|Recovery Operators to the wall (01/07/2014)|
Historic move marks fight back against call handlers who are profiteering is feared to be driving some Recovery Operators to the wall.
The leading VEHICLE recovery associations are joining forces to set up their own company to bid for contracts from police forces and the Highways Agency with the sole aim of improving contractual terms for Vehicle Recovery Operators.
The historic and proactive move is the first step in a fight back against call handlers whose profiteering is feared to be driving some operators out of business.
A spokesperson for the associations said: “The call handling companies who currently hold these contracts are already making substantial profits.
“But they are now squeezing our members’ margins so tightly that some are running at a loss or even going out of business.
“This intolerable situation cannot be allowed to continue, so, in the interests of our members, we have united to form our own company to bid for the contracts.”
The Federation of Vehicle Recovery Associations (“FOVRA”) will aim to win contracts from Police Forces and the Highways Agency by competing with firms currently holding these contracts.
Under the existing regime, these businesses handle recovery operation calls but sub-contract the work involved to vehicle recovery operators which includes members of the organisations involved in FOVRA. The Federation’s membership currently consists of the leading Trade Associations in the Industry – AVRO (Association of Vehicle Recovery Operators), RRRA (Road Rescue Recovery Association) and SVRA (Scottish Vehicle Recovery Association).
However, if the FOVRA wins any future tenders it will only cover its running costs while handing the rest of the money to the operators involved. FOVRA believes this initiative is truly “by the industry for the industry” with any residual profits from FOVRA being ploughed back into the vehicle recovery industry.
The spokesperson said: “Unlike the current set up”, FOVRA will ensure individual operators are paid properly for their work rather than being ripped off by one of the industry’s middle men. The ultimate aim being an increase in revenue to the VRO to ensure a sustainable future for them and generations to come.
“Customers will be assured of receiving a proper service from an operator who knows they will not have their margins squeezed by a call handler.
“Everyone will be a winner because the new arrangement will not cost the Highways Agency or police force involved a penny more”.
“On the contrary, if things remain as they are everyone may lose out because the call handlers’ actions could result in fewer and fewer recovery operators and a resultant fall in standards.
“Our fear is that this would not be in the interests of a competitive market which works in the interests of the contract holder, firms involved or the customer.”