POLICY FOR THE MANAGEMENT OF SUBCONTRACTORS PROVIDING ROAD TRANSPORT SERVICES ON BEHALF OF TNT EXPRESS.

1. TERMS OF REFERENCE

1.1 This policy covers the management of all subcontractors providing road transport services on behalf of TNT Express Delivery Services, including the following major groups: -

(i)  Approved subcontractors operating both full pick up and delivery (hereafter known as PUD) rounds and linehaul movements on behalf of TNT Express Depots. A PUD round is defined as an area where a regular round operating planned daily work takes place. The wording regular round is used to refer to a daily planned PUD round

Ad-hoc subcontractors carrying out non-planned PUD work or subcontractors providing cover for periods of peak traffic (e.g. premiums, time sensitive pick ups, and deliveries) on behalf of TNT Express depots. Premium deliveries are time specific E.G 9.00 AM 10.30 AM 12.00 AM

Approved and ad-hoc subcontractors engaged for Linehaul work to and from sortation hubs.

Approved and ad-hoc subcontractors carrying out work on behalf of TNT Sameday.

1.2 The responsibility for the day-to-day management of subcontractors varies according to each of the above groups, as follows: -

Groups (i) & (ii) TNT Depot Manager

Group (iii) The Depot Manager or TNT Linehaul Manager, according to who is deemed to be operating the particular subcontractor, i.e. whoever signs and authorizes the LPO’s. Local Purchase Order

Group (iv) TNT Sameday/TESS Manager. (TNT Express Special Services)

1.3 Wherever in this document reference is made to the TNT Depot Manager, this is to be interpreted as either the TNT Depot Manager, TNT Linehaul Manager or TNT Sameday/TESS Manager, according into which particular group a subcontractor falls.

2. Vehicles

2.1  The subcontractor must provide clean vehicles capable of fulfilling the requirements and deemed to be of suitable design by the Company. In addition, the Company may stipulate a maximum age of vehicle (subject to weight classification and operational demands). Under normal circumstances this will be a maximum of 3 years for vehicles of equal to or less than 3.5 tonnes GVW and a maximum of 5 years for vehicles over 3.5 tonnes GVW.

Vehicles that display a poor condition (including high mileage) or exceptional condition (including low mileage) may be subject to an earlier or later disposal than the maximum stated here as directed by TNT in meeting the Company’s image requirements.

The vehicles listed below are TNT’s preferred choices but other manufacturers and models may be used by agreement with TNT management.

Size

/ Manufacturer / Model / Applies to Groups :
(see above)

CAR DERIVED

/ SMALL VAN – Citroen Berlingo, Vauxhall Combo, Ford Connect, Renault Kangoo / (iv)
PANEL VAN / Ford Transit, Mercedes Sprinter / (i), (ii), (iii) & (iv)
7.5 TONNE / MAN / Iveco chassis cab unit, 75E14/15 with TNT specification box / (i), (ii), (iii) & (iv)

2.2 Except where otherwise stated by the Company, all subcontractor vehicles of 7.49 tonnes GVW and over used for standard PUD rounds (i.e. with their own Pick up/delivery area) must be fitted with a tail lift of ‘fold-under’ design.

These must be fitted, used, maintained and insured in accordance with current construction & use and health & safety legislation.

2.3 The use of vehicles with bull bars is strictly prohibited.

2.4 All vehicles must be of clean and smart appearance at all times to reflect the professional image of the Company.

2.5 Vehicles used for standard PUD rounds must be in TNT standard corporate livery, except for temporary replacements. It is preferable that any temporary replacement vehicles should have body and cab in the same single colour (white) and it is also a preference that they should not carry the markings of any other company.

Where vehicles are in TNT corporate livery they should not display any details of the subcontracting company operating them.

2.6 Vehicles must be legally road-worthy at all times and maintained to a standard appropriate to their O-licence (vehicle operators licence) obligations and/or a standard specified by the Company, whichever is the higher. TNT reserves the right to inspect or appoint a third party to inspect any subcontractor vehicle at any time.

2.7 Provision of facilities to carry out scheduled maintenance and repairs is the responsibility of the subcontractor. However, subcontractors are advised on the availability of services through TNT Truckcare for all vehicle repair and maintenance requirements.

2.8 TNT Management will ensure that subcontractors understand that the use of re-cut and re-mould tyres fitted to the steer axles of vehicles working on behalf of the Company is not condoned.

2.9 Any prohibitions issued by any of the traffic authorities must be notified to the TNT Group Traffic Officer, TNT Railway Street, Ramsbottom, Lancashire. MOT failures must be reported to the TNT National Engineering Manager.

2.10 Any subcontractor vehicle (Groups i, ii, iii) involved in an accident whilst carrying out work on behalf of the Company (or at any time for vehicles in TNT livery), regardless of whether damage to a third party or property is involved, must be reported to the TNT Depot Manager. In the case of Group (iv) – TNT Sameday Sales Centre Manager.

2.11 It is the responsibility of the subcontractor to provide a suitable replacement vehicle for regular vehicles when they are off the road. Replacement vehicles should meet the same operational and legal requirements as for regular vehicles.

2.12 All subcontractors must be covered by emergency recovery arrangements in the event of vehicle breakdown or accident. The same arrangements as for the Company’s own vehicles (i.e. recovery by Fleet Support to the nearest TNT depot) will be made available to subcontractors, who will be charged accordingly.

2.13 Each vehicle must be equipped with an approved means of direct two-way voice communication with the TNT Express depot / TNT Sameday Sales Centre, and it must be used in line with current legislation. The purchase, installation and maintenance of such equipment will be the responsibility of the subcontractor.

2.14 TNT operates an integrated data communications network and reserves the right to install data communications equipment in subcontractor vehicles as deemed necessary for the operation. The purchase, installation, maintenance and training in the use of such equipment will be the responsibility of TNT. However, the subcontractor will be liable for any damage to (or loss of) equipment resulting from negligence or mis-use. Subcontractors with a history of loss or mis-using data communication equipment will be expected to pay a financial bond of £250 prior to the issue of any equipment and this will be used as security to cover any damage or loss to the equipment whilst in the subcontractors care. (The amount will be specified at the time of issue of the equipment and is subject to change at any point prior to the equipment being issued). This cost will be deducted via a contra invoice for the full amount.

2.15 TNT Alliance will make subcontractors aware of any special purchase, lease or hire arrangements set up by the Company with vehicle manufacturers or leasing companies but for which TNT will have no liability. This also applies to similar arrangements for the provision of various forms of insurance, fuel and communications equipment.

2.16 All vehicle doors must be lockable from the outside. It is preferable that vehicles with side doors are fitted with slam locks.

3. DRIVERS

3.1 Approved TNT uniforms will be purchased from the Company and must be worn at all times by subcontractor drivers engaged in regular PUD work, regular Sameday/TESS work, or regular Linehaul work. The cost of this uniform is £100 per driver. In the event that the approved TNT uniform is not available, drivers must be smartly dressed at all times to reflect the professional image of the Company. This should include the following:- black safety footwear (shoes or boots), black trousers or tailored shorts (not denim), plain white or black T-shirt / polo shirt, and in the case of TNT Sameday/TESS a uniform will be issued on commencement of service.

No item of uniform should bear the logo or name of any company other than TNT and this must be to the corporate standard.

Any items of TNT uniform that bear the TNT logo which are no longer serviceable must be returned to the depot for disposal.

Uniform must be purchased on at least an annual basis per driver, with the used uniform being returned within a reasonable period of the new uniform being issued.

3.2 Management must ensure that the subcontractor/owner-driver is aware of the following;

·  When a driver is unavailable e.g. due to holiday or sickness, it is the responsibility of the subcontractor to provide suitable cover (i.e. a driver who is able to perform to the same standard and provide the same quality of service), except where specifically agreed otherwise.

· Approved substitute drivers used to cover work contracted to subcontractors / owner-drivers must comply with the same requirements as subcontractors / owner-drivers. They must be vetted and have references covering the last 3 years and extended to 5 years for anyone likely to be engaged in handling goods for shipment by air. Subject Access Forms must also be provided. A TNT driving assessment must be completed when vehicles over 7.5 tonne are to be driven. A copy of all of their legal driving documents must be held on file with TNT (driving licenses). The substitute must be able to offer the same standard and quality of service as performed by the incumbent subcontractor / owner driver.

·  Subcontractor / owner driver must inform the TNT Depot Manager of any known unavailability of themselves and their approved substitutes, with a minimum notice period of one week. In the case of group (iv) Subcontractors the TNT Sales Center Manager must be informed.

3.3 All subcontractor drivers, or their substitutes, must hold a current driving licence appropriate to the vehicle being driven. This must be checked on a 6 monthly basis by the Depot Manager and a record maintained.

3.4 Approved subcontractor and substitute PUD drivers must have received instruction regarding the operations procedures of the Company. This shall include explanation using the TNT Drivers Handbook, instructions on PODs, consignment notes, drivers receipt notes and card left / check-address procedures, and must be given depot contact details for queries whilst en-route.

3.5 In order to ensure the same quality of service to customers as provided by TNT-employed drivers, regular subcontractor and substitute PUD drivers will receive a Company induction and equivalent training throughout their work. This will be provided by the Company at a charge which will be confirmed at the time of training.

3.6 All subcontractor drivers will receive a free copy of the TNT Express Drivers’ Handbook or TNT Sameday Subcontractors’ Handbook, as appropriate, which must be carried at all times.

4. SECURITY

4.1 Subcontractors are deemed to be responsible for all goods placed into their charge (i.e. for collection or delivery) by the Company.

4.2 All subcontractors must possess current goods in transit (GIT) insurance cover up to a minimum limit stated in the terms and conditions of engagement. This will vary according to the type of vehicle.

4.3 Subcontractors / owner-drivers must provide records to the TNT Depot Manager to hold on file the following information on themselves and their substitutes: A copy of driving licence, photograph of themselves, valid insurance (GIT, public liability & vehicle), vehicle registration numbers, company VAT number, and home address.

4.4  Subcontractor drivers and their substitutes working for TNT three days or more per week, must be issued with a Company ID Challenge card.

4.5 Subcontractor drivers must adhere to the same procedures relating to the security of vehicles and loads as drivers employed by the Company, details of which are to be found in the TNT Goods Vehicle Drivers’ Handbook or TNT Sameday Subcontractors’ Handbook.

5. PURCHASING / ENGAGING NEW SUBCONTRACTORS

5.0 All purchasing will be made from suppliers who have been approved by TNT Express Delivery Services either on a national or local basis.

5.1 For operational and legal reasons, the Company has to maintain certain administrative and financial records. Thus, the Company will only subcontract work to subcontractors who fall under the following categories: -

(i) A partnership, provided that one member has been nominated to act as an agent for the group for the purposes of: -

- recruiting members for the group,

- taking instructions from the Company concerning deliveries and collections,

- invoicing the Company for work carried out on behalf of the entire group, and

- handling loss and damage claims from the Company.

[A partnership is permitted to operate on the same basis, providing that they are already engaged on such terms by the Company on a full-time basis at the time this policy comes into force.]

(ii) A limited company, providing that the main activity of the business is road transport and that the company invoices TNT for any work carried out.

(iii) An owner-driver, or his substitutes, are not employees or workers of TNT. They are independent contractors, irrespective of the amount of work carried out for TNT, and are required to invoice TNT for any work carried out.

(iv) A taxi firm utilising self-employed drivers, providing that they are used on a purely ad-hoc basis, and raise an invoice for any work carried out.