More than 1500 folks have misplaced their jobs and there are warnings of a worsening “supply chain crisis” after a refrigerated logistics operator collapsed.
A disagreement has erupted after Scotts Refrigerated Logistics was put into liquidation with receivers unable to discover a purchaser for the foremost firm.
The Transport Workers Union has known as out ALDI for what it says is the grocery store big’s half in Scotts RL’s downfall by “profiting off the razor-thin margins of operators”.
“There will be 1500 devastated families today as workers stare down the direct consequences of wealthy companies like ALDI squeezing the life out of transport contracts,” TWU nationwide secretary Michael Kaine mentioned.
“Scott’s Refrigerated Logistics is a major casualty of an industry-wide crisis that’s pushing operators and drivers to the brink, which will have an enormous impact on our essential grocery supply chains.”
ALDI has strongly rebuked the TWU’s statements, saying it “had hoped the challenges facing Scott’s could have been overcome”.
“Statements made by the TWU with regard to our business results and our supplier relationships are categorically untrue, baseless and damaging,” ALDI Australia mentioned by way of a spokesperson.
“We refute this commentary from the TWU in its entirety.”
The grocery store says it comprised solely three per cent of Scott’s business.
Receivers KordaMentha had mentioned earlier this week that they anticipated a “high level of interest in this business and its assets, given its significance in the cold chain supply system in Australia”.
However, no purchaser has stepped as much as the plate.
Supermarkets have been left scrambling to minimise the influence to their provide chains, with considerations the shutdown might have an effect on what’s inside their fridges and freezers.
Coles have mentioned they’re “working hard to minimise disruption for customers and our farmers”.
“Our focus remains on continued availability of refrigerated products in stores and online for customers,” a spokesperson mentioned.
“We are working quickly to transition to our other transport partners and are closely monitoring deliveries across our supply chain.”
Woolworths mentioned it was working with impacted suppliers to “maintain continued products to our distribution centres”.
According to the TWU, nearly 200 transport firms have turn out to be bancrupt within the 2021-22 monetary 12 months.
“Scott’s is not the first transport company to be pushed out of the market by profit-hungry clients at the top of supply chains, and it won’t be the last unless we enact reform to ensure those clients are accountable for fair, safe and sustainable transport contracts,” Mr Kaine mentioned.
Source: www.perthnow.com.au
