by Lancashire Police and the Health and Safety Executive during their investigation into the death of Easton, Jane Wragg, specialist prosecutor at the Crown Prosecution Service (CPS), said: “I have concluded that Baldwins Crane Hire should be charged with an offence of corporate manslaughter.

“I have also concluded that there is sufficient evidence to charge the company Baldwins Crane Hire with offences under Section 2 and Section 3 of the Health and Safety at Work Act 1974.”

Wragg explained that she believed there was sufficient evidence for a realistic prospect of conviction and that a prosecution is in the public interest. The case is listed for trial in October.

Eight companies have been convicted under corporate manslaughter legislation since it was first introduced in April 2008. Two organisations have been acquitted, while a further four companies, including Baldwins Crane Hire, are awaiting trial.

There are a number of ways that companies can tackle duty of care, starting with a driving-at-work policy or driver handbook, which makes it clear to drivers what their responsibilities are (see ‘What should I include in my driver handbook?’ on page 21).

Drivers need to have properly read and understood the policy for it to work effectively. If a policy is created, but never properly shared with staff, then it is worthless.

Make sure staff sign to say they have read and understood the document. Some organisations check this by getting staff to complete a multiple-choice quiz about the driver handbook/policy or by holding a workshop.

Bear in mind that a driver handbook is not a one-off

document. It will need updating regularly. For instance, when legislation changes.

The handbook can be backed up with leaflets, posters and information in company newsletters or on the intranet. For example, you could provider winter driving tips.

Another important aspect of duty of care is checking that drivers are fit to drive. You should check that they have a valid driving licence at the recruitment stage and periodically afterwards – generally every six months or annually, although drivers with a high number of points on their licence will need to be checked more often. For more on licence-checking, turn to page 30.

Make sure drivers have regular eyesight tests or carry out spot checks to test whether they can read a number plate at the correct distance. It is an offence for a driver not to wear corrective lenses if they are needed. If caught without them, they could face a hefty fine.

Assessing fitness to drive should also include an online risk assessment, to work out which drivers are high-, medium- or low-risk (see page 32), followed by training for those drivers deemed ‘high’ or ‘medium’ risk. Companies typically do on-the-road training for high-risk drivers and workshops for medium-risk drivers.

Health and safety extends to company vehicles. Make sure your vehicles are regularly inspected (include a requirement that drivers do a weekly check of their vehicle in your driving-at-work policy) and serviced according to manufacturers’ recommendations.

Don’t forgot that duty of care applies to employees using their own vehicle for business journeys, not just company vehicles. Get them to sign a declaration when they submit their expenses, stating that their privately owned vehicle is serviced in line with manufacturers’ recommendations, has a valid MOT certificate and is insured for business use (not leisure and commuting). Ideally, you should check copies of these documents.

■ For more advice, see the HSE’s Driving at Work guide: www.hse.gov.uk/ pubns/indg382.pdf

For more on managing driver risk, visit sister website: www.fleetnews.co.uk/risk

mydrivingbusiness.co.uk ❚ Autumn 2015 ❚ 23

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■ SAFE T Y

DRUG TESTING

Should you test your drivers for drugs?

The new drug-driving offence, which came into force on March 2, 2015, has seen police officers testing drivers at the roadside. Should companies follow suit and start testing employees? Sarah Tooze finds out

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he Government is taking a tougher stance on drug-driving.

Driving while unfit as a result of drink or drugs has long been against the law, but the Government has created a new offence of drug-driving (as part of the Crime and Courts Act 2013), based on set drug limits.

The legislation covers 16 different drugs, with a ‘zero tolerance’ approach to illegal drugs and ‘therapeutic’ levels set on medicines.

Drivers found guilty of driving over the newly specified limits will face an automatic driving ban of at least a year, as well as a possible jail term of up to six months and a fine of up to £5,000. Their driving licence will also show they have been convicted for drug-driving.

The new law has serious implications for employers. If the police find someone over the limit for drugs, they will want to know if they were driving on business. If they were, the company will need to show it has a robust drug and alcohol policy in place.

HOW BIG IS THE RISK?

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Less than 10% of the adult population uses drugs. However, three-quarters of drug users are in full-time employment, according to the Road Safety Observatory.

A review of drink- and drug-driving law

by Sir Peter North concluded there was “a significant drug-driving problem”, with an estimated 200 drug-driving-related deaths a year in the UK. The risk also depends on the type of drug.

Drivers who consume cannabis, the most commonly used illegal drug among adults, are two to six times more likely to have a road traffic collision (RTC). If combined with alcohol, that risk rises to 16 times. Amphetamine and methamphetamines are not as widely used as cannabis, but the risk of an RTC following consumption is higher than either cannabis or cocaine.

“We shouldn’t ignore the fact that some prescription drugs will affect an individual’s ability to drive,” says John Catling, managing director, commercial, FMG. mydrivingbusiness.co.uk ❚ Autumn 2015 ❚ 25

■ SAFE T Y

DRUG TESTING

▲

“It’s vital that those employees don’t feel under pressure from their employer to take the risk.”

Drivers may be advised not to drive with strong doses of codeine, for example.

Then there’s alcohol to consider. Brake, the road safety charity, found 14% of at-work drivers have drunk three or more units of alcohol before driving, compared with 6% of motorists who don’t drive for work.

SHOULD COMPANIES TEST DRIVERS? “Without testing, it will be difficult to establish whether a problem exists until an incident happens, the police get involved and all of a sudden, your business’s responsibility is called into question,” says Catling. “This obviously adds fuel to the fire in the case for mandatory testing.”

Companies need to consider the consequences of one of their drivers being caught drink- or drug-driving.

“It will affect a company financially, morally and in terms of reputation,” says Catling.

On the financial side, costs may include recruiting a new driver.

Roger Singer, managing director of DDE+, a registered drug and alcohol road safety charity, says: “The cost of replacing one of your drivers is reckoned to be 25% of their salary by the time you have advertised, interviewed, hired and trained them.”

By contrast, drug and alcohol testing/screening could have financial benefits. For example, you may be able 26 ❚ Autumn 2015 ❚ mydrivingbusiness.co.uk

14%

of at-work drivers have drunk three or more units of alcohol before driving, according to Brake, the road safety charity

75%

of drug-users are in full-time employment

to convince your insurance company to lower your premiums because you are screening.

There is also safety and duty of care to consider.

“Corporate manslaughter says that you have to have a policy and be seen to be using it,” says Ean Lewin, managing director of Dtec International. “Too many companies have a written statement around drug and alcohol use, but don’t do anything.”

Most companies approach Dtec “having had a hiccup” or because they want to test “safety-critical drivers”, such as crane, truck or bus drivers.

“But they soon realise that all their drivers are at risk,” says Lewin. “It’s just as important to test the managing director as other people at work; it’s fairer.”

Sometimes it is the least likely employees who test positive.

Lewin says: “I’ve had two managers show positive during drug and alcohol screening training. They were meant to be the screeners!”

Companies are often concerned about testing employees because of the Human Rights Act. “This is very clearly covered by the European Court – a country’s health and safety legislation overrides the Human Rights Act,” Lewin says.

As for data protection: “Just keep all the actions and relevant data confidential, as you would do normally.”

When one manager broached the idea of drug-testing with his colleagues, they were offended.

In that situation, the manager needs to be firm, according to Lewin. “The majority are innocent and

“ ”

You have to have a policy and be seen to be using it. Too many companies have a written statement around drug and alcohol use, but don’t do anything Ean Lewin, managing director, Dtec International

deserve to be trusted but the not-so-innocent minority are not to be trusted,” he says. “Drug screening is a necessary evil, it’s needed to weed out those weak links for the benefit of the good guys.”

Employee concerns aside, there are practical issues to consider, such as the cost of drug and alcohol screening.

You could outsource to a third party or you could get the provider to train a manager or health and safety individual in the company to do the screening themselves.

There are various drug screening devices to consider, which can test urine, saliva, skin or hair. DTec’s DrugWipe tests both saliva and sweat and detects cannabis, cocaine, heroin, amphetamines and ecstasy. A saliva screen can detect recent consumption whereas a sweat sample will detect longer-term use.

As well as urine sample testing, Environmental Scientifics Group now offers hair toxicology analysis. It says when used alongside traditional methods such as urine testing, hair toxicology can enhance the accuracy of substance detection and identification.

If in-house screening indicates a positive result, this will need to be confirmed by testing at a UK workplaceapproved laboratory.

No drug screening device is 100% accurate. The devices can give false negatives and false positives. Eating and drinking immediately prior to the test can affect drug levels and a drug screening device that screens for heroin will also detect the similar, but legal, drug codeine.

Breathalysers are also not 100% accurate and you should choose a Home Office-approved device for the results to stand in a dismissal situation.

16

drugs are covered by the new drug-driving offence legislation

£5,000 The maximum fine for drivers found guilty of driving over the newly specified limits

WHEN SHOULD YOU TEST EMPLOYEES? The options are: pre-employment, probation, random or with cause (after an accident or with ‘reasonable suspicion’).

One DTec customer tests 35% of its workforce every year, giving each employee the chance of being tested

For more details on the drugs covered under the legislation visit: fleetnews.co.uk/drug-driving

once every three years. Others test 20-25% of the workforce every year.

“Any less than this severely reduces the effectiveness, both to catch people and to act as a deterrent,” says Lewin.

If a company doesn’t test drivers it must at the very least have a drug and alcohol policy that is regularly communicated to drivers.

But drivers themselves need to take some responsibility. When they get behind the wheel they need to make sure they are in a fit state.

It is essential employers don’t rush straight into screening, otherwise they risk falling foul of employment law, according to Lewin.

A structured approach will also help to get employee buy-in.

The process Lewin recommends is: ■ The policy can be detailed or brief, but it must be there.

■ State what the policy is, the consequences of failing to comply and how the company will confidentially help anyone that comes forward.

■ The policy should be given to new employees at induction and introduced to current employees with a notice period. Employees must sign to say they have read and understood it.

■ If drivers understand the policy, they will buy into the process.

■ Buy-in also comes from increased awareness.

Explain why it is a priority for your organisation and the associated risks. Make sure they understand that what they do at the weekend does impinge on their work.

■ Stay away from statements like ‘improved employee performance’. Keep it as a safety issue.

Singer says training is essential: “There is a growing idea that if my employer has not done any training with me about how not to drink or drug drive he can’t dismiss me – it could be considered ‘unfair dismissal’.

“There must be training, with an audit trail of when, what was covered in the training, the knowledge acquired during the training i.e. a before and after questionnaire and knowledge of the company’s drug and alcohol policy.”

Screening (i.e. in-house testing which will require lab confirmation) should involve minimal disruption and allow the employee to retain their dignity.

If a screening gives a non-negative (i.e. positive) result, it must be confirmed at the lab. Lab testing will resolve issues such as over-the-counter medicines.

But confirmation must be legally defensible. If the lab confirms drugs are present above a certain level, you will move to a disciplinary situation.

You could choose to terminate the driver’s employment and also report them to the DVLA or Traffic Commissioner to remove their driving licence.

Alternatively, you could retain them and rehabilitate.

For example, if they only recorded a mild alcohol level. Or you could put them in a less safety-critical role.

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mydrivingbusiness.co.uk ❚ Autumn 2015 ❚ 27

■ FLEE T NE WS E VENTS

FLEE T MANAGEMENT LIVE

In association with

October 6-7, 2015. NEC, Birmingham Free visitor registration now open.

Visit fleetmanagementlive.co.uk

Debate, share, learn Book now for essential fleet insights at Fleet Management LIVE ehind every well-run fleet is an effective fleet manager.

Whatever the size of the fleet, in an age of cost-cutting and downsizing, a great fleet manager can save considerable sums from a company’s bottom line.

Today, it is almost unheard of for anyone to be ‘just’ a fleet manager, but an effective fleet decision-maker who offers a unique combination of leadership, strategic thinking and business knowledge.

With things changing at a dizzying rate – new model introductions, ‘green’ initiatives, stricter risk regimes, new products, programmes and techniques – staying informed is even more important for the successful fleet manager.

That’s where the inaugural Fleet News Fleet Management Live could help.

Over two days (October 6 and 7) the NEC, Birmingham, will host the UK’s largest event for professionals with corporate responsibility for fleet, whether they are fleet managers or

B

executives from HR, finance or procurement departments.

It will tackle the issues facing small and large fleets alike and will offer practical guidance on how to improve efficiency, lower costs and meet current legislation.

To make Fleet Management Live even more relevant to professionals whose primary role is not fleet, we have partnered with Director of Finance, HR Grapevine, and Talk Business.

“It promises to be to a unique event with a mix of workshops, exhibitions and discussions” John Pryor, ACFO

WHY VISIT?

The fleet manager role has become more complicated than ever. At a time when commercial organisations are looking to cut costs and risks, the pressure from employees to have trouble-free motoring has grown.

More stringent regulation covering environment, health and safety and employee welfare also means fleet management has become business-critical.

Spend a day at Fleet Management LIVE to: ■ Hear best practice advice from experts ■ Try out the latest technologies and see how they can help your business ■ Save costs with improved efficiencies ■ Explore the finance options available ■ Understand your legal and corporate responsibilities ■ Meet the leading suppliers ■ Update your knowledge Register for your free entry badge at: fleetmanagementlive.co.uk

Featuring sessions for HR | Procurement | Finance | SME | Facilities Management Supported by www.talkbusinessmagazine.co.uk

28 ❚ Autumn 2015 ❚ mydrivingbusiness.co.uk

CURRENT EXHIBITOR LIST

FLEET MANAGEMENT LIVE SEMINARS FOCUS ON FLEETS: HOW CAN HR MANAGERS DEAL WITH THE ADMINISTRATION OF FLEET MANAGEMENT? Today, the fleet management function has increasingly been transferred to HR departments, where personnel managers or administrators manage company cars as part of the wider benefits package.

However, what many HR professionals fail to recognise are the practical, logistical and – perhaps most importantly – legal pitfalls they could be opening themselves up to. These pitfalls exist even where organisations have moved the company car to a ‘cash for car’ scheme.

At this year’s Fleet Management Live, a special Fleet Insight theatre will examine the following issues from a HR perspective: ■ Duty of care ■ Grey fleet management ■ Fitness for purpose ■ Salary sacrifice ■ Outsourcing and fleet funding

1

“Fleet management is more relevant to HR than people realise. There are a number of issues that HR needs to address, which are constantly changing as new legislation and technology develops. It is important then that HR professionals keep on top of these changes by doing their best to stay ahead of any issues before they result in substantial financial and legal costs” Calum Di Lieto, HR Grapevine

FOCUS ON FLEETS: HOW CAN FINANCE MANAGERS MAKE THE MOST EFFECTIVE USE OF THIS KEY ASSET? Fleets and company cars have come under intense scrutiny as businesses continue to search for new cost efficiencies in the face of recent years of economic hardship and this area continues to be a rich source of savings with the right policies in place.

However, the difficulty facing many finance directors is how to identify the savings potential without being swamped with data. The answer lies in key performance indicators, a virtual fleet dashboard to highlight where action is needed.

This Fleet Insight Theatre will look at the options finance managers should consider when developing effective fleet solutions: ■ Vehicle selection, acquisition and remarketing ■ Taxation

■ Budgeting ■ Whole life cost analysis ■ Benchmarking and performance monitoring

“Many finance professionals find themselves responsible for fleet and need to understand the technology and finance options available to help them improve efficiency, reduce costs yet be compliant with legislation. We see Fleet Management Live as a great opportunity for our readers to get a better understanding of all aspects of fleet management in just one day” Louise Naughton, Director of Finance

FOCUS ON FLEETS: HOW CAN SMEs MAKE THE MOST OF THE CAR WITHOUT TYING UP ESSENTIAL CASH FLOW? When a small business makes the decision to provide its employees with a company car, there is a lot more to consider than just the cost of the vehicle itself.

How you choose to fund your vehicle – or perhaps your small fleet of company cars – can make a big difference when it comes to the tax advantages your company could benefit from.

A special Fleet Insight Theatre, specifically geared for small- and medium-sized businesses, will examine the following key issues: ■ Vehicle selection, acquisition and remarketing ■ Taxation ■ Cash flow ■ Minimising servicing costs ■ Keeping drivers safe

3

2

“With the millions of miles that drivers traverse in the name of business each year, there are also millions of options for fleet management, and it can be a quagmire to explore. With expert advice, best practice tips, and all the information you could possibly desire, Fleet Management Live is a must for any SME looking to succeed and grow” Luke Garner, Talk Business Magazine

Don’t miss your opportunity to gen up on the latest in fleet management. Book a place at one of the Fleet Management Live Best Practice workshops by registering now at: www.fleetmanagementlive.co.uk

Register for free entry at: fleetmanagementlive.co.uk

Manufacturer Expo Audi BMW / Mini Hyundai Jaguar Land Rover Toyota Lexus Fleet Services Volvo Exhibition AA DriveTech ACFO ALD Automotive Allstar Fuel Cards ATS Euromaster BP Oil BT Fleet Chevin Fleet Solutions Director of Finance Driver Intelligence Fleet Logistics Fleet Operations FleetCheck Fleetondemand Fuelmate GEFCO GoUltraLow (SMMT) GreenRoad Halfords HR Grapevine ICFM Idrive Global Interactive Fleet Management Ivor Searle Jaama LeasePlan Licence Bureau Licence Check Motiva Group Motorman Multileasing National Fleet Services Nexus Vehicle Rental Pendragon Contracts PJM Group RAM Mount RAC Business Services Robinsons Motor Group RoSPA Scorpion Automotive Selsia Vehicle Accident Centres Stoneacre Motor Group Sytner Supply TCH Leasing Telogis Thatcham Research The AA Venson Automotive Solutions Zenith

Follow us on Twitter @FleetLive

mydrivingbusiness.co.uk ❚ Autumn 2015 ❚ 29

■ SAFE T Y

LICENCE-CHECKING

How to ensure your staff hold valid driving licences The end of the paper counterpart in June has given businesses a choice in how to check employees’ licences: in-house or by a third party. Gareth Roberts looks at the options

T

he paper counterpart of the photocard driving licence has been consigned to the history books, like the tax disc before it, deemed surplus to requirements in a digital age.

Since its abolition in June, companies have been left with two options to check employees are legally entitled to drive: perform checks themselves using the Driver and Vehicle Licensing Agency’s (DVLA) online platform or outsource licence checks to a third party.

Malcolm Maycock, managing director of compliance company Licence Bureau, says whatever a company decides to do, it is going to cost them money.

“Checking driving licences, whether you do it yourself or you use a third party, is a cost exercise,” he says.

Maycock says companies that perform licence-checking in-house will have to dedicate resource and time, even with the new web-based platform at their disposal.

CHECKING LICENCES THROUGH THE DVLA Two separate online licence-checking services have been developed by the DVLA: View Driving Licence (VDL) and Share Driving Licence (SDL).

VDL is intended for drivers to check their own records only, and is not intended to be used by third parties. Any use of the service by third parties, including an employer, is an offence under the Data Protection Act.

The DVLA has said it will investigate and pursue any case where unauthorised access has occurred.

SDL enables employers to access employees’ driving records, subject to the latter giving permission. To share their licence details, drivers access the VDL service and generate a one-use unique code that is valid for up to 21 days – the driver can then share the code with their employer or a third party.

The employer or third party can then input the code and the last eight digits of an employee’s driving licence number to the SDL page on the Government website gov.uk to view a driver’s licence status, endorsements and the vehicles they are eligible to drive.

The view of the driving licence presented back to the third party will be date-and time-stamped, and downloadable in the form of a PDF. The information will be accurate at the time of download and is a snapshot of the record at that time.

Drivers will also have the option of downloading a PDF summary of their driving licence information, which will have the unique code printed on it.

Each code can be used only once, maintaining privacy, and the code can be cancelled at any time.

In the event of a driver receiving any endorsements, courts will update driver records within 24 hours.

Non-UK licence holders have to be checked via a premium rate telephone service (51p per minute) during DVLA office hours.

21

Number of days the access code to check a driving licence is valid

■ W H Y L I CEN CE- CH ECKIN G M AT T ER S More than one in every 200 company car, van and truck drivers does not hold a valid licence to legally drive their company vehicle, according to Licence Bureau checks.

While there is no specific legislation that requires an employer to check an employee’s driving licence, it is an offence if a company allows an employee to drive a vehicle for work without a valid licence.

The Health and Safety Executive’s guide, Driving at Work, says employers should satisfy themselves that drivers are competent and capable, and asks if they check the validity of the driving licence on recruitment and periodically thereafter.

Dave Ashford, transport and compliance manager, KBC Logistics, received a visit from the police after previously checking driving licences and paper counterparts every six months.

One of KBC’s drivers had been involved in an accident in his private car and the Essex-based

30 ❚ Autumn 2015 ❚ mydrivingbusiness.co.uk

haulier was subsequently notified that the driver was disqualified.

The driver’s licence had been manually checked in November 2012, but Ashford was not aware he had been disqualified in March 2013. Fortunately, the driver was being used on shunting duties and not driving a truck on public roads.

Ashford could have faced penalties for both himself and the company if the accident had happened at the wheel of a KBC truck.

He says: “Even though on this occasion I had fulfilled my obligation, it was a scary prospect to think that this could have been any one of my operational drivers. It identified a flaw in my systems.”

Businesses need to be sure the details provided are accurate, a licence hasn’t been revoked (due to the drivers failing to surrender their licence for endorsement, the licence being granted in error, a medical condition or under the new Drivers Act) or

endorsed without the employer realising it and what limitations there may be on its use.

Licence Bureau analysed more than a quarter of a million licence checks it made during 2013 and discovered an initial failure rate of about one in 200.

The two most likely offender groups are provisional licence holders (either due to licences expiring or being disqualified), followed by those with revoked, expired and disqualified (as a result of a driving offence or getting 12 or more penalty points within three years) licences.

At the licence recheck stage, the failure rate fell to just over one in 500. Drivers with expired licences top the list, followed by disqualified drivers.

Without a licence recheck, both these issues would not have been picked up by the employer, potentially causing huge duty-of-care issues as those categories of driver aren’t insured in the event of an accident.

“ ”

Checking driving licences, whether you do it yourself or you use a third party, is a cost exercise

rather than checking it against their on-screen details.

“That’s a real concern,” he says. “People will typically look to cut corners, but by not using the service properly, it could result in some employers being provided with information that has been changed.

“It’s vitally important that they check the printout against the online details that they are given permission to view via the access code.”

BENEFITS OF OUTSOURCING LICENCE CHECKS

Malcolm Maycock, managing director, Licence Bureau

The DVLA believes the new online service, which it says will be “initially” free, will improve risk management by giving employers access to real-time driving licence data.

However, concerns have been raised by some licencechecking providers.

Maycock says: “My fear is people won’t use Share Driving Licence correctly.”

Maycock, who is also chairman of the Association for Driving Licence Verification (ADLV), believes companies will be tempted to just use the PDF printout provided by the new service to check a driver’s entitlement to drive,

To keep up to date with the latest driving licence news, visit our sister website: fleetnews.co.uk/ driving-licence-news

Businesses that outsource to a third party rather than doing manual checks themselves say they benefit from advice from industry experts.

It also means they have access to bespoke reporting and alerts when problems occur, such as when photocard licences expire or if a driver has had a licence revoked or loses their licence.

There are a number of established third-party providers operating through DVLA’s Electronic Driver Entitlement Checking Service (EDECS).

Many have joined the trade body, ADLV, which was launched, in part, as a response to the abolition of the paper counterpart.

ADLV member organisations include Licence Check, Drivercheck, Licence Bureau, DrivingMonitor, AA DriveTech; Jaama, Fleet Partnership Solutions and Interactive Driving Systems. mydrivingbusiness.co.uk ❚ Autumn 2015 ❚ 31

■ SAFE T Y

DRIVER PROFILING AND TR AINING

Identify your risky drivers – then offer them training There are multiple ways to assess how your employees behave behind the wheel.

Sarah Tooze reports

H

ow many high risk drivers do you have in your business? And what are you doing to reduce that risk?

These are questions you must be able to answer. Under health and safety legislation, companies are required to carry out a “suitable and sufficient risk assessment of every risk to employees” and that includes driving for any form of work purpose.

Companies should risk assess drivers as part of the recruitment process, prior to offering them a job, or during their induction.

Current staff should also be risk assessed. Some companies re-assess all drivers every three years.

Many businesses assess risk by getting drivers to complete an online risk assessment, which is provided by a driver training or risk management company.

The risk assessment can be a multiple-choice test which looks at areas such as the driver’s accident history, the number of miles they drive and their knowledge of the highway code. Some may test a driver’s hazard perception through a series of videos or assess a driver’s attitude to risk with a psychometric-based test.

At the end of the test, drivers will be given a risk rating, – usually low, medium or high. The risk management provider should offer advice on how to address the training needs of low, medium and high risk drivers. For example, it may be appropriate for low- and medium-risk drivers to attend a workshop and for high risk drivers to do an on-the-road training course.

It is worth checking whether the online risk assessment automatically deems drivers as high risk, based on certain factors.

32 ❚ Autumn 2015 ❚ mydrivingbusiness.co.uk

80%

Drop in incident rate seen

by Iron Mountain after installing telematics in 2013

3

Interval in years some companies re-do drivers’ risk assessments

Chauffeur firm Tristar found that all of its drivers were classed as high risk because they do high mileage.

Rather than using online risk assessment, it now prefers to do an on-the-road assessment, using in-house driver trainers.

E-Training World often comes across companies who undertake risk assessments and find that their drivers have been classed as high risk based on one or two opening questions.

Putting the wrong drivers into a high risk category, or deeming too many drivers high risk, has numerous negative implications, according to Graham Hurdle, managing director of E-Training World.

He says: “Not only are businesses focusing additional training on the wrong people, they are also overspending on defensive driver training.

“In fact, if more than 10-15% of fleet drivers are coming out high risk I would challenge why.

“In addition, managers are in danger of disengaging their drivers from the overall duty of care process, because many perfectly good drivers who are being told

■ D O N ’ T OV ER LO O K T H E L IN E M A N AG ER’S RO L E It is important that line managers are involved in training.

Will Murray, of Interactive Driving Systems, says: “Our experiences suggest the key to minimising risk is for line managers to focus on the safety of their teams, reviewing the data and using it to undertake structured training programmes.

“One-to-ones with their drivers to help them understand the risks they are being exposed to are also useful.”

“

There is a correlation between those employees who are caught by speed cameras and those who are involved in collisions

they are high risk and require training feel aggrieved and then blame the risk process. This develops into negative in-house publicity and can lead to a large majority of drivers not buying into a very important area for any fleet department.”

Aside from using online risk assessments, companies can draw on data to identify high risk drivers. This might be telematics data, insurance claims and the number of points on a driver’s licence.

Saul Jeavons, a director at The Transafe Network, says: “I don’t think that the importance of licence checking should be overlooked. In my experience, there is a correlation between those employees who are caught by speed cameras and those who are involved in collisions.”

Telematics systems that focus on driver behaviour rather than just vehicle tracking will typically help to identify high risk drivers by scoring each driver on key indicators, such as speeding, harsh braking or accelerating and cornering, and producing a table of the worst performers.

Drivers that score poorly can be offered on-the-road training to help them hone their driving styles and improve safety.

Yishai Horn, head of marketing at telematics company GreenRoad Technologies, says: “Late braking, rapid starts, sharp cornering and other high gravitational force manoeuvres are consistently pinpointed as significant predictors of crashes and near-crash events.

“Telematics systems can provide comprehensive information about driving practices and also external factors that impact driver performance. These factors should not be overlooked.”

Some telematics systems, like GreenRoad, will give drivers real-time feedback on their driving via a series of LED lights on the dashboard or a smartphone app, meaning that the driver has the chance to improve their behaviour there and then, rather than being given retrospective feedback.

This has approach has been criticised by some driver behaviour experts, as they deem it distracting, but many fleet operators report positive improvements in driver behaviour and subsequent reductions in accidents and costs.

Iron Mountain, for example, has seen around an 80% reduction in its incident rate since installing telematics in its fleet of vans in 2013.

Rory Morgan, head of logistics support for Iron

Mountain Western Europe, says: “We’re still getting those frustrating reversing into gateposts, clipping wing mirrors, and we’re inevitably going to get those rear-ends and things like that, but they are at reduced speed so we’re reducing risk.”

Businesses can also use in-cab cameras – potentially driver-facing as well as forward-facing – as a way of identifying high-risk drivers. If a driver has an incident, the company will be able to review the footage to establish if it was an at-fault accident. For instance, the in-vehicle footage may show whether the driver was distracted at the time of the incident.

Ideally, all of this information should be combined to create a driver risk profile.

Robert Lindsay, road risk manager at Balfour Beatty Plant and Fleet Services, says the potential data streams it uses to identify at-risk drivers include: previous incidents, damage and misuse, licence endorsements, driver behaviour through telematics, risk assessment outputs and fuel use.

Lindsay says: “For us, these are all risk and performance indicators that make up a holistic picture of a driver.

“If these data streams are reviewed in isolation or, worse, left redundant in unopened spreadsheets, then an opportunity is being missed to better understand fleet risk and with it the ability to intervene most effectively.”

Its interventions range from in-house on-road coaching session and speed awareness courses to simulator and classroom training.

On-road training should be carried out in the vehicle that the driver normally uses, in the area that they travel in daily, by a professional trainer.

It needs to be targeted at reducing the specific risks that lead to collisions for each individual – using data from telematics, risk assessment or licence endorsements to identify their performance shortcomings.

John Davidge, head of fleet technical at Cardinus Risk Management, says: “The most important thing is for companies to ensure that the training they provide simulates everyday situations.

“It’s important to discuss exactly what’s the right duration for your team. For example, a half-day one-toone session has been shown by experience over many years to be most effective. Don’t bother with more than one person in-vehicle sessions, as only one driver would be in a familiar vehicle.”

Saul Jeavons, The Transafe Network

”

Driver training can be done on-the-road

mydrivingbusiness.co.uk ❚ Autumn 2015 ❚ 33

■ C ARS

Coming soon...

We take a look at what manufacturers have in the pipeline JAGUAR XF

VOLKSWAGEN PASSAT GTE

ON SALE: October PRICE: From £32,300 CO2: From 104g/km WHAT’S NEW: Just a few months after the launch of the new XE, Jaguar is replacing the model that has been responsible for the bulk of its corporate sales over the past seven years. Like the XE, the XF uses a great deal of aluminium in its structure to help reduce weight, resulting in savings of up to 200kg. It helps the new 2.0-litre diesel engine achieve a class-leading CO2 of 104g/km in 163hp manual guise.

ON SALE: Late 2015 PRICE: From £38,000 (estimated) CO2: From 37g/km WHAT’S NEW: Volkswagen is boosting the number of low-CO2 variants in the Passat range with the petrol-electric plug-in hybrid powertrain also found in the Golf line-up. It will be offered both as a saloon or an estate and can travel for up to 30 miles on a plug-in charge. The total power output of the system is 218hp, so performance should be strong too.

ALFA ROMEO GIULIA

AUDI A4 ON SALE: Late 2015 PRICE: From £25,000 (estimated) CO2: From 99g/km WHAT’S NEW: The A4 has always been a popular user-chooser car and the new A4 should renew interest from fleets, with more fuel-efficient engines and new technology. Standard equipment will include 17-inch alloy wheels, xenon headlights with LED daytime running lights, the Audi smartphone interface, keyless entry and start, a Bluetooth interface, Audi drive select, a seven-inch MMI colour display and three-zone climate control. An Avant version has yet to be revealed, but will no doubt follow in 2016.

ON SALE: Early 2016 PRICE: From £25,000 (estimated) CO2: From 100g/km (estimated) WHAT’S NEW: The Giulia will take Alfa Romeo back into the D-sector, following the discontinuation of the 159 a few years ago. So far, only information and images of the high-performance 510hp version have been released, but four-cylinder engines will be crucial to the success of this model. We expect the diesel to produce 170hp and produce CO2 emissions close to the 100g/km mark to be competitive.

34 ❚ Autumn 2015 ❚ mydrivingbusiness.co.uk

LEXUS RX

BMW X1 ON SALE: October PRICE: From £25,000 (estimated) CO2: From 109g/km WHAT’S NEW: Big changes for the second-generation X1 include sharing a platform with the recently launched 2 Series MPV models, and a transverse engine front-wheel drive configuration. We can expect better packaging compared with its predecessor and BMW will also have focused on reducing CO2 emissions across the board, as well as offering a range of new safety technology.

ON SALE: November PRICE: From £45,000 (estimated) CO2: From less than 130g/km (estimated) WHAT’S NEW: The Lexus RX made its public debut at the New York motor show in April, and it should be available in the UK by the end of the year. Details are scarce so far, but we know there will be new technology and safety features. Like the current model, it will be powered by a 3.5-litre V6 hybrid, but with lower CO2. A plug-in hybrid may be released later.

MERCEDES-BENZ GLC

VAUXHALL ASTRA ON SALE: October PRICE: From £15,295 CO2: From 82g/km WHAT’S NEW: Headlines with the new Astra include the fact that models cost up to £2,200 less than the outgoing version.

Transaction prices for business customers might not change a great deal, but company car drivers will notice lower BIK tax payments and enjoy better specification. The combination of reduced prices and better specifications should also lead to lower monthly payments on lease. A new, low-CO2 1.0-litre turbo-charged petrol engine will also join the range.

ON SALE: Autumn PRICE: From £34,950 CO2: From 129g/km WHAT’S NEW: The GLC is new to the UK – it replaces the GLK, a model that was never offered here – and gives Mercedes-Benz a rival to the BMW X3, Audi Q5 and forthcoming Jaguar F-Pace. At launch, Mercedes-Benz will offer 220d and 250d diesel variants, but will later introduce the GLC 350e, a plug-in hybrid that can cover up to 21 miles in zero-emission all-electric mode, accelerate to 62 mph in 5.9 seconds and post a CO2 figure of 60 g/km. The GLC 350e will go on sale in the UK before the end of 2015.

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Exhibitors so far include: Toyota Lexus Fleet Services Volvo BMW / MINI Jaguar Land Rover Audi The AA Halfords BP Oil Pendragon Contracts Leaseplan GoUltraLow (SMMT) Thatcham Research ATS Euromaster Licence Check BT Fleet Fuelmate Chevin Fleet Solutions Fleet Operations FleetCheck Robinsons Motor Group Sytner Supply Fleetondemand Grosvenor Leasing Contracts Driver Intelligence Pendragon Contracts IFC Fleet Services Zenith Jaama Motorman Selsia Vehicle Accident Centre Multileasing Nexus Vehicle Rental RAM Mount Scorpion Automotive Telogis Venson Automotive Solutions Motiva Group GreenRoad PJM Group TCH Leasing Fleet Logistics ALD Automotive

6th-7th October 2015 NEC, Birmingham

How to make the most of your car or van fleet without tying up essential cash flow When a small business makes the decision to provide its employees with a company car, there is a lot more to consider than just the cost of the vehicle itself.

How you choose to fund your vehicle – or perhaps your small fleet of company cars – can make a big difference when it comes to the tax advantages that your company could benefit from. There are many ways to fund a company car including traditional outright purchase, hire purchase or lease purchase with a balloon.

Free to attend seminars for SMES

Sessions will cover How to make the most of the car without tying up essential cash flow.

Vehicle Selection, Acquisition & Remarketing Cashflow Disposal Legal Obligations

Get the best from your vehicles and drivers

Register now for your free entry badge at

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the right business connectionS. MINI Connected can put all the functionality of a business smartphone safely into an optional Central Display to help your team stay connected, on the road and on the go. It’ll display contacts and your calendar, so your best people can keep up to speed while en route to their destination.

STANDARD SPECIFICATION includes:

j USB audio interface

j Bluetooth® hands-free function

j Keyless go

j DAB digital radio

j Heated mirrors and washer jets

THE MINI 5-DOOR HATCH.

YOu’re on to a winner.

BUSINESSCAR SUPERMINI OF THE YEAR. 2015, 2014, 2013, 2012, 2011, 2010, 2009, 2008, 2007, 2006, 2005, 2004, 2003.

To book your Fleet Demonstrator* or find out more, call 0800 777 113.

To find out how MINI can work for you, please visit www.mini.co.uk/fleet

THE MINI HATCH RANGE.

Official Fuel Economy Figures for the MINI Hatch Range: Urban 31.0-72.4 mpg (9.1-3.9 l/100km). Extra Urban 54.3-91.1 mpg (5.2-3.1 l/100km). Combined 42.2-83.1 mpg (6.7-3.4 l/100km). CO2 Emissions 175–89 g/km.

Figures may vary depending on driving styles and conditions. *Test drive subject to applicant status and availability.